Profit before tax rises 3.5 per cent year-on-year to â‚¬ 1,032 million (1-9 2010: â‚¬ 997 million)
Consolidated profit declines by 4.8 per cent to â‚¬ 745 million (1-9 2010: â‚¬ 783 million)
Net trading income increases 13.5 per cent to â‚¬ 293 million (1-9 2010: â‚¬ 258 million)
Net provisioning for impairment losses drops 14.4 per cent to â‚¬ 782 million (1-9 2010: â‚¬ 913 million)
Non-performing loan ratio improves by 0.6 percentage points against year-end 2010 to 8.4 per cent
Coverage ratio improves by 4.2 percentage points against year-end 2010 to 70.5 per cent
Return on equity before tax declines by 0.5 percentage points year-on-year to 13.6 per cent
Cost/income ratio 2.6 percentage points higher year-on-year to 55.8 per cent
Core Tier 1 Ratio (total) declines by 1.0 percentage points against year-end 2010 to 7.9 per cent
Tier 1 ratio (total) falls by 1.0 percentage points against year-end 2010 to 8.7 per cent
Measures to comply with the EBA's capital requirements will yield capital equivalents in the RZB Group of â‚¬ 2.5 billion to â‚¬ 3.6 billion
Slightly changed outlook
The figures in this press release for the first three quarters of 2010 are the comparable figures for the RBI structure after applying the merger retrospectively to 1 January 2010.
Raiffeisen Bank International AG (RBI) posted a consolidated profit (after tax and non-controlling interests) of â‚¬ 745 million for the first nine months of 2011, which represents a slight decline of 4.8 per cent against the same period a year earlier (1-9 2010: â‚¬ 783 million). In contrast, RBI's profit before tax rose by 3.5 per cent to â‚¬ 1,032 million (1-9 2010: â‚¬ 997 million). However, income taxes rose by â‚¬ 128 million to â‚¬ 272 million. This increase was primarily driven by higher earnings in the Group units, but deferred tax expenses on valuation gains increased as well. Only a small proportion of deferred tax assets could be recognized to offset the losses in Hungary. This led to a profit after tax of â‚¬ 760 million, a decrease of 10.9 per cent against the comparable figure for the preceding year (1-9 2010: â‚¬ 853 million). Earnings per share declined by 6 per cent, from â‚¬ 3.25 in the first three quarters of 2010 to â‚¬ 3.06.
""Against the backdrop of a clear deterioration in the economic environment and the continuing crisis involving the eurozone's peripheral states, we managed to post respectable results in the third quarter as well. This development is based on our sustainable business model and our broad diversification with regard to markets, products and customers groups,"" said Herbert Stepic, CEO of RBI.
Operating result down 4 per cent due to bank levies
Despite stable net interest income and a positive trend in net trading as well as fee and commission income, the operating result for the first nine months of 2011 fell by 4 per cent or â‚¬ 84 million to â‚¬ 1,813 million. Reasons for the decrease were the 6 per cent rise in general administrative expenses (particularly as a result of salary adjustments in several markets) and the bank levies in Austria and Hungary totaling â‚¬ 95 million (previous year's comparable period: â‚¬ 31 million).
Net provisioning for impairment losses decline overall, but impacted by Hungary
Although most markets saw a sharp decrease in net provisioning for impairment losses as the market environment improved, in Hungary provisioning had to be doubled year-on-year to â‚¬ 373 million. Nevertheless, provisioning declined by 14 per cent to â‚¬ 782 million across the Group.
Return on equity before tax almost unchanged year-on-year
The return on equity before tax for the first nine months of 2011 remained almost unchanged year-on-year at 13.6 per cent (down 0.5 percentage points). Average equity underlying the return on equity calculation rose by 7 per cent as a result of the addition of retained earnings to â‚¬ 10.1 billion..
General administrative expenses 6 per cent higher
General administrative expenses rose by 6 per cent or â‚¬ 134 million compared with the same period in 2010 to â‚¬ 2,287 million. As a result, the cost/income ratio increased by 2.6 percentage points to 55.8 per cent.
Staff expenses, which were the largest item in general administrative expenses, accounting for 50 per cent, rose by 8 per cent or â‚¬ 84 million year-on-year.
The average number of staff amounted to 60,006, a rise of 963 persons compared with the first nine months of 2010.
Total assets up 13 per cent boosted by liquidity
Total assets grew 13 per cent or â‚¬ 17.2 billion to â‚¬ 148.4 billion in the first nine months of the year, although currency effects reduced total assets by around 1 per cent. The growth in assets reflected higher short-term loans to banks, partly as a result of repo transactions, leading to an increase of â‚¬ 6.8 billion in loans and advances to banks. On the liabilities side, the increase was due mainly to an increase in the volume of deposits from customers by â‚¬ 11.3 billion, the majority of which (â‚¬ 9.4 billion) was attributable to institutional and corporate customers.
Balance sheet equity decreases by 1 per cent
Compared to year-end 2010, the bankâ€™s balance sheet equity (consisting of the consolidated equity, consolidated net profit and non-controlling interests) fell by 1 per cent or â‚¬ 56 million to â‚¬ 10,348 million.
The tier 1 ratio (total risk) fell by 1.0 percentage points to 8.7 per cent, and the core tier 1 ratio by 1.0 percentage points to 7.9 per cent. The own funds ratio was also down, falling by 1.2 percentage points to 12.1 per cent.
Measures to reach the EBA's capital requirements
At the end of October, the European Banking Authority (EBA) stipulated a core tier 1 capital ratio of 9 per cent for the RZB Group, of which RBI is the largest sub-group. The RZB Group must already reach this target by 30 June 2012. According to the guidelines and methodology established by the European Banking Authority (EBA) and based on the RZB Group's figures as per 30 September 2011, the RZB Group expects its additional capital requirement to amount to approximately â‚¬ 2.5 billion. The EBA has not yet published the exact figure. RZB, with the involvement of RBI, has established around 20 work streams -- in three main areas â€“ that will contribute to reaching the target ratio by yielding between â‚¬ 2.5 billion and â‚¬ 3.6 billion. Around four-fifths of the measures for achieving the target ratio are not connected to the reduction of business activities.
Number of business outlets declines slightly
The number of business outlets as of 30 September 2011 was 2,933, a decrease of 31 compared to the prior-year period. The largest reductions were in Ukraine (minus 16), Serbia (minus 13), Russia (minus 10) and Poland (minus 9). By contrast, there were increases in the Czech Republic (plus 18) and Romania (plus 2). The customer base stood at around 13.7 million as per the end of the third quarter of 2011.
Consolidated profit in third quarter amounts to â‚¬ 130 million
In the third quarter of 2011, RBI posted net interest income after provisioning of â‚¬ 566 million, which represents a decline of 8.9 per cent compared to the same quarter a year earlier (Q3 2010: â‚¬ 621 million) and of 19.2 per cent compared to the second quarter of 2011 (Q2 2011: â‚¬ 700 million). The quarter's net provisioning for impairment losses increased markedly to â‚¬ 377 million, of which â‚¬ 258 million were attributable to Hungary alone. Net provisioning for impairment losses was thus â‚¬ 71 million or 23.2 per cent higher than during the same quarter in 2010. The net provisioning for impairment losses in the third quarter of 2011 was also 91.4 per cent higher than it had been during the second quarter of 2011, when it had amounted to â‚¬ 197 million.
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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 Ã–sterreich 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.
For further information please contact Michael Palzer (+43-1-71 707-2828, [email protected]) or Ingrid Krenn-Ditz (+43-1-71 707-6055, [email protected])