All figures are based on International Financial Reporting Standards (IFRS).
On the occasion of the publication of its annual report 2012, Raiffeisen Bank International AG (RBI) today confirmed the consolidated profit of ˆ 725 million for the financial year 2012 (previously announced as preliminary figure). «While this result is a quarter below the figure reported for 2011, it once again places us well ahead of all the other banks in Austria. We achieved that in yet another year with a challenging economic environment and despite the significant increase in our core tier 1 ratio as well as the payment of a substantial bank levy,» said Herbert Stepic, CEO of RBI. Profit before tax decreased by 24.9 per cent to ˆ 1,032 million (2011: ˆ 1,373 million), while profit after tax declined by 23.2 per cent to ˆ 748 million (2011: ˆ 974 million). Earnings per share decreased from ˆ 3.95 for 2011 by ˆ 1.25 to ˆ 2.70. The Management Board will propose to the Annual General Meeting in June 2013 that a dividend of ˆ 1.17 per share be paid for 2012. This would result in a total payout of ˆ 228.7 million.
The business year 2012 was influenced by several one-off effects. In the first quarter, the sale of high-quality securities portfolio resulted in a gain of ˆ 163 million. Furthermore, the repurchase of hybrid bonds (hybrid tier 1 capital) resulted in a profit before tax of ˆ 113 million. The fourth quarter, however, was affected by several negative one-off effects. For example, net trading income did not contribute to operating income in the fourth quarter because of IFRS guidelines for the valuation of derivatives (approximately minus ˆ 30 million). The remaining goodwill of Ukrainian Raiffeisen Bank Aval (ˆ 29 million) and smaller goodwill for other associated companies (ˆ 9 million) were written off, as well.
Operating income — excluding impairment of goodwill — declined 6 per cent or ˆ 336 million to ˆ 5,140 million.
Net provisioning for impairment losses declined ˆ 55 million to ˆ 1,009 million in 2012. This decline was attributable to higher releases of portfolio-based loan loss provisions; individual loan loss provisions remained nearly flat year-on-year. The prevailing difficult economic environment especially in the second half of 2012 led to a considerably higher net provisioning, particularly in the fourth quarter. In Hungary, net provisioning for impairment losses decreased by half to ˆ 241 million year-on-year (2011: ˆ 478 million). In Poland, however, net provisioning for impairment losses increased ˆ 69 million to ˆ 127 million. There was a higher need for provisioning mainly related to corporate customers at Group head office, in Slovakia and in Romania.
The NPL ratio — i.e. the ratio of non-performing loans to total customer loans — amounted to 9.8 per cent, following 8.6 per cent in the previous year.
General administrative expenses rose 4.6 per cent or ˆ 143 million to ˆ 3,264 million year-on-year. This increase was mainly caused by the consolidation and integration of Polbank.
The cost/income ratio amounted to 63.5 per cent (2011: 57.0 per cent).
Staff expenses, the largest component in administrative expenses at 49 per cent, rose 4 per cent or ˆ 67 million year-on-year, reaching ˆ 1,606 million.
The average number of RBI Group staff (full-time equivalents) rose 1 per cent or 903 employees year-on-year to 60,924. The headcount increased in Poland (up 2,929) due to Polbank integration and in Slovakia (up 47). The largest reductions occurred in Ukraine
(down 753), Russia (down 448), Romania (down 323) and Hungary (down 282).
As of 31 December 2012, RBI had 60,084 employees (fulltime equivalents), 823 people or 1 per cent more than at the end of 2011.
Total assets declined 7 per cent or ˆ 10.9 billion to ˆ 136.1 billion year-on-year, with currency effects having only a marginal impact. Although the consolidation of Polbank resulted in an increase of ˆ 6.2 billion, adjustments of the structure in the statement of financial position in compliance with stricter requirements of the European Banking Authority reduced total assets.
Loans and advances to customers increased 2 per cent as a result of the Polbank consolidation. Despite the impact from Polbank, deposits from customers remained unchanged year-on-year due to a decline in deposits from corporate customers (particularly in the repo business).
The loan/deposit ratio (loans and advances to customers in relation to deposits from customers) increased by 4 percentage points compared with year-end 2011 to 126 per cent.
The number of business outlets increased by 178 to 3,106 compared to year-end 2011. Poland recorded an increase of 300 business outlets; Ukraine (down 84), Romania (down 24) and Hungary (down 9) posted the largest declines. In total, RBI serviced around 14.2 million customers as per year-end 2012.
You can access the online version of the annual report at http://ar2012.rbinternational.com. The German version is available under http://gb2012.rbinternational.com. A printed English version can also be ordered via that webpage.
Raiffeisen Bank International AG (RBI) regards both Austria, where it is a leading commercial and investment bank, as well as 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 additional geographical area of focus.
In total, around 60,000 employees service about 14.2 million customers through around 3,100 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.
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