Quarterly Report • May 28, 2013
Quarterly Report
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| Raiffeisen Bank International Group | |||
|---|---|---|---|
| Monetary values in € million | 2013 | Change | 2012 |
| Income statement | 1/1-31/3 | 1/1-31/3 | |
| Net interest income | 865 | (1.2)% | 875 |
| Net provisioning for impairment losses | (220) | 43.7% | (153) |
| Net fee and commission income | 375 | 8.3% | 346 |
| Net trading income | 80 | (2.0)% | 82 |
| General administrative expenses | (788) | 4.6% | (753) |
| Profit before tax | 251 | (63.4)% | 685 |
| Profit after tax | 174 | (69.7)% | 574 |
| Consolidated profit | 157 | (71.0)% | 541 |
| Statement of financial position | 31/3 | 31/12 | |
| Loans and advances to banks | 20,250 | (9.3)% | 22,323 |
| Loans and advances to customers | 82,889 | (0.5)% | 83,343 |
| Deposits from banks | 27,579 | (8.6)% | 30,186 |
| Deposits from customers | 66,853 | 0.8% | 66,297 |
| Equity | 11,061 | 1.7% | 10,873 |
| Total assets | 131,932 | (3.1)% | 136,116 |
| Key ratios | 1/1-31/3 | 1/1-31/3 | |
| Return on equity before tax | 9.2% | (15.9) PP | 25.1% |
| Return on equity after tax | 6.3% | (14.7) PP | 21.0% |
| Consolidated return on equity | 6.1% | (15.9) PP | 22.0% |
| Cost/income ratio | 60.5% | 2.4 PP | 58.2% |
| Return on assets before tax | 0.51% | (1.35) PP | 1.85% |
| Net interest margin (average interest-bearing assets) | 2.89% | 0.23 PP | 2.65% |
| NPL ratio | 9.9% | 1.0 PP | 8.9% |
| Provisioning ratio (average loans and advances to customers) | 1.06% | 0.31 PP | 0.75% |
| Bank-specific information1 | 31/3 | 31/12 | |
| Risk-weighted assets (credit risk) | 69,319 | 1.7% | 68,136 |
| Total own funds | 12,929 | 0.3% | 12,885 |
| Total own funds requirement | 6,699 | 1.1% | 6,626 |
| Excess cover ratio | 93.0% | (1.5) PP | 94.5% |
| Core tier 1 ratio, total | 10.6% | 0.0 PP | 10.7% |
| Tier 1 ratio, credit risk | 13.5% | (0.1) PP | 13.6% |
| Tier 1 ratio, total | 11.2% | 0.0 PP | 11.2% |
| Own funds ratio | 15.4% | (0.1) PP | 15.6% |
| Stock data | 1/1-31/3 | 1/1-31/3 | |
| Earnings per share in € | 0.55 | (78.3)% | 2.52 |
| Closing price in € (31/3) | 26.52 | 0.1% | 26.50 |
| High (closing prices) in € | 33.59 | 15.6% | 29.05 |
| Low (closing prices) in € | 26.30 | 41.1% | 18.64 |
| Number of shares in million (31/3) | 195.51 | – | 195.51 |
| Market capitalization in € million (31/3) | 5,184 | 0.1% | 5,181 |
| Resources | 31/3 | 31/12 | |
| Employees as of reporting date | 59,231 | (1.4)% | 60,084 |
| Business outlets | 3,057 | (1.6)% | 3,106 |
| Customers in million | 14.2 | 0.2% | 14.2 |
1 Calculated according to the Austrian Banking Act (Bankwesengesetz, BWG) for illustrative purposes. RBI as part of the RZB Group is as a group not subject to the Austrian Banking Act.
| RBI in the capital markets4 | |
|---|---|
| Group management report 7 | |
| Market development7 | |
| Earnings, financial and assets position 8 | |
| Comparison of results year-on-year 10 | |
| Comparison of results with the previous quarter 12 | |
| Statement of financial position14 | |
| Risk management16 | |
| Outlook17 | |
| Events after the reporting date17 | |
| Segment reports 18 | |
| Interim consolidated financial statements 44 | |
| Statement of comprehensive income 44 | |
| Statement of financial position47 | |
| Statement of changes in equity48 | |
| Statement of cash flows48 | |
| Segment reporting49 | |
| Notes 54 | |
| Notes to the income statement 56 | |
| Notes to the statement of financial position60 | |
| Additional notes77 | |
| Publication details/Disclaimer 84 |
After ending the year on a positive note, several issues affected international capital markets in the first quarter of 2013. While concerns over economic development in the Eurozone initially prevailed, analysts now project a better economic environment for the second half of 2013. Meanwhile, two issues sparked considerable uncertainty among investors and depositors across Europe. On the one hand, market sentiment was dampened by the the outcome of the parliamentary elections in Italy, whose results hindered the formation of a functioning government for some time. Even after the formation, it remains unclear for the foreseeable future whether and to what extent the course of reforms initiated by the former Italian prime minister will continue. On the other hand, the turmoil surrounding the impending insolvency of Cyprus and the partial bail-in of private individuals' assets to help restructure the state budget have driven home to investors that the European debt crisis is anything but over.
The US stock exchanges recorded significant gains and hit new all-time highs in the first quarter. Similarly, the Eurozone equity markets were only moderately affected by the resurgence of the sovereign debt crisis, broadly trending sideways amid relatively low volatility. Bond markets painted what is by now a familiar picture: Yields on 10-year Italian and Spanish government bonds rose at least temporarily in the wake of discussions surrounding Cyprus, whereas German bond yields dropped further beneath their already low levels. On an encouraging note, banks which had received financial support to cope with the euro debt crisis succeeded in repaying a portion of their borrowings from the European Central Bank (ECB) already in January (the earliest date possible), thus sending a positive signal to the capital markets.
RBI stock lost 15.7 per cent in the first quarter of 2013, recording a sharper drop than the ATX, which slipped 2.0 per cent over the same period. European bank shares generally saw another bout of disproportionately steep losses in the first quarter against the backdrop of the Cyprus crisis. This is also reflected in the performance of the EURO STOXX Banks index, which fell 8.3 per cent.
Having closed the year 2012 at € 31.46, the RBI share reached its highest closing price in the first quarter of 2013 at € 33.59 on 11 January. The stock subsequently lost value, mainly as a result of negative developments in Cyprus as well as of the fourth quarter 2012 results which came in below expectations. On 26 March 2013, the stock reached its lowest closing price of € 26.30 during the reporting period, subsequently closing the quarter slightly higher at € 26.52 on the last trading day. As of the editorial deadline of this report, 24 May 2013, the RBI share traded at € 26.43.
In the first quarter of 2013, RBI once again gave interested investors the opportunity to obtain first-hand information at roadshows in Amsterdam, Brussels, Copenhagen, Frankfurt, Helsinki, Milan, Paris, Stockholm, The Hague, Utrecht and Zurich. In addition to 30 equity analysts, 18 bond analysts regularly report their investment recommendations concerning RBI, meaning that more analyst firms produce regular reports on RBI than on any other company in Austria.
Following the end of the reporting period and to mark the publication of its 2012 annual results, RBI held a presentation for equity and debt investors as well as analysts from Austria on 10 April 2013. Some 100 international analysts and investors participated in the subsequent conference call. On 11 April 2013, the company held a presentation in London for analysts and institutional investors from the world's key financial centers. The event, which over the past few years has been held on the day following the annual results publication, offered the international financial community the opportunity to exchange information and opinions directly with the RBI Management Board. The subsequent question and answer session produced a highly engaged and detailed discussion and was used as a forum for an in-depth exchange of ideas among the estimated 70 participants.
RBI then participated in additional roadshows in Zürs (Austria), as well as in Milan and Paris.
RBI continuously strives to keep market participants fully informed at all times. With a view to constantly optimizing communications, RBI makes teleconference presentations and other important events available online as webcasts (such as the investor presentation on 11 April 2013). These webcasts can be viewed at www.rbinternational.com → Investor Relations → Reports & Presentations → Presentations & Webcasts.
RBI has been listed on the Vienna Stock Exchange since 25 April 2005. Its stock is represented in several leading national and international indices, including the ATX and the EURO STOXX Banks. At the end of the quarter, Raiffeisen Zentralbank Österreich AG (RZB) held around 78.5 per cent of RBI's shares, with the remaining shares in free float.
| Share price as of 31 March 2013 | € 26.52 |
|---|---|
| High/low in the first quarter of 2013 (closing prices) | € 33.59 / € 26.30 |
| Earnings per share from 1 January to 31 March 2013 | € 0.55 |
| Market capitalization as of 31 March 2013 | € 5.184 billion |
| Average daily trading volume in the first quarter of 2013 (single count) | 168,636 shares |
| Stock exchange turnover in the first quarter of 2013 (single count) | € 316.2 million |
| Free float as of 31 March 2013 | approximately 21.5% |
| ISIN | AT0000606306 |
| Ticker symbols | RBI (Vienna Stock Exchange) |
| RBI AV (Bloomberg) | |
| RBIV.VI (Reuters) | |
| Market segment | Prime market |
| Number of shares issued as of 31 March 2013 | 195,505,124 |
| Rating agency | Long-term rating | Short-term rating | Outlook |
|---|---|---|---|
| Moody's Investors Service | A2 | P-1 | stable |
| Standard & Poor's | A | A-1 | negative |
| Fitch Ratings | A | F1 | stable |
| 28 May 2013 | First Quarter Report, Conference Call |
|---|---|
| 26 June 2013 | Annual General Meeting |
| 03 July 2013 | Ex-dividend and Dividend Payment Date |
| 08 August 2013 | Start of Quiet Period |
| 22 August 2013 | Semi-Annual Report, Conference Call |
| 13 November 2013 | Start of Quiet Period |
| 27 November 2013 | Third Quarter Report, Conference Call |
E-mail: [email protected] Internet: www.rbinternational.com → Investor Relations Telephone: +43-1-71 707-2089 Fax: +43-1-71 707-2138
Raiffeisen Bank International AG Group Investor Relations Am Stadtpark 9 1030 Vienna, Austria
Economic growth in Central and Eastern Europe (CEE) slowed to 2.0 per cent in 2012, down from 3.7 per cent in the previous year. This was due to economic weakness in the Eurozone, which mainly affected small, open and export-dependent economies as well as to a slowdown in domestic demand. Although the first half of 2013 should be affected by a decrease in growth, a slow economic recovery is anticipated for the second half of the year, provided the Eurozone economy picks up steam. The economic growth for the whole CEE region in 2013 is supposed to reach 1.5 per cent.
Central Europe (CE) – the Czech Republic, Hungary, Poland, Slovakia and Slovenia – is the most economically developed region in CEE. With the exception of Poland, the CE economies are small, open and highly dependent on exports to the Eurozone. As a result, they were impacted by the economic slowdown in the Eurozone. Following 3.1 per cent growth in 2011, the region's economy expanded merely 0.5 per cent in 2012. As Poland and Slovakia continued to grow, economic output in the Czech Republic, Hungary and Slovenia declined. Prospects for 2013 are similarly subdued, although compared to Southeastern Europe and the Commonwealth of Independent States, CE stands to benefit the most from a recovering Eurozone economy in the second half of the year.
In Southeastern Europe (SEE) – Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Romania and Serbia – the economy contracted 0.1 per cent overall in 2012, following a growth of 1.6 per cent growth in 2011. The decline was primarily driven by Croatia, Serbia and Bosnia and Herzegovina, which all slid back into a recession. Although economic growth in Albania, Bulgaria and Romania also cooled down, all three managed to achieve a slight spurt in 2012. In view of the problems facing the southern Eurozone countries and their close trade links with the SEE economies, the region likewise offers only moderate prospects for 2013. Overall growth rates for SEE are expected to remain weak at 1.2 per cent, although recovery is projected for the second half of 2013. Croatia may even experience a renewed decline in economic output in 2013.
Compared to CE and SEE, the Commonwealth of Independent States (CIS) – Belarus, Russia and Ukraine – is significantly less impacted by events in the Eurozone. Moreover, Russia benefits from the higher price of oil. In this setting, the region has, in recent years, managed to decouple from the Eurozone's economic weakness to attain relatively strong growth rates of 4.4 per cent in 2011 and 3.1 per cent in 2012. The CIS economy is projected to grow 2.0 per cent in 2013 and thus poised to remain the strongest-growing region in CEE.
| Region/country | 2011 | 2012 | 2013f | 2014f |
|---|---|---|---|---|
| Czech Republic | 1.7 | (1.2) | (0.2) | 1.8 |
| Hungary | 1.6 | (1.7) | 0.0 | 1.5 |
| Poland | 4.3 | 1.9 | 1.2 | 2.5 |
| Slovakia | 3.2 | 2.0 | 0.9 | 2.5 |
| Slovenia | 0.6 | (2.3) | (1.0) | 1.0 |
| CE | 3.1 | 0.5 | 0.6 | 2.1 |
| Albania | 3.1 | 1.6 | 2.0 | 3.5 |
| Bosnia and Herzegovina | 1.0 | (1.3) | 0.5 | 2.0 |
| Bulgaria | 1.8 | 0.8 | 0.5 | 2.5 |
| Croatia | 0.0 | (2.0) | (0.5) | 1.0 |
| Kosovo | 4.5 | 3.0 | 3.0 | 3.0 |
| Romania | 2.2 | 0.7 | 2.0 | 2.5 |
| Serbia | 1.6 | (1.7) | 1.0 | 2.0 |
| SEE | 1.6 | (0.1) | 1.2 | 2.2 |
| Belarus | 5.3 | 1.5 | 3.0 | 4.0 |
| Russia | 4.3 | 3.4 | 2.0 | 3.0 |
| Ukraine | 5.2 | 0.2 | 1.0 | 3.0 |
| CIS | 4.4 | 3.1 | 2.0 | 3.0 |
| CEE | 3.7 | 2.0 | 1.5 | 2.7 |
| Austria | 2.7 | 0.8 | 0.5 | 1.5 |
| Germany | 3.1 | 0.9 | 0.5 | 1.8 |
| Eurozone | 1.5 | (0.5) | (0.7) | 1.2 |
Despite the ongoing difficult market environment, RBI generated profit before tax of € 251 million in the first quarter of 2013. This is below the result of the comparable period (€ 685 million), however, last year's period had been impacted by one-off effects such as gains achieved from the sale of bonds and the repurchase of hybrid core capital totaling € 272 million. Profit before tax in the first quarter 2013 was positively impacted by a slight improvement in operating income due to higher net fee and commission income as well as better interest margin. The net valuation result from own liabilities and net provisioning for impairment losses had a negative effect, on the other hand.
Operating income – excluding goodwill impairments totaling € 3 million in the first quarter of 2013 – increased slightly year-onyear by 1 per cent or € 6 million to € 1,302 million. This increase is mainly attributable to the € 29 million increase in net fee and commission income, which was positively influenced by price adjustments in several markets, but also by higher transaction volume.
The slight year-on-year decline in net interest income, falling € 11 million to € 865 million, was primarily attributable to subdued lending business and the lowering of market interest rates, as well as the resulting lower interest income from securities. The net interest margin (calculated on interest-bearing assets) increased 23 basis points to 2.89 per cent versus the comparable period last year, due to a lower provision of liquidity at low interest rates and through positive effects associated with repricing measures in the deposit business.
Net trading income declined € 2 million to € 80 million year-on-year, caused by lower net income from interest-based transactions at Group head office. In contrast, currency-based transactions and net income from capital guarantees at Group head office posted an increase.
Despite positive effects from ongoing cost reduction programs, general administrative expenses climbed 5 per cent or € 35 million year-on-year to € 788 million. This increase was primarily attributable to Polbank consolidation in May 2012 and its integration.
Staff expenses rose 6 per cent or € 24 million to € 406 million compared to the first quarter of 2012, mainly as a result of the Polbank consolidation as well as of salary adjustments in Russia. In contrast, cost reductions in Ukraine and Serbia as well as headcount reductions in Hungary had a positive effect. The average number of employees grew by 525 to 59,552, mostly due to Polbank consolidation.
Other administrative expenses edged up 3 per cent or € 8 million year-on-year to € 291 million. In addition to Polbank consolidation , this increase was primarily the result of higher IT expenses. Compared to the same quarter last year, the number of business outlets rose by 226 to 3,057 due to the initial Polbank consolidation. Compared to year-end 2012, however, the total number of business outlets declined by 49.
Compared to the same quarter last year, net provisioning for impairment losses rose € 67 million to € 220 million, mainly impacted by portfolio-based loan loss provisions. In the previous year, these had included a net release of € 21 million, whereas in the first quarter of 2013, net allocations of € 27 million were made. Individual loan loss provisions were up € 18 million as a result of individual cases among corporate customers at Group head office.
During the reporting period, net income from derivatives and liabilities declined to minus € 121 million, following a plus of € 35 million in the comparable period. Contained therein are valuations for credit spreads on own liabilities, which – due to financial markets easing – posted a valuation loss of € 82 million, € 57 million more than in the same period last year. Moreover, the partial repurchase of hybrid bonds in the comparable period had resulted in net income of € 113 million. Net income from the valuation of derivatives entered into for hedging purposes totaled minus € 77 million.
Net income from financial investments declined € 174 million year-on-year to € 87 million. In the previous year, the sale of government bonds from the available-for-sale securities portfolio at Group head office – undertaken to meet the capital ratio required by the European Banking Authority (EBA) – had resulted in net proceeds of € 137 million. In the first quarter of 2013, the valuation result of the fair-value portfolio of securities amounted to € 53 million, which was primarily based on valuation gains on bonds and municipal debt. Sales from this securities category led to positive result of € 6 million.
Consolidated profit after tax for the first quarter 2013 totaled € 174 million, representing a decline of 71 per cent or € 400 million. The tax rate, at 31 per cent, was 15 percentage points higher than the comparable rate last year. Profit attributable to non-controlling interests declined € 16 million to € 17 million due to the previous year's purchase of non-controlling interests at several subsidiary banks. After deducting profit attributable to non-controlling interests, consolidated profit amounted to € 157 million, a € 384 million year-on-year decline. During the reporting period, 194.9 million shares were outstanding on average, resulting in earnings per share of € 0.55 (Q1/2012: € 2.52).
| In € million | 1/1-31/3/2013 | 1/1-31/3/2012 | Change absolute | Change in % |
|---|---|---|---|---|
| Net interest income | 865 | 875 | (11) | (1.2)% |
| Net fee and commission income | 375 | 346 | 29 | 8.3% |
| Net trading income | 80 | 82 | (2) | (2.0)% |
| Other net operating income1 | (18) | (8) | (10) | 128.3% |
| Operating income | 1,302 | 1,295 | 6 | 0.5% |
| Staff expenses2 | (406) | (381) | (24) | 6.4% |
| Other administrative expenses | (291) | (284) | (8) | 2.7% |
| Depreciation | (91) | (88) | (3) | 2.9% |
| General administrative expenses | (788) | (753) | (35) | 4.6% |
| Operating result | 514 | 542 | (28) | (5.2)% |
| Net provisioning for impairment losses | (220) | (153) | (67) | 43.7% |
| Other results3 | (43) | 296 | (339) | – |
| Profit before tax | 251 | 685 | (434) | (63.4)% |
| Income taxes | (77) | (111) | 34 | (30.7)% |
| Profit after tax | 174 | 574 | (400) | (69.7)% |
| Profit attributable to non-controlling interests | (17) | (33) | 16 | (47.4)% |
| Consolidated profit | 157 | 541 | (384) | (71.0)% |
1 Excluding impairment of goodwill.
2 Adaption of previous year figures due to the retrospective application of IAS 19.
3 Including impairment of goodwill.
In the first three months of 2013, net interest income declined 1 per cent or € 11 million to € 865 million year-on-year. At 66 per cent, it remains the largest component of operating income. The decrease in net interest income stemmed from lower interest income from loans and advances to banks. Interest income from securities also declined as a result of the previous year's sale of securities at Group head office.
The net interest margin (calculated on interest-bearing assets) rose 23 basis points year-on-year to 2.89 per cent, mainly due to a reduced provision of liquidity at low interest rates and to positive effects associated with repricing measures in the deposit business.
In the Czech Republic, net interest income decreased because of lower volume in retail and corporate customer business and due to lower margin. Net interest income in Hungary declined because of lower interest income from derivatives and lower lending volume in both local and foreign currencies. The latter was only partially offset by lower interest expense for customer deposits. Poland exhibited a contrary trend. Net interest income in fact rose; however, a different classification of interest-bearing transactions limits the comparability with the previous year. Romania's drop in net interest income is mainly attributable to lower market interest rates. In Ukraine, net interest income fell because of lower volume in retail and corporate customer business and higher expenses for customer deposits.
Net fee and commission income rose 8 per cent or € 29 million year-on-year to € 375 million. € 18 million or 62 per cent of this increase is attributable to a significant improvement in net income from payment transfer business, which resulted primarily from higher fees in Hungary, the Polbank consolidation and higher business activity in Belarus. An increase in volume led to a € 4 million or 47 per cent rise in net income from the sale of own and third-party products, mainly in Poland and Ukraine. Higher volume from the management of investment and pension funds – mainly in Slovakia and Croatia – contributed another € 3 million or 59 per cent to the rise in net income. Net income from the securities business also edged up € 3 million or 9 per cent due to higher volume and better margin, particularly in Romania and Hungary. Besides Poland, the Czech Republic also posted a € 2 million increase in net income from the foreign currency, notes/coins and precious metals business thanks to higher margin.
Net trading income remained nearly unchanged year-on-year, decreasing marginally by € 2 million or 2 per cent to € 80 million. Due to valuation losses on derivatives, Group head office posted a € 42 million decline in interest-based transactions. However, this decrease was practically offset by improved net income from currency-based transactions, credit derivatives business and other transactions. Reduced interest-based transactions were another reason for the slight decline in net income; valuation losses caused a € 10 million contraction, primarily in Russia. In Romania, currency-based transactions improved € 2 million thanks to currency appreciation.
Other net operating income fell from minus € 8 million in the comparable period to minus € 18 million in the period under review. This decline was primarily attributable to higher bank levies in Austria and Slovakia as well as to the newly introduced financial transaction tax in Hungary, which was, however, offset by higher fee and commission income.
General administrative expenses rose € 35 million to € 788 million compared to the same period last year. The cost/income ratio thus climbed 2.4 percentage points to 60.5 per cent.
Staff expenses, at 52 per cent the largest component in general administrative expenses, increased by 6 per cent or € 24 million to € 406 million. This increase mainly stemmed from the Polbank consolidation and salary adjustments in Russia. In contrast, cost reductions in Ukraine and Serbia as well as headcount reductions in Hungary had a positive effect.
The average number of employees (full-time equivalents) grew by 525 to 59,552 year-on-year. Polbank consolidation resulted in an increase in Poland (up 3,101). The largest reductions occurred in Ukraine (down 1,301), Romania (down 526), Russia (down 220), Hungary (down 114) and Bulgaria (down 159).
Other administrative expenses rose 3 per cent or € 8 million to € 291 million. Although several countries posted considerable reductions, the Polbank consolidation and the outsourcing of IT activities at Group head office resulted in an overall increase.
Depreciation of tangible and intangible fixed assets edged up 3 per cent or € 3 million to € 91 million, and is largely attributable to the Polbank consolidation.
Net provisioning for impairment losses rose € 67 million to € 220 million compared to the same period last year, mainly impacted by portfolio-based loan loss provisions. In the previous year, the results included a net release of € 21 million (mainly at Group head office and in Russia), whereas in the first quarter of 2013, net allocations of € 27 million were made.
Net allocations to individual loan loss provisions were also up € 18 million to € 194 million, relating primarily to several large customers of Group head office and in China. In contrast, net allocations remained unchanged year-on-year in the Central Europe and CIS Other segments. In Southeastern Europe, net allocations declined € 7 million, and in the first quarter, Russia even recorded net releases of individual loan loss provisions totaling € 15 million due to the sale of receivables and updated collateral valuations.
The provisioning ratio, based on average volume of loans and advances to customers, increased 31 basis points to 1.06 per cent.
Other results, which consist of net income from derivatives and liabilities, net income from financial investments and net income from the disposal of Group assets, declined € 339 million, falling from € 296 million in the same period last year to minus € 43 million.
Net income from financial investments decreased 67 per cent or € 174 million to € 87 million. In the previous year, the sale of government bonds from the available-for-sale securities portfolio at Group head office – undertaken to meet the capital ratio required by the European Banking Authority (EBA) – had resulted in net proceeds of € 137 million. In the first quarter of 2013, the valuation of the fair-value portfolio of securities provided an additional gain of € 53 million, which was primarily based on valuation gains on bonds in Ukraine and municipal bonds in Hungary. Sales from this securities category led to an additional gain of € 6 million.
Net income from derivatives and liabilities dropped from € 35 million in the previous year to minus € 121 million. Contained therein are valuations for credit spreads on own liabilities, which posted an increased valuation loss of € 82 million in the period under review. Moreover, the partial repurchase of hybrid bonds in the comparable period had resulted in net income of € 113 million. Net income from the valuation of derivatives entered into for hedging purposes totaled minus € 77 million.
