Quarterly Report • May 10, 2007
Quarterly Report
Open in ViewerOpens in native device viewer
In our 2006 annual report, we invited you to discover cuisines of Raiffeisen Bank's home markets. The cover page of this quarterly report shows pite, a flatbread popular in Kosovo.
Would you like to take a culinary journey to the fascinating world of Central and Eastern Europe? At www.ar2006.ri.co.at under "Culinary Delicacies," you will find background information and selected recipes for specialties from this region.
| Raiffeisen International Group Monetary values in € mn |
2007 | 2006 | Change |
|---|---|---|---|
| Income Statement | 1/1–31/3 | 1/1–31/3 | |
| Net interest income after provisioning | 429.1 | 322.8 | 32.9% |
| Net commission income | 275.1 | 185.0 | 48.7% |
| Trading profit | 35.6 | 29.9 | 19.1% |
| General administrative expenses | (476.5) | (347.5) | 37.1% |
| Profit before tax | 292.5 | 193.9 | 50.8% |
| Profit after tax | 230.8 | 151.5 | 52.4% |
| Consolidated profit (after minorities) | 192.6 | 124.2 | 55.0% |
| Balance sheet | 31/3 | 31/12 | |
| Loans and advances to banks | 8,686 | 8,202 | 5.9% |
| Loans and advances to customers | 37,928 | 35,043 | 8.2% |
| Deposits from banks | 15,287 | 13,814 | 10.7% |
| Deposits from customers | 34,921 | 33,156 | 5.3% |
| Equity (incl. minorities and profit) | 4,837 | 4,590 | 5.4% |
| Balance sheet total | 59,621 | 55,867 | 6.7% |
| Performance | 1/1–31/3 | 1/1–31/12 | |
| Return on equity (ROE) before tax | 25.5% | 27.3%1 | (1.8) PP |
| Return on equity (ROE) after tax | 20.2% | 21.0%1 | (0.8) PP |
| Consolidated return on equity (after minorities) | 19.4% | 21.4%1 | (2.0) PP |
| Cost/income ratio | 57.2% | 59.1% | (1.9) PP |
| Return on assets (ROA) before tax | 2.04% | 1.90%1 | 0.14 PP |
| Net provisioning ratio (risk-weighted assets) | 0.78% | 0.97% | (0.19) PP |
| Risk/earnings ratio | 15.0% | 17.5% | (2.5) PP |
| Regulatory information2) | 31/3 | 31/12 | |
| Risk-weighted assets, incl. market risk | 43,077 | 41,052 | 4.9% |
| Total own funds | 4,594 | 4,513 | 1.8% |
| Own funds requirement | 3,446 | 3,284 | 4.9% |
| Excess cover | 33.3% | 37.5% | (4.2) PP |
| Core capital ratio (Tier 1), banking book | 9.3% | 9.8% | (0.5) PP |
| Core capital ratio (Tier 1), incl. market risk | 8.6% | 9.0% | (0.4) PP |
| Own funds ratio | 10.7% | 11.0% | (0.3) PP |
| Stock data | 31/3 | 31/3 | |
| Earnings per share in € | 1.35 | 0.87 | 0.48 |
| Price in € | 105.38 | 70.40 | 49.7% |
| First quarter high (closing price) in € | 119.95 | 72.50 | 65.4% |
| First quarter low (closing price) in € | 98.91 | 55.20 | 79.2% |
| Number of shares outstanding in mn | 142.77 | 142.77 | – |
| Market capitalization | 15,045 | 10,051 | 49.7% |
| Resources | 31/3 | 31/12 | |
| Number of employees on balance sheet date | 53,880 | 52,732 | 2.2% |
| Number of business outlets | 2,890 | 2,848 | 1.5% |
1) Excl. one-off effects due to the sales of Raiffeisenbank Ukraine and the stake in Bank TuranAlem.
2) Calculated according to the Austrian Banking Act (Bankwesengesetz, BWG). Raiffeisen International as part of the RZB-Group is not subject to the Austrian Banking Act.
