RBI: Publication of FY 2019 results and change in outlook
Raiffeisen Bank International AG (RBI) has revised its outlook due to the changed circumstances affecting the daily environment and the global economy as a result of the measures being taken to limit the spread of COVID-19. The associated constraints are likely to result in a severe recession in the Euro area (assumed -4% GDP in 2020) with negative repercussions for RBI’s markets (assumed up to -6% GDP in 2020):
- RBI is reducing its loan growth expectations for 2020.
- The provisioning ratio for FY 2020 is currently expected to rise to between 50 and 75 basis points, depending on the length and severity of disruption.
- RBI aims to achieve a cost/income ratio of around 55 per cent in the medium term and is evaluating how the current circumstances will impact the ratio in 2021.
- In the medium term RBI targets a consolidated return on equity of approximately 11 per cent, but is still evaluating the impact of the current environment on profitability in 2020.
- RBI confirms our CET1 ratio target of around 13 per cent.
- Based on this target RBI intends to distribute between 20 and 50 per cent of consolidated profit.
RBI has also published its 2019 annual report, which can be found online at http://ar2019.rbinternational.com. This does not contain the revised outlook. There were no material changes to the key figures compared to the preliminary numbers published on
6 February 2020:
| Monetary values in EUR million | 2019 | 2018 | change | 2019 | 2019 |
| Income statement | 1-12 | 1-12 | | Q4 | Q3 |
| Net interest income | 3,412 | 3,362 | 1.5% | 881 | 866 |
| Net fee and commission income | 1,797 | 1,791 | 0.3% | 489 | 468 |
| General administrative expenses | (3,093) | (3,048) | 1.5% | (848) | (748) |
| Operating result | 2,382 | 2,330 | 2.3% | 794 | 580 |
| Impairment losses on financial assets | (234) | (166) | 41.2% | (154) | (68) |
| Profit/loss before tax | 1,767 | 1,753 | 0.8% | 468 | 465 |
| Profit/loss after tax | 1,365 | 1,398 | (2.4)% | 380 | 341 |
| Consolidated profit/loss | 1,227 | 1,270 | (3.4)% | 353 | 303 |
| Statement of financial position | 31/12 | 31/12 | | 31/12 | 30/9 |
| Loans to banks | 9,435 | 9,998 | (5.6)% | 9,435 | 9,060 |
| Loans to customers | 91,204 | 80,866 | 12.8% | 91,204 | 92,574 |
| Deposits from banks | 23,607 | 23,980 | (1.6)% | 23,607 | 27,545 |
| Deposits from customers | 96,214 | 87,038 | 10.5% | 96,214 | 90,701 |
| Equity | 13,765 | 12,413 | 10.9% | 13,765 | 13,344 |
| Total assets | 152,200 | 140,115 | 8.6% | 152,200 | 150,805 |
| 2019 | 2018 | change | 2019 | 2019 | |
| Key ratios | 1-12 | 1-12 | | Q4 | Q3 |
| Return on equity before tax | 14.2% | 16.3% | (2.1) PP | 15.1% | 15.1% |
| Return on equity after tax | 11.0% | 12.7% | (1.7) PP | 12.3% | 11.1% |
| Consolidated return on equity | 11.0% | 12.6% | (1.6) PP | 12.8% | 10.9% |
| Cost/income ratio | 56.5% | 56.7% | (0.2) PP | 51.7% | 56.3% |
| Return on assets before tax | 1.18% | 1.33% | (0.15) PP | 1.23% | 1.24% |
| Net interest margin (average interest-bearing assets) | 2.44% | 2.50% | (0.07) PP | 2.47% | 2.46% |
| Provisioning ratio (average loans to customers) | 0.26% | 0.21% | 0.06 PP | 0.65% | 0.32% |
| Earnings per share in EUR | 3.54 | 3.68 | (3.7)% | 1.03 | 0.87 |
| Dividend per share in EUR | 1.00 | 0.93 | 7.5% | - | - |
| Bank-specific information | 31/12 | 31/12 | | 31/12 | 30/9 |
| NPE ratio | 2.1% | 2.6% | (0.5) PP | 2.1% | 2.3% |
| NPE coverage ratio | 61.0% | 58.3% | 2.7 PP | 61.0% | 60.2% |
| Risk-weighted assets (total RWA) | 77,966 | 72,672 | 7.3% | 77,966 | 77,816 |
| Common equity tier 1 ratio (fully loaded) | 13.9% | 13.4% | 0.6 PP | 13.9% | 13.7%* |
| Tier 1 ratio (fully loaded) | 15.4% | 14.9% | 0.5 PP | 15.4% | 14.8% |
| Total capital ratio (fully loaded) | 17.9% | 18.2% | (0.3) PP | 17.9% | 17.4% |
*Including YTD results
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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 16.7 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])