Income tax expense fell € 34 million to € 77 million versus the previous year's period, which was attributable to the reduction in current taxes caused by the decline in profit. Current taxes decreased 25 per cent or € 21 million to minus € 63 million. Deferred taxes decreased 48 per cent or € 13 million to minus € 14 million primarily stems from the change in valuation result from liabilities. The tax rate was therefore 31 per cent. In the previous year, it had stood at 16 per cent.
| Change | ||||
|---|---|---|---|---|
| In € million | Q1/2013 | Q4/2012 | absolute | Change in % |
| Net interest income | 865 | 876 | (11) | (1.3)% |
| Net fee and commission income | 375 | 396 | (21) | (5.4)% |
| Net trading income | 80 | (6) | 86 | – |
| Other net operating income1 | (18) | (12) | (6) | 54.2% |
| Operating income | 1,302 | 1,255 | 47 | 3.7% |
| Staff expenses2 | (406) | (418) | 12 | (2.9)% |
| Other administrative expenses | (291) | (373) | 82 | (22.0)% |
| Depreciation | (91) | (126) | 35 | (28.1)% |
| General administrative expenses | (788) | (918) | 130 | (14.1)% |
| Operating result | 514 | 337 | 177 | 52.4% |
| Net provisioning for impairment losses | (220) | (385) | 166 | (43.0)% |
| Other results3 | (43) | (25) | (18) | 71.1% |
| Profit/loss before tax | 251 | (74) | 324 | – |
| Income taxes | (77) | (58) | (19) | 33.1% |
| Profit/loss after tax | 174 | (131) | 305 | – |
| Profit attributable to non-controlling interests | (17) | 24 | (42) | – |
| Consolidated profit/loss | 157 | (107) | 264 | – |
1 Excluding impairment of goodwill.
2 Adaption of previous year figures due to the retrospective application of IAS 19.
3 Including impairment of goodwill.
Compared to the fourth quarter of 2012, net interest income fell 1 per cent or € 11 million to € 865 million in the first quarter of 2013. The net interest margin (calculated on interest-bearing assets) improved 12 basis points quarter-on-quarter to 2.89 per cent. Optimization of the Group's liquidity position was the primary factor contributing to this improvement.
Compared to the fourth quarter of 2012, net fee and commission income declined € 21 million to € 375 million. Payment transfer business contracted the most with a € 9 million decline as a result of lower volume; followed by net income from other banking services (e.g. collections business), which declined € 8 million. Net income from foreign currency, notes/coins and precious metals business decreased € 3 million, and net income from securities business decreased € 2 million.
Compared to the previous quarter, net trading income improved € 86 million to € 80 million, triggered by improved interest-based transactions in Russia, Hungary and at Group head office. In the fourth quarter of 2012, a revised assessment of the probability of counterparty credit risk had adversely impacted valuation result from interest-based transactions by € 30 million. Furthermore, valuation gains from foreign exchange swaps in Russia and Hungary made a further positive contribution.
Other net operating income in the first quarter of 2013 amounted to minus € 18 million, € 6 million below the previous quarter's result. The decline was mainly attributable to the introduction of a transaction tax in Hungary, which was, however, offset by higher fee and commission income.
At € 788 million, general administrative expenses in the first quarter of 2013 were € 130 million lower than the € 918 million posted in the previous quarter. Taking the year as whole, however, the fourth quarter generally is the one with the highest expenses.
Staff expenses declined 3 per cent or € 12 million to € 406 million. The largest reductions occurred in Poland due to recording a restructuring provision in the fourth quarter of 2012 as well as in Slovakia and at Group head office.
Other administrative expenses also decreased € 82 million to € 291 million quarter-on-quarter with the largest declines recorded in legal, advisory and consulting expenses as well as in advertising, PR and promotional expenses.
Depreciation of tangible and intangible fixed assets fell 28 per cent or € 35 million to € 91 million quarter-on-quarter. This decline is largely attributable to software systems impairment in Ukraine and in Czech Republic in the fourth quarter of 2012.
Net provisioning for impairment losses amounted to € 220 million, € 166 million below the previous quarter in which several large corporate customer defaults had been posted, most notably in Hungary and at Group head office. In addition, lower net allocations quarter-on-quarter were established in the Czech Republic, Poland and Slovenia. Russia even recorded net releases of € 15 million.
The portfolio of non-performing loans (NPL) to non-banks increased € 47 million in the first quarter (thereof currency effects: minus € 8 million). On a currency-adjusted basis, increases were posted in Southeastern Europe (up € 85 million) and at Group head office (up € 20 million), while Central Europe (down € 33 million) and Russia (down € 14 million) posted decreases. The NPL ratio rose 0.1 percentage points to 9.9 per cent quarter-on-quarter, NPL coverage ratio increased 0.5 percentage points to 67.5 per cent.
Other results fell € 18 million to minus € 43 million quarter-on-quarter.
Compared to the previous quarter, net income from financial investments increased € 68 million to € 87 million, primarily influenced by valuation gains from securities at fair value.
However, net income from derivatives and liabilities deteriorated € 101 million to minus € 121 million compared to the fourth quarter of 2012. Lower positive net income from other derivatives (down € 98 million) was the primary reason for this deline, as was a higher valuation loss from liabilities at fair value (up € 11 million to minus € 55 million).
Tax expense rose to € 77 million in the first quarter (Q4/2012: € 58 million). Current tax expense increased € 23 million, while deferred tax expense decreased from € 18 million in the fourth quarter 2012 to € 14 million in the first quarter 2013.
As of 31 March 2013, RBI's total assets amounted to € 131.9 billion, which represents a decline of 3 per cent or € 4.2 billion since the end of 2012 and a year-on-year decrease of 11 per cent or € 16.9 billion. This drop in total assets is primarily attributable to the ongoing reduction of excess liquidity.
| In € million | 31/3/2013 | Share | 31/12/2012 | Share |
|---|---|---|---|---|
| Loans and advances to banks (less impairment losses) | 20,108 | 15.2% | 22,166 | 16.3% |
| Loans and advances to customers (less impairment losses) | 77,336 | 58.6% | 77,859 | 57.2% |
| Financial investments | 18,447 | 14.0% | 16,357 | 12.0% |
| Other assets | 16,041 | 12.2% | 19,734 | 14.5% |
| Total assets | 131,932 | 100.0% | 136,116 | 100.0% |
Due to a reduction in interbank business (down € 3.5 billion), loans and advances to banks after deduction of loan loss provisions decreased € 2.1 billion to € 20.1 billion since year-end 2012. This is attributable to lower loans from repurchase and securities lending transactions (down € 1.9 billion). In contrast, short-term loans from the clearing business increased € 1.4 billion.
Loans and advances to customers after deduction of loan loss provisions fell € 0.5 billion to € 77.3 billion. Representing 59 per cent of total assets (plus 2 percentage points), they still dominate the asset side. Once more, loans from repurchase agreements, at € 0.8 billion, were responsible for the decline. In contrast, retail business in Russia increased € 0.3 billion.
Purchases of highly liquid securities at Group head office led to an increase in the securities portfolio. Consequently, the item financial investments rose € 2.1 billion to € 18.4 billion. Other assets declined € 3.7 billion to € 16.0 billion, primarily due to a reduction in the cash reserve and trading assets.
| In € million | 31/3/2013 | Share | 31/12/2012 | Share |
|---|---|---|---|---|
| Deposits from banks | 27,579 | 20.9% | 30,186 | 22.2% |
| Deposits from customers | 66,853 | 50.7% | 66,297 | 48.7% |
| Own funds | 14,978 | 11.4% | 14,810 | 10.9% |
| Other liabilities | 22,522 | 17.1% | 24,822 | 18.2% |
| Total equity and liabilities | 131,932 | 100.0% | 136,116 | 100.0% |
Refinancing volume via banks (predominantly commercial banks) decreased € 2.6 billion to € 27.6 billion since year-end 2012 due to withdrawals of liquidity reserves in short-term deposits. In contrast, deposits from customers were € 0.6 billion higher at € 66.9 billion. While short-term deposits from corporate customers (in Russia and at Group head office) grew € 0.5 billion, those from retail customers declined € 0.2 billion. The largest declines occurred in the Czech Republic (down € 0.4 billion) and in Hungary (down € 0.2 billion) because of currency effects.
Own funds, consisting of equity and subordinated capital, remained virtually unchanged at € 15.0 billion. Other liabilities decreased € 2.3 billion to € 22.5 billion. This decrease included a net reduction in debt securities issued by € 0.8 billion to € 12.5 billion, while trading liabilities were reduced by € 1.7 billion, primarily at Group head office.
| In € million | 31/3/2013 | Share | 31/12/2012 | Share |
|---|---|---|---|---|
| Customer deposits | 66,853 | 60.3% | 66,297 | 58.3% |
| Medium- and long-term refinancing | 21,103 | 19.0% | 23,097 | 20.3% |
| Short-term refinancing | 18,946 | 17.1% | 20,379 | 17.9% |
| Subordinated liabilities | 3,917 | 3.5% | 3,937 | 3.5% |
| Total | 110,819 | 100.0% | 113,711 | 100.0% |
Despite geopolitical uncertainties and the repeated flare-up of volatility, RBI actively utilized the opportunities on the money and capital markets, enabling the Group to cover its refinancing need in the first quarter by more than planned. Most of this need was fulfilled via medium-term private placements, since they allow for a better distribution of funding as well as of later maturities.
RBI's equity on the statement of financial position, consisting of consolidated equity, consolidated profit and the capital of the noncontrolling interests, rose 2 per cent or € 188 million to € 11,061 million compared to year-end 2012. Total comprehensive income was € 168 million and – in addition to profit after tax amounting to € 174 million – consists primarily of the net income from the available-for-sale portfolio of securities totaling minus € 25 million, which was caused essentially by the reclassification of realized gains on the income statement. Total comprehensive income also includes net income from the application of hyperinflation accounting totaling € 13 million. At plus € 5 million, currency trends were stable, although the performance of individual currencies varied considerably: The Russian rouble and the Ukrainian hryvnia caused equity increases of € 35 million and € 25 million, respectively, while the Polish zloty caused a decrease of € 38 million.
RBI does not form an independent credit institution group (Kreditinstitutsgruppe) as defined by the Austrian Banking Act (BWG) and therefore is not subject to the regulatory provisions on a consolidated basis since it is part of RZB credit institution group. The consolidated values shown below have been calculated in accordance with the provisions of the BWG and are assumed in calculation figures of the RZB credit institution group.
As of 31 March 2013, consolidated own funds of RBI pursuant to BWG amounted to € 12,929 million. This figure, with a slight increase of € 44 million, largely corresponds to the balance at the end of 2012. Currency trends had a positive overall impact of € 6 million: While the Ukrainian hryvnia and the Russian rouble performed, the depreciation of the Polish zloty reduced the increase significantly. Additional own funds declined € 56 million to € 3,283 million due to maturing issues, while in contrast, shortterm subordinated capital increased slightly by € 6 million to € 308 million.
Own funds stood in contrast to own funds requirement of € 6,699 million, an increase of € 73 million. This rise primarily results from an increase in the own funds requirement for credit risk by € 95 million to € 5,545 million. The requirement for the position risk in bonds, equities and commodities rose € 12 million to € 285 million and the requirement for open currency positions increased € 9 million to € 65 million. In contrast, the own funds requirement for operational risk declined € 42 million to € 803 million.
Excess cover ratio decreased 1.5 percentage points to 93.0 per cent, resulting in excess cover of € 6,230 million. Based on total risk, the core tier 1 ratio was 10.6 per cent with a tier 1 ratio of 11.2 per cent. The own funds ratio declined to 15.4 per cent.
Active risk management is a core competence for RBI. In order to effectively identify, measure and manage risks, the Group utilizes comprehensive risk management and controlling. This is an integral part of the overall bank management and is continuously being developed. RBI's risk control is primarily aimed at ensuring the conscientious handling and professional management of credit and country risks, market and liquidity risks, as well as participation and operational risks.
At RBI, several dedicated credit portfolio committees are responsible for the active management of the loan portfolio. These committees determine the credit portfolio strategy for the various customer segments. Analyses of internal research departments and portfolio management form the basis for the definition of the loan portfolio's lending guidelines and limits. Credit portfolio strategies are regularly adapted to new market outlooks.
In light of the ongoing uncertainty regarding several European countries, loans and advances to governments, municipalities and banks from these countries were one of the main focal points of portfolio management in the past quarters. Existing debts were constantly reassessed and – when necessary – limits were reduced. Besides regulatory requirements in RBI's home market, government securities mainly serve to strengthen RBI's liquidity buffer.
Management of non-performing loans was once again one of risk management's main points of emphasis in the period under review. Targets and measures were aimed at improved early recognition of potential problem cases as well as a quick and efficient reduction of the non-performing loans portfolio.
Thanks to its good liquidity position, RBI was hardly affected by the tensions on the international financial markets in previous periods. This high level of stability was maintained in the first quarter of 2013. In order to manage liquidity risk, RBI uses a longestablished and proven limit model that requires high excess liquidity for short-term maturities based on contractual and historically observed cash inflows and outflows. Limits have also been established for medium and long-term maturities, which, in turn, reduce the effect of a possible refinancing cost increase on RBI's financial results. In addition to the limit model, liquidity stress tests routinely evaluate the impact of potential market and name crisis scenarios.
RBI's liquidity position is subject to regular monitoring and is included in the RZB Group's weekly report to the Austrian banking supervisory authority.
In the current business year, RBI continues to deal intensively with regulatory developments. A major part of the changes arises from the Capital Requirements Directive (CRD IV) and the Capital Requirements Regulation (CRR) proposed by the EU Commission. The potential impact of the new and amended legal regulations on RBI has been thoroughly analyzed and relevant internal guidelines have also been implemented. Besides the preparations already initiated in connection with the new Basel III regulations, risk management remains focused on the ongoing implementation of the advanced Basel II approach over as broad an area as possible. RBI uses these specially developed parameters and findings also for internal management information purposes and control measures. In addition, it continues to invest in the improvement of its risk management systems.
In the context of the expected overall economic developments, particularly in CEE, we are aiming for a return on equity before tax of around 15 per cent in the medium term. This is excluding any capital increases, as well as unexpected regulatory requirements from today's perspective.
In 2013, we plan to slightly increase loans and advances to customers. Given the outlook for interest rates, we aim to maintain the net interest margin at the level of the previous year. From the customer standpoint, we plan to retain our Corporate Customers division as the backbone of our business and in the medium term to expand the proportion of business volume accounted for by our Retail Customers division.
In light of the economic prospects, the situation remains tense in several of our markets. In 2013, we therefore expect a similar net provisioning requirement as in the previous year.
In 2013, we will once again pay increased attention to cost development. We expect a flat or slightly increasing cost base, particularly due to the first-time full year consolidation of Polbank.
Against the backdrop of a permanently changing regulatory environment and further strengthening of our balance sheet structure we are continuously evaluating the level and structure of our regulatory capital to be able to act promptly and flexibly. Depending on market developments, a capital increase also continues to be a possible option.
On 24 May 2013, Herbert Stepic informed Walter Rothensteiner, Chairman of the RBI Supervisory Board, that he is offering to resign his position as CEO of RBI due to personal reasons. The responsible committees at RBI promptly started to consider his proposal. Herbert Stepic will continue in his function as CEO of RBI until the committees reach a final decision.
As a rule, RBI's internal management reporting is based on the current organizational structure. This means that each member of the Management Board is responsible for both the individual countries and for specific business activities (country and functional responsibility model). A cash generating unit within the Group is either a country or a business activity. Accordingly, the RBI management bodies – Management Board and Supervisory Board – make key decisions that determine the resources allocated to any given segment based on its financial strength and profitability. This is why these reporting criteria are an essential component in the decision-making process. Thus, the division into segments was also undertaken in accordance with IFRS 8. The reconciliation contains mainly amounts resulting from intra-group results elimination and consolidation between the segments.
The following segments result thereof:
Despite the ongoing difficult market environment, RBI generated profit before tax of € 251 million in the first quarter of 2013. Although this represents a decline of 63 per cent or € 434 million year-on-year, the comparable period had been significantly impacted by one-off effects (€ 272 million). Growth varied considerably among the individual segments: In the Russia segment, for example, profit before tax rose 26 per cent to € 198 million. CIS Other segment improved significantly as well. In contrast, profit before tax in the Central Europe and Southeastern Europe segments was considerably lower than in the same period last year. Profits in the functional segments likewise declined year-on-year.
In Central Europe, profit before tax decreased from € 87 million to € 57 million due to a decline in operating result and lower income from financial investments. The Polbank consolidation resulted in an increase in total assets by 9 per cent to € 39.4 billion year-on-year.
Profit before tax from Southeastern Europe region dropped 17 per cent to € 95 million compared to the same period last year. Despite reduction in general administrative expenses, net profit was negatively impacted by declines in net interest income and net income from financial investments. Total assets in the segment decreased 7 per cent year-on-year to € 21.4 billion.
The Russia segment made the largest regional contribution to earnings, posting profit before tax of € 198 million. The 26 per cent increase was primarily the result of better net income from financial investments and release of provisions for impairment losses. Total assets in the segment rose 7 per cent year-on-year to € 16.2 billion.
In the CIS Other segment, profit before tax increased 118 per cent to € 54 million, mainly due to improved net income from financial investments. Total assets in the segment decreased 1 per cent year-on-year to € 6.3 billion.
Profit before tax in the Group Corporates segment fell 68 per cent to € 39 million versus the comparable period. The main reason for this decline was a need for higher provision for loans and advances. Total assets in the segment decreased 3 per cent year-onyear to € 21.4 billion.
Profit before tax in the Group Markets segment decreased 86 per cent to € 25 million compared to the same period last year. The main reason for this drop was lower net income from financial investments. Total assets in the segment decreased 35 per cent year-on-year to € 19.4 billion.
The Corporate Center segment posted a loss before tax of € 208 million due to decline in other results. Total assets in the segment decreased 16 per cent year-on-year to € 43.6 billion.
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Operating income | 384 | 366 | 4.8% | 384 | 412 | (6.8)% |
| General administrative expenses | (259) | (222) | 16.9% | (259) | (314) | (17.3)% |
| Operating result | 124 | 144 | (13.8)% | 124 | 98 | 26.7% |
| Net provisioning for impairment losses | (74) | (75) | (2.3)% | (74) | (224) | (67.2)% |
| Other results | 7 | 19 | (63.9)% | 7 | 27 | (75.3)% |
| Profit/loss before tax | 57 | 87 | (34.5)% | 57 | (99) | – |
| Assets | 39,432 | 36,024 | 9.5% | 39,432 | 40,787 | (3.3)% |
| Net interest margin (average interest-bearing assets) |
2.77% | 2.99% | (0.22) PP | 2.77% | 2.81% | (0.03) PP |
| Return on equity before tax | 7.1% | 12.1% | (5.0) PP | 7.1% | – | – |
In Central Europe, profit before tax contracted 35 per cent year-on-year to € 57 million. Several countries in the region were responsible for this decline, with Polbank consolidation in Poland having the strongest effect. Return on equity before tax decreased 5.0 percentage points to 7.1 per cent.
The region's net interest income increased 4 per cent compared to the same period last year, reaching € 260 million. Due to Polbank consolidation, net interest income in Poland increased 75 per cent or € 32 million, which fully offset decline in the segment's other countries. The largest reduction occurred in Hungary, where lower interest income was posted due to lending volume decline and lower interest income from derivatives. In Slovakia, lower market interest rates and the subsequent decrease in income from securities led to a reduction in net interest income. In Czech Republic, lower income from securities was likewise a reason for the decline, but a reduction in retail and corporate business also played a role. Net interest margin sank 22 basis points to 2.77 per cent. Total assets rose 10 per cent or € 3.4 billion year-on-year to € 39.4 billion due to Polbank consolidation. Credit risk-weighted assets increased as well rising 6 per cent from € 20.4 billion to € 21.7 billion.
Net fee and commission income in the segment climbed 15 per cent or € 16 million to € 128 million year-on-year. Net income from payment transfer business was up 18 per cent, rising to € 55 million. The increase was attributable primarily to Hungary, where higher fees in connection with the newly introduced transaction tax were charged to customers. Net income from the foreign currency, notes/coins and precious metals business rose 11 per cent year-on-year to € 37 million, primarily due to developments in Poland.
Net trading income in the Central Europe segment remained unchanged year-on-year at € 12 million. Net income from currencybased transactions halved to € 6 million. Especially Hungary posted here a significant drop due to the valuation of derivatives, primarily related to cross-currency interest rate swaps (CCIRS). In contrast, net income from interest-based transactions improved to plus € 6 million compared to the same period last year. This increase was caused by net income from the valuation of interestbased derivatives in Hungary as well as Polbank consolidation.
Other net operating income in the region decreased from minus € 7 million to minus € 17 million. The bank levy in Slovakia, which was increased in the second half of 2012, and the newly introduced transaction tax in Hungary resulted in an extra € 25 million negative impact on profit.
General administrative expenses in the Central Europe segment increased 17 per cent to € 259 million year-on-year. This trend is primarily attributable to the Polbank consolidation and its ongoing operational merger with Raiffeisen Bank Polska S.A. Expenses for deferred bonus payments in the Czech Republic led to an additional increase in staff expenses. The segment's other countries, however, posted cost reductions. The strongest decline was recorded in Slovakia due to savings in other administrative expenses. The segment's number of business outlets increased by 253 locations to 805 year-on-year, likewise primarily due to the inclusion of Polbank business outlets. The region's cost/income ratio rose 7.0 percentage points to 67.7 per cent.
The segment's net provisioning for impairment losses remained relatively stable at € 74 million. Net allocations to individual loan loss provisions totaling € 79 million stood in contrast to releases of portfolio-based loan loss provisions of € 5 million. Trends varied by country: In Hungary, releases of portfolio-based loan loss provisions were partially offset by a higher need for individual loan loss provisions. Improvements in credit ratings led to lower individual loan loss provisions in Slovakia. Poland, in contrast, recorded a higher need for loan loss provisions due to individual cases in the corporate customer business. Net allocations to impairment losses in Slovenia increased in both the corporate and the retail customer business. Share of non-performing loans to non-banks in the loan portfolio of the Central Europe segment amounted to 11.4 per cent at the end of the period under review (up 1.4 percentage points year-on-year).
Compared to the same period last year, other results in the Central Europe segment declined 64 per cent or € 12 million to € 7 million. Net income from financial investments decreased in Slovakia and the Czech Republic, while valuation gains from municipal bonds increased considerably in Hungary.
Net income from derivatives in the region contracted as well, specifically due to valuation losses from various hedging transactions concluded to adjust the currency and interest-rate structure in Poland and Czech Republic.
The segment's income taxes declined 9 per cent to € 22 million. However, the income tax rate increased to 39 per cent. As in the comparable period, this was due to the situation in Hungary, where incurred losses could not be fully deducted for tax purposes through the recognition of corresponding tax loss carry-forwards. In addition, tax loss carry-forwards in connection with Polbank consolidation could likewise not be fully utilized due to tax restrictions.