Raiffeisen International Bank-Holding AG shows another record quarterly result with consolidated profit of € 193 million. This beat the previous best result from the fourth quarter of 2006 (excluding one-off effects) by 23 per cent. The increase on the comparable period of last year came to 55 per cent. Raiffeisen International thus achieved in the first quarter of 2007 nearly the same result as in the whole of 2004, the last year before its listing on the stock exchange.
The dynamically growing business area of retail customers again showed a sharp earnings increase. Profit before tax rose on the comparable period by 118 per cent to € 111 million. The return on equity was 29.5 per cent, which represents a plus of 9.5 percentage points. This was due to a sizeable increase in the number of customers. Compared with the end of 2004, the number of customers went up from 5 million to about 12.4 million.
In January 2007 Raiffeisen Bank Zrt. celebrated the 20th anniversary of its founding. At the beginning of 1987, long before the change of political system in Eastern Europe was discernible, Unicbank, the predecessor of today's Raiffeisen Bank Zrt. commenced operation. Since then, it has become the sixthlargest bank in Hungary with about 485,000 customers and 120 branches. This pioneering achievement marked the beginning of the successful expansion of Raiffeisen to Central and Eastern Europe (CEE).
| Overview of Raiffeisen International | 3 |
|---|---|
| Stock of Raiffeisen International | 4 |
| Business Development (with unchanged outlook) | 6 |
| Segment Reports | 15 |
| Consolidated Financial Statements | 21 |
| Income Statement | 21 |
| Profit Development | 22 |
| Balance Sheet | 23 |
| Statement of Changes in Equity | 24 |
| Notes | 25 |
| Financial Calendar/Publication Details/Disclaimer | 42 |
Raiffeisen International is one of the leading banking groups in Central and Eastern Europe. The focus of company activities is on retail and corporate business. Altogether, at the end of March 2007, Raiffeisen International's network comprised 17 banks and numerous leasing companies in 16 markets. Furthermore, it has representative offices in Moldavia and Lithuania. The network banks are among the top three banks in eight markets and are the market leaders in Albania and Serbia. Raiffeisen International is the leading Western-owned banking group in the entire CIS. As of 31 March 2007, nearly 54,000 employees were serving about 12.4 million customers in 2,890 business outlets.
| As of 31 March 2007 | Balance sheet total in € mn |
Change* | Business outlets |
Number of employees |
|---|---|---|---|---|
| Albania, Raiffeisen Bank Sh.a. | 1,766 | (0.9%) | 94 | 1,293 |
| Belarus, Priorbank, OAO | 891 | 10.2% | 66 | 1,869 |
| Bosnia and Herzegovina, Raiffeisen Bank d.d. Bosna i Hercegovina |
1,669 | 4.9% | 78 | 1,355 |
| Bulgaria, Raiffeisenbank (Bulgaria) EAD | 2,443 | 0.3% | 120 | 2,012 |
| Croatia, Raiffeisenbank Austria d.d. | 4,670 | 0.7% | 52 | 1,758 |
| Czech Republic, eBanka, a.s. | 812 | 1.6% | 64 | 686 |
| Czech Republic, Raiffeisenbank a.s. | 3,443 | (5.2%) | 54 | 1,506 |
| Hungary, Raiffeisen Bank Zrt. | 6,778 | 7.7% | 121 | 2,793 |
| Kosovo, Raiffeisen Bank Kosovo S.A. | 406 | 9.0% | 33 | 486 |
| Poland, Raiffeisen Bank Polska S.A. | 3,747 | (6.6%) | 88 | 2,149 |
| Romania, Raiffeisen Bank S.A. | 4,845 | 4.4% | 295 | 4,927 |
| Russia, OAO Impexbank | 1,870 | 3.5% | 197 | 5,532 |
| Russia, ZAO Raiffeisenbank Austria | 7,893 | 22.1% | 45 | 2,746 |
| Serbia, Raiffeisen banka a.d. | 2,192 | (0.6%) | 69 | 1,742 |
| Slovakia, Tatra banka, a.s. | 6,265 | 3.5% | 145 | 3,348 |
| Slovenia, Raiffeisen Krekova banka d.d. | 908 | (5.2%) | 14 | 353 |
| Ukraine, VAT Raiffeisen Bank Aval | 4,799 | 11.6% | 1,299 | 17,549 |
| Subtotal, network banks | 55,369 | 5.7% | 2,834 | 52,104 |
| Raiffeisen-Leasing International (subgroup) | 3,262 | 5.1% | 50 | 1,322 |
| Other / consolidation | 990 | 178.3% | 6 | 454 |
| Total, Raiffeisen International | 59,621 | 6.7% | 2,890 | 53,880 |
The network banks of Raiffeisen International
*Changes versus 31 December 2006. Growth in local currencies differs due to euro exchange rates.
