RBI has increased the ratio of basic tier 1 capital (transition) - 12.5%
Vienna. August 18th
Net interest income decreased by 13.4%, to EUR 1,455 million annually (in the first half of 2015 this figure was EUR 1,681 million)
Operating income decreased by 6.5% to EUR 2 284 million (EUR 2,444 million in the first half of 2015)
Net provisions for impairment losses declined by 33.3% to EUR 403 million (EUR 604 million in the first half of 2015)
Profit before tax decreased by 1.1% to 450 million euros (in the first half of 2015 - 455 million euros)
Profit after tax decreased by 14.8% to 268 million euros (in the first half of 2015 - 314 million euros)
Consolidated profit decreased by 23.8% to EUR 210 million (in the first half of 2015 - EUR 276 million)
The coefficient of non-working loans has improved by 1.5 pp. compared with the end of 2015 and amounted to 10.4%
The ratio of basic capital 1 level (transitional) compared to the end of last year increased by 0.4 pp. up to 12.5%
The ratio of basic capital of level 1 (total) compared to the end of last year increased by 0.7 pp. to 12.2%
The yield on 1 share decreased by 23.8% to 0.72 euros (in the first half of 2015 this figure was 0.94 euros)
All calculations are based on International Financial Reporting Standards (IFRS)
"In the first half of 2016, we continued to successfully work on the implementation of the transformation program. This significantly affected the equity ratios, which we have substantially increased since the beginning of the year. Improving equity will continue to be our top priority, "said Carl Sevelda, Chairman of the Board of Raiffeisen Bank International AG (RBI).
In the first half of 2016, the RBI Group received a profit before tax of 450 million euros, thus, this figure dropped by 1% year-on-year. The profit after tax in the year decreased by 15%, to 268 million euros, while consolidated profit decreased by 24% to 210 million euros.
"The low interest rates on the market and the reduction of our loan portfolio remain a negative influence on the income. However, it's nice that the results of retail business even exceeded our expectations, despite difficult market conditions, "said Mr. Sevelda.
Net interest income decreased by 13%
Operating income decreased by 7%, or by 160 million euros in annual terms and amounted to 2,284 million euros.
In the first half of 2016, net interest income fell by 13% or 226 million euros, to 1,455 million euros. This was mainly due to the fact that interest rates in the many countries of the Group's presence remain low and to excess liquidity and a reduction in interest income of EUR 104 million, in particular in Russia, from hedging transactions with derivative financial instruments that were under influenced by market fluctuations in the first half of 2016. Another factor behind the decline in net interest income was the reduction of loan portfolios at the head office of the Group and in Asian countries.
Net provision for impairment losses decreased by 33%
Compared to the same period last year, net provisions for impairment losses declined by a total of 33%, ie by 201 million euros, to 403 million euros. This was due to a reduction in reserves for individual loans of EUR 162 million, to EUR 432 million.
"I am very pleased with the change in the level of risk costs, especially in the retail business, where we managed to significantly reduce the amount of net reserves. Also, the volume of non-working loans has significantly decreased, "said Mr. Sevelda.
The ratio of the basic capital of level 1 (transitional) is 12.5%
Taking into account the total amount of risks, the ratio of the basic capital of level 1 (transitional) is 12.5%, and the coefficient of total capital (transitional) - 17.8%.
"Prospects remain unchanged. It is worth noting the steady development of our core markets in Central and Southeast Europe in the first half of the year, which is reflected in the respective figures. In addition, I am convinced that this year we are fully confronted with problems in Asian countries. These two factors, together with a positive tendency towards equity, allow me to look at the future with optimism, "summed up Sevelda.
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Online version of the report - at the link: http://qr022016.rbinternational.com.
Report in German: http://zb022016.rbinternational.com.
You can also order a printed version on this webpage.
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Raiffeisen Bank International AG (RBI) believes Austria, where it is a leading corporate and investment bank, and the countries of Central and Eastern Europe, its home market. In 14 markets in this region, RBI manages a wide network of subsidiary banks. In addition, the Group covers a number of companies that provide other financial services, such as leasing, asset management, acquisition and acquisition.
In total, about 51,000 bank employees are serviced by 14.2 million customers in about 2,600 offices, most of which are located in Central and Eastern Europe.