Detailed results of individual countries:
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Net interest income | 60 | 66 | (9.2)% | 60 | 60 | (0.4)% |
| Net fee and commission income | 31 | 30 | 5.5% | 31 | 33 | (5.5)% |
| Net trading income | 0 | 2 | (79.2)% | 0 | 0 | 166.4% |
| Other net operating income | 2 | 2 | 17.8% | 2 | 4 | (42.5)% |
| Operating income | 94 | 100 | (6.0)% | 94 | 97 | (3.5)% |
| General administrative expenses | (58) | (55) | 5.3% | (58) | (69) | (15.6)% |
| Operating result | 36 | 45 | (19.9)% | 36 | 28 | 25.7% |
| Net provisioning for impairment losses | (7) | (6) | 9.0% | (7) | (40) | (82.5)% |
| Other results | 1 | 6 | (83.1)% | 1 | 2 | (38.6)% |
| Profit/loss before tax | 30 | 44 | (32.6)% | 30 | (10) | – |
| Income taxes | (6) | (10) | (34.2)% | (6) | 3 | – |
| Profit/loss after tax | 23 | 34 | (32.1)% | 23 | (7) | – |
| Assets | 8,510 | 8,988 | (5.3)% | 8,510 | 8,938 | (4.8)% |
| Loans and advances to customers | 6,353 | 6,771 | (6.2)% | 6,353 | 6,380 | (0.4)% |
| hereof corporate % | 45.3% | 43.2% | 2.1 PP | 45.3% | 44.0% | 1.3 PP |
| hereof retail % | 54.6% | 56.7% | (2.1) PP | 54.6% | 55.8% | (1.3) PP |
| hereof foreign currency % | 8.7% | 6.7% | 2.1 PP | 8.7% | 7.1% | 1.6 PP |
| Deposits from customers | 5,950 | 6,151 | (3.3)% | 5,950 | 6,319 | (5.8)% |
| Loan/deposit ratio | 106.8% | 110.1% | (3.3) PP | 106.8% | 101.0% | 5.8 PP |
| Return on equity before tax | 17.3% | 29.0% | (11.7) PP | 17.3% | – | – |
| Return on equity after tax | 13.6% | 22.5% | (9.0) PP | 13.6% | – | – |
| Cost/income ratio | 61.8% | 55.3% | 6.6 PP | 61.8% | 70.7% | (8.9) PP |
| Net interest margin (average interest-bearing assets) |
3.00% | 3.14% | (0.14) PP | 3.00% | 3.00% | 0.00 PP |
| Employees as of reporting date | 3,037 | 3,018 | 0.6% | 3,037 | 3,066 | (0.9)% |
| Business outlets | 129 | 130 | (0.8)% | 129 | 132 | (2.3)% |
| Customers | 484,650 | 478,474 | 1.3% | 484,650 | 486,261 | (0.3)% |
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Net interest income | 47 | 57 | (17.3)% | 47 | 62 | (24.3)% |
| Net fee and commission income | 26 | 19 | 37.7% | 26 | 20 | 30.5% |
| Net trading income | (4) | (3) | 29.8% | (4) | (17) | (78.3)% |
| Other net operating income | (20) | (10) | 91.2% | (20) | (11) | 88.2% |
| Operating income | 49 | 62 | (21.1)% | 49 | 54 | (9.7)% |
| General administrative expenses | (47) | (48) | (2.4)% | (47) | (53) | (11.9)% |
| Operating result | 2 | 14 | (83.3)% | 2 | 1 | 74.3% |
| Net provisioning for impairment losses | (36) | (46) | (23.4)% | (36) | (94) | (62.2)% |
| Other results | 17 | 8 | 114.3% | 17 | 24 | (26.5)% |
| Loss before tax | (16) | (24) | (34.2)% | (16) | (69) | (77.3)% |
| Income taxes | (4) | 0 | – | (4) | (8) | (46.8)% |
| Loss after tax | (20) | (24) | (15.6)% | (20) | (77) | (74.1)% |
| Assets | 6,802 | 7,639 | (11.0)% | 6,802 | 7,155 | (4.9)% |
| Loans and advances to customers | 5,121 | 5,530 | (7.4)% | 5,121 | 5,231 | (2.1)% |
| hereof corporate % | 56.8% | 54.6% | 2.2 PP | 56.8% | 55.8% | 1.0 PP |
| hereof retail % | 37.2% | 40.3% | (3.1) PP | 37.2% | 37.9% | (0.7) PP |
| hereof foreign currency % | 64.9% | 76.3% | (11.4) PP | 64.9% | 63.3% | 1.6 PP |
| Deposits from customers | 4,700 | 5,020 | (6.4)% | 4,700 | 4,927 | (4.6)% |
| Loan/deposit ratio | 109.2% | 111.0% | (1.8) PP | 109.2% | 106.5% | 2.7 PP |
| Return on equity before tax | – | – | – | – | – | – |
| Return on equity after tax | – | – | – | – | – | – |
| Cost/income ratio | 95.1% | 76.8% | 18.3 PP | 95.1% | 97.4% | (2.4) PP |
| Net interest margin (average interest-bearing assets) |
2.85% | 3.22% | (0.37) PP | 2.85% | 3.58% | (0.73) PP |
| Employees as of reporting date | 2,820 | 2,932 | (3.8)% | 2,820 | 2,865 | (1.6)% |
| Business outlets | 125 | 134 | (6.7)% | 125 | 125 | 0.0% |
| Customers | 615,660 | 640,019 | (3.8)% | 615,660 | 622,990 | (1.2)% |
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Net interest income | 76 | 43 | 74.9% | 76 | 83 | (9.1)% |
| Net fee and commission income | 38 | 31 | 24.0% | 38 | 42 | (9.8)% |
| Net trading income | 15 | 10 | 46.3% | 15 | 1 | >500.0% |
| Other net operating income | 3 | 3 | 15.3% | 3 | 13 | (74.6)% |
| Operating income | 132 | 87 | 51.6% | 132 | 139 | (5.3)% |
| General administrative expenses | (90) | (50) | 79.5% | (90) | (115) | (21.5)% |
| Operating result | 42 | 37 | 13.5% | 42 | 24 | 71.1% |
| Net provisioning for impairment losses | (16) | (8) | 111.2% | (16) | (50) | (67.3)% |
| Other results | (13) | 0 | – | (13) | 2 | – |
| Profit/loss before tax | 13 | 29 | (56.4)% | 13 | (23) | – |
| Income taxes | (4) | (6) | (40.5)% | (4) | 2 | – |
| Profit/loss after tax | 9 | 23 | (60.3)% | 9 | (21) | – |
| Assets | 13,068 | 7,750 | 68.6% | 13,068 | 13,428 | (2.7)% |
| Loans and advances to customers | 10,057 | 5,569 | 80.6% | 10,057 | 10,451 | (3.8)% |
| hereof corporate % | 32.4% | 62.1% | (29.7) PP | 32.4% | 32.3% | 0.1 PP |
| hereof retail % | 67.5% | 37.7% | 29.8 PP | 67.5% | 67.6% | (0.1) PP |
| hereof foreign currency % | 54.8% | 38.2% | 16.6 PP | 54.8% | 54.0% | 0.7 PP |
| Deposits from customers | 7,731 | 4,574 | 69.0% | 7,731 | 7,901 | (2.2)% |
| Loan/deposit ratio | 130.5% | 121.8% | 8.7 PP | 130.5% | 132.3% | (1.8) PP |
| Return on equity before tax | 3.6% | 16.3% | (12.8) PP | 3.6% | – | – |
| Return on equity after tax | 2.6% | 13.1% | (10.5) PP | 2.6% | – | – |
| Cost/income ratio | 68.4% | 57.7% | 10.6 PP | 68.4% | 82.5% | (14.1) PP |
| Net interest margin (average interest-bearing assets) |
2.40% | 2.42% | (0.02) PP | 2.40% | 2.58% | (0.18) PP |
| Employees as of reporting date | 6,134 | 3,183 | 92.7% | 6,134 | 6,656 | (7.8)% |
| Business outlets | 371 | 116 | 219.8% | 371 | 416 | (10.8)% |
| Customers | 847,807 | 241,015 | 251.8% | 847,807 | 871,102 | (2.7)% |
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Net interest income | 73 | 77 | (6.3)% | 73 | 74 | (1.8)% |
| Net fee and commission income | 31 | 31 | 1.5% | 31 | 36 | (11.7)% |
| Net trading income | 1 | 2 | (73.9)% | 1 | 0 | 22.4% |
| Other net operating income | (3) | (2) | 71.4% | (3) | 4 | – |
| Operating income | 102 | 109 | (6.6)% | 102 | 114 | (10.3)% |
| General administrative expenses | (59) | (63) | (6.0)% | (59) | (72) | (17.8)% |
| Operating result | 42 | 46 | (7.3)% | 42 | 41 | 2.8% |
| Net provisioning for impairment losses | (9) | (13) | (27.1)% | (9) | (16) | (43.1)% |
| Other results | 0 | 4 | (99.8)% | 0 | 0 | – |
| Profit before tax | 33 | 37 | (11.1)% | 33 | 25 | 34.6% |
| Income taxes | (8) | (9) | (10.2)% | (8) | (3) | 173.4% |
| Profit after tax | 25 | 28 | (11.4)% | 25 | 22 | 15.4% |
| Assets | 9,594 | 10,008 | (4.1)% | 9,594 | 9,667 | (0.8)% |
| Loans and advances to customers | 6,732 | 6,687 | 0.7% | 6,732 | 6,645 | 1.3% |
| hereof corporate % | 48.8% | 51.1% | (2.3) PP | 48.8% | 49.3% | (0.5) PP |
| hereof retail % | 51.0% | 48.7% | 2.3 PP | 51.0% | 50.5% | 0.5 PP |
| hereof foreign currency % | 0.8% | 0.9% | (0.2) PP | 0.8% | 0.9% | (0.1) PP |
| Deposits from customers | 7,191 | 7,589 | (5.2)% | 7,191 | 7,233 | (0.6)% |
| Loan/deposit ratio | 93.6% | 88.1% | 5.5 PP | 93.6% | 91.9% | 1.7 PP |
| Return on equity before tax | 13.0% | 15.2% | (2.2) PP | 13.0% | 10.2% | 2.8 PP |
| Return on equity after tax | 9.8% | 11.5% | (1.7) PP | 9.8% | 9.0% | 0.9 PP |
| Cost/income ratio | 58.3% | 57.9% | 0.3 PP | 58.3% | 63.6% | (5.3) PP |
| Net interest margin (average interest-bearing assets) |
3.23% | 3.36% | (0.13) PP | 3.23% | 3.25% | (0.02) PP |
| Employees as of reporting date | 3,845 | 3,815 | 0.8% | 3,845 | 3,827 | 0.5% |
| Business outlets | 163 | 155 | 5.2% | 163 | 163 | 0.0% |
| Customers | 859,019 | 800,581 | 7.3% | 859,019 | 840,728 | 2.2% |
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Net interest income | 5 | 6 | (16.7)% | 5 | 6 | (14.8)% |
| Net fee and commission income | 2 | 2 | 4.3% | 2 | 2 | (9.3)% |
| Net trading income | 0 | 0 | 18.1% | 0 | 0 | (48.5)% |
| Other net operating income | 0 | 0 | (81.7)% | 0 | 0 | (23.8)% |
| Operating income | 7 | 8 | (12.4)% | 7 | 9 | (14.5)% |
| General administrative expenses | (6) | (6) | (7.4)% | (6) | (6) | (5.1)% |
| Operating result | 2 | 2 | (25.7)% | 2 | 3 | (35.6)% |
| Net provisioning for impairment losses | (6) | (2) | 143.4% | (6) | (25) | (76.9)% |
| Other results | 0 | 0 | 4.5% | 0 | 0 | (43.5)% |
| Profit/loss before tax | (4) | 0 | – | (4) | (22) | (82.3)% |
| Income taxes | 0 | 0 | (45.9)% | 0 | (1) | – |
| Profit/loss after tax | (4) | 0 | – | (4) | (23) | (83.3)% |
| Assets | 1,468 | 1,660 | (11.6)% | 1,468 | 1,612 | (8.9)% |
| Loans and advances to customers | 1,208 | 1,295 | (6.7)% | 1,208 | 1,225 | (1.4)% |
| hereof corporate % | 62.6% | 62.1% | 0.5 PP | 62.6% | 62.4% | 0.2 PP |
| hereof retail % | 30.9% | 31.7% | (0.8) PP | 30.9% | 31.2% | (0.3) PP |
| hereof foreign currency % | 4.7% | 6.9% | (2.2) PP | 4.7% | 4.9% | (0.2) PP |
| Deposits from customers | 380 | 465 | (18.4)% | 380 | 495 | (23.3)% |
| Loan/deposit ratio | 318.3% | 278.3% | 40.0 PP | 318.3% | 247.6% | 70.7 PP |
| Return on equity before tax | – | 0.4% | – | – | – | – |
| Return on equity after tax | – | 0.7% | – | – | – | – |
| Cost/income ratio | 76.7% | 72.6% | 4.2 PP | 76.7% | 69.1% | 7.6 PP |
| Net interest margin (average interest-bearing assets) |
1.45% | 1.54% | (0.09) PP | 1.45% | 1.60% | (0.15) PP |
| Employees as of reporting date | 276 | 319 | (13.5)% | 276 | 310 | (11.0)% |
| Business outlets | 17 | 17 | 0.0% | 17 | 17 | 0.0% |
| Customers | 66,404 | 67,720 | (1.9)% | 66,404 | 68,593 | (3.2)% |
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Operating income | 312 | 330 | (5.5)% | 312 | 316 | (1.4)% |
| General administrative expenses | (166) | (177) | (6.0)% | (166) | (185) | (10.3)% |
| Operating result | 145 | 153 | (5.0)% | 145 | 131 | 11.3% |
| Net provisioning for impairment losses | (63) | (60) | 3.9% | (63) | (87) | (28.3)% |
| Other results | 12 | 21 | (44.3)% | 12 | (2) | – |
| Profit before tax | 95 | 114 | (17.1)% | 95 | 41 | 129.8% |
| Assets | 21,411 | 23,097 | (7.3)% | 21,411 | 21,346 | 0.3% |
| Net interest margin (average interest-bearing assets) |
4.20% | 4.34% | (0.14) PP | 4.20% | 4.27% | (0.07) PP |
| Return on equity before tax | 17.3% | 21.2% | (4.0) PP | 17.3% | 8.0% | 9.2 PP |
In Southeastern Europe, where economy remained weak, profit before tax declined 17 per cent year-on-year to € 95 million. Decreases in net interest income and net income from financial investments had a negative effect on profit which could not be offset by reductions in general administrative expenses. The return on equity before tax decreased 4.0 percentage points to 17.3 per cent.
The segment's net interest income fell 9 per cent to € 207 million year-on-year which was attributable to declines in almost all the region's countries, particularly Romania and Bulgaria. In Romania, reasons were lower interest income from securities and decline in market interest rates, although operating income development has been fairly stable over the past three quarters. In Bulgaria, maturing of portions of the corporate loan portfolio and considerably lower market interest rates resulted in a decrease in net interest income. The segment's net interest margin declined 14 basis points to 4.20 per cent. Total assets decreased from € 23.1 billion to € 21.4 billion year-on-year, credit risk-weighted assets were down by 7 per cent to € 13.0 billion.
Net fee and commission income rose 6 per cent to € 79 million versus the comparable period last year. Income from payment transfer business increased 4 per cent year-on-year and, at € 43 million, continued to provide the largest contribution. Income from loan and guarantee business remained stable at € 6 million. This was positively impacted by developments in Romania, where repricing measures were successfully implemented. Income from foreign exchange, notes/coins and precious metals business rose 7 per cent year-on-year to € 16 million, also primarily because of business in Romania.
Net trading income for the Southeastern Europe segment declined 10 per cent year-on-year to € 15 million. A decline in income from interest-based transactions totaling € 3 million was partially offset by higher net income from currency-based transactions. This reduction in income from interest-based transactions was mainly the result of the performance in Croatia, where lower spreads had led to higher valuation income from bonds in the trading portfolio in the previous year. During the reporting period, changes in the market environment caused the Group to pursue a more defensive strategy. In Romania, currency-based transactions improved € 2 million due to currency appreciation.
Other net operating income remained unchanged at € 10 million year-on-year.
The segment's general administrative expenses fell 6 per cent to € 166 million compared to the same period last year. Staff expenses decreased € 2 million, primarily due to lower bonus payments and severance expenses in Serbia. Other administrative expenses declined € 7 million to € 71 million, with the largest savings achieved from office space and communication expenses. Furthermore, IT costs in Romania were reduced. Depreciation expenses in the region also decreased, down 8 per cent to € 22 million, mainly due to lower depreciation on tangible fixed and leased assets in Croatia. At 53.3 per cent, the cost/income ratio was slightly lower year-on-year.
Net provisioning for impairment losses in the Southeastern Europe segment increased 4 per cent to € 63 million compared to the same period last year. Net allocations to portfolio-based loan loss provisions increased to € 2 million, with Group units in Serbia
and Bulgaria primarily responsible for this development. Individual loan loss provisions declined € 7 million during the reporting period, whereby net releases in several of the region's countries offset higher net allocations for mortgage loans in Croatia. The share of non-performing loans to non-banks in the segment's loan portfolio increased 1.2 percentage points to 13.2 per cent.
Other results in the segment fell from € 21 million to € 12 million year-on-year. This was the result of lower gains from valuation of government bonds in Romania, where a decline in yields occurred, as well as of lower gains from sale of shares in equity participations in Serbia and Croatia. Following a loss of € 1 million in the previous year's period, net income from derivatives reported plus € 2 million in the first quarter of 2013.
Income taxes for the region declined 13 per cent year-on-year to € 13 million. Tax rate increased 1 percentage point to 14 per cent.
Detailed results of individual countries:
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Net interest income | 18 | 21 | (15.0)% | 18 | 19 | (2.0)% |
| Net fee and commission income | 2 | 2 | 32.5% | 2 | 2 | 6.2% |
| Net trading income | 5 | 4 | 12.8% | 5 | 5 | 1.5% |
| Other net operating income | 1 | 0 | – | 1 | 0 | – |
| Operating income | 26 | 28 | (5.5)% | 26 | 25 | 2.5% |
| General administrative expenses | (9) | (9) | (0.2)% | (9) | (13) | (33.8)% |
| Operating result | 17 | 19 | (8.0)% | 17 | 12 | 40.5% |
| Net provisioning for impairment losses | (4) | (4) | (1.6)% | (4) | (8) | (50.0)% |
| Other results | 0 | 0 | – | 0 | 0 | – |
| Profit before tax | 13 | 15 | (9.7)% | 13 | 4 | 206.0% |
| Income taxes | (1) | (2) | (12.2)% | (1) | 1 | – |
| Profit after tax | 12 | 13 | (9.4)% | 12 | 5 | 143.3% |
| Assets | 2,238 | 2,287 | (2.1)% | 2,238 | 2,289 | (2.3)% |
| Loans and advances to customers | 955 | 978 | (2.4)% | 955 | 974 | (2.0)% |
| hereof corporate % | 69.0% | 66.6% | 2.4 PP | 69.0% | 68.7% | 0.3 PP |
| hereof retail % | 31.0% | 33.4% | (2.4) PP | 31.0% | 31.3% | (0.3) PP |
| hereof foreign currency % | 65.2% | 57.2% | 8.0 PP | 65.2% | 64.6% | 0.6 PP |
| Deposits from customers | 1,970 | 2,013 | (2.1)% | 1,970 | 2,037 | (3.3)% |
| Loan/deposit ratio | 48.5% | 48.6% | (0.1) PP | 48.5% | 47.8% | 0.7 PP |
| Return on equity before tax | 25.7% | 32.3% | (6.6) PP | 25.7% | 9.2% | 16.5 PP |
| Return on equity after tax | 23.1% | 28.9% | (5.8) PP | 23.1% | 10.4% | 12.7 PP |
| Cost/income ratio | 33.0% | 31.3% | 1.8 PP | 33.0% | 51.1% | (18.1) PP |
| Net interest margin (average interest-bearing assets) |
3.84% | 4.33% | (0.48) PP | 3.84% | 3.76% | 0.08 PP |
| Employees as of reporting date | 1,394 | 1,420 | (1.8)% | 1,394 | 1,388 | 0.4% |
| Business outlets | 105 | 105 | 0.0% | 105 | 105 | 0.0% |
| Customers | 710,610 | 669,632 | 6.1% | 710,610 | 712,875 | (0.3)% |
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Net interest income | 17 | 18 | (3.9)% | 17 | 18 | (2.0)% |
| Net fee and commission income | 8 | 7 | 12.9% | 8 | 8 | (5.2)% |
| Net trading income | 0 | 0 | 44.0% | 0 | 0 | 15.5% |
| Other net operating income | 1 | 1 | 50.8% | 1 | 0 | – |
| Operating income | 26 | 26 | 2.2% | 26 | 26 | 0.9% |
| General administrative expenses | (14) | (15) | (4.2)% | (14) | (18) | (21.6)% |
| Operating result | 12 | 11 | 10.4% | 12 | 8 | 49.3% |
| Net provisioning for impairment losses | (3) | (6) | (56.1)% | (3) | (5) | (50.7)% |
| Other results | 0 | 2 | (92.3)% | 0 | 0 | – |
| Profit before tax | 10 | 7 | 36.3% | 10 | 3 | 241.7% |
| Income taxes | (1) | (1) | 41.0% | (1) | (1) | (23.6)% |
| Profit after tax | 9 | 7 | 35.7% | 9 | 2 | 458.4% |
| Assets | 1,959 | 2,069 | (5.3)% | 1,959 | 1,983 | (1.2)% |
| Loans and advances to customers | 1,245 | 1,330 | (6.4)% | 1,245 | 1,259 | (1.1)% |
| hereof corporate % | 38.9% | 42.7% | (3.8) PP | 38.9% | 39.5% | (0.7) PP |
| hereof retail % | 60.2% | 56.8% | 3.5 PP | 60.2% | 59.8% | 0.4 PP |
| hereof foreign currency % | 74.3% | 75.8% | (1.5) PP | 74.3% | 73.5% | 0.8 PP |
| Deposits from customers | 1,506 | 1,564 | (3.7)% | 1,506 | 1,526 | (1.4)% |
| Loan/deposit ratio | 82.7% | 85.1% | (2.4) PP | 82.7% | 82.5% | 0.2 PP |
| Return on equity before tax | 15.9% | 11.5% | 4.4 PP | 15.9% | 4.8% | 11.1 PP |
| Return on equity after tax | 14.3% | 10.4% | 3.9 PP | 14.3% | 2.6% | 11.7 PP |
| Cost/income ratio | 53.1% | 56.6% | (3.5) PP | 53.1% | 68.3% | (15.2) PP |
| Net interest margin (average interest-bearing assets) |
3.78% | 3.61% | 0.17 PP | 3.78% | 3.80% | (0.02) PP |
| Employees as of reporting date | 1,511 | 1,550 | (2.5)% | 1,511 | 1,561 | (3.2)% |
| Business outlets | 98 | 98 | 0.0% | 98 | 98 | 0.0% |
| Customers | 490,460 | 593,325 | (17.3)% | 490,460 | 496,107 | (1.1)% |
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Net interest income | 30 | 37 | (17.4)% | 30 | 33 | (9.0)% |
| Net fee and commission income | 9 | 9 | 2.6% | 9 | 10 | (8.3)% |
| Net trading income | 1 | 1 | (39.4)% | 1 | 1 | (43.8)% |
| Other net operating income | 0 | 0 | – | 0 | 0 | – |
| Operating income | 40 | 46 | (13.2)% | 40 | 44 | (8.6)% |
| General administrative expenses | (22) | (23) | (4.8)% | (22) | (24) | (7.4)% |
| Operating result | 18 | 23 | (21.6)% | 18 | 20 | (10.0)% |
| Net provisioning for impairment losses | (15) | (15) | 1.7% | (15) | (24) | (38.9)% |
| Other results | 0 | 0 | >500.0% | 0 | 0 | – |
| Profit/loss before tax | 3 | 9 | (64.1)% | 3 | (4) | – |
| Income taxes | 0 | (1) | (61.9)% | 0 | 1 | – |
| Profit/loss after tax | 3 | 8 | (64.3)% | 3 | (3) | – |
| Assets | 3,464 | 3,610 | (4.0)% | 3,464 | 3,486 | (0.6)% |
| Loans and advances to customers | 2,812 | 2,924 | (3.8)% | 2,812 | 2,883 | (2.4)% |
| hereof corporate % | 45.7% | 44.5% | 1.2 PP | 45.7% | 45.9% | (0.2) PP |
| hereof retail % | 53.7% | 54.9% | (1.2) PP | 53.7% | 53.5% | 0.2 PP |
| hereof foreign currency % | 74.7% | 79.6% | (4.9) PP | 74.7% | 75.0% | (0.2) PP |
| Deposits from customers | 2,152 | 2,124 | 1.3% | 2,152 | 2,156 | (0.2)% |
| Loan/deposit ratio | 130.7% | 137.7% | (7.0) PP | 130.7% | 133.7% | (3.1) PP |
| Return on equity before tax | 2.5% | 6.9% | (4.4) PP | 2.5% | – | – |
| Return on equity after tax | 2.2% | 6.2% | (4.0) PP | 2.2% | – | – |
| Cost/income ratio | 55.0% | 50.2% | 4.8 PP | 55.0% | 54.3% | 0.7 PP |
| Net interest margin (average interest-bearing assets) |
3.66% | 4.25% | (0.59) PP | 3.66% | 3.94% | (0.29) PP |
| Employees as of reporting date | 3,034 | 3,202 | (5.2)% | 3,034 | 3,119 | (2.7)% |
| Business outlets | 182 | 184 | (1.1)% | 182 | 183 | (0.5)% |
| Customers | 795,039 | 780,136 | 1.9% | 795,039 | 791,751 | 0.4% |
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Net interest income | 36 | 39 | (7.9)% | 36 | 38 | (6.7)% |
| Net fee and commission income | 14 | 14 | (1.0)% | 14 | 13 | 1.0% |
| Net trading income | 2 | 6 | (71.1)% | 2 | 0 | >500.0% |
| Other net operating income | 7 | 9 | (24.9)% | 7 | 6 | 17.6% |
| Operating income | 58 | 67 | (14.2)% | 58 | 57 | 0.4% |
| General administrative expenses | (33) | (38) | (11.1)% | (33) | (33) | 2.3% |
| Operating result | 24 | 30 | (18.2)% | 24 | 25 | (2.1)% |
| Net provisioning for impairment losses | (15) | (5) | 220.6% | (15) | (18) | (16.0)% |
| Other results | 1 | 3 | (49.2)% | 1 | (5) | – |
| Profit before tax | 11 | 27 | (61.6)% | 11 | 2 | 351.7% |
| Income taxes | (2) | (5) | (61.3)% | (2) | (1) | 213.8% |
| Profit after tax | 8 | 22 | (61.6)% | 8 | 2 | 407.4% |
| Assets | 4,948 | 6,333 | (21.9)% | 4,948 | 5,097 | (2.9)% |
| Loans and advances to customers | 3,498 | 3,854 | (9.2)% | 3,498 | 3,525 | (0.8)% |
| hereof corporate % | 39.6% | 40.7% | (1.1) PP | 39.6% | 39.7% | 0.0 PP |
| hereof retail % | 49.5% | 47.5% | 2.0 PP | 49.5% | 49.4% | 0.0 PP |
| hereof foreign currency % | 62.1% | 67.0% | (4.9) PP | 62.1% | 61.2% | 0.8 PP |
| Deposits from customers | 2,870 | 3,057 | (6.1)% | 2,870 | 3,040 | (5.6)% |