Raiffeisen International is listed on the Vienna Stock Exchange. With a 70 per cent stake, Raiffeisen Zentralbank Österreich AG (RZB) is the main shareholder; the remaining 30 per cent is in free float. With a balance sheet total of € 115.6 billion as of 31 December 2006, RZB is Austria's third-largest bank and the central institution of Raiffeisen Bankengruppe (RBG), the largest banking group in Austria.
The year 2007 began the same way 2006 ended. Driven by mostly gratifying profit reports and better than expected economic data, major stock indexes advanced to new highs in February. However, a correction began in the last two trading days of the month, triggered by uncertainty on the Chinese stock market and renewed concerns about the US economy. It pushed established stock markets down from year-to-date highs to lows. Defaults on the US mortgage market, which temporarily burdened financial stocks in particular, aggravated the situation. Toward the end of the quarter, hopes of US interest rate cuts exerted a calming influence.
The high volatility of international stock markets in the first quarter also affected Raiffeisen International's share price performance. In January, the stock hit an all-time high in intraday trading of € 120.50. After stagnating at a high level, it was unable to decouple from the general price corrections on international stock markets. For that reason, the stock's strong upwards trend since June 2006 was interrupted in the final trading days of February. Its closing price on 1 March 2007 was € 98.91. The stock's price stabilized in the course of the subsequent market rally. It closed trading at the end of the quarter at € 105.38. This represents a price gain of about 50 per cent compared with the end of March 2006.
Raiffeisen International introduced itself for the first time to investors in Asia in mid-February. It successfully recommended its stock as an attractive investment possibility to potential investors in Tokyo. The Asian metropolis has the highest concentration of Raiffeisen International shareholders after London and the New York-Boston region.
The presentation of Raiffeisen International's business figures for 2006 was very well attended. Over 50 analysts and investors accepted invitations to the conference that the company held on 28 March 2007. The earnings figures announced for 2006 on that day exceeded the expectations of market participants.
The attractiveness of Raiffeisen International stock is also reflected by the further increase of reporting activities. For the first time, Goldman Sachs, HSBC, and ING published analyses about Raiffeisen
International in the first quarter of 2007. Altogether, 18 investment banks and analyst firms were regularly watching Raiffeisen International in the period under review. Selected analyses may be called up as PDF documents on the internet at www.ri.co.at Æ Investor Relations Æ RI Shares Æ Analyst Reports.
Like last year, Raiffeisen International offers to any interested parties the presentations from its analyst conference along with further information, which may be called up on the internet at www.ri.co.at Æ Investor Relations Æ Financial Reports & Figures.
The second Annual General Meeting open to the public will be held on 5 June 2007 at the Austria Center in Vienna. The agenda will be published at the end of May on the internet at www.ri.co.at Æ Investor Relations Æ Events Æ Annual General Meeting.
