RBI posts consolidated profit for Q1 2017 is 220 million euros

Vein. May 17

· Net interest income increased by 4.7% to € 796 million year on year (indicative figure for the first quarter of 2016: € 761 million)

· Income from operating activities increased by 9% and amounted to 1,298 million euros (estimated figure for the first quarter of 2016: 1,193 million euros)

· Total expenses increased by 4.4% to € 815 million (estimated for the first quarter of 2016: € 781 million)

· Net provisions for impairment losses decreased by 24.1% to € 80 million (indicative of the first quarter of 2016: € 105 million)

· Profit before tax increased by 42.5% to 330 million euros (estimated for the first quarter of 2016: 231 million euros)

· Profit after tax increased by 86.1% and amounts to 255 million euros (indicative figure for the first quarter of 2016: 137 million euros)

· Consolidated profit increased by 98.5% and amounted to 220 million euros (indicative figure for the first quarter of 2016: 111 million euros)

· The non-performing loans ratio decreased by 0.3 to 8.3% compared with the corresponding figure at the end of 2016 (approximate)

· The ratio of basic capital 1 level (transitional) decreased by 0.2 percentage points up to 12.4% compared with the end of last year (approximate)

· The ratio of basic capital of level 1 (full) decreased by 0.2 percentage points up to 12.2% compared with the corresponding figure at the end of 2016 (approximate)

· Yield per share was 0.67 euros (estimated for the first quarter of 2016: 0.34 euros)

All calculations were carried out according to International Financial Reporting Standards (IFRS).

As of January 2017, the RZB business indicators were fully taken into account. The current RBI figures refer to the merged bank, unless otherwise indicated, historical indicative figures are given for the merged bank (in connection with the merger).

In the first quarter of 2017, the consolidated profit of Raiffeisen Bank International AG (RBI) amounted to 220 million euros.

“We are very pleased with the situation at the beginning of the 2017 fiscal year. We see very positive economic dynamics in almost all of our markets and we want to use these dynamics for selective growth, ”said Johann Strobl, Chairman of the Board of the RBI.

For the first three months of 2017, net interest income increased by 5% or by 35 million euros and amounted to 796 million euros. This was primarily due to the increase in net interest income in Russia, linked to the currency, to 31 million euros.

“Net interest income is very important for a bank that is focused on establishing close relationships with customers, which is RBI. Therefore, I am very pleased with the subsequent stabilization of the net interest margin of our bank in the first quarter, ”said Mr. Strobl.

Compared to the same period last year, general administrative expenses increased by 34 million euros to 815 million euros, mainly due to the exchange rate. The cost / income ratio improved by 2.6 percentage points. to 62.8%, primarily due to an increase in operating income.

The total capital ratio (full) is 16.8%

Taking into account the total amount of risks, the ratio of basic capital of level 1 (transitional) was 12.4%, and the ratio of total capital (transitional) - 17.0%.

With the exception of transitional reserves, according to the definition of the Regulation on Capital Requirements (CRR), the ratio of basic capital 1 level (full) was 12.2%, and the ratio of total capital (full) - 16.8%.

Given the net income for the first quarter of 2017, each of the capital ratios will increase by 0.4 percentage points.

Net provisions for impairment losses decreased by 24%

Net reserves for impairment losses decreased by 24% or by 25 million euros compared with the previous year and amounted to 80 million euros.

The non-performing loans ratio decreased by 0.3 percentage points. and amounted to 8.3% compared with the corresponding figure at the end of 2016. Non-performing loans compared with reserves for losses from loans in the amount of 5,042 million euros resulted in a non-performing loan coverage ratio of 74.0% compared to 75.2% at the end of last year.

“The dynamics of risk spending remains very positive. However, it is necessary to take into account that due to seasonal factors, the costs for risks in the first quarter are always relatively low, ”Strobl explained.

Comparison of results with the previous quarter

Compared to the fourth quarter of 2016, net interest income in the first quarter of 2017 decreased by 7% or by 61 million euros and amounted to 796 million euros.

In the first quarter of 2017, general administrative expenses decreased by 4% or by 33 million euros compared to the previous quarter and amounted to 815 million euros.

Compared to the previous quarter, net reserves for impairment losses decreased by € 177 million to € 80 million.

Consolidated profit increased by 134 million euros compared with the fourth quarter of 2016 and amounted to 220 million euros in the first quarter of 2017.

 

Perspectives

RBI aims to achieve the ratio of basic capital 1 level CET1 (full) at about 13% in the medium term.

After stabilization of lending volumes, RBI plans to resume growth on average by a few percent per year. In accordance with the expectations of the RBI, the net reserves for impairment losses for 2017 should be lower than in 2016 (758 million euros).

The bank expects that the non-performing loans ratio by the end of 2017 will be about 8%, and in the medium term, the RBI expects a further decline in this indicator.

RBI also aims to achieve a cost / income ratio of 50-55% in the medium term, therefore, our previous target indicator remains unchanged.

In the medium term, the planned return on capital of the RBI remains unchanged - about 14%, with the planned consolidated return on capital at about 11%.

 

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Access the online version of the quarterly report: http://qr012017.rbinternational.com.

German version of the report: http://zb012017.rbinternational.com.

You can also order a printed version of the report on this web page.

 

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Raiffeisen Bank International AG (RBI) considers Austria, where it is the leading corporate and investment bank, and the countries of Central and Eastern Europe as its home market. In 14 markets in this region, RBI manages a wide network of subsidiary banks. In addition, the Group covers a number of companies that provide other financial services, for example, in the areas of leasing, asset management, acquisitions and acquisitions.

More than 50 thousand employees of the bank serve 16.6 million customers in 2.5 thousand branches, most of which are located in Central and Eastern Europe.

Shares of RBI are listed on the Vienna Stock Exchange. Raiffeisen regional banks own almost 58.8% of the shares. The remaining shares are in free circulation. Within the Raiffeisen Banking Group (RBG), the RBI serves as the central institution of regional banks for Raiffeisen and other affiliated credit institutions and provides essential services within its powers.

For more information, please contact Ingrid Krenn-Ditz (Ingrid Krenn-Ditz, + 43-1-71 707-6055, [email protected]) or Christoph Danz (Christof Danz, + 43- 1-71 707-1930, [email protected])

http://www.rbinternational.com