RBI: Publication of Q1 2020 results and change in outlook
RBI: Publication of Q1 2020 results and change in outlook
Following a relatively strong first quarter operating result, there has also been an improvement in visibility with respect to the economic repercussions of COVID-19 in the markets in which Raiffeisen Bank International AG (RBI) operates. This has enabled a better assessment of the expected future impact on the business and led to an update in the outlook:
• We expect modest loan growth in 2020.
• The provisioning ratio for FY 2020 is currently expected to be around 75 basis points, depending on the length and severity of disruption.
• We aim to achieve a cost/income ratio of around 55 per cent in the medium term and are evaluating how the current circumstances will impact the ratio in 2021.
• In the medium term we target a consolidated return on equity of approximately 11 per cent. As of today, and based on our best estimates, we expect a consolidated return on equity in the mid-single digits for 2020.
• We confirm our CET1 ratio target of around 13 per cent for the medium term.
• Based on this target we intend to distribute between 20 and 50 per cent of consolidated profit.
RBI has also published its First Quarter Report 2020, which can be found online at http://qr012020.rbinternational.com.
Income Statement in EUR million | Q1/2020 | Q1/2020 | Q4/2019 |
Net interest income | 881 | 825 | 881 |
Net fee and commission income | 448 | 402 | 489 |
Net trading income and fair value result | 37 | (52) | 70 |
General administrative expenses | (755) | (724) | (848) |
Other result | (82) | (26) | (151) |
Operating result | 650 | 489 | 794 |
Levies and special governmental measures | (128) | (114) | (21) |
Impairment losses on financial assets | (153) | (9) | (154) |
Profit before tax | 286 | 340 | 468 |
Profit after tax | 207 | 259 | 380 |
Consolidated profit | 177 | 226 | 353 |
Balance Sheet in EUR million | 31/03/2020 | 31/12/2019 |
Loans to customers | 92,198 | 91,204 |
Deposits from customers | 97,084 | 96,214 |
Total assets | 155,596 | 152,200 |
Total risk-weighted assets (RWA) | 78,181 | 77,966 |
Key ratios | 31/03/2020 | 31/12/2019 |
NPE ratio | 2.0% | 2.1% |
NPE coverage ratio | 62.4% | 61.0% |
CET1 ratio (fully loaded, incl. result) | 13.0% | 13.9% |
Total capital ratio (fully loaded, incl. result) | 16.8% | 17.9% |
Key ratios | Q1/2020 | Q1/2019 | Q4/2019 |
Net interest margin (average interest-bearing assets) | 2.43% | 2.43% | 2.47% |
Cost/income ratio | 53.8% | 59.7% | 51.7% |
Provisioning ratio (average loans to customers) | 0.66% | 0.04% | 0.65% |
Consolidated return on equity | 5.6% | 7.9% | 12.8% |
Earnings per share in EUR | 0.49 | 0.64 | 1.03 |
* * * * *
RBI regards Austria, where it is a leading corporate and investment bank, as well as Central and Eastern Europe (CEE) as its home market. 13 markets of the region are covered by subsidiary banks. Additionally, the RBI Group comprises numerous other financial service providers, for instance in leasing, asset management or M&A.
Around 47,000 employees service 16.8 million customers through approx. 2,000 business outlets, the by far largest part thereof in CEE. RBI's shares are listed on the Vienna Stock Exchange. The Austrian Regional Raiffeisen Banks own around 58.8 per cent of the shares, the remainder is in free float. Within the Austrian Raiffeisen Banking Group, RBI is the central institute of the Regional Raiffeisen Banks and other affiliated credit institutions.
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])