| Loan/deposit ratio | 121.6% | 126.1% | (4.4) PP | 121.6% | 116.1% | 5.5 PP |
| Return on equity before tax | 5.7% | 14.2% | (8.4) PP | 5.7% | 1.3% | 4.5 PP |
| Return on equity after tax | 4.6% | 11.4% | (6.8) PP | 4.6% | 0.9% | 3.7 PP |
| Cost/income ratio | 58.0% | 56.0% | 2.0 PP | 58.0% | 57.0% | 1.1 PP |
| Net interest margin (average interest-bearing assets) |
3.28% | 3.11% | 0.16 PP | 3.28% | 3.30% | (0.02) PP |
| Employees as of reporting date | 2,063 | 2,080 | (0.8)% | 2,063 | 2,066 | (0.1)% |
| Business outlets | 79 | 81 | (2.5)% | 79 | 79 | 0.0% |
| Customers | 475,925 | 513,973 | (7.4)% | 475,925 | 479,399 | (0.7)% |
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Net interest income | 9 | 10 | (8.7)% | 9 | 9 | 1.7% |
| Net fee and commission income | 2 | 2 | (5.8)% | 2 | 2 | (7.2)% |
| Net trading income | 0 | 0 | >500.0% | 0 | 0 | >500.0% |
| Other net operating income | 0 | 0 | >500.0% | 0 | 0 | (38.4)% |
| Operating income | 11 | 12 | (7.6)% | 11 | 11 | 1.8% |
| General administrative expenses | (6) | (7) | (13.3)% | (6) | (7) | (17.4)% |
| Operating result | 5 | 5 | (0.1)% | 5 | 4 | 38.5% |
| Net provisioning for impairment losses | (1) | (1) | (12.8)% | (1) | (1) | 116.6% |
| Other results | 0 | 1 | (78.9)% | 0 | 0 | – |
| Profit before tax | 4 | 4 | (6.6)% | 4 | 3 | 37.8% |
| Income taxes | 0 | 0 | (4.3)% | 0 | 0 | 32.4% |
| Profit after tax | 4 | 4 | (6.8)% | 4 | 3 | 38.5% |
| Assets | 628 | 650 | (3.3)% | 628 | 629 | (0.1)% |
| Loans and advances to customers | 444 | 423 | 5.1% | 444 | 428 | 3.8% |
| hereof corporate % | 39.0% | 34.2% | 4.8 PP | 39.0% | 37.7% | 1.3 PP |
| hereof retail % | 61.0% | 65.8% | (4.8) PP | 61.0% | 62.3% | (1.3) PP |
| hereof foreign currency % | 0.0% | 0.0% | 0.0 PP | 0.0% | 0.0% | 0.0 PP |
| Deposits from customers | 508 | 524 | (3.0)% | 508 | 514 | (1.1)% |
| Loan/deposit ratio | 87.5% | 80.8% | 6.7 PP | 87.5% | 83.3% | 4.1 PP |
| Return on equity before tax | 17.1% | 18.4% | (1.3) PP | 17.1% | 13.3% | 3.8 PP |
| Return on equity after tax | 15.4% | 16.6% | (1.2) PP | 15.4% | 11.9% | 3.4 PP |
| Cost/income ratio | 53.3% | 56.8% | (3.5) PP | 53.3% | 65.7% | (12.4) PP |
| Net interest margin (average interest-bearing assets) |
5.87% | 6.13% | (0.27) PP | 5.87% | 5.73% | 0.14 PP |
| Employees as of reporting date | 698 | 714 | (2.2)% | 698 | 688 | 1.5% |
| Business outlets | 52 | 54 | (3.7)% | 52 | 52 | 0.0% |
| Customers | 258,799 | 257,216 | 0.6% | 258,799 | 273,486 | (5.4)% |
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Net interest income | 72 | 80 | (10.5)% | 72 | 73 | (2.3)% |
| Net fee and commission income | 36 | 33 | 9.3% | 36 | 34 | 8.0% |
| Net trading income | 6 | 5 | 26.1% | 6 | 3 | 131.4% |
| Other net operating income | 1 | 0 | 81.0% | 1 | 1 | (45.7)% |
| Operating income | 115 | 119 | (3.1)% | 115 | 111 | 3.6% |
| General administrative expenses | (65) | (67) | (2.9)% | (65) | (70) | (7.5)% |
| Operating result | 51 | 52 | (3.3)% | 51 | 41 | 22.4% |
| Net provisioning for impairment losses | (21) | (27) | (23.1)% | (21) | (25) | (15.8)% |
| Other results | 6 | 11 | (44.3)% | 6 | 0 | >500.0% |
| Profit before tax | 36 | 36 | (0.9)% | 36 | 17 | 116.0% |
| Income taxes | (6) | (5) | 14.3% | (6) | (3) | 104.3% |
| Profit after tax | 30 | 31 | (3.4)% | 30 | 14 | 118.3% |
| Assets | 6,370 | 6,263 | 1.7% | 6,370 | 5,982 | 6.5% |
| Loans and advances to customers | 4,195 | 4,339 | (3.3)% | 4,195 | 4,226 | (0.7)% |
| hereof corporate % | 34.6% | 36.5% | (1.8) PP | 34.6% | 35.3% | (0.6) PP |
| hereof retail % | 62.6% | 61.5% | 1.1 PP | 62.6% | 61.9% | 0.7 PP |
| hereof foreign currency % | 54.1% | 52.1% | 2.1 PP | 54.1% | 51.8% | 2.3 PP |
| Deposits from customers | 3,995 | 3,872 | 3.2% | 3,995 | 3,781 | 5.7% |
| Loan/deposit ratio | 105.0% | 112.1% | (7.1) PP | 105.0% | 111.8% | (6.8) PP |
| Return on equity before tax | 25.0% | 27.8% | (2.7) PP | 25.0% | 13.3% | 11.7 PP |
| Return on equity after tax | 21.0% | 23.9% | (2.9) PP | 21.0% | 11.0% | 10.0 PP |
| Cost/income ratio | 56.0% | 56.0% | 0.1 PP | 56.0% | 62.8% | (6.7) PP |
| Net interest margin (average interest-bearing assets) |
4.83% | 5.31% | (0.49) PP | 4.83% | 5.07% | (0.24) PP |
| Employees as of reporting date | 5,393 | 5,880 | (8.3)% | 5,393 | 5,486 | (1.7)% |
| Business outlets | 526 | 540 | (2.6)% | 526 | 527 | (0.2)% |
| Customers | 1,981,086 | 1,932,098 | 2.5% | 1,981,086 | 1,974,315 | 0.3% |
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Net interest income | 25 | 23 | 6.4% | 25 | 24 | 1.3% |
| Net fee and commission income | 8 | 8 | (1.3)% | 8 | 9 | (10.0)% |
| Net trading income | 1 | 0 | 162.8% | 1 | 1 | 14.6% |
| Other net operating income | 2 | 1 | 123.4% | 2 | 1 | 29.5% |
| Operating income | 36 | 33 | 9.2% | 36 | 36 | (0.2)% |
| General administrative expenses | (18) | (20) | (8.7)% | (18) | (22) | (15.8)% |
| Operating result | 18 | 13 | 37.0% | 18 | 14 | 23.4% |
| Net provisioning for impairment losses | (4) | (2) | 85.1% | (4) | (6) | (39.0)% |
| Other results | 4 | 5 | (13.8)% | 4 | 2 | 95.9% |
| Profit before tax | 18 | 16 | 14.1% | 18 | 10 | 80.3% |
| Income taxes | (2) | (1) | 92.9% | (2) | 0 | 353.1% |
| Profit after tax | 16 | 15 | 8.0% | 16 | 9 | 66.5% |
| Assets | 1,849 | 1,969 | (6.1)% | 1,849 | 1,883 | (1.8)% |
| Loans and advances to customers | 1,195 | 1,309 | (8.7)% | 1,195 | 1,204 | (0.8)% |
| hereof corporate % | 51.2% | 56.9% | (5.7) PP | 51.2% | 53.1% | (1.9) PP |
| hereof retail % | 45.8% | 39.9% | 5.9 PP | 45.8% | 44.4% | 1.4 PP |
| hereof foreign currency % | 72.0% | 67.3% | 4.6 PP | 72.0% | 66.6% | 5.3 PP |
| Deposits from customers | 1,097 | 1,042 | 5.3% | 1,097 | 1,139 | (3.7)% |
| Loan/deposit ratio | 109.0% | 125.6% | (16.7) PP | 109.0% | 105.7% | 3.2 PP |
| Return on equity before tax | 15.1% | 13.3% | 1.8 PP | 15.1% | 8.9% | 6.1 PP |
| Return on equity after tax | 13.3% | 12.3% | 1.0 PP | 13.3% | 8.5% | 4.8 PP |
| Cost/income ratio | 50.8% | 60.8% | (10.0) PP | 50.8% | 60.2% | (9.4) PP |
| Net interest margin (average interest-bearing assets) |
5.60% | 4.60% | 1.00 PP | 5.60% | 5.34% | 0.27 PP |
| Employees as of reporting date | 1,757 | 1,763 | (0.3)% | 1,757 | 1,769 | (0.7)% |
| Business outlets | 86 | 85 | 1.2% | 86 | 85 | 1.2% |
| Customers | 561,702 | 510,594 | 10.0% | 561,702 | 550,790 | 2.0% |
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Operating income | 283 | 289 | (2.1)% | 283 | 264 | 7.1% |
| General administrative expenses | (125) | (122) | 2.3% | (125) | (151) | (17.2)% |
| Operating result | 158 | 167 | (5.4)% | 158 | 113 | 39.2% |
| Net provisioning for impairment losses | 15 | 1 | >500.0% | 15 | 2 | 484.4% |
| Other results | 26 | (10) | – | 26 | (3) | – |
| Profit before tax | 198 | 158 | 25.9% | 198 | 113 | 74.9% |
| Assets | 16,187 | 15,195 | 6.5% | 16,187 | 15,635 | 3.5% |
| Net interest margin (average interest-bearing assets) |
5.12% | 5.71% | (0.59) PP | 5.12% | 5.45% | (0.33) PP |
| Return on equity before tax | 48.1% | 40.3% | 7.8 PP | 48.1% | 29.9% | 18.2 PP |
Despite an increase in general administrative expenses and lower operating income, profit before tax in Russia rose 26 per cent to € 198 million year-on-year, primarily due to a rise in net income from financial investments. Return on equity before tax improved 7.8 percentage points to 48.1 per cent.
Net interest income in Russia declined 1 per cent or € 3 million year-on-year to € 182 million. Although there was an increase due to lending volume expansion, this was negatively offset by considerably lower interest income from derivatives used for foreign currency denominated loans exposure hedges. The segment posted a year-on-year decline in its net interest margin of 59 basis points to 5.12 per cent, and its total assets rose 7 per cent to € 16.2 billion. Credit risk-weighted assets remained stable at € 10.6 billion.
The segment's net fee and commission income increased 9 per cent or € 6 million to € 69 million year-on-year. Income from payment transfer business was 13 per cent higher than in the first quarter of 2012. At € 27 million, it continues to provide the largest contribution to net fee and commission income. Income from the loan and guarantee business climbed 33 per cent or € 5 million to € 20 million due to increased volume. Income from foreign currency, notes/coins, and precious metals business contributed another € 13 million. However, it was lower overall due to a decline in transaction volume.
Net trading income was down 26 per cent year-on-year to € 31 million. Net income from interest-based transactions declined € 10 million to € 4 million due to valuation losses. Net income from currency-based transactions remained virtually unchanged at € 26 million. The segment's other net operating income improved to € 1 million.
The segment's general administrative expenses rose 2 per cent to € 125 million, attributable primarily to a rise in staff expenses due to salary increases at year-end 2012. In contrast, other administrative expenses were lower due to a reduction in office space expenses. The number of business outlets decreased by a marginal 3 locations to 189 versus the previous year. The decline in operating income and the rise in general administrative expenses led to an increase of 1.9 percentage points in cost/income ratio to 44.1 per cent.
As in the same period last year, there was a net release of provisions for impairment losses, which at € 15 million, however, was € 14 million higher than the first quarter of 2012. The releases were related to individual loan loss provisions, which had largely been established in connection with retail customers. In portfolio-based loan loss provisions, a net allocation of € 1 million was posted. The share of non-performing loans in the loan portfolio decreased 1.2 percentage points year-on-year to 4.8 per cent.
Compared to the same period last year, other results in the Russia segment recovered from minus € 10 million to plus € 26 million. Net income from financial investments, resulting primarily from sale of the VISA shares, grew to € 26 million. Likewise, net income
from derivatives also improved from minus € 10 million to minus € 1 million, primarily due to valuation gains on interest rate swap transactions used to mitigate interest rate structure risk.
The segment's income taxes rose 13 per cent to € 43 million, while the tax rate declined 2 percentage points to 21 per cent.
The table below provides an overview of the country results for Russia. Any discrepancies with regard to values specified for the Russia segment are the result of equity being allocated differently: The figures in the country overview are based on equity reported on the statement of financial position, while at the segment level equity is based on the actual equity used.
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Net interest income | 182 | 184 | (1.4)% | 182 | 198 | (8.2)% |
| Net fee and commission income | 69 | 63 | 9.3% | 69 | 74 | (6.5)% |
| Net trading income | 31 | 41 | (26.0)% | 31 | 5 | >500.0% |
| Other net operating income | 1 | 0 | – | 1 | (12) | – |
| Operating income | 283 | 289 | (2.1)% | 283 | 264 | 7.1% |
| General administrative expenses | (125) | (122) | 2.3% | (125) | (151) | (17.2)% |
| Operating result | 158 | 167 | (5.4)% | 158 | 113 | 39.2% |
| Net provisioning for impairment losses | 15 | 1 | >500.0% | 15 | 2 | 484.4% |
| Other results | 26 | (10) | – | 26 | (3) | – |
| Profit before tax | 198 | 158 | 25.9% | 198 | 113 | 74.9% |
| Income taxes | (43) | (38) | 13.1% | (43) | (23) | 84.7% |
| Profit after tax | 156 | 120 | 29.9% | 156 | 90 | 72.4% |
| Assets | 16,187 | 15,195 | 6.5% | 16,187 | 15,635 | 3.5% |
| Loans and advances to customers hereof corporate % |
10,101 62.7% |
9,485 69.6% |
6.5% (6.8) PP |
10,101 62.7% |
9,669 64.1% |
4.5% (1.3) PP |
| hereof retail % | 37.2% | 30.4% | 6.9 PP | 37.2% | 35.9% | 1.3 PP |
| hereof foreign currency % | 42.2% | 46.4% | (4.2) PP | 42.2% | 44.2% | (2.0) PP |
| Deposits from customers | 10,447 | 10,064 | 3.8% | 10,447 | 9,609 | 8.7% |
| Loan/deposit ratio | 96.7% | 94.3% | 2.4 PP | 96.7% | 100.6% | (3.9) PP |
| Return on equity before tax | 35.5% | 31.7% | 3.8 PP | 35.5% | 22.8% | 12.7 PP |
| Return on equity after tax | 27.9% | 24.2% | 3.7 PP | 27.9% | 18.2% | 9.7 PP |
| Cost/income ratio | 44.1% | 42.2% | 1.9 PP | 44.1% | 57.0% | (12.9) PP |
| Net interest margin (average interest-bearing assets) |
5.12% | 5.71% | (0.59) PP | 5.12% | 5.45% | (0.33) PP |
| Employees as of reporting date | 8,200 | 8,257 | (0.7)% | 8,200 | 8,155 | 0.6% |
| Business outlets | 189 | 192 | (1.6)% | 189 | 186 | 1.6% |
| Customers | 2,335,420 | 2,379,581 | (1.9)% 2,335,420 | 2,288,175 | 2.1% |
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Operating income | 137 | 145 | (5.5)% | 137 | 140 | (2.1)% |
| General administrative expenses | (90) | (90) | (0.3)% | (90) | (106) | (14.6)% |
| Operating result | 47 | 54 | (14.1)% | 47 | 34 | 36.7% |
| Net provisioning for impairment losses | (25) | (24) | 7.7% | (25) | (13) | 95.8% |
| Other results | 32 | (6) | – | 32 | 5 | >500.0% |
| Profit before tax | 54 | 25 | 118.2% | 54 | 26 | 102.7% |
| Assets | 6,349 | 6,415 | (1.0)% | 6,349 | 6,324 | 0.4% |
| Net interest margin (average interest-bearing assets) |
6.59% | 7.16% | (0.58) PP | 6.59% | 6.96% | (0.38) PP |
| Return on equity before tax | 25.1% | 12.6% | 12.6 PP | 25.1% | 13.5% | 11.6 PP |
In the CIS Other segment, profit before tax rose 118 per cent year-on-year to € 54 million mainly due to higher income from financial investments. The segment's return on equity before tax doubled to 25.1 per cent.
At € 93 million, the segment's net interest income was 13 per cent below the amount posted in the same period last year. Net interest income in Ukraine declined 19 per cent to € 72 million due to lower lending volume with retail and corporate customers, higher expenses for customer deposits as well as a decrease in interest income from securities. In Belarus, in contrast, higher lending volume and margin led to a surge of 33 per cent in net interest income to € 20 million. The segment's total assets decreased slightly to € 6.3 billion, whereas credit risk-weighted assets rose 5 per cent to € 5.5 billion. The segment's net interest margin dropped 58 basis points to 6.59 per cent.
Net fee and commission income climbed 9 per cent year-on-year to € 49 million, with income from the payment transfer business, which increased 12 per cent to € 36 million, still making the largest contribution to the overall total. This increase was achieved through a higher number of transactions in Ukraine and Belarus.
Net trading income in the region improved from minus € 6 million to minus € 4 million compared to the same period last year. In Ukraine, valuation gains from bonds led to € 2 million additional net income from interest-based transactions.
The segment's other net operating income declined year-on-year to minus € 1 million due to several smaller expense and income items.
Compared to the same period last year, general administrative expenses remained stable at € 90 million. Ukraine achieved cost reductions of € 4 million, which primarily stemmed from lower staff expenses as a result of headcount reduction as well as from lower depreciation on tangible assets due to reduced IT investment. In contrast, general administrative expenses in Belarus were up € 4 million. While nearly all expense positions were affected, the largest growth was in index-based staff expenses, which rose due to salary increases conducted in the previous year. Lower operating income combined with unchanged cost levels led to an increase in the cost/income ratio of 3.4 percentage points to 65.9 per cent.
The region's net provisioning for impairment losses climbed 8 per cent year-on-year to € 25 million. At € 27 million, the need for loan loss provisions in Ukraine was € 4 million higher than in the same period last year. This increase was primarily because of retail customers' collateral value being lower. In Belarus, the need for loan loss provisions, at € 25 million, was slightly higher yearon-year due to greater net allocations to portfolio-based loan loss provisions. The share of non-performing loans in the total loan portfolio of the segment was 28.2 per cent (down 2.0 percentage points year-on-year), and thus remains the highest among all segments.
Other results recovered year-on-year from minus € 6 million to plus € 32 million, primarily due to net income from financial investments. In particular, valuation gains resulted from the portfolio of fixed-income Ukrainian government bonds measured at fair value.
The segment's income taxes climbed to € 11 million. The tax rate, however, fell 13 percentage points to 20 per cent.
Detailed results of individual countries:
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Net interest income | 20 | 15 | 32.9% | 20 | 15 | 33.6% |
| Net fee and commission income | 15 | 12 | 22.3% | 15 | 16 | (5.3)% |
| Net trading income | (6) | (5) | 21.4% | (6) | (16) | (60.2)% |
| Other net operating income | (1) | 0 | 102.1% | (1) | (2) | (77.9)% |
| Operating income | 28 | 22 | 28.9% | 28 | 13 | 123.7% |
| General administrative expenses | (18) | (14) | 26.5% | (18) | (19) | (6.6)% |
| Operating result | 11 | 8 | 33.0% | 11 | (6) | – |
| Net provisioning for impairment losses | 0 | (1) | – | 0 | 20 | (99.1)% |
| Other results | 0 | 0 | – | 0 | 0 | – |
| Profit before tax | 11 | 7 | 53.7% | 11 | 14 | (21.9)% |
| Income taxes | (2) | (3) | (43.2)% | (2) | (8) | (76.9)% |
| Profit after tax | 9 | 4 | 132.0% | 9 | 6 | 47.7% |
| Assets | 1,472 | 1,214 | 21.2% | 1,472 | 1,355 | 8.6% |
| Loans and advances to customers | 1,010 | 767 | 31.6% | 1,010 | 869 | 16.2% |
| hereof corporate % | 76.8% | 73.8% | 3.0 PP | 76.8% | 73.8% | 3.0 PP |
| hereof retail % | 23.2% | 26.2% | (3.0) PP | 23.2% | 26.2% | (3.0) PP |
| hereof foreign currency % | 73.0% | 66.5% | 6.5 PP | 73.0% | 70.9% | 2.1 PP |
| Deposits from customers | 926 | 718 | 29.0% | 926 | 872 | 6.2% |
| Loan/deposit ratio | 109.0% | 106.8% | 2.2 PP | 109.0% | 99.6% | 9.4 PP |
| Return on equity before tax | 21.6% | 16.5% | 5.0 PP | 21.6% | 29.7% | (8.1) PP |
| Return on equity after tax | 18.0% | 9.1% | 8.9 PP | 18.0% | 13.1% | 4.9 PP |
| Cost/income ratio | 62.6% | 63.8% | (1.2) PP | 62.6% | 150.1% | (87.4) PP |
| Net interest margin (average interest-bearing assets) |
6.39% | 5.39% | 1.00 PP | 6.39% | 4.94% | 1.44 PP |
| Employees as of reporting date | 2,201 | 2,198 | 0.1% | 2,201 | 2,190 | 0.5% |
| Business outlets | 100 | 98 | 2.0% | 100 | 100 | 0.0% |
| Customers | 695,067 | 683,134 | 1.7% | 695,067 | 691,925 | 0.5% |
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Net interest income | 72 | 89 | (19.0)% | 72 | 84 | (14.6)% |
| Net fee and commission income | 34 | 32 | 3.7% | 34 | 41 | (17.7)% |
| Net trading income | 2 | 1 | 164.2% | 2 | 2 | 17.2% |
| Other net operating income | (1) | 0 | – | (1) | (1) | 14.9% |
| Operating income | 107 | 123 | (12.6)% | 107 | 126 | (15.3)% |
| General administrative expenses | (72) | (76) | (5.3)% | (72) | (86) | (16.3)% |
| Operating result | 35 | 46 | (24.5)% | 35 | 40 | (13.1)% |
| Net provisioning for impairment losses | (27) | (22) | 19.3% | (27) | (33) | (20.2)% |
| Other results | 32 | (6) | – | 32 | 5 | >500.0% |
| Profit before tax | 41 | 18 | 130.1% | 41 | 12 | 238.2% |
| Income taxes | (9) | (5) | 73.7% | (9) | (13) | (33.0)% |
| Profit/loss after tax | 32 | 13 | 151.9% | 32 | (1) | – |
| Assets | 4,832 | 5,131 | (5.8)% | 4,832 | 4,922 | (1.8)% |
| Loans and advances to customers | 3,806 | 4,032 | (5.6)% | 3,806 | 3,715 | 2.5% |
| hereof corporate % | 51.9% | 52.6% | (0.7) PP | 51.9% | 52.0% | (0.1) PP |
| hereof retail % | 48.1% | 47.4% | 0.7 PP | 48.1% | 48.0% | 0.1 PP |
| hereof foreign currency % | 50.8% | 59.9% | (9.0) PP | 50.8% | 51.6% | (0.7) PP |
| Deposits from customers | 2,835 | 2,569 | 10.4% | 2,835 | 2,646 | 7.2% |
| Loan/deposit ratio | 134.2% | 156.9% | (22.7) PP | 134.2% | 140.4% | (6.2) PP |
| Return on equity before tax | 19.6% | 8.6% | 11.0 PP | 19.6% | 5.8% | 13.8 PP |
| Return on equity after tax | 15.5% | 6.2% | 9.3 PP | 15.5% | – | – |
| Cost/income ratio | 67.4% | 62.2% | 5.2 PP | 67.4% | 68.2% | (0.8) PP |
| Net interest margin (average interest-bearing assets) |
6.66% | 7.51% | (0.84) PP | 6.66% | 7.51% | (0.85) PP |
| Employees as of reporting date | 13,787 | 14,971 | (7.9)% | 13,787 | 13,849 | (0.4)% |
| Business outlets | 822 | 828 | (0.7)% | 822 | 825 | (0.4)% |
| Customers | 3,023,416 | 3,361,826 | (10.1)% 3,023,416 | 3,029,424 | (0.2)% |
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Operating income | 156 | 159 | (1.8)% | 156 | 142 | 10.2% |
| General administrative expenses | (44) | (35) | 25.4% | (44) | (47) | (5.3)% |
| Operating result | 112 | 124 | (9.6)% | 112 | 95 | 17.9% |
| Net provisioning for impairment losses | (73) | (1) | >500.0% | (73) | (61) | 20.3% |
| Other results | 0 | 2 | (74.9)% | 0 | (3) | – |
| Profit before tax | 39 | 125 | (68.4)% | 39 | 31 | 26.4% |
| Assets | 21,380 | 21,980 | (2.7)% | 21,380 | 18,997 | 12.5% |
| Net interest margin (average interest-bearing assets) |
2.17% | 1.94% | 0.23 PP | 2.17% | 1.96% | 0.21 PP |
| Return on equity before tax | 8.3% | 26.2% | (17.9) PP | 8.3% | 35.5% | (27.3) PP |
Profit before tax for the Group Corporates segment fell 68 per cent to € 39 million versus the same period last year. The main reason for this decline was a higher need for loan loss provisions for loans and advances to large customers. The segment's return on equity before tax decreased 17.9 percentage points to 8.3 per cent.