| Price on 31 March 2007 | € 105.38 |
|---|---|
| High/low (closing prices) in Q1 2007 | € 119.95 / € 98.91 |
| Earnings per share for Q1 2007 | € 1.35 |
| Market capitalization as of 31 March 2007 | € 15.05 billion |
| Average daily trading volume (single counting) in Q1 | |
| 2007 | 273,192 shares |
| Stock exchange turnover (single counting) in Q1 2007 | € 1.907 billion |
| Free float | 30% |
| ISIN | AT0000606306 |
|---|---|
| Ticker symbols | RIBH (Vienna Stock Exchange) |
| RIBH AV (Bloomberg) | |
| RIBH.VI (Reuters) | |
| Market segment | Prime Market |
| Issue price per share (25 April 2005) | € 32.50 |
| Number of shares outstanding | 142,770,000 |
Website: www.ri.co.at → Investor Relations E-mail: [email protected] Phone: +43 (1) 71 707 2089 Fax: +43 (1) 71 707 2138
Raiffeisen International Bank-Holding AG, Investor Relations Am Stadtpark 9, 1030 Vienna, Austria
Raiffeisen International achieved balance sheet growth of almost 7 per cent in the first quarter. The balance sheet total rose by € 3.7 billion from € 55.9 billion to € 59.6 billion.
As in the previous quarters, the main part of this increase is due to lending growth; loans and advances to customers rose from the beginning of the year by € 2.9 billion to € 37.9 billion. Adjusted for provisions for impairment losses, lending to customers already account for 62 per cent of the balance sheet total. Five years ago, that figure still stood at 50 per cent.
In the first quarter, first time consolidations and currency exchange rate changes had no appreciable effects on business volume. They amounted to only about 1 per cent of growth.
Raiffeisen International again registered significant earnings increases compared with the first quarter of 2006. Consolidated profit came to € 193 million and was thus 55 per cent, or € 69 million, above last year's level. This almost entirely organic growth benefited greatly from increases in commission-based business. Net commission income rose by 49 per cent to € 275 million, with all products contributing relatively equally to the increase. The most significant growth in absolute terms was achieved in the area of payment transfers (plus € 39 million). Net interest income rose by about one third to € 505 million. Consolidated profit includes special gains of € 23 million due to the sale of a Hungarian company operating in the energy sector and the initial consolidation of three asset management companies in Croatia, Slovakia, and Hungary.
The region of Southeastern Europe registered the most significant earnings increase in the first quarter of 2007. Its increase of 70 per cent to € 98 million means an increase of its share of total earnings before tax by about 3 percentage points to 33 per cent. The reason for the increase is strong expansion of operating income and especially of net commission income.
Central Europe, still the largest segment, shows a profit of € 115 million and a 39 per cent share of group's earnings before tax. Profit increased by 45 per cent and the return on equity improved by 1.4 percentage points to 23.7 per cent.
In the CIS segment, the first quarter shows an earnings increase of 40 per cent to € 80 million. Because of the sale of Raiffeisenbank Ukraine and increased allocations to portfolio-based provisions, the rate of increase remained below those of the previous quarters.
The retail customer segment continued to develop very dynamically in the first quarter of 2007. Profit before tax rose by 118 per cent to € 111 million. Large increases in net interest income (plus 43 per cent) and in net commission income (plus 51 per cent) were the decisive factors. The rise is a consequence of increased market penetration and related volume. The segment's share of total earnings climbed to 38 per cent (first quarter of 2006: 26 per cent). For the first time, the segment achieved a return on equity of 29.5 per cent which was higher than that of the corporate customer segment.
Earnings in the corporate customer segment rose by 22 per cent to € 143 million and thus contributed 49 per cent to total earnings. This was achieved despite higher provisions for impairment losses (plus 39 per cent). The treasury segment was slightly below last year's result at € 48 million (minus 4 per cent). This was due to increased general administrative expenses accompanied by constant operating income.
At 40 per cent, the increase of operating income was above the 37 per cent rise in general administrative expenses, which is satisfactory in view of the continued high costs arising from the expansion of distribution channels, system conversions, and integration measures. The cost/income ratio of 57.2 per cent was accordingly 1.9 percentage points below the year-end level of 59.1 per cent.
Operating income rose by € 238 million to € 833 million. Of that, net commission income improved most significantly, increasing 49 per cent to € 275 million. Net interest income rose by one-third to € 505 million. The changes in the scope of consolidation (addition of Impexbank and eBanka and disposal of Raiffeisenbank Ukraine) had an effect of € 34 million on operating income.
