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Public relations section
All figures are based on International Financial Reporting Standards (IFRS).
In 2017, Raiffeisen Bank International AG (RBI) generated a consolidated profit of € 1,116 million.
“We are very satisfied with the past financial year. We have achieved one of the best results in our company's history and at the same time successfully completed important projects such as the merger with RZB,” said Johann Strobl, CEO of RBI.
Therefore, it will be proposed that the Annual General Meeting approve a dividend of € 0.62 per share. This would correspond to a maximum dividend payout of € 204 million and a payout ratio of 18 per cent.
“We are pleased to be able to pay dividends again and propose a dividend of 62 cents per share for 2017. We aim to achieve a payout ratio of between 20 and 50 per cent,” Strobl said.
Net interest income remained largely stable, with a slight increase of € 11 million to € 3,208 million.
A rise in net interest income in Russia (up € 84 million), primarily attributable to currency effects and margins, was offset by a decline in interest income in other markets as a result of the continuing low level of interest rates.
Despite effects from currency appreciation, the Group’s general administrative expenses fell 1 per cent year-on-year, or € 37 million, to € 3,104 million. In particular, the average exchange rate of the Russian rouble appreciated 12 per cent year-on-year. The cost/income ratio improved 2.1 percentage points to 59.4 per cent also due to higher operating income.
Net provisioning for impairment losses significantly down
Net provisioning for impairment losses declined 62 per cent overall year-on-year, or € 471 million, to € 287 million.
The NPL ratio declined 3.0 percentage points year-on-year to 5.7 per cent.
Based on total risk, the common equity tier 1 ratio (transitional) was 12.9 per cent, with a total capital ratio (transitional) of 17.9 per cent.
“We have a lot of plans for this year, too. We want to grow in selected countries and continue RBI‘s digital transformation. Last year, we launched Elevator Lab, the largest Fintech Accelerator program in CEE. In May, we will start the second round,“ Strobl said.
RBI will pursue loan growth with an average yearly percentage increase in the mid-single digit area.
Following very low risk costs in 2017 (€ 287 million), the bank expects impairment losses on financial assets in 2018 to be above the 2017 level.
RBI anticipates that the NPL ratio will further reduce in the medium term.
The bank aims to achieve a cost/income ratio of below 55 per cent in the medium term.
RBI targets a consolidated return on equity of approximately 11 per cent in the medium term.
The bank targets a CET1 ratio (fully loaded) of around 13 per cent post dividend in the medium term.
Based on this target, RBI intends to distribute between 20 and 50 per cent (dividend payout ratio) of the consolidated profit.
The targets in this outlook include the impact from IFRS 9 and FINREP.
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You can access the online version of the annual report at http://ar2017.rbinternational.com. The German version is available at http://gb2017.rbinternational.com. Printed versions can be ordered here.
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Raiffeisen Bank International AG (RBI) regards Austria, where it is a leading corporate and investment bank, as well as Central and Eastern Europe (CEE) as its home market. 14 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.
In total, nearly 50,000 employees service 16.5 million customers through more than 2,400 business outlets, the majority thereof in CEE. RBI's shares are listed on the Vienna Stock Exchange. The Regional Raiffeisen Banks own around 58.8 per cent of the shares, the remainder is in free float. Within the Raiffeisen Banking Group, RBI is the central institute of the Regional Raiffeisen Banks and other affiliated credit institutions and renders important services in this function.
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