The segment's net interest income increased 1 per cent year-on-year to € 109 million. At Group head office and in the Corporate Customers profit center (Austrian and multinational corporate customers serviced from Vienna), net interest income improved slightly to € 44 million thanks to margin increase on assets and despite a lower lending volume. In the Network Corporate Customers & Support profit center (international corporate customers with a CEE relationship), net interest income grew 4 per cent to € 21 million. The Maltese subsidiary, however, posted an 11 per cent decline to € 13 million due to margin compression and volume decline. In the business outlets in Asia, net interest income also decreased, as a result of lower lending volume. The segment's net interest margin climbed 23 basis points to 2.17 per cent, while its total assets shrank 3 per cent or € 0.6 billion to € 21.4 billion year-on-year, because of lending volume reduction. Credit risk-weighted assets were stable with € 14.6 billion.
Net fee and commission income rose 12 per cent or € 5 million to € 43 million year-on-year. Income from payment transfer business – which is mostly generated at Group head office and represents the largest component of the segment's net fee and commission income – increased 21 per cent to € 36 million. This income related predominantly to lead-arranger activities associated with bond issuance by Austrian and international customers, as well as to the loan and project financing business, which was particularly strong. In contrast, business outlets in Asia and the Maltese subsidiary posted declines in their net fee and commission income.
The segment's net trading income decreased 76 per cent to € 3 million. Two main reasons contributed to this decline. Firstly, valuation gains from interest-based financial instruments transactions booked in Group head office were reduced by € 2 million. Secondly, the valuation of an option to purchase shares had resulted in a gain of € 7 million in the comparable period last year.
The segment's other net operating income remained unchanged year-on-year at € 2 million.
The segment's general administrative expenses increased 25 per cent year-on-year to € 44 million which was primarily the result of a cost allocation optimization process at Group head office in 2012 and of a portion allocation in the overhead costs to the segment. The segment consisted of eight business outlets at the end of the reporting period. The cost/income ratio rose 6.2 percentage points to 28.4 per cent.
Net provisioning for impairment losses totaled € 73 million. Compared to the same period last year, net provisioning for impairment losses was higher due mainly to two new large customer cases as well as to additional allocations posted with regard to existing cases at Group head office and in China. The share of non-performing loans in the loan portfolio of the segment grew 1.1 percentage points to 4.4 per cent.
The segment's other results declined € 1 million year-on-year because of lower net income from the valuation of securities held-tomaturity.
Income taxes declined 59 per cent to € 13 million compared to the same period last year. However, income tax rate increased 7 percentage points to 33 per cent.
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Operating income | 76 | 100 | (24.4)% | 76 | 80 | (5.8)% |
| General administrative expenses | (61) | (57) | 6.0% | (61) | (64) | (5.1)% |
| Operating result | 15 | 43 | (65.1)% | 15 | 16 | (8.2)% |
| Net provisioning for impairment losses | (1) | 5 | – | (1) | 1 | – |
| Other results | 11 | 138 | (92.1)% | 11 | 3 | 275.1% |
| Profit before tax | 25 | 185 | (86.3)% | 25 | 20 | 24.2% |
| Assets | 19,438 | 29,681 | (34.5)% | 19,438 | 20,243 | (4.0)% |
| Net interest margin (average interest-bearing assets) |
0.84% | 0.79% | 0.05 PP | 0.84% | 0.81% | 0.03 PP |
| Return on equity before tax | 8.9% | 44.7% | (35.7) PP | 8.9% | 7.4% | 1.5 PP |
Profit before tax for the Group Markets segment fell 86 per cent to € 25 million compared to the same period last year. The main reason for this decline was lower net income from financial investments. The segment's return on equity before tax decreased 35.7 percentage points to 8.9 per cent.
Net interest income in the segment fell 30 per cent to € 32 million compared to the same period last year. The main reasons for this decline were lower bond business volume from financial institutions, due to reduced investment activities, as well as ongoing cautious risk positioning. The segment's total assets decreased 34 per cent year-on-year to € 19.4 billion, while net interest margin rose 5 basis points to 0.84 per cent. Credit risk-weighted assets declined as well, falling 20 per cent to € 3.8 billion.
Group Markets' net fee and commission income increased 4 per cent to € 26 million versus the same period last year. Net fee and commission income from the Financial Institutions profit center remained unchanged owing to solid net income from services in cash management and guarantees in export/foreign trade business. The Private Banking and Asset Management division of subsidiary Kathrein Privatbank AG in Vienna provided an improved contribution of € 3 million from its securities business.
The segment's net trading income dropped 42 per cent to € 15 million in the first quarter due to lower trading volume and negative valuation result from interest rate swaps. Compared to the same period last year, loss from valuation of capital guarantees issued at Group head office remained nearly unchanged at about € 4 million.
The Group Markets segment's general administrative expenses increased 6 per cent to € 61 million year-on-year. The simultaneous decline in operating income led to an increase in the cost/income ratio by 23.0 percentage points to 80.2 per cent.
Net provisioning for impairment losses increased € 5 million to € 1 million, primarily due to higher net allocations to individual loan loss provisions at Group head office in connection with financial institutions. A net release of € 5 million was posted in the same period last year. Non-performing loans accounted for 1.3 per cent of the segment's total credit exposure.
The segment's other results fell from € 138 million to € 11 million year-on-year. Net income from financial investments decreased significantly due to the previous year's sale of the high-quality securities portfolio at Group head office as well as of other financial instruments. In contrast, net income from derivatives improved year-on-year, primarily because of valuation result at Group head office.
Income taxes in the segment declined from € 50 million to € 2 million, resulting in a considerable decrease in tax rate to 9 per cent.
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
Change | Q1/2013 | Q4/2012 | Change |
|---|---|---|---|---|---|---|
| Operating income | (21) | 100 | – | (21) | 2 | – |
| General administrative expenses | (72) | (80) | (10.7)% | (72) | (95) | (24.5)% |
| Operating result | (93) | 19 | – | (93) | (93) | (0.2)% |
| Net provisioning for impairment losses | 1 | 2 | (49.3)% | 1 | (4) | – |
| Other results | (116) | 107 | – | (116) | (458) | (74.7)% |
| Profit/loss before tax | (208) | 128 | – | (208) | (555) | (62.5)% |
| Assets | 43,580 | 52,161 | (16.5)% | 43,580 | 47,341 | (7.9)% |
| Net interest margin (average interest-bearing assets) |
– | – | – | – | – | – |
| Return on equity before tax | – | 22.0% | – | – | – | – |
The Corporate Center segment reported a loss before tax of € 208 million due to the decline in other results.
Net interest income from the segment fell to minus € 12 million compared to the same period last year. Both intra-Group dividend income as well as income from internal financing within the RBI network decreased year-on-year. The € 13 million in interest expenses for RBI AG's subordinated capital weighed operating income further down. The segment's assets shrank 16 per cent to € 43.6 billion specifically a result of liquidity buffer reduction. Credit risk-weighted assets contracted 3 per cent to € 16.7 billion.
Net fee and commission income dropped 66 per cent to minus € 11 million year-on-year, which is mainly attributable to higher commission payments for transaction settlements at Group head office.
The segment's net trading income decreased 30 per cent to minus € 9 million. This decline was primarily caused by valuation of various foreign currency and interest-rate-based instruments held for management purposes.
Other net operating income also decreased, from € 20 million to € 11 million. The bank levy totaling € 26 million had a negative impact on net income that was € 5 million higher than in the previous year. In contrast, commodity trading of F.J. Elsner Trading GmbH resulted in a positive contribution of € 2 million.
General administrative expenses in the segment declined 11 per cent or € 8 million year-on-year to € 72 million. The only business outlet reported in this segment is Group head office.
Net provisioning for impairment losses generally plays a minor role in this segment due to the intra-Group nature of its business activities. During the reporting period, there was a net release of provisions for impairment losses of € 1 million.
Other results fell € 223 million to minus € 116 million compared to the same period last year. Valuation losses on own issues (€ 82 million) and lower valuation of other derivatives had a negative effect on net income. In the previous year, the repurchase of portions of the hybrid capital had resulted in a € 113 million net gain.
During the reporting period, tax income totaling € 27 million was posted in the Corporate Center segment, less than the comparable period. This decline was attributable primarily to valuation results reported in this segment, particularly relating to liabilities measured at fair value.
(Interim report as of 31 March 2013)
Income statement
| In € million | Notes | 1/1-31/3/2013 | 1/1-31/3/20121 | Change |
|---|---|---|---|---|
| Interest income | 1,490 | 1,660 | (10.2)% | |
| Interest expenses | (626) | (785) | (20.2)% | |
| Net interest income | [2] | 865 | 875 | (1.2)% |
| Net provisioning for impairment losses | [3] | (220) | (153) | 43.7% |
| Net interest income after provisioning | 645 | 722 | (10.7)% | |
| Fee and commission income | 458 | 470 | (2.7)% | |
| Fee and commission expense | (83) | (125) | (33.2)% | |
| Net fee and commission income | [4] | 375 | 346 | 8.3% |
| Net trading income | [5] | 80 | 82 | (2.0)% |
| Income from derivatives and liabilities | [6] | (121) | 35 | – |
| Net income from financial investments | [7] | 87 | 261 | (66.6)% |
| General administrative expenses | [8] | (788) | (753) | 4.6% |
| Other net operating income | [9] | (21) | (8) | 162.9% |
| Net income from disposal of group assets | (6) | 0 | >500.0% | |
| Profit before tax | 251 | 685 | (63.4)% | |
| Income taxes | [10] | (77) | (111) | (30.7)% |
| Profit after tax | 174 | 574 | (69.7)% | |
| Profit attributable to non-controlling interests | (17) | (33) | (47.4)% | |
| Consolidated profit | 157 | 541 | (71.0)% |
1 Adaption of previous year figures due to the retrospective application of IAS 19.
| Total | Group equity | Non-controlling interests | ||||
|---|---|---|---|---|---|---|
| In € million | 1/1-31/3 2013 |
1/1-31/3 2012 |
1/1-31/3 2013 |
1/1-31/3 2012 |
1/1-31/3 2013 |
1/1-31/3 2012 |
| Profit after tax | 174 | 574 | 157 | 541 | 17 | 33 |
| Items which are not reclassified to profit and loss |
0 | 0 | 0 | 0 | 0 | 0 |
| Items that may be reclassified subsequently to profit or loss |
(6) | 113 | (3) | 89 | (2) | 24 |
| Exchange differences | 5 | 198 | 9 | 174 | (4) | 23 |
| hereof unrealized net gains (losses) of the period |
5 | 198 | 9 | 174 | (4) | 23 |
| Capital hedge | (1) | 0 | (1) | 0 | 0 | 0 |
| Hyperinflation | 13 | 9 | 11 | 8 | 2 | 1 |
| Net gains (losses) on derivatives hedging fluctuating cash flows |
(2) | 0 | (2) | 0 | 0 | 0 |
| hereof unrealized net gains (losses) of the period |
(2) | 0 | (2) | 0 | 0 | 0 |
| hereof net gains (losses) reclassified to income statement |
0 | 0 | 0 | 0 | 0 | 0 |
| Changes in equity of companies valued at equity |
0 | 0 | 0 | 0 | 0 | 0 |
| Net gains (losses) on financial assets available-for-sale |
(25) | (124) | (25) | (124) | 0 | 0 |
| hereof unrealized net gains (losses) of the period |
0 | 18 | 0 | 18 | 0 | 0 |
| hereof net gains (losses) reclassified to income statement |
(25) | (142) | (25) | (142) | 0 | 0 |
| Deferred taxes on income and expenses directly recognized in equity |
5 | 31 | 5 | 31 | 0 | 0 |
| hereof unrealized net gains (losses) of the period |
0 | (5) | 0 | (5) | 0 | 0 |
| hereof net gains (losses) reclassified to income statement |
5 | 35 | 5 | 35 | 0 | 0 |
| Sundry income and expenses directly recognized in equity |
0 | 0 | 0 | 0 | 0 | 0 |
| Other comprehensive income | (6) | 113 | (3) | 89 | (2) | 24 |
| Total comprehensive income | 168 | 687 | 153 | 630 | 15 | 57 |
| In € | 1/1-31/3/2013 | 1/1-31/3/2012 | Change |
|---|---|---|---|
| Earnings per share | 0.55 | 2.52 | (1.97) |
Earnings per share are obtained by dividing consolidated profit less dividend for participation capital by the average number of ordinary shares outstanding. As of 31 March 2013, the number of ordinary shares oustanding was 194.9 million (31 March 2012: 194.7 million). There were no conversion rights or options oustanding, so undiluted earnings per share are equal to diluted earnings per share.
| In € million | Q2/2012 | Q3/2012 | Q4/2012 | Q1/2013 |
|---|---|---|---|---|
| Net interest income | 886 | 834 | 876 | 865 |
| Net provisioning for impairment losses | (247) | (224) | (385) | (220) |
| Net interest income after provisioning | 639 | 611 | 491 | 645 |
| Net fee and commission income | 375 | 400 | 396 | 375 |
| Net trading income | 85 | 54 | (6) | 80 |
| Income from derivatives and liabilities | (55) | (88) | (20) | (121) |
| Net income from financial investments | (8) | 46 | 19 | 87 |
| General administrative expenses1 | (764) | (818) | (918) | (788) |
| Other net operating income | (28) | (16) | (50) | (21) |
| Net income from disposal of group assets | (2) | 0 | 14 | (6) |
| Profit/Loss before tax | 243 | 188 | (74) | 251 |
| Income taxes | (83) | (32) | (58) | (77) |
| Profit/Loss after tax | 160 | 155 | (131) | 174 |
| Profit attributable to non-controlling interests | 0 | (14) | 24 | (17) |
| Consolidated profit | 160 | 141 | (107) | 157 |
1 Adaption of previous year figures due to the retrospective application of IAS 19.
| In € million | Q2/2011 | Q3/2011 | Q4/2011 | Q1/2012 |
|---|---|---|---|---|
| Net interest income | 897 | 943 | 943 | 875 |
| Net provisioning for impairment losses | (197) | (377) | (282) | (153) |
| Net interest income after provisioning | 700 | 566 | 661 | 722 |
| Net fee and commission income | 380 | 388 | 365 | 346 |
| Net trading income | 133 | 37 | 70 | 82 |
| Income from derivatives and liabilities | 38 | 108 | 264 | 35 |
| Net income from financial investments | (13) | (158) | 5 | 261 |
| General administrative expenses1 | (761) | (772) | (835) | (753) |
| Other net operating income | (3) | (15) | (190) | (8) |
| Net income from disposal of group assets | 0 | 0 | 0 | 0 |
| Profit before tax | 474 | 153 | 340 | 685 |
| Income taxes | (101) | (71) | (127) | (111) |
| Profit after tax | 372 | 82 | 213 | 574 |
| Profit attributable to non-controlling interests | (27) | 48 | 8 | (33) |
| Consolidated profit | 345 | 130 | 221 | 541 |
1 Adaption of previous year figures due to the retrospective application of IAS 19.
| Assets In € million |
Notes | 31/3/2013 | 31/12/2012 | Change |
|---|---|---|---|---|
| Cash reserve | 5,013 | 6,557 | (23.5)% | |
| Loans and advances to banks | [12, 34] | 20,250 | 22,323 | (9.3)% |
| Loans and advances to customers | [13, 34] | 82,889 | 83,343 | (0.5)% |
| Impairment losses on loans and advances | [14] | (5,694) | (5,642) | 0.9% |
| Trading assets | [15, 34] | 8,564 | 9,813 | (12.7)% |
| Derivatives | [16, 34] | 1,239 | 1,405 | (11.8)% |
| Financial investments | [17, 34] | 14,913 | 13,355 | 11.7% |
| Investments in associates | [34] | 5 | 5 | 1.6% |
| Intangible fixed assets | [18] | 1,307 | 1,321 | (1.1)% |
| Tangible fixed assets | [19] | 1,600 | 1,597 | 0.2% |
| Other assets | [20, 34] | 1,846 | 2,038 | (9.4)% |
| Total assets | 131,932 | 136,116 | (3.1)% |
| Equity and liabilities | ||||
|---|---|---|---|---|
| In € million | Notes | 31/3/2013 | 31/12/2012 | Change |
| Deposits from banks | [21, 34] | 27,579 | 30,186 | (8.6)% |
| Deposits from customers | [22, 34] | 66,853 | 66,297 | 0.8% |
| Debt securities issued | [23, 34] | 12,470 | 13,290 | (6.2)% |
| Provisions for liabilities and charges | [24] | 706 | 721 | (2.1)% |
| Trading liabilities | [25, 34] | 7,100 | 8,824 | (19.5)% |
| Derivatives | [26, 34] | 505 | 472 | 7.0% |
| Other liabilities | [27, 34] | 1,742 | 1,515 | 14.9% |
| Subordinated capital | [28, 34] | 3,917 | 3,937 | (0.5)% |
| Equity | [29] | 11,061 | 10,873 | 1.7% |
| Consolidated equity | 10,186 | 9,428 | 8.0% | |
| Consolidated profit | 157 | 725 | (78.4)% | |
| Non-controlling interests | 719 | 719 | (0.1)% | |
| Total equity and liabilities | 131,932 | 136,116 | (3.1)% |
| Subscribed | Participation | Capital | Retained | Consolidated | Non-controlling | ||
|---|---|---|---|---|---|---|---|
| In € million | capital | capital | reserves | earnings | profit | interests | Total |
| Equity as of 1/1/2013 | 595 | 2,500 | 2,574 | 3,760 | 725 | 719 | 10,873 |
| Capital increases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Transferred to retained earnings |
0 | 0 | 0 | 725 | (725) | 0 | 0 |
| Dividend payments | 0 | 0 | 0 | 0 | 0 | (2) | (2) |
| Total comprehensive income |
0 | 0 | 0 | (3) | 157 | 15 | 168 |
| Own shares/share incentive program |
0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other changes | 0 | 0 | 0 | 35 | 0 | (13) | 22 |
| Equity as of 31/3/2013 | 595 | 2,500 | 2,574 | 4,517 | 157 | 719 | 11,061 |
| In € million | Subscribed capital |
Participation capital |
Capital reserves |
Retained earnings |
Consolidated profit |
Non-controlling interests |
Total |
|---|---|---|---|---|---|---|---|
| Equity as of 1/1/2012 | 593 | 2,500 | 2,571 | 3,161 | 968 | 1,143 | 10,936 |
| Effects of the retrospective application of IAS 19 |
0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity as of 1/1/20121 | 593 | 2,500 | 2,571 | 3,161 | 967 | 1,143 | 10,936 |
| Capital increases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Transferred to retained earnings |
0 | 0 | 0 | 967 | (967) | 0 | 0 |
| Dividend payments | 0 | 0 | 0 | 0 | 0 | (2) | (2) |
| Total comprehensive income |
0 | 0 | 0 | 89 | 541 | 57 | 687 |
| Own shares/share incentive program |
2 | 0 | 6 | 0 | 0 | 0 | 8 |
| Other changes | 0 | 0 | 0 | (21) | 0 | (135) | (156) |
| Equity as of 31/3/2012 | 596 | 2,500 | 2,577 | 4,197 | 541 | 1,063 | 11,474 |
1 Adaption of previous year figures due to the retrospective application of IAS 19.
| In € million | 1/1-31/3/2013 | 1/1-31/3/2012 |
|---|---|---|
| Cash and cash equivalents at the end of previous period | 6,557 | 11,402 |
| Net cash from operating activities | (1,624) | 3,116 |
| Net cash from investing activities | 65 | 294 |
| Net cash from financing activities | (18) | (237) |
| Effect of exchange rate changes | 34 | 57 |
| Cash and cash equivalents at the end of period | 5,013 | 14,631 |
As a rule, internal management reporting at RBI is based on the current organizational structure. This matrix structure means that each member of the Management Board is responsible both for individual countries and for specific business activities (country and functional responsibility model). A cash generating unit within the Group is either a country or a business activity. Accordingly, the RBI management bodies –Management Board and Supervisory Board – make key decisions that determine the resources allocated to any given segment based on its financial strength and profitability, which is why these reporting criteria are an essential component in the decision-making process. Thus, the division into segments was also undertaken in accordance with IFRS 8. The reconciliation contains mainly the amounts resulting from the elemination of intra-group results and consolidation between the segments.
