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31.05.10

Raiffeisen International’s consolidated profit rises to € 100 million in the first quarter of 2010



Raiffeisen International:

  • Profit before tax nearly doubles to  166 million
  • Net allocations to provisions for impairment losses decline by 33.8 per cent year-on-year to  295 million (Q1 2009:  445 million)
  • Return on equity before tax improves by 4.3 percentage points year-on-year to 9.6 per cent (Q1 2009: 5.3 per cent)

RZB Group:

  • Consolidated profit nearly quadruples to  292 million (Q1 2009:  76 million)
  • Net allocations to provisions for impairment losses drop by 45.5 per cent year-on-year to  325 million (Q1 2009:  596 million)

Raiffeisen Bank International:

  • Consolidated profit of  332 million on a pro forma basis
  • Return on equity before tax of 16.3 per cent on a pro forma basis

Exchange ratio:

  • Managing boards set the exchange ratio at 30.7 shares of Raiffeisen Bank International for one share of the RZB subholding Cembra
  • Share of Raiffeisen International free float will amount to 21.5 per cent following the transaction
  • Earnings per share (pro forma) of  1.45 following the merger

All figures are based on International Financial Reporting Standards (IFRS).

Raiffeisen International Bank-Holding AG, a member of RZB Group headed by Raiffeisen Zentralbank Osterreich AG (RZB), posted a consolidated profit (after tax and minorities) of 100 million in the first quarter of 2010, which represents an increase of 77.8 per cent compared to the same period a year earlier (Q1 2009:  56 million). The net allocations to provisions for impairment losses, which declined by 33.8 per cent compared to the first quarter of 2009 to reach  295 million (Q1 2009:  445 million), and valuation gains on marketable securities were the main positive influences on Raiffeisen Internationals first-quarter results. Profit before tax rose by 98.8 per cent to  166 million (Q1 2009:  84 million), while profit after tax increased 94.7 per cent to  124 million (Q1 2009:  64 million).

We nearly doubled our profit before tax on a year-on-year basis due to the decline in our net allocations to provisions for impairment losses. Our results reflect the slight economic recovery that is taking place in Central and Eastern Europe. Consequently, our confidence in the regions long-term potential remains unbroken, said Herbert Stepic, CEO of Raiffeisen International.


Return on equity before tax at nearly 10 per cent

While a 20 per cent lower operating result weighed on Raiffeisen Internationals profit and hence on its rates of return, the significantly better situation in respect to provisioning for impairment losses and the positive net income from financial investments brought an improvement of return on equity before tax. At the end of the first three months, it amounted to 9.6 per cent and was thus 4.3 percentage points higher than in the comparable period of 2009 (5.3 per cent).


RZB Group quadruples consolidated profit in first quarter of 2010

The RZB Group headed by Raiffeisen Zentralbank Osterreich AG posted a profit before tax of  374 million in the first quarter of 2010, which corresponds to an increase of 217.4 per cent in comparison to the same quarter a year earlier (Q1 2009:  118 million). The Groups consolidated profit (after tax and minorities) rose by 284.3 per cent to  292 million (Q1 2009:  76 million). This positive development was attributable primarily to valuation gains: the net allocations to provisions for impairment losses declined by 45.5 per cent to  325 million, income from financial investments rose by  203 million to  142 million.

Our pre-tax profit for the first quarter of 2010 is more than three times larger than it had been during the same period a year earlier. This earnings performance is very gratifying, even if the operating business posted some declines. Our strong capital base and sustainable business model provide a solid foundation for a continuously positive development, said Walter Rothensteiner, Chairman of RZBs Board of Management.


Raiffeisen Bank International

Putting together Raiffeisen International and RZB contributed businesses would provide the following pro forma results for Raiffeisen Bank International1:

Raiffeisen Bank International would have posted a profit before tax of  388 million in the first quarter of 2010. The consolidated profit (after tax and minorities) would have amounted to  332 million. Net allocations to provisions for impairment losses would have come in at  325 million.

Raiffeisen Bank Internationals net interest income would have been  833 million. General administrative expenses would have amounted to  714 million, while profit from operating activities would have stood at  602 million. The new bank would have posted a cost/income ratio of 54.3 per cent.

The Tier 1 ratio measured in relation to credit risk would have been11.7 per cent (a rise of 0.4 percentage points in comparison to the end of 2009). The Tier 1 ratio measured in relation to total risk would have amounted to 9.3 per cent (an increase of 0.3 percentage points in comparison to the end of 2009). The core Tier 1 ratio (Tier 1 capital less hybrid capital in relation to total risk) would have been 8.4 per cent (an increase of 0.2 percentage points in comparison to the end of 2009).

The financial report for the first quarter of 2010 for Raiffeisen International is available at

qr012010.ri.co.at

The financial report for the first quarter of 2010 for the RZB Group is available at

www.rzb.at/q1report2010

Raiffeisen Zentralbank Osterreich AG (RZB) is the central institution of the Austrian Raiffeisen Banking Group, the countrys largest banking group. It is a leading corporate and investment bank in Austria and also considers Central and Eastern Europe (CEE) as its home market. RZB is the only Austrian bank with a global network of business units reaching all important finance centres around the globe. It is also present in Asia with branches and representative offices in nine locations.

Via listed subsidiary Raiffeisen International Bank-Holding AG, RZB operates one of the largest banking networks in CEE, covering 17 markets across the region through subsidiary banks, leasing companies and a range of other financial service providers. The groups 56,000 employees service more than 15 million customers through around 3,000 business outlets.

