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Public relations section
• Net interest income decreases 12.5 per cent year-on-year to € 718 million (Q1/2015: € 820 million)
• Operating income decreases 1.2 per cent to € 1,104 million (Q1/2015: € 1,118 million)
• General administrative expenses increase 3.9 per cent to € 718 million (Q1/2015: € 691 million)
• Net provisioning for impairment losses decreases 59.5 per cent to € 106 million (Q1/2015: € 260 million)
• Profit before tax increases 22.0 per cent to € 229 million (Q1/2015: € 188 million)
• Profit after tax increases 37.9 per cent to € 138 million (Q1/2015: € 100 million)
• Consolidated profit increases 37.1 per cent to € 114 million (Q1/2015: € 83 million)
• Non-performing loan ratio decreases 0.5 percentage points to 11.4 per cent compared to year-end 2015
• Common equity tier 1 ratio (transitional) decreases 0.1 percentage points to 12.0 per cent compared to year-end
• Common equity tier 1 ratio (fully loaded) of 11.5 per cent unchanged compared to year-end 2015
• Earnings per share increases 36.8 per cent to € 0.39 (Q1/2015: € 0.29)
All figures are based on International Financial Reporting Standards (IFRS).
In the first quarter of 2016 the Raiffeisen Bank International AG Group (RBI) generated a profit before tax of € 229 million, which represents a year-on-year increase of 22 per cent. The profit after tax increased 38 per cent to € 138 million year-on-year, while the consolidated profit increased 37 per cent to € 114 million.
“The result is overall satisfying, as the first quarter continued to be characterized by the ongoing low interest rate environment. A turnaround of the interest rate policy is currently not in sight. The reduction of our cost base is all the more important. Unfortunately, the regulatory costs are increasing year after year. The majority of the regulatory costs for the financial year 2016 have been booked in the first quarter. The positive results in Hungary and Ukraine are especially encouraging. I expect that both countries have made the turnaround and will deliver positive results for the full year 2016”, said Karl Sevelda, RBI’s CEO.
With a number of shares of 292.98 million as at 31 March 2016 (previous year: 292.98 million) earnings per share stood at € 0.39, which represents an increase of 36.8 per cent (Q1/2015: € 0.29).
Net interest income decreased 13 per cent
Operating income was down 1 per cent year-on-year, or € 14 million, to € 1,104 million.
In the first three months of 2016, net interest income fell 13 per cent, or € 102 million, to € 718 million. This was primarily attributable to continuing low market interest rates in many of the Group’s countries and to the existing excess liquidity. A volume-based decline at Group head office and in Asia also contributed to the decline in net interest income.
General administrative expenses increased 4 per cent
Compared to the same period last year, general administrative expenses climbed € 27 million to € 718 million. The cost/income ratio increased 3.2 percentage points to 65.0 per cent, not least due to the lower net interest income.
Net provisioning for impairment losses decreased 59 per cent
Compared to the same period of the previous year, net provisioning for impairment losses fell by a total of 59 per cent, or € 155 million, to € 106 million. This was due to a € 102 million reduction in individual loan loss provisioning to € 117 million.
Common equity tier 1 ratio (fully loaded) of 11.5 per cent
Based on total risk, the common equity tier 1 ratio (transitional) was 12.0 per cent while the total capital ratio (transitional) was 17.2 per cent.