Raiffeisen Bank International:
All figures are based on International Financial Reporting Standards (IFRS).
Raiffeisen Bank International AG (RBI) officially launched its business activities on 11 October — and thus after the end of the third quarter. For this reason, the financial results provided for RBI remain on a pro forma basis, despite the fact that the founding of the new bank is retroactively effective as of 1 January 2010. RBI would have posted the following results (on a pro forma basis) for the first three quarters of 2010:
RBI’s nine-month profit before tax would have stood at ˆ 997 million, while its consolidated profit (after tax and minorities) would have amounted to ˆ 783 million. The bank’s provisioning for impairment losses would have been ˆ 913 million during the period.
«Our results for the first three quarters reflect the friendlier overall macro-economic environment, but also underline the vigour that our new organisational set-up provides us. This strengthens my conviction, that the merger we undertook allows us to make optimal use of the economic upswing that is starting to take place — this will benefit our customers and is also in our investors’ interest,» said Herbert Stepic, CEO of Raiffeisen Bank International.
RBI would have posted a net interest income of ˆ 2,707 million. The bank’s general administrative expenses would have amounted to ˆ 2,153 million, while its operating result would have been ˆ 1,897 million. RBI’s cost/income ratio would have come to 53.2 per cent.
The bank’s total assets would have stood at ˆ 143.1 billion as per 30 September 2010, which would have represented a decline of 1.8 per cent since the end of 2009 (31 December 2009: ˆ 145.6 billion).
RBI’s return on equity before tax would have come to 14.1 per cent.
The bank’s core capital ratio (tier 1), credit risk would have stood at 12.2 per cent (up 0.4 percentage points against the end of 2009), its core capital ratio (tier 1), total would have come in at 9.7 per cent (up 0.3 percentage points against the end of 2009). RBI’s core tier 1 ratio (core Tier 1 capital less hybrid capital based on total risk) would have been 8.8 per cent (up 0.3 percentage points against the end of 2009).
«We are comfortably capitalised. If the profit we generated over the first nine months were to be included, then our core tier 1 ratio would have stood at 9.7 per cent,» CFO Martin Grull said, commenting on current developments.
As per 30 September 2010, RBI would have had 59,339 employees servicing around 15 million customers through 2,964 business outlets.
Raiffeisen Bank International would have posted a consolidated profit of ˆ 311 million for the third quarter of 2010, which would have represents an increase of 125 per cent against the second quarter of 2010. The main driver for this increase came from valuation results for financial investments and derivatives.
The bank’s third-quarter operating result would have come in at ˆ 636 million, a slight decrease of 1 per cent compared to the preceding quarter.
RBI’s net interest income after provisioning in the third quarter of 2010 would have been ˆ 621 million, which would have represented an increase of 1 per cent against the second quarter.
The third quarter’s provisioning for impairment losses would have amounted to ˆ 306 million; which would have represented a rise of 8 per cent against the preceding quarter.
«Our non-performing loan (NPL) ratio stood at 8.8 per cent at the end of September. This quarter-on-quarter increase of 0.3 percentage points was largely attributable to developments in Central Europe — above all in Hungary and the Czech Republic. We assume that NPL volumes have already reached a peak in some countries, but that we will only reach that peak at the Group level during the course of next year. At the moment, it’s not possible to tell whether that development will take place at the middle of the year or only in the second half of 2011,» said Johann Strobl, Chief Risk Officer for RBI as well as for the RZB Group.
For the first three quarters of 2010, Raiffeisen International Bank-Holding AG posted a consolidated profit (after tax and minorities) of ˆ 318 million, which represents an increase of 104.5 per cent compared to the same period a year earlier (1-9/2009: ˆ 156 million). This development was supported by a quarterly profit of ˆ 148 million, the highest since the outbreak of the financial and economic crisis. The period’s earnings were also positively impacted by the 38.7 per cent year-on-year decline in provisioning for impairment losses, which amounted to ˆ 837 million during the first three quarters of 2010 (1-9/2009: ˆ 1,365 million). Raiffeisen International’s profit before tax rose by 82.6 per cent to ˆ 524 million (1-9/2009: ˆ 287 million), while its profit after tax increased by 78.5 per cent to ˆ 385 million (1-9/2009: ˆ 216 million).
The Raiffeisen International Third Quarter Report is available at: qr032010.ri.co.at
Raiffeisen Bank International AG (RBI) regards both Austria, where it is a leading corporate and investment bank, and Central and Eastern Europe (CEE) as its home market. In CEE, RBI operates an extensive network of subsidiary banks, leasing companies and a range of other specialised financial service providers in 17 markets.
RBI is the only Austrian bank with a presence in both the world’s financial centres and in Asia, the group’s further geographical area of focus.
In total, more than 59,000 RBI employees service about 15 million customers through around 3,000 business outlets, the great majority of which are located in CEE.
RBI is a fully-consolidated subsidiary of Raiffeisen Zentralbank Osterreich AG (RZB). RZB indirectly owns around 78.5 per cent of the common stock, the remainder is in free float. RBI’s shares are listed on the Vienna Stock Exchange. RZB is the central institution of the Austrian Raiffeisen Banking Group, the country’s largest banking group, and serves as the group head office of the entire RZB Group, including RBI.