For further information please contact Andreas Ecker-Nakamura (+43-1-71 707-2222, andreas.ecker@rzb.at) or Michael Palzer (+43-1-71 707-2828, michael.palzer@ri.co.at).

www.rzb.at, www.ri.co.at

Survey of key data

Raiffeisen International Group

Monetary values in  million 2010 Change 2009
Income statement 1/1-31/3
1/1-31/3
Net interest income 690 (10.1)% 767
Provisioning for impairment losses (295) (33.8)% (445)
Net fee and commission income 282 (3.9)% 294
Net trading income 58 26.4% 46
General administrative expenses (585) 1.9% (574)
Profit before tax 166 98.8% 84
Profit after tax 124 94.7% 64
Consolidated profit (after minorities) 100 77.8% 56
Statement of financial position 31/3
31/12
Loans and advances to banks 9,723 (5.7)% 10,310
Loans and advances to customers 51,230 1.4% 50,515
Deposits from banks 20,132 0.1% 20,110
Deposits from customers 42,553 (0.1)% 42,578
Equity (including minorities and profit) 7,367 5.2% 7,000
Total assets 77,190 1.2% 76,275
Key ratios 1/1-31/3
1/1-31/3
Return on equity before tax 9.6% 4.3 PP 5.3%
Return on equity after tax 7.1% 3.0 PP 4.1%
Consolidated return on equity (after minorities) 6.7% 2.5 PP 4.2%
Cost/income ratio 57.7% 6.0 PP 51.7%
Return on assets before tax 0.87% 0.47 PP 0.40%
Net provisioning ratio (average risk-weighted assets, credit risk) 2.24% (0.77) PP 3.01%
Bank-specific information1 31/3
31/12
Risk-weighted assets (credit risk) 50,584 1.0% 50,090
Total own funds 8,533 2.5% 8,328
Total own funds requirement 5,150 (0.6)% 5,117
Excess cover ratio 65.7% 2.9 PP 62.8%
Core capital ratio (tier 1), credit risk 14.3% 0.2 PP 14.1%
Core capital ratio (tier 1), total 11.2% 0.2 PP 11.0%
Core tier 1 ratio (excl. hybrid capital), total 9.4% 0.2 PP 9.2%
Own funds ratio 13.3% 0.3 PP 13.0%
Stock data 31/3
31/3
Earnings per share in  2 0.55 0.28 0.27
Price in   35.20 66.0% 21.21
High (closing prices) in   42.75 71.0% 25.00
Low (closing prices) in   30.52 134.8% 13.00
Number of shares in million 154.67   154.67
Market capitalization in   million 5,444 66.0% 3,280
Resources 31/3
31/12
Number of employees as of reporting date 56,072 (0.8)% 56,530
Business outlets 2,977 (1.4)% 3,018



1 Calculated according to the Austrian Banking Act (Bankwesengesetz, BWG). Raiffeisen International as part of the RZB-Group is not subject to the Austrian Banking Act.
2 Adjusted for the computational compensation for the participation rights, earnings per share would amount to  0.65.

RZB Group

Monetary values in  million 2010 Change 2009
Income statement 1/1-31/3
1/1-31/3
Net interest income 842 (7.5)% 911*
Provisioning for impairment losses (325) (45.5)% (596)
Net fee and commission income 337 (2.9)% 347
Net trading income 146 (11.4)% 164
General administrative expenses (719) 3.8% (693)
Profit before tax 374 217.4% 118
Profit after tax 342 285.1% 89
Consolidated profit (after minorities) 292 284.3% 76
Earnings per share in  42.3 38.2   4.1
Statement of financial position 31/3
31/12
Loans and advances to banks 33,246 (1.9)% 33,887
Loans and advances to customers 78,404 4.7% 74,855
Deposits from banks 52,414 5.0% 49,917
Deposits from customers 54,698 (1.3)% 55,423
Equity (including minorities and profit) 11,018 6.9% 10,308
Total assets 150,091 1.5% 147,938
Key ratios 1/1-31/3
1/1-31/3
Return on equity before tax 14.3% 8.6 PP 5.7%
Return on equity after tax 13.0% 8.7 PP 4.3%
Consolidated return on equity (after minorities) 14.9% 9.6 PP 5.3%
Cost/income ratio 54.2% 6.9 PP 47.3%
Return on assets before tax 1.00% 0.70 PP 0.30%
Net provisioning ratio (average risk-weighted assets, credit risk) 1.73% (1.01) PP 2.74%
Bank-specific information 31/3
31/12
Risk-weighted assets (credit risk) 75,550 0.7% 74,990
Total own funds 12,581 2.2% 12,308
Total own funds requirement 7,573 0.8% 7,516
Excess cover ratio 66.1% 2.4 PP 63.8%
Core capital ratio (tier 1), credit risk 12.0% 0.2 PP 11.8%
Core capital ratio (tier 1), total 9.6% 0.2 PP 9.4%
Core tier 1 ratio (without hybrid capital), total 8.8% 0.3 PP 8.5%
Own funds ratio 13.3% 0.2 PP 13.1%
Resources 31/3
31/12
Number of employees as of reporting date 59,322 (0.8)% 59,800
Business outlets 2,998 (1.3)% 3,038



1 Due to retrospective reclassification of participation capital into equity, the net interest income was adapted by the interest expense which was formerly shown for the
participation capital in this item.

Ratings Long-term Short-term Financial strength Outlook
Fitch Ratings A F1 Stable
Moodys Investors Service A1 P-1 D+ Stable
Standard & Poors A A-1 Negative



1 No comparison figures can be provided on account of the absence of any values for the first quarter of 2009.
 

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