The following segments result thereof:
| 1/1-31/3/2013 In € million |
Central Europe |
Southeastern Europe |
Russia | CIS Other | Group Corporates |
|---|---|---|---|---|---|
| Net interest income | 260 | 207 | 182 | 93 | 109 |
| Net fee and commission income | 128 | 79 | 69 | 49 | 43 |
| Net trading income | 12 | 15 | 31 | (4) | 3 |
| Other net operating income | (17) | 10 | 1 | (1) | 2 |
| Operating income | 384 | 312 | 283 | 137 | 156 |
| General administrative expenses | (259) | (166) | (125) | (90) | (44) |
| Operating result | 124 | 145 | 158 | 47 | 112 |
| Net provisioning for impairment losses | (74) | (63) | 15 | (25) | (73) |
| Other results | 7 | 12 | 26 | 32 | 0 |
| Profit before tax | 57 | 95 | 198 | 54 | 39 |
| Income taxes | (22) | (13) | (43) | (11) | (13) |
| Profit after tax | 35 | 82 | 156 | 43 | 26 |
| Profit attributable to non-controlling interests | (11) | (10) | 0 | (3) | (14) |
| Profit after non-controlling interests | 23 | 72 | 155 | 40 | 12 |
| Share of profit before tax | 22.0% | 36.4% | 76.2% | 20.6% | 15.1% |
| Risk-weighted assets (credit risk) | 21,650 | 12,971 | 10,586 | 5,474 | 14,580 |
| Total own funds requirement | 2,022 | 1,257 | 1,037 | 533 | 1,186 |
| Assets | 39,432 | 21,411 | 16,187 | 6,349 | 21,380 |
| Liabilities | 35,705 | 18,348 | 13,553 | 5,237 | 13,928 |
| Net interest margin (average interest-bearing assets) |
2.77% | 4.20% | 5.12% | 6.59% | 2.17% |
| NPL ratio | 11.4% | 13.2% | 4.8% | 27.6% | 4.4% |
| NPL coverage ratio | 63.8% | 61.5% | 99.7% | 70.9% | 66.6% |
| Cost/income ratio | 67.7% | 53.3% | 44.1% | 65.9% | 28.4% |
| Provisioning ratio (average loans and advances to customers) |
1.46% | 1.69% | (0.23)% | 2.02% | 0.20% |
| Average equity | 3,232 | 2,192 | 1,649 | 854 | 1,910 |
| Return on equity before tax | 7.1% | 17.3% | 48.1% | 25.1% | 8.3% |
| Business outlets | 805 | 1,128 | 189 | 923 | 8 |
| 1/1-31/3/2013 In € million |
Group Markets |
Corporate Center |
Reconciliation | Total |
|---|---|---|---|---|
| Net interest income | 32 | (12) | (6) | 865 |
| Net fee and commission income | 26 | (11) | (9) | 375 |
| Net trading income | 15 | (9) | 18 | 80 |
| Other net operating income | 2 | 11 | (29) | (21) |
| Operating income | 76 | (21) | (27) | 1,299 |
| General administrative expenses | (61) | (72) | 30 | (788) |
| Operating result | 15 | (93) | 3 | 511 |
| Net provisioning for impairment losses | (1) | 1 | 0 | (220) |
| Other results | 11 | (116) | (12) | (40) |
| Profit/loss before tax | 25 | (208) | (10) | 251 |
| Income taxes | (2) | 27 | 0 | (77) |
| Profit after tax | 23 | (181) | (10) | 174 |
| Profit attributable to non-controlling interests | 0 | 0 | 22 | (17) |
| Profit/Loss after non-controlling interests | 23 | (181) | 12 | 157 |
| Share of profit before tax | 9.8% | (80.0)% | – | 100.0% |
| Risk-weighted assets (credit risk) | 3,777 | 16,710 | (16,430) | 69,319 |
| Total own funds requirement | 418 | 1,320 | (1,074) | 6,699 |
| Assets | 19,438 | 43,580 | (35,845) | 131,932 |
| Liabilities | 19,567 | 31,792 | (17,259) | 120,871 |
| Net interest margin (average interest-bearing assets) | 0.84% | – | – | 2.89% |
| NPL ratio | 6.4% | – | – | 9.9% |
| NPL coverage ratio | 88.9% | – | – | 67.5% |
| Cost/income ratio | 80.2% | – | – | 60.5% |
| Provisioning ratio (average loans and advances to customers) |
0.82% | (0.13)% | – | 1.06% |
| Average equity | 1,137 | 2,482 | (2,492) | 10,963 |
| Return on equity before tax | 8.9% | – | – | 9.2% |
| Business outlets | 3 | 1 | – | 3,057 |
| 1/1-31/3/2012 In € million |
Central Europe |
Southeastern Europe |
Russia | CIS Other | Group Corporates |
|---|---|---|---|---|---|
| Net interest income | 249 | 228 | 184 | 106 | 108 |
| Net fee and commission income | 112 | 75 | 63 | 45 | 38 |
| Net trading income | 12 | 17 | 41 | (6) | 11 |
| Other net operating income | (7) | 10 | 0 | 0 | 2 |
| Operating income | 366 | 330 | 289 | 145 | 159 |
| General administrative expenses1 | (222) | (177) | (122) | (90) | (35) |
| Operating result | 144 | 153 | 167 | 54 | 124 |
| Net provisioning for impairment losses | (75) | (60) | 1 | (24) | (1) |
| Other results | 19 | 21 | (10) | (6) | 2 |
| Profit before tax | 87 | 114 | 158 | 25 | 125 |
| Income taxes | (25) | (15) | (38) | (8) | (32) |
| Profit after tax | 63 | 99 | 120 | 16 | 93 |
| Profit attributable to non-controlling interests | (20) | (8) | (3) | (1) | 0 |
| Profit after non-controlling interests | 43 | 91 | 117 | 15 | 93 |
| Share of profit before tax | 10.6% | 13.9% | 19.2% | 3.0% | 15.2% |
| Risk-weighted assets (credit risk) | 20,353 | 14,012 | 10,607 | 5,236 | 14,561 |
| Total own funds requirement | 1,882 | 1,336 | 1,047 | 508 | 1,204 |
| Assets | 36,024 | 23,097 | 15,195 | 6,415 | 21,980 |
| Liabilities | 31,798 | 19,830 | 12,135 | 5,724 | 15,378 |
| Net interest margin (average interest-bearing assets) |
2.99% | 4.34% | 5.71% | 7.16% | 1.94% |
| NPL ratio | 10.0% | 12.0% | 6.0% | 30.2% | 3.3% |
| NPL coverage ratio | 60.8% | 56.9% | 97.6% | 69.0% | 52.5% |
| Cost/income ratio | 60.7% | 53.6% | 42.2% | 62.5% | 22.2% |
| Provisioning ratio (average loans and advances to customers) |
1.38% | 1.66% | 0.11% | 2.81% | 0.20% |
| Average equity | 2,892 | 2,150 | 1,563 | 782 | 1,908 |
| Return on equity before tax | 12.1% | 21.2% | 40.3% | 12.6% | 26.2% |
| Business outlets | 552 | 1,147 | 192 | 927 | 8 |
1 Adaption of previous year figures due to the retrospective application of IAS 19.
| 1/1-31/3/2012 In € million |
Group Markets |
Corporate Center |
Reconciliation | Total |
|---|---|---|---|---|
| Net interest income | 46 | 94 | (141) | 875 |
| Net fee and commission income | 25 | (7) | (5) | 346 |
| Net trading income | 26 | (7) | (12) | 82 |
| Other net operating income | 3 | 20 | (36) | (8) |
| Operating income | 100 | 100 | (194) | 1,295 |
| General administrative expenses1 | (57) | (80) | 31 | (753) |
| Operating result | 43 | 19 | (163) | 542 |
| Net provisioning for impairment losses | 5 | 2 | 0 | (153) |
| Other results | 138 | 107 | 26 | 296 |
| Profit before tax | 185 | 128 | (137) | 685 |
| Income taxes | (50) | 61 | (4) | (111) |
| Profit after tax | 135 | 189 | (141) | 574 |
| Profit attributable to non-controlling interests | 0 | 0 | (1) | (33) |
| Profit after non-controlling interests | 135 | 188 | (142) | 541 |
| Share of profit before tax | 22.6% | 15.6% | – | 100.0% |
| Risk-weighted assets (credit risk) | 4,712 | 17,215 | (15,645) | 71,051 |
| Total own funds requirement | 1,367 | 1,409 | (1,856) | 6,898 |
| Assets | 29,681 | 52,161 | (35,754) | 148,798 |
| Liabilities | 29,358 | 43,819 | (20,717) | 137,325 |
| Net interest margin (average interest-bearing assets) | 0.79% | – | – | 2.65% |
| NPL ratio | 3.6% | – | – | 8.9% |
| NPL coverage ratio | 89.0% | – | – | 66.8% |
| Cost/income ratio | 57.1% | 80.5% | – | 58.2% |
| Provisioning ratio (average loans and advances to customers) |
0.85% | – | – | 0.75% |
| Average equity | 1,660 | 2,324 | – | 10,918 |
| Return on equity before tax | 44.7% | 22.0% | – | 25.1% |
| Business outlets | 4 | 1 | – | 2,831 |
1 Adaption of previous year figures due to the retrospective application of IAS 19.
The condensed interim consolidated financial statements of RBI are prepared in accordance with the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB) and the international accounting standards adopted by the EU on the basis of IAS Regulation (EC) 1606/2002 including the applicable interpretations of the International Financial Reporting Interpretations Committee (IFRIC/SIC). The condensed consolidated interim financial statements as of 31 March 2013 are prepared in accordance with IAS 34.
In the interim reporting, the same recognition and measurement principles and consolidation methods were fundamentally applied as those used in preparing the 2012 consolidated financial statements (see 2012 Annual Report, page 116 ff.). Standards and interpretations to be applied in the EU from 1 January 2013 onward were accounted for in this interim report. The application of these standards had no influence on the condensed interim consolidated financial statements.
In addition to the information on risks arising from financial instruments in the individual notes to the financial statements, the risk report section in particular contains detailed information on the issues of credit risk, country risk, concentration risk, market risk and liquidity risk.
RBI's interim report for the first quarter of 2013 did not undergo a complete audit, nor did it undergo an audit inspection carried out by a certified auditor (framework prime market of the Vienna Stock Exchange).
If estimates or assessments are necessary for accounting and measuring under IAS/IFRS rules, they are made in accordance with the respective standards. They are based on past experience and other factors, such as planning and expectations or forecasts of future events that appear likely from today's standard. This primarily affects impairment losses in the credit business, the fair value and the impairment of financial instruments, deferred taxes, provisions for pensions and pension-related liabilities, and calculations used to determine the recoverability of goodwill and the intangible asset values capitalized in the course of the initial consolidation. The actual values may deviate from the estimated figures.
The amendments to IAS 1 (Presentation of items of other comprehensive income) require presentation, by using subtotals, as to whether the items of other comprehensive income are re-classifiable to profit or loss or not. Moreover, if other comprehensive income items are presented before tax then the tax related to each of the two categories has to be presented separately. Application of these amendments will have an impact on the presentation of the statement of comprehensive income. Starting with the first quarter of 2013, items that cannot be reclassified to profit or loss and items that can be reclassified to profit or loss are presented separately.
In the current financial year, IAS 19 (Employee benefits; revised 2011, IAS 19R) will be applied retroactively for the first time. The most significant change of IAS 19 relates to the accounting for changes in defined benefit obligations and plan assets. The amendments require the immediate recognition of all changes in defined benefit obligations and in fair value of plan assets when they occur. Through the elimination of the "corridor approach," all actuarial gains and losses are to be recognized immediately through other comprehensive income. As RBI did not use the "corridor approach" in the past there will be no major changes. The effects due to the retrospective application of IAS 19 can on the one hand be seen in the statement of changes in equity as of 1 January 2012 and on the other hand in the transition to total comprehensive income. The comparative figures have been adjusted accordingly.
In May 2011 the IASB published IFRS 13 "Fair Value Measurement" which establishes a single source of guidance for fair value measurements and disclosures about fair value measurements, which up until then had been included in the various IFRS. The scope of IFRS 13 is broad; it applies to both financial instrument items and non-financial instrument items for which other IFRSs require or permit fair value measurements or demand disclosures about fair value measurements, except in specified circumstances. IFRS 13 is to be applied prospectively for annual periods beginning on or after 1 January 2013. The impact from the adoption of the valuation of assets and liabilities of RBI will not be significant. Changes are related in particular to the notes. Disclosures which were only shown in the year-end report, i.e. the information about market values of financial instruments and on the classification of financial instruments, are now shown also in the interim reports. This quantitative data is presented in the other information in (33) Fair value of financial instruments reported at fair value.
The amendments to IFRS 7 (Offsetting financial assets and liabilities) require entities to disclose information about rights to offset financial instruments and related arrangements under an enforceable master netting agreement or similar arrangement. These
changes are to be applied prospectively for annual periods beginning on or after 1 January 2013. The quantitative data was not published in the first quarter of 2013, since it is irrelevant for understanding the changes that have occurred in the assets, financial and earnings position of the company since the end of the last fiscal year.
The other amendments to IFRS 1 (Government loans), IFRIC 20 (Stripping costs in the production phase of a surface mine) and the annual improvements (IFRS cycle 2009-2011) are to be applied for the first time in the current financial year. These changes have no impact on the interim consolidated financial statements of RBI.
| Rates in units per € | 2013 | 2012 | ||
|---|---|---|---|---|
| As of | Average | As of | Average | |
| 31/3 | 1/1-31/3 | 31/12 | 1/1-31/3 | |
| Albanian lek (ALL) | 139.910 | 139.685 | 139.590 | 139.580 |
| Belarusian rouble (BYR) | 11,110.000 | 11,350.000 | 11,340.000 | 10,847.500 |
| Bosnian marka (BAM) | 1.956 | 1.956 | 1.956 | 1.956 |
| Bulgarian lev (BGN) | 1.956 | 1.956 | 1.956 | 1.956 |
| Croatian kuna (HRK) | 7.594 | 7.583 | 7.558 | 7.550 |
| Czech koruna (CZK) | 25.740 | 25.537 | 25.151 | 25.137 |
| Hungarian forint (HUF) | 304.420 | 296.198 | 292.300 | 298.030 |
| Kazakh tenge (KZT) | 193.330 | 198.293 | 199.220 | 195.665 |
| Malaysian Ringgit (MYR) | 3.965 | 4.068 | 4.035 | 4.059 |
| Polish zloty (PLN) | 4.180 | 4.150 | 4.074 | 4.239 |
| Romanian leu (RON) | 4.419 | 4.402 | 4.445 | 4.349 |
| Russian rouble (RUB) | 39.762 | 40.238 | 40.330 | 39.971 |
| Serbian dinar (RSD) | 111.958 | 112.199 | 113.718 | 108.063 |
| Singapore dollar (SGD) | 1.590 | 1.625 | 1.611 | 1.670 |
| Turkish lira (TRY) | 2.321 | 2.355 | 2.355 | 2.375 |
| Ukrainian hryvnia (UAH) | 10.235 | 10.516 | 10.537 | 10.529 |
| US-Dollar (USD) | 1.281 | 1.317 | 1.319 | 1.323 |
| Fully consolidated | Equity method | |||
|---|---|---|---|---|
| Number of units | 31/3/2013 | 31/12/2012 | 31/3/2013 | 31/12/2012 |
| As of beginning of period | 137 | 135 | 1 | 1 |
| Included for the first time in the financial period | 2 | 15 | 0 | 0 |
| Merged in the financial period | 0 | (3) | 0 | 0 |
| Excluded in the financial period | (4) | (10) | 0 | 0 |
| As of end of period | 135 | 137 | 1 | 1 |
| In € million | 1/1-31/3/2013 | 1/1-31/3/2012 |
|---|---|---|
| Net income from financial assets and liabilities held-for-trading | (25) | 29 |
| Net income from financial assets and liabilities at fair value through profit or loss |
86 | 124 |
| Net income from financial assets available-for-sale | 28 | 150 |
| Net income from loans and advances | 1,047 | 1,268 |
| Net income from financial assets held-to-maturity | 49 | 73 |
| Net income from financial liabilities measured at acquisition cost | (625) | (672) |
| Net income from derivatives (hedging) | 15 | (4) |
| Net revaluations from exchange differences | 116 | 132 |
| Other operating income/expenses | (441) | (415) |
| Total profit before tax from continuing operations | 251 | 685 |
| In € million | 1/1-31/3/2013 | 1/1-31/3/2012 |
|---|---|---|
| Interest and interest-like income, total | 1,490 | 1,660 |
| Interest income | 1,485 | 1,649 |
| from balances at central banks | 13 | 16 |
| from loans and advances to banks | 53 | 114 |
| from loans and advances to customers | 1,148 | 1,228 |
| from financial investments | 131 | 157 |
| from leasing claims | 48 | 58 |
| from derivative financial instruments (non-trading), net | 92 | 77 |
| Current income | 0 | 5 |
| Interest-like income | 5 | 6 |
| Current income from associates | 0 | 0 |
| Interest expenses and interest-like expenses, total | (626) | (785) |
| Interest expenses | (612) | (774) |
| on deposits from central banks | (1) | 0 |
| on deposits from banks | (108) | (196) |
| on deposits from customers | (358) | (404) |
| on debt securities issued | (96) | (119) |
| on subordinated capital | (48) | (55) |
| Interest-like expenses | (14) | (10) |
| Total | 865 | 875 |
| In € million | 1/1-31/3/2013 | 1/1-31/3/2012 |
|---|---|---|
| Individual loan loss provisions | (194) | (175) |
| Allocation to provisions for impairment losses | (490) | (381) |
| Release of provisions for impairment losses | 297 | 257 |
| Direct write-downs | (14) | (64) |
| Income received on written-down claims | 12 | 13 |
| Portfolio-based loan loss provisions | (27) | 21 |
| Allocation to provisions for impairment losses | (159) | (103) |
| Release of provisions for impairment losses | 132 | 124 |
| Gains from loan termination or sale | 1 | 1 |
| Total | (220) | (153) |
| In € million | 1/1-31/3/2013 | 1/1-31/3/2012 |
|---|---|---|
| Payment transfer business | 168 | 150 |
| Loan and guarantee business | 59 | 60 |
| Securities business | 30 | 28 |
| Foreign currency, notes/coins, and precious metals business | 82 | 80 |
| Management of investment and pension funds | 7 | 5 |
| Sale of own and third party products | 12 | 9 |
| Credit derivatives business | 0 | 0 |
| Other banking services | 16 | 15 |
| Total | 375 | 346 |
| In € million | 1/1-31/3/2013 | 1/1-31/3/2012 |
|---|---|---|
| Interest-based transactions | 8 | 56 |
| Currency-based transactions | 70 | 34 |
| Equity-/index-based transactions | 4 | 10 |
| Credit derivatives business | 0 | (12) |
| Other transactions | (2) | (6) |
| Total | 80 | 82 |
The refinancing expenses for trading assets that are included in net trading income amounted to € 12 million (comparable period: € 19 million).
| In € million | 1/1-31/3/2013 | 1/1-31/3/2012 |
|---|---|---|
| Net income from hedge accounting | 10 | (3) |
| Net income from credit derivatives | 0 | (1) |
| Net income from other derivatives | (77) | 2 |
| Net income from liabilities designated at fair value | (55) | (76) |
| Income from repurchase of liabilities | 0 | 112 |
| Total | (121) | 35 |
| In € million | 1/1-31/3/2013 | 1/1-31/3/2012 |
|---|---|---|
| Net income from securities held-to-maturity | 0 | 2 |
| Net valuations of securities | 0 | 2 |
| Net proceeds from sales of securities | 0 | 0 |
| Net income from equity participations | 28 | 9 |
| Net valuations of equity participations | 0 | (1) |
| Net proceeds from sales of equity participations | 28 | 10 |
| Net income from securities at fair value through profit and loss | 59 | 251 |
| Net valuations of securities | 53 | 89 |
| Net proceeds from sales of securities | 6 | 162 |
| Total | 87 | 261 |
| In € million | 1/1-31/3/2013 | 1/1-31/3/20121 |
|---|---|---|
| Staff expenses | (406) | (381) |
| Other administrative expenses | (291) | (284) |
| Depreciation of intangible and tangible fixed assets | (91) | (88) |
| Total | (788) | (753) |
1 Adaption of previous year figures due to the retrospective application of IAS 19.
| In € million | 1/1-31/3/2013 | 1/1-31/3/2012 |
|---|---|---|
| Net income arising from non-banking activities | 12 | 13 |
| Sales revenues from non-banking activities | 133 | 157 |
| Expenses arising from non-banking activities | (122) | (144) |
| Net income from additional leasing services | 1 | (1) |
| Revenues from additional leasing services | 18 | 17 |
| Expenses from additional leasing services | (17) | (18) |
| Rental income from operating lease (vehicles and equipment) | 8 | 8 |
| Rental income from investment property incl. operating lease (real estate) | 6 | 5 |
| Net proceeds from disposal of tangible and intangible fixed assets | 0 | (1) |
| Other taxes | (58) | (42) |
| hereof bank levies | (51) | (35) |
| Impairment of goodwill | (3) | 0 |
| Net expense from allocation and release of other provisions | (1) | 2 |
| Sundry operating income | 21 | 13 |
| Sundry operating expenses | (8) | (5) |
| Total | (21) | (8) |
| In € million | 1/1-31/3/2013 | 1/1-31/3/2012 |
|---|---|---|
| Current income taxes | (63) | (84) |
| Austria | (1) | (1) |
| Foreign | (62) | (83) |
| Deferred taxes | (14) | (27) |
| Total | (77) | (111) |
| Assets according to measurement categories In € million |
31/3/2013 | 31/12/2012 |
|---|---|---|
| Cash reserve | 5,013 | 6,557 |
| Trading assets | 9,206 | 10,517 |
| Financial assets at fair value through profit or loss | 10,020 | 8,348 |
| Investments in associates | 5 | 5 |
| Financial assets available-for-sale | 467 | 456 |
| Loans and advances | 99,252 | 102,017 |
| Financial assets held-to-maturity | 4,465 | 4,596 |
| Derivatives (hedging) | 597 | 702 |
| Other assets | 2,907 | 2,918 |
| Total assets | 131,932 | 136,116 |
Positive fair values of derivatives not designated as hedging instruments according to IAS 39 hedge accounting are reported in the measurement category trading assets. The measurement category financial assets available-for-sale comprises other affiliated companies, other equity participations and fixed-interest securities. Loans and advances are reported on a net basis after provisions for impairment losses. Other assets comprise intangible and tangible fixed assets.
| Equity and liabilities according to measurement categories | ||
|---|---|---|
| In € million | 31/3/2013 | 31/12/2012 |
| Trading liabilities | 7,497 | 9,176 |
| Financial liabilities | 109,170 | 111,868 |
| Liabilities at fair value through profit and loss | 3,390 | 3,358 |
| Derivatives (hedging) | 107 | 120 |
| Provisions for liabilities and charges | 706 | 721 |
| Equity | 11,061 | 10,873 |
| Total equity and liabilities | 131,932 | 136,116 |
Negative fair values of derivatives not designated as hedging instruments according to IAS 39 hedge accounting are reported in the measurement category trading liabilities.
Loans and advances to banks classified regionally (counterparty's seat) are as follows:
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Austria | 9,013 | 10,046 |
| Foreign | 11,237 | 12,277 |
| Total | 20,250 | 22,323 |
Loans and advances to banks include € 2,777 million (31/12/2012: € 5,130 million) from repo transactions.
Loans and advances to customers break down into asset classes according to Basel II definition as follows:
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Sovereigns | 1,403 | 1,387 |
| Corporate customers – large corporates | 51,781 | 52,213 |
| Corporate customers – mid market | 3,241 | 3,272 |
| Retail customers – private individuals | 23,506 | 23,489 |
| Retail customers – small and medium-sized entities | 2,914 | 2,946 |
| Other | 44 | 37 |
| Total | 82,889 | 83,343 |
Loans and advances to customers include € 1,486 million (31/12/2012: € 2,281 million) from repo transactions.
Loans and advances to customers classified regionally (counterparty's seat) are as follows:
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Austria | 8,390 | 8,399 |
| Foreign | 74,499 | 74,944 |
| Total | 82,889 | 83,343 |
Provisions for impairment losses are allocated to the following asset classes according to the Basel II definition:
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Banks | 141 | 158 |
| Sovereigns | 11 | 11 |
| Corporate customers – large corporates | 2,927 | 2,836 |
| Corporate customers – mid market | 390 | 387 |
| Retail customers – private individuals | 1,860 | 1,881 |
| Retail customers – small and medium-sized entities | 365 | 369 |
| Total | 5,694 | 5,642 |
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Bonds, notes and other fixed-interest securities | 3,202 | 2,720 |
| Shares and other variable-yield securities | 327 | 277 |
| Positive fair values of derivative financial instruments | 5,036 | 6,816 |
| Total | 8,564 | 9,813 |
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Positive fair values of derivatives in fair value hedges (IAS 39) | 594 | 698 |
| Positive fair values of derivatives in cash flow hedges (IAS 39) | 3 | 4 |
| Positive fair values of credit derivatives | 1 | 1 |
| Positive fair values of other derivatives | 641 | 702 |
| Total | 1,239 | 1,405 |
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Bonds, notes and other fixed-interest securities | 14,294 | 12,741 |
| Shares and other variable-yield securities | 153 | 158 |
| Equity participations | 467 | 456 |
| Total | 14,913 | 13,355 |
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Goodwill | 553 | 558 |
| Software | 554 | 566 |
| Other intangible fixed assets | 200 | 198 |
| Total | 1,307 | 1,321 |
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Land and buildings used by the Group for own purpose | 733 | 722 |
| Other land and buildings (investment property) | 159 | 150 |
| Office furniture, equipment and other tangible fixed assets | 410 | 429 |
| Leased assets (operating lease) | 299 | 296 |
| Total | 1,600 | 1,597 |
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Tax assets | 500 | 505 |
| Current tax assets | 59 | 52 |
| Deferred tax assets | 441 | 453 |
| Receivables arising from non-banking activities | 109 | 103 |
| Prepayments and other deferrals | 241 | 215 |
| Clearing claims from securities and payment transfer business | 410 | 553 |
| Lease in progress | 64 | 49 |
| Assets held for sale (IFRS 5) | 65 | 64 |
| Inventories | 130 | 138 |
| Re-/Devaluation of portfolio-hedged underlyings | 19 | 11 |
| Any other business | 307 | 399 |
| Total | 1,846 | 2,038 |
Deposits from banks classified regionally (counterparty's seat) break down as follows:
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Austria | 14,049 | 13,598 |
| Foreign | 13,530 | 16,589 |
| Total | 27,579 | 30,186 |
Deposits from banks include € 541 million (31/12/2012: € 1,258 million) from repo transactions.
Deposits from customers break down analog to Basel II definition as follows:
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Sovereigns | 1,217 | 1,079 |
| Corporate customers – large corporates | 29,772 | 29,072 |
| Corporate customers – mid market | 2,246 | 2,495 |
| Retail customers – private individuals | 29,069 | 29,140 |
| Retail customers – small and medium-sized entities | 3,804 | 3,894 |
| Other | 745 | 618 |
| Total | 66,853 | 66,297 |
Deposits from customers include € 100 million (31/12/2012: € 69 million) from repo transactions.
