RBI posts consolidated profit for the first three quarters of 2015 of € 378 million

Vein. November 12

•  Net interest income decreased by 13.8 percent to 2 495 million euros compared with the previous year (for the first 9 months of 2014: 2 894 million euros)
•  Operating income decreased by 11.5 percent and amounted to 3,660 million euros (for comparison: for 9 months of 2014 - 4,137 million euros)
•  General administrative expenses decreased by 8.5 percent and amounted to 2,101 million euros (for 9 months of 2014: 2,295 million euros)
•  Net reserves for bad loans decreased by 27.7 percent to 783 million euros (the corresponding figure for 9 months of 2014: 1,083 million euros)
•  Profit before tax increased by 24.3 percent to 624 million euros (for comparison: 502 million euros for 9 months of 2014)
•  Profit after tax increased by 66.6 percent to 432 million euros (259 million euros for 9 months of 2014)
•  Consolidated profit increased by 67.6 percent to 378 million euros (for 9 months of 2014: 225 million euros)
•  The share of bad loans increased by 0.8 percentage points to 12.1 percent compared to the end of 2014
•  The ratio of basic capital І level (transition) increased by 0.5 percentage point to 11.4 percent
•  The coefficient of basic capital І level (total) increased by 0.8 percentage points to 10.8 percent
•  The yield per share increased by 62.0 percent to 1.29 euros (9 months of 2014: 0.80 euros)
• All calculations were performed in accordance with International Financial Reporting Standards (IFRS)

In the first three quarters of 2015, Raiffeisen Bank International AG (RBI) received 624 million euros of profit before tax, which is 24 percent or 122 million euros more compared to the same period last year. Although the result of operating activities remains 15 percent lower than last year due to a reduction in net interest income, a decrease in reserves for bad loans by 28 percent and a decrease in one-time effects compared to last year (for example, the costs of implementing the Hungarian Settlement Law) contributed to increase profits before tax. Profit after tax increased by 67 percent compared with last year and amounted to 432 million euros. Consolidated profit in the reporting period amounted to 378 million euros, an increase of 68 percent or 152 million euros.

The average number of outstanding shares in the reporting period is 292.4 million (for comparison, last year it was 282.7 million). As a result, earnings per share amounted to 1.29 euros.

“During the first nine months, the business developed better than expected, despite the significant negative one-time effects that occurred in the third quarter. The costs of restructuring this year will be lower than expected. Therefore, we have revised our forecasts and expect a small consolidated profit for the whole of 2015. I am particularly pleased with the good results of the countries of Central Europe and the bank network in Russia, which again achieved a high result, despite the difficult economic environment. In Ukraine, we have seen stabilization in recent months. Despite these encouraging changes, we are continuing to work intensively on the implementation of our strategic program, ”said RBI Board Chairman Karl Sevelda.

Net interest income decreased by 14 percent

Operating income decreased by 12 percent or 477 million euros compared with last year and amounted to 3,660 million euros. This is primarily due to the rapid depreciation of currencies (especially the Russian ruble and the Ukrainian hryvnia).

For the first half of 2015 p. net interest income fell by 14 percent or 399 million euros compared with the previous year and amounted to 2,495 million euros. Net interest income decreased by 133 million euros in Russia and by 81 million euros in Ukraine, primarily due to currency effects. Credit defaults in Asian countries caused a decrease in net interest income of 49 million euros. In addition, due to the long-term persistence of low interest rates in the market, net interest income in Poland decreased by 49 million euros. At the central office level, net interest income decreased by 45 million euros, mainly in the form of a decrease in interest income from derivatives.

General administrative expenses decreased by 9 percent.

Compared to the same period last year, general administrative expenses decreased by € 194 million to € 2,101 million. However, the cost / income ratio increased by 1.9 percentage points. to 57.4 percent, mainly due to a decrease in net interest income.

Net provisions for possible losses on loans decreased by 28 percent

Compared to the same period last year, net reserves for possible loan losses decreased by an average of 28 percent or 300 million euros and amounted to 783 million euros. This was mainly due to a decrease in reserves for certain loans by 243 million euros (to 811 million euros).

The ratio of basic capital І level (total) amounted to 10.8 percent

With the exception of transitional