Moody''s Investors Service, the leading provider of independent creditratings, has raised the financial strength rating (FSR) for RaiffeisenBank S.A., Bucharest, from E+ to D- , as the outlook for the FSR isstable. The bank’s foreign currency deposit rating remains at the Ba2/Not-Prime level with a positive outlook, which is a peak value for Romania.
The FSR upgrade reflects the progress made by Raiffeisen Bank indeveloping its infrastructure and internal systems, as well as itsimproving financial dynamics, says Moody’s. The bank has adopted IT systems and processes common with those used at sister banks operating in Central Eastern Europe (CEE) and benefits from operational support from its parent, Raiffeisen International Bank-Holding AG (Raiffeisen International). It has a good corporate client base and is strongly expanding its personal and mortgage lending.
At year-end 2004, the bank had a balance sheet total of€ 2,085 billion, twice the 2003 year-end figure of € 1,036 million. The bank’s net profit increased more than five times from its 2003 level of € 5.0 million, amounting to € 28.1 million. The bank consolidated its strong position in the Romanian banking market,where it is the third largest bank, and constantly gains market shares. In terms of total assets, it reached a market share of 9.1 per cent (November 2004 - preliminary data), up by 26 per cent as compared to year-end 2003. The market share in loans granted to individualsincreased from 8.1 per cent (December 2003) to 14.3 per cent (November 2004 - preliminary data).
Raiffeisen Bank S.A. was established in 2002 by the merger of BancaAgricola and Raiffeisenbank (Romania). It has issued 850,000 debit andcredit cards and disposes of a network of 205 banking outlets, 680 ATMsand more than 4,900 POS-terminals.
Raiffeisen Bank is 99.44 per cent owned by Raiffeisen International.Raiffeisen International is the steering unit for the RZB Group’s participations in CEE, operating a network of 15 subsidiary banks and 14 leasing companies with more than 920 business outlets in the region. Its network banks rank among the three largest banks in seven CEE markets. Raiffeisen International is a fully consolidated subsidiary of Vienna based Raiffeisen Zentralbank Oesterreich AG (RZB), the central institution of the Raiffeisen Banking Group, Austria''s most powerful banking group. RZB is a leading corporate and investment bank in Austria and considers CEE as its home market.