RBI posts consolidated profit for the year 2015 amounted to 379 million euros

Net interest income decreases 12.2 per cent to € 3,327 million year-on-year (20141 € 3,789 million)

 Operating income decreases 7.9 per cent to € 4,929 million (20141: € 5,350 million)

 General administrative expenses decrease 3.6 per cent to € 2,914 million (20141: € 3,024 million)

 Net provisioning for impairment losses decreases 27.8 per cent to € 1,264 million (20141: € 1,750 million)

 Profit before tax of € 711 million (20141: loss of € 105 million)

 Profit after tax of € 435 million (20141: loss of € 587 million)

 Consolidated profit of € 379 million (20141: loss of € 617 million)

 Non-performing loan ratio increases 0.5 percentage points to 11.9 per cent compared to year-end 20141

 Common equity tier 1 ratio (transitional) increases 1.3 percentage points to 12.1 per cent

 Common equity tier 1 ratio (fully loaded) increases 1.5 percentage points to 11.5 per cent

 Earnings per share of € 1.30 (20141: minus € 2.17)

All figures are based on International Financial Reporting Standards (IFRS).

In 2015, Raiffeisen Bank International AG (RBI) generated a positive profit before tax of € 711 million, after it ended a financial year with a negative consolidated result for the first time in 2014 due to a number of non-recurring effects. Profit after tax was at € 435 million in 2015, while consolidated profit amounted to € 379 million.

With a number of shares of 292.98 million as at 31 December 2015 (previous year: 292.98 million), earnings per share stood at € 1.30.

„A very busy, but also a quite decent year lies behind RBI. We have returned to profitable territory and made good progress in our transformation program. We managed to significantly strengthen our capital ratios and to improve the bank’s risk profile,” said Karl Sevelda, RBI’s CEO.

Restatement of prior year financial results

In 2015, RBI underwent a routine examination by the Austrian Financial Reporting Enforcement Panel. The examination covered RBI’s 2014 consolidated financial statements and its 2015 Semi-Annual Report. The reallocation of charges in the amount of € 124 million led to a revision of the 2014 consolidated loss to € 617 million and consequently these charges are not reflected in the 2015 consolidated financial statements. The total amount of € 124 million consists of two factors: a € 93 million goodwill impairment relating to Raiffeisen Polbank and € 34 million in costs for net provisioning for impairment losses, which also resulted in deferred tax income of € 3 million. The impact of this restatement on the regulatory capital ratios is negligible.

Net interest income decreased 12 per cent

Operating income declined 8 per cent year-on-year, or € 421 million, to € 4,929 million. This was mainly attributable to sharp currency devaluations.

In 2015, net interest income declined 12 per cent, or € 462 million, to € 3,327 million.  In addition to the currency effect, the falling market interest rate level in Central and Southeastern Europe, as well as loan defaults occurring in the previous year in Asia, also had a negative impact on the net interest margin (calculated based on interest-bearing assets), which decreased 23 basis points to 3.00 per cent.

Despite the substantial currency devaluations in Eastern Europe, net fee and commission income declined 4 per cent year-on-year, or € 67 million, to € 1,519 million.

Net trading income improved € 46 million to plus € 16 million, driven by valuation gains on derivatives in Russia.

General administrative expenses fell 4 per cent

The Group’s general administrative expenses fell 4 per cent, or € 110 million, to € 2,914 million during the reporting period, largely attributable to the development of the Russian rouble and Ukrainian hryvnia. The decline was also attributable to the release of bonus provisions totaling € 76 million, following the decision not to pay bonuses for 2014. The cost/income ratio deteriorated 2.6 percentage points to 59.1 per cent due to lower operating income.

Staff expenses, which constituted the largest item within general administrative expenses (48 per cent), declined 4 per cent in the reporting period, or € 60 million, to € 1,389 million.

Net provisioning for impairment losses decrease 28 per cent

Net provisioning for impairment losses declined 28 per cent year-on-year, or € 486 million, to

€ 1,264 million.

The NPL ratio increased 0.5 percentage points to 11.9 per cent during the reporting year. Non-performing loans compared to loan loss provisions amounting to € 5,935 million, resulting in an improved NPL coverage ratio of 71.3 per cent versus 67.5 per cent in the previous year.

Common equity tier 1 ratio (fully loaded) of 11.5 per cent

Total capital under Capital Requirements Regulation (CRR) amounted to € 10,987 million. This corresponds to an increase of € 17 million compared to the 2014 year-end figure.

Based on total risk, the common equity tier 1 ratio (transitional) was 12.1 per cent, with a total capital ratio (transitional) of 17.4 per cent.

Excluding the transitional provisions as defined in the CRR, the common equity tier 1 ratio (fully loaded) stood at 11.5 per cent and the total capital ratio (fully loaded) was 16.8 per cent.

Comparison of results with the previous quarter

Compared to the third quarter of 2015, net interest income rose 2 per cent, or € 18 million, to € 832 million in the fourth quarter.

Net fee and commission income was up 2 per cent, or € 6 million, to € 390 million compared to the third quarter.

Net trading income improved € 43 million quarter-on-quarter to € 29 million.

General administrative expenses amounted to € 813 million in the fourth quarter of 2015 – 14 per cent, or € 100 million, above the previous quarter’s level of € 713 million.

Compared to the third quarter, net provisioning for impairment losses rose € 278 million to € 469 million. This was attributable to developments in the corporate customer business, notably in Asia (increase of € 174 million) and at Group head office (increase of € 35 million).

The consolidated loss in the fourth quarter was € 83 million, which is a decrease of € 268 million compared to the third quarter 2015, when RBI posted a consolidated profit of € 186 million.

Outlook

RBI targets a CET1 ratio (fully loaded) of at least 12 per cent and a total capital ratio (fully loaded) of at least 16 per cent by the end of 2017.

After the implementation of the strategic measures defined at the beginning of 2015, the cost base should be approximately 20 per cent below the level of 2014 (general administrative expenses 2014: € 3,024 million).

RBI aims for a return on equity before tax of approximately 14 per cent and a consolidated return on equity of approximately 11 per cent in the medium term.

The bank further aims to achieve a cost/income ratio of between 50 and 55 per cent in the medium term.

RBI expects net provisioning for impairment losses for 2016 to be below the level of 2015 (€ 1,264 million).

General administrative expenses for 2016 should be slightly below the level of the previous year (2015: € 2,914 million).

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You can access the online version of the annual report at http://ar2015.rbinternational.com. The German version is available under http://gb2015.rbinternational.com. A printed version can also be ordered via this webpage.

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Raiffeisen Bank International AG (RBI) regards Austria, where it is a leading corporate and investment bank, as well as Central and Eastern Europe (CEE) as its home market. 15 markets of the region are covered by subsidiary banks. Additionally, the Group comprises numerous other financial service providers, for instance in the fields of leasing, asset management, as well as mergers and acquisitions.

In total, almost 51,500 employees service 14.9 million customers through approximately 2,700 business outlets, the great majority of which are located in CEE.

RBI is a fully-consolidated subsidiary of Raiffeisen Zentralbank Österreich AG (RZB). RZB indirectly owns around 60.7 per cent of the shares, 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:

Ingrid Krenn-Ditz (+43-1-71 707-6055, [email protected]) or

Christof Danz (+43-1-71 707-1930, [email protected])

http://www.rbinternational.com, http://www.rzb.at

12014 figures restated (please refer to the paragraph: Restatement of prior year financial results for details)