The preliminary results for the financial year 2011, which are based on unaudited figures, present a positive picture for Raiffeisen Bank International AG (RBI) in a demanding environment. With net interest income that was nearly 2.5 per cent higher and stable net fee and commission income, RBI generated a profit before tax of € 1,373 million in 2011, around 7 per cent higher than in 2010.
"Our sustainably high earning power is based on our broadly diversified business model, with its clear focus on Central and Eastern Europe, which will continue to be Europe's growth region in the future," said Herbert Stepic, CEO of RBI. "On account of our traditionally low level of engagement in the eurozone's peripheral countries, our results were not directly impacted by the developments in these markets. Thanks to the very good performance achieved by some of our subsidiary banks, we were able to more than mitigate the poor business development of our bank in Hungary. The quality of our risk policies is underlined by the more than 10 per cent decline in net provisioning for impairment losses," Stepic added.
One special item developed in the course of the bank's routinely conducted impairment tests. As RBI's management already indicated at the results presentation for the third quarter at the end of November 2011, a goodwill impairment of € 183 million was made on the investment in the bank in Ukraine. An additional special item is included in “Net income from derivatives and designated liabilities”: the mark-to-market appraisal of some of RBI’s own issues, which has been taking place since the end of 2007 (the so-called Fair Value Option) contributed, in particular in the fourth quarter of 2011, to a higher valuation gain due to the extended credit spread, caused by developments in the capital markets. Net valuations of derivatives related to a macro hedge have also shown positive development due to the flatter interest rate curve in the year’s last quarter.
The consolidated profit (after minorities) amounted to € 968 million and was thus ca. 11 per cent below the comparable figure for 2010. This was attributable to the contrary development that occurred with regard to deferred taxes, which in 2010 had led to a disproportionately low tax burden on account of special items.
The volume of customer loans grew by nearly 8 per cent to € 82 billion, reflecting increased demand in the first months of the past year. The development of deposits from customers was particularly gratifying, rising by more than 15 per cent to € 67 billion. "These increased volumes show that we have played an important role in extending loans to the economies in Austria and Central and Eastern Europe and provide proof that depositors focus on trust during times of crisis. Raiffeisen remains the leading brand in the region," Stepic concluded.
Total assets rose by approximately 12 per cent to nearly € 147 billion.
The Core Tier 1 Ratio amounted to 9.3 per cent at year end 2011. This figure includes profits for 2011 after deduction of the dividend on participation capital, however before dividend for ordinary shares.
|Income statement in EUR million||1-12/2011||1-12/2010|
|Net interest income||3,667||3,578|
|Net provisioning for impairment losses||(1,064)||(1,194)|
|Net fee and commission income||1,490||1,491|
|Net trading income||363||328|
|Net income from derivatives and designated liabilities||413||(84)|
|Net income from financial investments||(141)||137|
|General administrative expenses||(3,120)||(2,980)|
|Other net operating income||(232)||6|
|Profit before tax||1,373||1,287|
|Profit after tax||974||1,177|
|Consolidated profit (after minorities)||968||1,087|
|Statement of financial position in EUR billion||31/12/2011||31/12/2010|
|Loans and advances to customers||82||76|
|Deposits from customers||67||58|
On 29 March 2012, RBI will be presenting the Annual Report 2011 as well as further details on the 2011 business year.
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, around 60,000 employees service about 13.7 million customers through around 2,900 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 head office of the entire RZB Group, including RBI.