RBI 2014 with a consolidated net loss of €493 million
Vienna. 25 March
* Net interest income increased by 1.6% to € 3,789 million for the year (€3,729 million in 2013).
* Operating income decreased by 6.5% to EUR 5355 million (2013: EUR 5729 million).
* General administrative expenses decreased by 9.5% to € 3,024 million (€3,340 million in 2013).
* Net credit risk reserves increased by 49.3% to EUR 1,716 million (2013: EUR 1,149 million).
· Profit before tax decreased by 97.3% to € 23 million (2013: € 835 million).
* Losses after tax amount to EUR 463 million (profit after tax in 2013 - EUR 603 million).
* Consolidated loss amounted to EUR 493 million (consolidated profit for 2013 - EUR 557 million).
* The share of non-performing loans increased by 0.6 percentage points to 11.3% compared to the end of 2013).
* The base capital of the first level (transition) increased by 0.2 percentage points to 10.9%.
· Earnings per share of minus € 1.73 (2013: € 1.83).
All data are presented in accordance with international financial reporting standards (IFRS).
After a difficult year, RBI group completed the reporting year with a profit before tax of EUR 23 million. Despite currency instability and geopolitical tensions, the operating result of € 2,332 million was slightly lower than the previous year, down 2% year-on-year. The reduction in profit before tax by 812 million euros and 23 million euros is explained mainly by the considerable number of events of a disposable nature. For example, legislative changes in Hungary caused a one - time effect-a loss of the Group in the amount of 251 million euros. At the same time, there was a need for 533 million euros of net reserves for credit risks in Ukraine, which is 412 million euros higher than in 2013. It was necessary to revalue goodwill by a total of 306 million euros in The group's banks in Russia and Poland as a result of lower expectations of medium-term revenues, as well as in Albania through a change in the discount rate. The Group's post-tax loss amounted to EUR 463 million, not least through the impairment of deferred tax assets by EUR 196 million as a result of tax planning audits at the Group's Central office and in Asia. Taking into account the share of profit attributable to minority shareholders decreased by 16 million euros to minus 30 million euros, the Group received a consolidated loss of 493 million euros for the year.
Due to the negative result, RBI AG will not pay dividends on shares and participation capital for the 2014 financial year.
Net interest income increased by 2 percent
Operating income decreased by 7% or EUR 373 million to EUR 5355 million year - on-year, while net interest margin improved by 13 basis points to EUR 3.24% due to lower refinancing costs at the Group's Central office.
Net interest income increased by 2%, or 60 million euros, to 3789 million euros in 2014. This was mainly due to the positive development of business in Russia and the Central office of the Group.
General administrative expenses decreased by 9 per cent
General administrative expenses of the Group decreased by 9% or 316 million euros, to 3024 million euros during the reporting year, mainly due to currency instability – the Russian ruble and the Ukrainian hryvnia. In addition, the programmes in the Czech Republic and Poland to reduce costs and the rate of devaluation in the Czech Republic also contributed to the reduction of General administrative costs. The cost-to-income (CIR) ratio improved by 1.8 percentage points to 56.5%.
Net provisions for credit risk increased by 49 percent
Net provisioning for credit risk increased by 49%, or € 567 million, to € 1,716 million in the reporting year. This was mainly due to the situation in Ukraine, which was affected by the depreciation of the hryvnia, a complex overall macroeconomic environment, which led to an increase in net loan risk reserves of 412 million euros to 533 million euros. The state of Affairs in Asia also contributed to this growth – defaults of large corporate clients led to an increase in net reserves to cover credit risks by 215 million euros, to 291 million euros. In contrast, credit risk has improved in most other markets.
The basic capital of the first level (transitional) was 10.9 percent
The excess total coverage ratio was 100.2% compared to 98.5% at the end of 2013 , due to lower overall capital requirements. The risk-based base capital ratio of the first tier (transition) was 10.9% with a total capitalization ratio of 16%.
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Access the online version of the Annual report at the link: http://ar2014.rbinternational.com. The version in German language can be found on http://gb2014.rbinternational.com. On this same webpage you can also order a printed version of the report in English.
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Raiffeisen Bank international AG (RBI) considers Austria, where it is a leading corporate and investment Bank, and Central and Eastern European countries as its home market. In 15 markets in the region, RBI operates a wide network of subsidiary banks . In addition, the Group includes a number of companies that provide other financial services, such as leasing, asset management, acquisitions and acquisitions.
In total, the Bank's 54,700 employees serve 14.8 million customers in 2,900 branches, most of which are located in Central and Eastern Europe.
Raiffeisen Bank international is a fully consolidated subsidiary of Raiffeisen Zentralbank Austria AG (RZB). RZB indirectly owns around 60.7 per cent of the ordinary shares, the remainder of the shares are in free float. RBI's shares are listed on the Vienna stock exchange. RZB is the Central Bank of the largest Austrian Raiffeisen banking Group and serves as the Central office of the entire RZB Group, including RBI.
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]?subject=Press%20release)