Deposits from customers classified regionally (counterparty's seat) are as follows:
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Austria | 6,548 | 5,578 |
| Foreign | 60,305 | 60,719 |
| Total | 66,853 | 66,297 |
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Bonds and notes issued | 11,861 | 12,767 |
| Money market instruments issued | 482 | 368 |
| Other debt securities issued | 127 | 155 |
| Total | 12,470 | 13,290 |
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Severance payments | 67 | 66 |
| Retirement benefits | 28 | 28 |
| Taxes | 98 | 109 |
| Current | 71 | 83 |
| Deferred | 27 | 26 |
| Contingent liabilities and commitments | 127 | 151 |
| Pending legal issues | 54 | 54 |
| Overdue vacation | 56 | 56 |
| Bonus payments | 219 | 194 |
| Restructuring | 15 | 16 |
| Other | 43 | 47 |
| Total | 706 | 721 |
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Negative fair values of derivative financial instruments | 5,814 | 7,447 |
| Interest-based transactions | 4,148 | 5,863 |
| Currency-based transactions | 730 | 732 |
| Equity-/index-based transactions | 795 | 835 |
| Credit derivatives business | 14 | 13 |
| Other transactions | 128 | 5 |
| Short-selling of trading assets | 602 | 622 |
| Call/time deposits from trading purposes | 2 | 10 |
| Certificates issued | 681 | 745 |
| Total | 7,100 | 8,824 |
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Negative fair values of derivatives in fair value hedges (IAS 39) | 93 | 117 |
| Negative fair values of derivatives in cash flow hedges (IAS 39) | 14 | 3 |
| Negative fair values of credit derivatives | 1 | 1 |
| Negative fair values of derivative financial instruments | 397 | 351 |
| Total | 505 | 472 |
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Liabilities from non-banking activities | 68 | 96 |
| Accruals and deferred items | 243 | 269 |
| Liabilities from dividends | 2 | 1 |
| Clearing claims from securities and payment transfer business | 664 | 515 |
| Re-/Devaluation of portfolio-hedged underlyings | 50 | 48 |
| Any other business | 714 | 587 |
| Total | 1,742 | 1,515 |
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Hybrid tier 1 capital | 450 | 450 |
| Subordinated liabilities | 3,162 | 3,183 |
| Supplementary capital | 305 | 304 |
| Total | 3,917 | 3,937 |
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Consolidated equity | 10,186 | 9,428 |
| Subscribed capital | 595 | 595 |
| Participation capital | 2,500 | 2,500 |
| Capital reserves | 2,574 | 2,574 |
| Retained earnings | 4,517 | 3,760 |
| Consolidated profit | 157 | 725 |
| Non-controlling interests | 719 | 719 |
| Total | 11,061 | 10,873 |
The subscribed capital of RBI AG as defined by the articles of incorporation amounts to € 596 million. After deduction of 557,295 own shares, the stated subscribed capital totaled € 595 million.
Active risk management is a core competency of RBI. In order to effectively identify, measure, and manage risks, the Group has implemented comprehensive risk management and controlling. The risk management system is an integral part of overall bank management and it is continuously being developed. RBI's risk management is geared toward ensuring that credit and country risks, market and liquidity risks, risks arising from holdings and operational risks are dealt with conscientiously and managed professionally. The principles and organization of risk management are disclosed in the relevant chapters of the 2012 Annual Report, pages 168 ff.
Economic capital constitutes an important instrument in overall bank risk management. It sets the internal capital requirement for all risk categories being measured based on comparable internal models and thus allows for an aggregated view of the Group's risk profile. Economic capital has thus become an important instrument in overall bank risk management and is used for making riskadjusted business decisions and in performance measurement. For this purpose, a business unit's profit is set in relation to the economic capital attributed to the unit (return on risk-adjusted capital, RoRAC).
Risk contribution of individual risk types to economic capital:
| In € million | 31/3/2013 | Share | 31/12/2012 | Share |
|---|---|---|---|---|
| Credit risk private individuals | 2,550 | 26.7% | 2,457 | 26.5% |
| Credit risk corporate customers | 2,469 | 25.8% | 2,384 | 25.7% |
| Credit risk sovereigns | 978 | 10.2% | 962 | 10.4% |
| Credit risk financial institutions | 317 | 3.3% | 312 | 3.4% |
| Market risk | 782 | 8.2% | 791 | 8.5% |
| Operational risk | 802 | 8.4% | 775 | 8.4% |
| Liquidity risk | 334 | 3.5% | 207 | 2.2% |
| Participation risk | 147 | 1.5% | 194 | 2.1% |
| Other tangible fixed assets | 392 | 4.1% | 411 | 4.4% |
| Macroeconomic risk | 338 | 3.5% | 338 | 3.6% |
| Risk buffer | 455 | 4.8% | 442 | 4.8% |
| Total | 9,565 | 100.0% | 9,272 | 100.0% |
Regional allocation of economic capital according to booking Group unit:
| In € million | 31/3/2013 | Share | 31/12/2012 | Share |
|---|---|---|---|---|
| Central Europe | 3,594 | 37.6% | 3,447 | 37.2% |
| Southeastern Europe | 1,810 | 18.9% | 1,773 | 19.1% |
| Austria | 1,718 | 18.0% | 1,794 | 19.4% |
| Russia | 1,345 | 14.1% | 1,227 | 13.2% |
| CIS Other | 835 | 8.7% | 797 | 8.6% |
| Rest of the world | 264 | 2.8% | 233 | 2.5% |
| Total | 9,565 | 100.0% | 9,272 | 100.0% |
RBI uses a confidence level of 99.95 per cent for calculating economic capital. This confidence level is derived from the probability of default implied by the target rating. The objective of calculating economic capital is to determine the amount of capital that would be required for servicing all of the claims of customers and creditors even in the case of such an extremely rare loss event.
The following table translates items of the statement of financial position (banking and trading book positions) into the maximum credit exposure, which is used in portfolio management. It includes exposures on and off the statement of financial position before the application of credit-conversion factors and thus represents the maximum credit exposure. It is not reduced by the effects of credit risk mitigation, for example guarantees and physical collateral, effects that are, however, considered in the total assessment of credit risks. The total credit exposure is used – if not explicitly stated otherwise – for showing exposures in all subsequent charts in the risk report. The reasons for the deviation between the figures of internal portfolio management and external accounting are the different scopes of consolidation (regulatory versus IFRS, i.e. corporate legal basis) and different presentations of exposure volumes.
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Cash reserve | 3,089 | 4,272 |
| Loans and advances to banks | 20,250 | 22,323 |
| Loans and advances to customers | 82,889 | 83,343 |
| Trading assets | 8,564 | 9,813 |
| Derivatives | 1,239 | 1,405 |
| Financial investments | 14,294 | 12,741 |
| Other assets | 259 | 217 |
| Contingent liabilities | 11,113 | 11,707 |
| Commitments | 10,699 | 10,609 |
| Revocable credit lines | 16,221 | 16,224 |
| Description differences | (2,429) | (2,558) |
| Total | 166,189 | 170,097 |
Items on the statement of financial position containing only credit risk parts.
A more detailed credit portfolio analysis is based on individual customer ratings. Ratings are performed separately for different asset classes using internal risk classification models (rating and scoring models), which are validated by a central organization unit. Default probabilities assigned to individual rating grades are estimated for each asset class separately. As a consequence the default probability of the same ordinal rating grade (e.g. corporates 1.5, financial institutions A3, and sovereigns A3) is different between these asset classes.
Rating models in the main non-retail asset classes – corporates, financial institutions, and sovereigns – are uniform in all Group units and rank creditworthiness in 10 classes. For retail asset classes, country specific scorecards are developed based on uniform Group standards. Customer rating, as well as validation is supported by specific software tools (e.g. for business valuation, rating and default database).
The following table shows the total credit exposure by internal rating for corporate customers (large corporates and mid-market). When making an overall assessment of credit risk, collateral and recovery rates in the event of default must also be taken into account.
| In € million | 31/3/2013 | Share | 31/12/2012 | Share | |
|---|---|---|---|---|---|
| 0.5 | Minimal Risk | 1,179 | 1.4% | 1,185 | 1.5% |
| 1.0 | Excellent credit standing | 8,465 | 10.3% | 8,439 | 10.4% |
| 1.5 | Very good credit standing | 9,364 | 11.4% | 8,983 | 11.1% |
| 2.0 | Good credit standing | 12,829 | 15.7% | 12,419 | 15.4% |
| 2.5 | Sound credit standing | 11,190 | 13.7% | 11,745 | 14.5% |
| 3.0 | Acceptable credit standing | 12,422 | 15.2% | 12,451 | 15.4% |
| 3.5 | Marginal credit standing | 11,452 | 14.0% | 11,276 | 13.9% |
| 4.0 | Weak credit standing/sub-standard | 5,192 | 6.3% | 5,223 | 6.5% |
| 4.5 | Very weak credit standing/doubtful | 3,586 | 4.4% | 3,361 | 4.2% |
| 5.0 | Default | 5,141 | 6.3% | 4,926 | 6.1% |
| NR | Not rated | 1,067 | 1.3% | 887 | 1.1% |
| Total | 81,888 | 100.0% | 80,896 | 100.0% |
Compared to year-end 2012, total credit exposure for corporate customers increased € 992 million to € 81,888 million. At the end of the first quarter, the largest segment in terms of corporate customers was Group Corporates with € 32,064 million, followed by Central Europe with € 17,771 million and Russia with € 10,968 million. The rest is divided between Southeastern Europe with € 10,267 million, Group Markets with € 5,652 million, CIS Other with € 4,001 million and Corporate Center with € 1,166 million.
The share of loans with increased credit risk or even weaker credit profiles grew slightly from 24.6 per cent to 24.7 per cent. The share of loans with good to minimum risk credit profiles rose from 38.4 per cent to 38.8 per cent. This improvement resulted on the one hand from the increased creditworthiness of existing customers leading to an increase in the internal rating, and on the other hand, it reflects the loan portfolio's active management. Based thereon, the portfolio's growth is strongly focused on economically thriving markets such as Russia, with new loans granted primarily to customers with good credit ratings and in accordance with strict lending standards. The highest rise compared to year-end 2012 was reported in the segment Russia with € 731 million. At € 691 million the increase was mainly due to corporate bonds.
The share of default loans under Basel II (rating 5.0) was 6.3 per cent of total credit exposure (€ 5,141 million).
The following table provides a breakdown by country of risk of the maximum credit exposure for corporate customers structured by regions:
| In € million | 31/3/2013 | Share | 31/12/2012 | Share1 |
|---|---|---|---|---|
| Central Europe | 17,771 | 21.7% | 17,986 | 22.2% |
| Austria | 15,765 | 19.3% | 15,536 | 19.2% |
| Russia | 10,968 | 13.4% | 10,237 | 12.7% |
| Western Europe | 10,527 | 12.9% | 10,343 | 12.8% |
| Southeastern Europe | 10,267 | 12.5% | 10,370 | 12.8% |
| Asia | 6,723 | 8.2% | 6,888 | 8.5% |
| CIS Other | 4,001 | 4.9% | 3,682 | 4.6% |
| Other | 5,867 | 7.2% | 5,852 | 7.2% |
| Total | 81,888 | 100.0% | 80,896 | 100.0% |
1 Adaption of previous year figures.
| In € million | 31/3/2013 | Share | 31/12/2012 | Share |
|---|---|---|---|---|
| Wholesale and retail trade | 21,939 | 24.4% | 21,051 | 23.6% |
| Manufacturing | 18,779 | 20.9% | 18,580 | 20.8% |
| Real estate | 10,017 | 11.1% | 9,838 | 11.0% |
| Financial intermediation | 9,097 | 10.1% | 9,623 | 10.8% |
| Construction | 6,380 | 7.1% | 6,787 | 7.6% |
| Transport, storage and communication | 4,033 | 4.5% | 3,747 | 4.2% |
| Other industries | 19,772 | 22.0% | 19,691 | 22.0% |
| Total | 90,016 | 100.0% | 89,317 | 100.0% |
The table below provides a breakdown of the maximum credit exposure for corporates and project finance selected by industries:
The rating model for project finance has five different grades and takes into account both the individual probability of default and the available collateral. The exposure from project finance is shown in the table below:
| In € million | 31/3/2013 | Share | 31/12/2012 | Share |
|---|---|---|---|---|
| 6.1 Excellent project risk profile – very low risk |
3,526 | 43.4% | 3,734 | 44.3% |
| 6.2 Good project risk profile – low risk |
2,554 | 31.4% | 2,523 | 30.0% |
| 6.3 Acceptable project risk profile – average risk |
1,188 | 14.6% | 1,241 | 14.7% |
| 6.4 Poor project risk profile – high risk |
423 | 5.2% | 391 | 4.6% |
| 6.5 Default |
433 | 5.3% | 503 | 6.0% |
| NR Not rated |
4 | 0.1% | 29 | 0.3% |
| Total | 8,128 | 100.0% | 8,421 | 100.0% |
The credit exposure in project finance amounted to € 8,128 million at the end of the first quarter of 2013, with the two best rating grades – Excellent project risk profile, with a very low risk and Good project risk profile, with a low risk – accounting for the highest share, at 74.8 per cent. This reflects mainly the high level of collateralization in such specialized lending transactions. Compared to year-end 2012, the share of unrated loans decreased to 0.1 per cent (€ 4 million).
Retail customers are subdivided into private individuals and small and medium-sized entities (SMEs). For retail customers, a two-fold scoring system is used – consisting of the initial and ad-hoc scoring based on customer data and of the behavioral scoring based on account data. The table below provides a breakdown of RBI's retail credit exposure:
| In € million | 31/3/2013 | Share | 31/12/20121 | Share |
|---|---|---|---|---|
| Retail customers – private individuals | 26,048 | 89.1% | 25,856 | 88.7% |
| Retail customers – small and medium-sized entities | 3,188 | 10.9% | 3,278 | 11.3% |
| Total | 29,236 | 100.0% | 29,134 | 100.0% |
| hereof non-performing loans | 3,022 | 10.3% | 3,054 | 10.5% |
| hereof individual loan loss provision | 1,747 | 6.0% | 1,678 | 5.8% |
| hereof portfolio-based loan loss provision | 478 | 1.6% | 572 | 2.0% |
1 Adaption of previous year figures due to different disclosure.
The total credit exposure of retail customers breaks down by segments as follows:
| 31/3/2013 In € million |
Central Europe |
Southeastern Europe |
Russia | CIS Other |
Group Markets |
|---|---|---|---|---|---|
| Retail customers – private individuals | 13,674 | 6,697 | 3,977 | 1,682 | 18 |
| Retail customers – small and medium-sized entities |
2,162 | 755 | 62 | 209 | 0 |
| Total | 15,836 | 7,452 | 4,040 | 1,890 | 18 |
| hereof non-performing loans | 1,509 | 602 | 186 | 720 | 1 |
| hereof individual loan loss provision | 719 | 372 | 156 | 495 | 0 |
| hereof portfolio-based loan loss provision |
375 | 60 | 19 | 24 | 0 |
| 31/12/2012 | Central | Southeastern | CIS | Group | |
|---|---|---|---|---|---|
| In € million | Europe1 | Europe1 | Russia | Other | Markets |
| Retail customers – private individuals | 13,949 | 6,580 | 3,681 | 1,630 | 16 |
| Retail customers – small and medium-sized entities |
2,265 | 800 | 55 | 157 | 0 |
| Total | 16,214 | 7,380 | 3,736 | 1,788 | 16 |
| hereof non-performing loans | 1,580 | 585 | 190 | 692 | 1 |
| hereof individual loan loss provision | 684 | 358 | 161 | 469 | 0 |
| hereof portfolio-based loan loss provision |
474 | 60 | 15 | 22 | 0 |
1 Adaption of previous year figures due to different disclosure.
Compared to year-end 2012, the total credit exposure to retail customers rose € 101 million to € 29,236 million in the first quarter of 2013. The highest volume amounting to € 15,836 million was booked in the segment Central Europe. Compared to yearend 2012, this represents a reduction of € 378 million resulting from a decrease of loans to private individuals in Poland. Southeastern Europe ranks second with a credit exposure of € 7,452 million. Compared to year-end 2012, this represents a slight increase. At € 4,040 million, the segment Russia reported the highest increase in the credit exposure.
In the table below, the retail exposure selected by products is shown:
| In € million | 31/3/2013 | Share | 31/12/20121 | Share |
|---|---|---|---|---|
| Mortgage loans | 15,811 | 54.1% | 14,447 | 49.6% |
| Personal loans | 5,628 | 19.2% | 6,580 | 22.6% |
| Credit cards | 2,232 | 7.6% | 2,326 | 8.0% |
| Car loans | 2,134 | 7.3% | 2,457 | 8.4% |
| Overdraft | 1,871 | 6.4% | 1,990 | 6.8% |
| SME financing | 1,559 | 5.3% | 1,334 | 4.6% |
| Total | 29,236 | 100.0% | 29,134 | 100.0% |
1 Adaption of previous year figures.
The share of foreign currency loans in the retail portfolio provides an indication of potential change in default rates if the exchange rate of the domestic currency changes. The internal risk assessment thus takes into account not only the share of foreign currency loans, but also the usually stricter lending criteria of loan distribution and – in several countries – the customer's ability to match payments with foreign currency income.
| In € million | 31/3/2013 | Share | 31/12/2012 | Share |
|---|---|---|---|---|
| Swiss franc | 4,943 | 47.7% | 5,110 | 48.6% |
| Euro | 4,085 | 39.5% | 4,054 | 38.6% |
| US-Dollar | 1,193 | 11.5% | 1,199 | 11.4% |
| Other foreign currencies | 132 | 1.3% | 141 | 1.3% |
| Loans in foreign currencies | 10,354 | 100.0% | 10,504 | 100.0% |
| Share of total loans | 35.4% | 36.1% |
Compared to year-end 2012, foreign currency loans in Swiss francs and US-Dollars declined, while those in Euro increased slightly.
The financial institutions asset class mainly contains banks and securities firms. The internal rating model for financial institutions is based on a peer-group approach that takes both qualitative and quantitative information into account. The final rating for financial institutions is capped by the country rating of the respective home country.
The following table shows the maximum credit exposure by internal rating for financial institutions (excluding central banks). Due to the limited number of customers (or observable defaults), the default probabilities of individual ratings categories in this asset class are estimated based on a combination of internal and external data.
| In € million | 31/3/2013 | Share | 31/12/2012 | Share | |
|---|---|---|---|---|---|
| A1 | Excellent credit standing | 241 | 0.9% | 96 | 0.3% |
| A2 | Very good credit standing | 1,110 | 3.9% | 986 | 3.0% |
| A3 | Good credit standing | 15,595 | 55.3% | 19,974 | 61.0% |
| B1 | Sound credit standing | 6,796 | 24.1% | 7,338 | 22.4% |
| B2 | Average credit standing | 1,801 | 6.4% | 1,782 | 5.4% |
| B3 | Mediocre credit standing | 1,175 | 4.2% | 1,047 | 3.2% |
| B4 | Weak credit standing | 678 | 2.4% | 697 | 2.1% |
| B5 | Very weak credit standing | 342 | 1.2% | 330 | 1.0% |
| C | Doubtful/high default risk | 162 | 0.6% | 157 | 0.5% |
| D | Default | 246 | 0.9% | 269 | 0.8% |
| NR | Not rated | 72 | 0.3% | 49 | 0.1% |
| Total | 28,219 | 100.0% | 32,725 | 100.0% |
Total customer exposure amounted to € 28,219 million in the first quarter of 2013, which represents a decline of € 4,506 million compared to the year-end 2012. At € 15,595 million or 55.3 per cent, the bulk of this customer group was in the A3 rating class, which decreased € 4,379 million compared to year-end 2012. This decline resulted from a contraction in the swap, repo and money-market transactions in the segment Group Markets (€ 6,280 million). At € 22,395 million or 79.4 per cent, the segment Group Markets had the largest share of the loan portfolio with financial institutions, followed by the segment Group Corporates with € 1,801 million or 6.4 per cent.
In € million 31/3/2013 Share 31/12/2012 Share Derivatives 9,120 32.3% 12,124 37.0% Money market 8,053 28.5% 9,444 28.9% Loans 4,494 15.9% 3,580 10.9% Repo 3,091 11.0% 4,737 14.5% Bonds 2,885 10.2% 2,162 6.6% Other 576 2.0% 678 2.1% Total 28,219 100.0% 32,725 100.0%
The table below shows the total credit exposure to financial institutions (excluding central banks) selected by products:
Another asset class is formed by central governments, central banks and regional municipalities, as well as other public sector entities. The table below provides a breakdown of the total credit exposure to sovereigns (including central banks) by internal rating:
| In € million | 31/3/2013 | Share | 31/12/2012 | Share | |
|---|---|---|---|---|---|
| A1 | Excellent credit standing | 1,071 | 5.7% | 1,561 | 8.2% |
| A2 | Very good credit standing | 1,009 | 5.4% | 793 | 4.2% |
| A3 | Good credit standing | 3,180 | 17.0% | 3,861 | 20.4% |
| B1 | Sound credit standing | 3,330 | 17.8% | 2,730 | 14.4% |
| B2 | Average credit standing | 732 | 3.9% | 1,272 | 6.7% |
| B3 | Mediocre credit standing | 3,963 | 21.2% | 3,415 | 18.0% |
| B4 | Weak credit standing | 3,687 | 19.7% | 3,795 | 20.1% |
| B5 | Very weak credit standing | 1,654 | 8.8% | 1,172 | 6.2% |
| C | Doubtful/high default risk | 1 | 0.0% | 232 | 1.2% |
| D | Default | 82 | 0.4% | 83 | 0.4% |
| NR | Not rated | 8 | 0.0% | 7 | 0.0% |
| Total | 18,718 | 100.0% | 18,921 | 100.0% |
Compared to year-end 2012, the credit exposure to sovereigns sank € 203 million to € 18,718 million, which represents 11.0 per cent of the bank's total credit exposure.
The rating class Excellent credit standing (A1 rating) reported a decline of € 490 million. This was attributable to a decrease of deposits with the Austrian National Bank (minus € 665 million) which was only partly compensated by a portfolio increase of Austrian state bonds (plus € 162 million).
The intermediate rating classes Good credit standing (A3 rating) to Mediocre credit standing (B3 rating) accounted for the highest share with 60.0 per cent. The high level of exposure in the intermediate rating classes was mainly due to deposits of network banks in Central and Southeastern Europe at their local central banks. These are mandatory for meeting the respective minimum reserve requirements or used to manage excess liquidity on a short-term basis, and are therefore inextricably linked to the business activities in these countries. The exposure in rating classes B4 and B5 amounted to € 5,341 million or 28.5 per cent of total loans outstanding. Loans in the lower rating classes (C and D rating) declined.
| In € million | 31/3/2013 | Share | 31/12/2012 | Share |
|---|---|---|---|---|
| Bonds | 12,813 | 68.5% | 12,273 | 64.9% |
| Loans | 4,854 | 25.9% | 5,312 | 28.1% |
| Derivatives | 762 | 4.1% | 795 | 4.2% |
| Other | 289 | 1.5% | 541 | 2.9% |
| Total | 18,718 | 100.0% | 18,921 | 100.0% |
The breakdown below shows the total credit exposure to sovereigns (including central banks) selected by products:
The table below shows the credit exposure to the public sector in non-investment grade (rating B3 and below):
| In € million | 31/3/2013 | Share | 31/12/2012 | Share |
|---|---|---|---|---|
| Hungary | 2,151 | 22.9% | 2,234 | 25.7% |
| Romania | 2,142 | 22.8% | 1,808 | 20.8% |
| Croatia | 1,177 | 12.5% | 1,023 | 11.7% |
| Albania | 1,001 | 10.7% | 976 | 11.2% |
| Ukraine | 960 | 10.2% | 766 | 8.8% |
| Other | 1,965 | 20.9% | 1,898 | 21.8% |
| Total | 9,396 | 100.0% | 8,704 | 100.0% |
Compared to year-end 2012, the credit exposure to non-investment grade sovereigns increased by € 692 million to € 9,396 million. It resulted mainly from deposits of Group units with the local central banks in Central and Southeastern Europe. They are used for meeting the respective minimum reserve requirements and for managing the short-term investment of excess liquidity, and are therefore inextricably linked to the business activities in these countries.
