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    RBI generates consolidated profit of € 288 million in the first half of 2015

    19.08.2015
     
    • Net interest income decreases 13.9 per cent to € 1,682 million year-on-year (HY/2014: € 1.954 million)
    • Operating income decreases 11.0 per cent to € 2,444 million (HY/2014: € 2,747 million)
    • General administrative expenses decrease 8.6 per cent to € 1,388 million (HY/2014: € 1.519 million)
    • Net provisioning for impairment losses increases 4.3 per cent to € 592 million (HY/2014: € 568 million)
    • Profit before tax decreases 9.8 per cent to € 467 million (HY/2014: € 518 million)
    • Profit after tax decreases 12.2 per cent to € 326 million (HY/2014: € 371 million)
    • Consolidated profit decreases 16.4 per cent to € 288 million (HY/2014: € 344 million)
    • Non-performing loan ratio increases 0.6 percentage points to 11.9 per cent compared to year-end 2014
    • Common equity tier 1 ratio (transitional) increases 0.5 percentage points to 11.4 per cent
    • Common equity tier 1 ratio (fully loaded) increases 0.7 percentage points to 10.7 per cent
    • Earnings per share decrease 20.4 per cent to € 0.98 (HY/2014: € 1.24)

    All figures are based on International Financial Reporting Standards (IFRS).

    In the first half of 2015, Raiffeisen Bank International AG (RBI) generated a profit before tax of € 467 million, which was 10 per cent or € 51 million below the comparable level of the previous year’s period. While the operating result was 14 per cent below the previous year's level due to falling net interest income; higher valuation results from derivatives and lower one-off effects than in the previous year (provision for the Settlement Act in Hungary) resulted in an improvement in profit before tax. Profit after tax fell 12 per cent year-on-year to € 326 million. Consolidated profit for the first half-year was € 288 million, which corresponds to a decline of 16 per cent, or € 57 million.

    „The first half of 2015 was characterized by four factors: the high volatility on the foreign exchange markets, the prolonged environment of low interest rates, the recession in Russia and Ukraine as well as the economic recovery in Central Europe. All in all I am not entirely dissatisfied with our half year results. The significant improvement of our capital ratios is particularly satisfying,” Karl Sevelda, RBI’s CEO explained.

    The average number of shares outstanding in the reporting period was 292.4 million (previous year: 278.5 million). This resulted in earnings per share of € 0.98.

    Net interest income decreased 14 per cent

    Operating income declined 11 per cent year-on-year, or € 303 million, to € 2,444 million. This was primarily attributable to strong currency fluctuations (notably in the Russian rouble and Ukrainian hryvnia). In the first six months of 2015, net interest income fell 14 per cent, or € 272 million, to € 1,682 million year-on-year. Aside from being attributable to a reduced net interest margin, this was also due to currency-related declines in net interest income in Ukraine (down € 65 million) and Russia (down € 50 million), as well as to loan defaults in Asia (down € 29 million). In addition, net interest income declined € 34 million in Poland due to the continuing low market interest rates.

    General administrative expenses fell 9 per cent

    Compared to the same period last year, general administrative expenses declined € 131 million to € 1,388 million. The cost/income ratio nevertheless increased 1.5 percentage points to 56.8 per cent, particularly due to the reduced net interest income.

    Net provisioning for impairment losses rose 4 per cent

    Compared to the same period last year, net provisioning for impairment losses rose by a total of 4 per cent, or € 24 million, to € 592 million. This was predominantly due to a € 28 million increase in individual loan loss provisioning to € 583 million, while portfolio-based provisioning fell € 3 million to € 12 million.

    Common equity tier 1 ratio (fully loaded) of 10.7 per cent

    Excluding the transitional provisions as defined within the CRR, the common equity tier 1 ratio (fully loaded) amounted to 10.7 per cent (including half-year results).

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