The table below shows the share of non-performing loans (NPL) in the defined asset classes loans and advances to customers and loans and advances to banks (excluding items off the statement of financial position) in the statement of financial position and the corresponding share of provisioning:
| NPL | NPL ratio | NPL coverage ratio | |||||
|---|---|---|---|---|---|---|---|
| In € million | 31/3/2013 | 31/12/2012 | 31/3/2013 | 31/12/2012 | 31/3/2013 | 31/12/2012 | |
| Corporate customers |
5,153 | 5,073 | 9.4% | 9.1% | 64.4% | 63.5% | |
| Retail customers | 3,021 | 3,052 | 11.4% | 11.5% | 73.7% | 73.7% | |
| Sovereigns | 56 | 57 | 4.0% | 4.1% | 19.1% | 19.8% | |
| Total nonbanks | 8,230 | 8,183 | 9.9% | 9.8% | 67.5% | 67.0% | |
| Banks | 189 | 202 | 0.9% | 0.9% | 74.7% | 78.2% | |
| Total | 8,419 | 8,385 | 8.2% | 7.9% | 67.6% | 67.3% |
The table below shows the share of non-performing loans (NPL) in the defined asset classes loans and advances to customers and loans and advances to banks (excluding items off the statement of financial position) as reported in the statement of financial position and the corresponding share of provisioning, selected by segments:
In € million 31/3/2013 31/12/2012 31/3/2013 31/12/2012 31/3/2013 31/12/2012 Central Europe 3,351 3,447 10.7% 10.8% 63.8% 64.0%
Europe 1,895 1,808 11.3% 10.9% 61.6% 62.0% Russia 482 489 3.7% 3.8% 99.7% 100.0% CIS Other 1,340 1,307 24.8% 24.7% 70.9% 70.2% Group Corporates 921 923 4.3% 4.7% 67.3% 60.6% Group Markets 396 410 2.4% 2.0% 79.1% 79.8% Corporate Center 33 0 0.4% 0.0% 59.3% 0.0% Total 8,419 8,385 8.2% 7.9% 67.6% 67.3%
NPL NPL ratio NPL coverage ratio
| The tables below show the development of non-performing loans in the defined asset classes loans and advances to customers and loans and advances to banks (excluding items off the statement of financial position) as reported in the statement of financial |
|---|
| position in the first quarter of 2013 and for the whole year 2012: |
| In € million | As of 1/1/2013 |
Change in consolidated group |
Exchange differences |
Additions | Disposals | As of 31/3/2013 |
|---|---|---|---|---|---|---|
| Corporate customers | 5,073 | 3 | 8 | 404 | (337) | 5,153 |
| Retail customers | 3,052 | (3) | (15) | 284 | (297) | 3,021 |
| Sovereigns | 57 | 0 | (1) | 14 | (15) | 56 |
| Total nonbanks | 8,183 | 0 | (8) | 703 | (649) | 8,230 |
| Banks | 202 | 0 | 1 | 0 | (14) | 189 |
| Total | 8,385 | 0 | (7) | 703 | (662) | 8,419 |
| In € million | As of 1/1/2012 |
Change in consolidated group |
Exchange differences |
Additions | Disposals | As of 31/12/2012 |
|---|---|---|---|---|---|---|
| Corporate customers | 4,591 | 77 | 45 | 1,685 | (1,325) | 5,073 |
| Retail customers | 2,452 | 430 | 50 | 1,021 | (901) | 3,052 |
| Sovereigns | 12 | 0 | 0 | 46 | (1) | 57 |
| Total nonbanks | 7,056 | 508 | 95 | 2,752 | (2,227) | 8,183 |
| Banks | 241 | 0 | (1) | 6 | (45) | 202 |
| Total | 7,297 | 508 | 94 | 2,758 | (2,272) | 8,385 |
In Corporate Customers, total non-performing loans increased 1.6 per cent or € 80 million to € 5,153 million in the first quarter 2013. The ratio of non-performing loans to total credit exposure thus rose 0.2 percentage points to 9.4 per cent while the NPL coverage ratio also went up 0.8 percentage points to 64.4 per cent. In the retail porfolio, non-performing loans declined 1.0 per cent or € 32 million to € 3,021 million. The ratio of non-performing loans to total credit exposure decreased 0.1 percentage points to 11.4 per cent, while the NPL coverage ratio sank 0.1 percentage points to 73.7 per cent. Non-performing loans for financial institutions amounted to € 189 million at the end of the first quarter 2013, thus representing a decrease of € 12 million compared to year-end 2012 and the NPL coverage ratio sank 3.6 percentage points to 74.7 per cent.
In Southeastern Europe, non-performing loans increased 4.8 per cent or € 87 million to € 1,895 million. At the same time the ratio of non-performing loans to credit exposure rose 0.5 percentage points to 11.3 per cent while the NPL coverage ratio sank 0.3 percentage points to 61.6 per cent. In the segment CIS Other, non-performing loans grew 2.5 per cent or € 33 million to
Southeastern
€ 1,340 million. NPL ratio increased 0.1 percentage points to 24.8 per cent and the NPL coverage ratio went up 0.7 percentage points to 70.9 per cent. In Central Europe, non-performing loans sank 2.8 per cent or € 96 million to € 3,651 million. NPL ratio also sank 0.1 percentage points to 10.7 per cent and the NPL coverage ratio decreased 0.2 percentage points to 63.8 per cent.
The following table shows the development of impairment losses on loans and provisions for liabilities off the statement of financial position in the first quarter of 2013:
| In € million | As of 1/1/2013 |
Change in consolidated group |
Allocation1 Release | Usage 2 | Transfers, exchange differences |
As of 31/3/2013 |
|
|---|---|---|---|---|---|---|---|
| Individual loan loss provision |
4,843 | (32) | 491 | (297) | (159) | 86 | 4,932 |
| Portfolio-based loan loss provisions |
950 | (5) | 159 | (132) | 0 | (82) | 889 |
| Total | 5,793 | (38) | 650 | (430) | (159) | 4 | 5,821 |
1 Allocation including direct write-downs and income on written down claims. 2 Usage including direct write-downs and income on written down claims.
RBI's credit portfolio is well diversified in terms of geographical region and industry. Single name concentrations are also actively managed (based on the concept of groups of connected customers) by limits and regular reporting. As a consequence, portfolio granularity is high. The regional breakdown of the loans reflects the broad diversification of credit business in the European markets. The following table shows the regional distribution of the credit exposure of all asset classes by the borrower's home country and grouped by region:
| In € million | 31/3/2013 | Share | 31/12/2012 | Share |
|---|---|---|---|---|
| Austria | 29,080 | 17.5% | 30,710 | 18.1% |
| Central Europe | 46,326 | 27.9% | 47,879 | 28.1% |
| Poland | 14,203 | 8.5% | 14,599 | 8.6% |
| Slovakia | 11,252 | 6.8% | 11,426 | 6.7% |
| Czech Republic | 10,509 | 6.3% | 11,090 | 6.5% |
| Hungary | 8,535 | 5.1% | 8,735 | 5.1% |
| Other | 1,827 | 1.1% | 2,030 | 1.2% |
| European Union | 20,217 | 12.2% | 23,034 | 13.5% |
| Germany | 5,570 | 3.4% | 6,198 | 3.6% |
| France | 4,542 | 2.7% | 5,262 | 3.1% |
| Great Britain | 4,365 | 2.6% | 6,932 | 4.1% |
| Netherlands | 1,564 | 0.9% | 1,436 | 0.8% |
| Other | 4,176 | 2.5% | 3,206 | 1.9% |
| Southeastern Europe | 25,178 | 15.2% | 24,587 | 14.5% |
| Romania | 8,515 | 5.1% | 8,006 | 4.7% |
| Croatia | 5,763 | 3.5% | 5,663 | 3.3% |
| Bulgaria | 4,343 | 2.6% | 4,263 | 2.5% |
| Serbia | 2,107 | 1.3% | 2,073 | 1.2% |
| Other | 4,450 | 2.7% | 4,581 | 2.7% |
| Russia | 20,426 | 12.3% | 19,861 | 11.7% |
| In € million | 31/3/2013 | Share | 31/12/2012 | Share |
|---|---|---|---|---|
| Asia | 9,817 | 5.9% | 9,670 | 5.7% |
| China | 4,315 | 2.6% | 4,167 | 2.4% |
| Other | 5,503 | 3.3% | 5,503 | 3.2% |
| CIS Other | 8,049 | 4.8% | 7,409 | 4.4% |
| Ukraine | 6,200 | 3.7% | 5,633 | 3.3% |
| Other | 1,849 | 1.1% | 1,776 | 1.0% |
| North America | 3,848 | 2.3% | 3,496 | 2.1% |
| Rest of the world | 3,248 | 2.0% | 3,451 | 2.0% |
| Total | 166,189 | 100.0% | 170,097 | 100.0% |
RBI does not own any banking subsidiaries that are incorporated in the so-called European periphery countries. Nonetheless, some of the bank's loans and advances are to customers domiciled in theses countries and result from credit financing and capital markets activities. All in all, the Group has almost no exposure to government bonds in these countries (except for the Republic of Italy).
Market risk management is based on figures from an internal model that calculates value-at-risk (VaR) for changes in the following risk factors: foreign exchange, interest rate changes, credit spreads and equity indices. The Austrian financial market authority and the Austrian national bank have approved this model, and it is used to calculate own fund requirements for market risk.
The following table lists risk measures for overall market risk in the trading and banking book for each risk type. The VaR is dominated by risk arising from equity positions held in foreign currencies, structural interest risks and spread risks on the bond books (frequently held as a liquidity reserve).
| Total VaR 99% 1d | VaR as of | Average VaR | Minimum VaR | Maximum VaR | VaR as of |
|---|---|---|---|---|---|
| In € million | 31/3/2013 | 31/12/2012 | |||
| Currency risk | 45 | 52 | 41 | 74 | 52 |
| Interest rate risk | 16 | 19 | 11 | 30 | 17 |
| Credit spread risk | 30 | 26 | 19 | 32 | 21 |
| Share price risk | 2 | 2 | 2 | 2 | 2 |
| Vega risk | 1 | 1 | 1 | 1 | 1 |
| Total | 70 | 75 | 65 | 92 | 71 |
Exchange rate risk on total bank level also includes equity positions of subsidiaries denominated in foreign currency. The structural exchange rate risk resulting from equity positions is managed independently from the mainly short-term trading positions.
The following table shows the liquidity gap and the ratio of expected cash inflows plus counterbalancing capacity to cash outflows (liquidity ratio) for selected maturities on a cumulative basis, taking into account all items on the statement of financial position and transactions off the statement of financial position. Based on expert opinions, statistical analyses and country specifics, this calculation also incorporates estimates on the prolongation of defined assets, the so-called sediment of customer deposits, and the liquidity counterbalancing capacity (in particular, assets that are eligible for refinancing at central banks and that can be used as collateral in repo transactions).
| Maturity | 31/3/2013 | 31/12/2012 | ||||
|---|---|---|---|---|---|---|
| In € million | 1 week | 1 month | 1 year | 1 week | 1 month | 1 year |
| Liquidity gap | 14,320 | 11,374 | 8,673 | 14,823 | 12,225 | 13,467 |
| Liquidity ratio | 140% | 121% | 108% | 135% | 118% | 110% |
Compared to year-end, the liquidity ratios of RBI remained stable. Internal limts are used in each Group unit in order to limit liquidity risk. They require a positive short-term liquidity gap based on the internal liquidity model. The Group holds sizeable amounts of liquid securities and favors assets eligible in tender transactions in the lending business in order to ensure liquidity in various currencies. In the case of a liquidity shortage in the Group, contingency plans would come into force. Such prioritized action lists for handling short-term liquidity needs exist for all major Group units.
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Contingent liabilities | 11,113 | 11,707 |
| Acceptances and endorsements | 60 | 38 |
| Credit guarantees | 6,064 | 6,507 |
| Other guarantees | 2,216 | 2,375 |
| Letters of credit (documentary business) | 2,632 | 2,733 |
| Other contingent liabilities | 142 | 54 |
| Commitments | 10,699 | 10,609 |
| Irrevocable credit lines and stand-by facilities | 10,699 | 10,609 |
| Up to 1 year | 3,853 | 3,971 |
| More than 1 year | 6,846 | 6,638 |
| 31/3/2013 | Nominal amount by maturity | |||||
|---|---|---|---|---|---|---|
| In € million | Up to 1 year | 1 year to 5 years | More than 5 years | Total | Positive | Negative |
| Interest rate contracts | 46,793 | 69,444 | 42,791 | 159,027 | 5,271 | (4,520) |
| Foreign exchange rate and gold contracts |
44,015 | 10,884 | 2,547 | 57,447 | 872 | (870) |
| Equity/index contracts | 1,745 | 2,163 | 354 | 4,262 | 90 | (795) |
| Commodities | 293 | 94 | 14 | 400 | 7 | (103) |
| Credit derivatives | 203 | 1,400 | 185 | 1,788 | 16 | (14) |
| Precious metals contracts | 36 | 38 | 19 | 92 | 0 | (25) |
| Total | 93,083 | 84,022 | 45,910 | 223,015 | 6,257 | (6,326) |
| 31/12/2012 | Nominal amount by maturity | |||||
|---|---|---|---|---|---|---|
| In € million | Up to 1 year | 1 year to 5 years | More than 5 years | Total | Positive | Negative |
| Interest rate contracts | 51,069 | 85,144 | 53,149 | 189,361 | 7,246 | (6,292) |
| Foreign exchange rate and gold contracts |
49,700 | 11,606 | 2,259 | 63,565 | 848 | (774) |
| Equity/index contracts | 1,503 | 1,308 | 345 | 3,156 | 107 | (835) |
| Commodities | 232 | 78 | 14 | 324 | 4 | (2) |
| Credit derivatives | 312 | 1,573 | 5 | 1,889 | 16 | (14) |
| Precious metals contracts | 43 | 36 | 17 | 96 | 0 | (3) |
| Total | 102,858 | 99,745 | 55,789 | 258,392 | 8,221 | (7,919) |
| 31/3/2013 | 31/12/2012 | ||||||
|---|---|---|---|---|---|---|---|
| In € million | Level I | Level II | Level III | Level I | Level II | Level III | |
| Trading assets | 2,718 | 6,397 | 91 | 2,118 | 8,305 | 93 | |
| Positive fair values of derivatives1 | 86 | 5,500 | 91 | 100 | 7,327 | 93 | |
| Shares and other variable-yield securities | 318 | 8 | 1 | 265 | 12 | 1 | |
| Bonds, notes and other fixed-interest securities | 2,313 | 889 | 0 | 1,754 | 965 | 0 | |
| Call/time deposits from trading purposes | 0 | 0 | 0 | 0 | 0 | 0 | |
| Financial assets at fair value through profit or loss | 6,673 | 3,316 | 31 | 5,099 | 3,233 | 16 | |
| Shares and other variable-yield securities | 43 | 104 | 5 | 48 | 105 | 5 | |
| Bonds, notes and other fixed-interest securities | 6,630 | 3,211 | 26 | 5,051 | 3,128 | 11 | |
| Financial assets available-for-sale | 47 | 0 | 0 | 56 | 0 | 0 | |
| Other interests2 | 47 | 0 | 0 | 56 | 0 | 0 | |
| Bonds, notes and other fixed-interest securities | 0 | 0 | 0 | 0 | 0 | 0 | |
| Shares and other variable-yield securities | 0 | 0 | 0 | 0 | 0 | 0 | |
| Derivatives (hedging) | 0 | 597 | 0 | 0 | 702 | 0 | |
| Positive fair values of derivatives from hedge accounting |
0 | 597 | 0 | 0 | 702 | 0 |
| 31/3/2013 | 31/12/2012 | |||||
|---|---|---|---|---|---|---|
| In € million | Level I | Level II | Level III | Level I | Level II | Level III |
| Trading liabilities | 770 | 6,699 | 28 | 788 | 8,361 | 28 |
| Negative fair values of derivatives financial instruments1 |
168 | 6,023 | 20 | 165 | 7,613 | 20 |
| Call/time deposits from trading purposes | 0 | 2 | 0 | 0 | 10 | 0 |
| Short-selling of trading assets | 602 | 0 | 0 | 622 | 0 | 0 |
| Certificates issued | 0 | 674 | 8 | 0 | 738 | 7 |
| Liabilities at fair value through profit and loss | 0 | 3,390 | 0 | 0 | 3,358 | 0 |
| Debt securities issued3 | 0 | 2,510 | 0 | 0 | 2,478 | 0 |
| Subordinated capital | 0 | 880 | 0 | 0 | 880 | 0 |
| Derivatives (hedging) | 0 | 107 | 0 | 0 | 120 | 0 |
| Negative fair values of derivatives from hedge accounting |
0 | 107 | 0 | 0 | 120 | 0 |
1 Including other derivatives.
2 Includes only securities traded on the stock exchange.
3 Including subordinated capital.
Level I Quoted market prices Level II Valuation techniques based on market data
Level III Valuation techniques not based on market data
Compared to year-end 2012, the share of financial assets according to Level II changed only slightly. The decrease resulted primarily from the reduction of the fair values of derivative financial instruments. Regarding bonds, notes and other fixed-interest securities, there was a slight shift from Level II to Level I, which is due to an increase in market liquidity for individual securities.
The following tables show the changes in the fair value of financial instruments whose valuation models are based on unobservable parameters.
| In € million | As of 1/1/2013 |
Changes in consolidated group |
Exchange differences |
Purchases | Sales, repayment |
|---|---|---|---|---|---|
| Trading assets | 93 | 0 | 2 | 0 | 0 |
| Financial assets at fair value through profit or loss |
16 | 0 | 0 | 13 | (3) |
| In € million | Gains/loss in P/L |
Gains/loss in other comprehensive income |
Transfer to level III |
Transfer from level III |
As of 31/3/2013 |
| Trading assets | (4) | (4) | 0 | 0 | 91 |
| Financial assets at fair value through profit or loss |
0 | 0 | 5 | 0 | 31 |
| In € million | As of 1/1/2013 |
Changes in consolidated group |
Exchange differences |
Purchases | Sales, repayment |
|---|---|---|---|---|---|
| Trading liabilities | 28 | 0 | 0 | 0 | 0 |
| In € million | Gains/loss | Gains/loss in other | Transfer to | Transfer from | As of |
|---|---|---|---|---|---|
| in P/L | comprehensive income | level III | level III | 31/3/2013 | |
| Trading liabilities | 0 | 0 | 0 | 0 | 28 |
| Financial assets | Type | Fair value in € million |
Valuation technique |
Significant unobservable inputs |
Range of unobservable inputs |
|---|---|---|---|---|---|
| Shares and other variable-yield securities |
Closed end real estate fund |
1 | Net asset value |
Haircuts | 20 - 50% |
| Shares and other variable-yield securities |
Shares | 5 | Cost of aquisition |
– | – |
| Bonds, notes and other fixed-interest securities |
Fixed coupon bonds |
25 | Discounted cash flow |
Credit spread | 10 - 20% |
| Probability of default Loss severity |
|||||
| Bonds, notes and other fixed-interest securities |
Asset backed securities |
1 | Broker estimate | Expected prepayment rate |
– |
| Positive fair value of banking book derivatieves without hedge accounting |
Forward foreign exchange contracts |
91 | Discounted cash flow |
Interest rate | 10 - 30% |
| Total | 123 |
| Financial liabilities | Type | Fair value in € million |
Valuation technique |
Significant unobservable inputs |
Range of unobsevable inputs |
|---|---|---|---|---|---|
| Negative fair value of banking book derivatieves without hedge accounting |
OTC options | 20 | Option model | Closing Period Currency risk LT volatility Index category |
2 - 16% 0 - 5% 0 - 3% 0 - 5% |
| Issued certificates for trading purposes | Certificates | 8 | Option model | Closing period Bid-Ask Spread LT Volatility Index category |
0 - 3% 0 - 3% 0 - 3% 0 - 2.5% |
| Total | 28 |
Transactions with related parties that are natural persons are limited to banking business transactions that are carried out at fair market conditions. Moreover, members of the Management Board hold shares of Raiffeisen Bank International AG. Detailed information regarding this issue is published on the homepage of Raiffeisen Bank International. Further business transactions, especially large banking business transactions with related parties that are natural persons, were not concluded in the current financial year.
The following tables show transactions with related companies. Parent companies are Raiffeisen-Landesbanken-Holding GmbH, Vienna and Raiffeisen Zentralbank Österreich Aktiengesellschaft, Vienna:
| 31/3/2013 In € million |
Parent companies |
Affiliated companies |
Companies valued at equity |
Other interests |
|---|---|---|---|---|
| Loans and advances to banks | 6,491 | 91 | 703 | 163 |
| Loans and advances to customers | 0 | 915 | 372 | 249 |
| Trading assets | 0 | 38 | 14 | 2 |
| Financial investments | 0 | 338 | 2 | 129 |
| Investments in associates | 0 | 0 | 5 | 0 |
| Other assets including derivatives | 3 | 13 | 0 | 0 |
| Deposits from banks | 5,104 | 78 | 5,146 | 83 |
| Deposits from customers | 1 | 491 | 322 | 112 |
| Debt securities issued | 0 | 0 | 0 | 0 |
| Provisions for liabilities and charges | 1 | 0 | 0 | 0 |
| Trading liabilities | 0 | 16 | 0 | 0 |
| Other liabilities including derivatives | 2 | 8 | 0 | 0 |
| Subordinated capital | 53 | 0 | 0 | 0 |
| Guarantees given | 0 | 82 | 11 | 18 |
| Guarantees received | 636 | 1,058 | 170 | 51 |
| 31/12/2012 In € million |
Parent companies |
Affiliated companies |
Companies valued at equity |
Other interests |
|---|---|---|---|---|
| Loans and advances to banks | 8,191 | 93 | 259 | 142 |
| Loans and advances to customers | 0 | 1,191 | 369 | 271 |
| Trading assets | 0 | 41 | 12 | 2 |
| Financial investments | 0 | 339 | 2 | 118 |
| Investments in associates | 0 | 0 | 5 | 0 |
| Other assets including derivatives | 3 | 15 | 62 | 0 |
| Deposits from banks | 6,125 | 10 | 5,105 | 224 |
| Deposits from customers | 1 | 336 | 429 | 179 |
| Debt securities issued | 0 | 0 | 0 | 0 |
| Provisions for liabilities and charges | 0 | 3 | 0 | 0 |
| Trading liabilities | 0 | 26 | 0 | 0 |
| Other liabilities including derivatives | 0 | 10 | 0 | 0 |
| Subordinated capital | 52 | 0 | 0 | 0 |
| Guarantees given | 0 | 80 | 26 | 21 |
| Guarantees received | 662 | 435 | 153 | 54 |
RBI does not form an independent credit institution group as defined by the Austrian Banking Act (BWG) and therefore is not subject to the regulatory provisions on a consolidated basis as it is part of the RZB Group. The following figures are for information purposes only.
The own funds of RBI according to Austrian Banking Act (BWG) 1993/Amendment 2006 (Basel II) break down as follows:
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Paid-in capital | 5,669 | 5,669 |
| Earned capital | 3,187 | 3,071 |
| Non-controlling interests | 827 | 848 |
| Hybrid tier 1 capital | 441 | 441 |
| Intangible fixed assets | (756) | (750) |
| Core capital (tier 1 capital) | 9,368 | 9,279 |
| Deductions from core capital | (16) | (14) |
| Eligible core capital (after deductions) | 9,353 | 9,265 |
| Supplementary capital according to Section 23 (1) 5 BWG | 16 | 34 |
| Provision excess of internal rating approach positions | 238 | 226 |
| Long-term subordinated capital | 3,029 | 3,080 |
| Additional own funds (tier 2 capital) | 3,283 | 3,340 |
| Deduction items: participations, securitizations | (16) | (14) |
| Eligible additional own funds (after deductions) | 3,268 | 3,326 |
| Deduction items: insurance companies | 0 | (8) |
| Tier 2 capital available to be redesignated as tier 3 capital | 308 | 302 |
| Total own funds | 12,929 | 12,885 |
| Total own funds requirement | 6,699 | 6,626 |
| Excess own funds | 6,230 | 6,260 |
| Excess cover ratio | 93.0% | 94.5% |
| Core tier 1 ratio, total | 10.6% | 10.7% |
| Tier 1 ratio, credit risk | 13.5% | 13.6% |
| Tier 1 ratio, total | 11.2% | 11.2% |
| Own funds ratio | 15.4% | 15.6% |
The total own funds requirement breaks down as follows:
| In € million | 31/3/2013 | 31/12/2012 |
|---|---|---|
| Risk-weighted assets according to section 22 BWG | 69,319 | 68,136 |
| of which 8 per cent minimum own funds for the credit risk according to Sections 22a to 22h BWG |
5,545 | 5,451 |
| Standardized approach | 2,366 | 2,439 |
| Internal rating approach | 3,180 | 3,012 |
| Own funds requirement for position risk in bonds, equities and commodities |
285 | 273 |
| Own funds requirement for open currency positions | 65 | 56 |
| Own funds requirement for operational risk | 803 | 845 |
| Total own funds requirement | 6,699 | 6,626 |
The average number of staff employed during the reporting period (full-time equivalents) breaks down as follows:
| Full-time equivalents | 1/1-31/3/2013 | 1/1-31/3/2012 |
|---|---|---|
| Austria | 2,637 | 2,718 |
| Foreign | 56,915 | 56,309 |
| Total | 59,552 | 59,027 |
Publisher: Raiffeisen Bank International AG, Am Stadtpark 9, 1030 Vienna, Austria Editorial Team: Group Investor Relations Copy deadline: 24 May 2013 Produced in Vienna Internet: www.rbinternational.com
This report is also available in German.
Group Investor Relations inquiries: Public Relations inquiries: E-mail: [email protected] E-mail: [email protected] Internet: www.rbinternational.com → Investor Relations Internet: www.rbinternational.com → Public Relations Phone: +43-1-71 707-2089 Phone: +43-1-71 707-2828
The forecasts, plans and forward-looking statements contained in this report are based on the state of knowledge and assessments of Raiffeisen Bank International AG at the time of its preparation. Like all statements addressing the future, they are subject to known and unknown risks and uncertainties that could cause actual results to differ materially. No guarantees can therefore be given that the forecasts and targeted values or the forward-looking statements will actually materialize.
This report is for information purposes only and contains neither a recommendation to buy or sell nor an offer of sale or subscription to shares nor does it constitute an invitation to make an offer to sell shares.
This report has been prepared and the data checked with the greatest possible care. Nonetheless, rounding, transmission, typesetting and printing errors cannot be ruled out. In the summing up of rounded amounts and percentages, rounding-off differences may occur. This report was prepared in German. The report in English is a translation of the original German report. The only authentic version is the German version. Raiffeisen Bank International AG is not liable for any losses or similar damages that may occur as a result of or in connection with the use of this report.
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