General administrative expenses grew in the first quarter of 2007 by 37 per cent, or € 129 million, on the corresponding period of 2006 to € 477 million. Changes in the scope of consolidation were responsible for about € 35 million. Organic growth of this item came to 27 per cent.
The return on equity before tax was 25.5 per cent at the end of March despite a sharply increased equity base. This represents a decline of 1.8 percentage points compared with the end of 2006, when the ROE adjusted for one-off effects was 27.3 per cent. Average equity rose by 41 per cent to € 4,581 million due to profit retention, and the increase of profit was strikingly higher at 51 per cent.
The consolidated return on equity (after tax and minority interests) came to 19.4 per cent and was thus 2.0 percentage points below the year-end level adjusted for one-off effects. Earnings per share for the first quarter of 2007 improved on the corresponding period of 2006 by € 0.48 to € 1.35, with the number of shares outstanding unchanged compared to the end of the year.
Operating profit in the first quarter of 2007 improved further compared with the preceding quarters. Quarterly operating profit of € 356 million was up by € 59 million on the final quarter of 2006 and by € 109 million on the first quarter of 2006.
Altogether, operating income amounted to € 833 million in the first quarter of 2007, which represents an increase on the comparable period of 40 per cent, or € 238 million. Of that, net commission income grew most strongly in the first quarter with a plus of 49 per cent, or € 90 million, to € 275 million. That was driven by consistently higher income from fees and commissions for nearly all banking products. Net interest income, which increased by a good one-third, or € 127 million, to € 505 million, also contributed to the growth of operating income. Trading profit rose by 19 per cent, or € 6 million, to € 36 million, which was primarily due to increased income from interest-based business, while currency-based business declined slightly because of the exchange rate volatility of certain CEE currencies.
General administrative expenses rose in the first quarter by 37 per cent to € 477 million and hence by somewhat less than operating income. The cost/income ratio thus improved by 1.9 percentage points on the year-end level and by 1.2 percentage points on the comparable period to 57.2 per cent and is thus near the medium-term target. The share of staff expenses in general administrative expenses increased by 2 percentage points to 49 per cent, which is due to increased personnel costs in the CIS and Central Europe.
| in € mn | Q1 2007 | Change | Q1 2006 | Q1 2005 |
|---|---|---|---|---|
| Net interest income | 505 | 33.5% | 378 | 259 |
| Net commission income | 275 | 48.7% | 185 | 133 |
| Trading profit | 36 | 19.1% | 30 | 5 |
| Other operating income | 17 | >500.0% | 2 | 5 |
| Operating income | 833 | 40.0% | 595 | 402 |
| Staff expenses | -234 | 43.2% | -164 | -116 |
| Other operating expenses | -191 | 32.6% | -144 | -99 |
| Depreciation/amortization/write-downs | -51 | 28.5% | -39 | -26 |
| General administrative expenses | -477 | 37.1% | -348 | -241 |
| Operating profit | 356 | 44.1% | 247 | 161 |
Operating profit in period comparison
Raiffeisen International's operating income increased in the first three months of this year by 40 per cent, or € 238 million, on the comparable period in 2006 to € 833 million.
Net interest income grew by about one-third, or € 127 million, to € 505 million. This increase is thus somewhat below the increase of the average balance sheet total, which grew by 38 per cent to € 57.3 billion. Changes in the scope of consolidation had an impact of € 15 million. Excluding those, the increase of net interest income would be just under 30 per cent. The largest increases in net interest income were in the retail customer segment, whose contribution to net interest income grew by 43 per cent to € 307 million. Group units in the CIS raised their net interest income most significantly, with a plus of 52 per cent, while net interest income grew by about one-fourth in each of the other regions. At 3.52 per cent, the interest margin was 13 basis points below the comparable period's level. In particular, margins in Southeastern Europe and Central Europe were below the levels a year earlier.
Net commission income improved strongly in the first quarter, growing by 49 per cent, or € 90 million, to € 275 million. Of that, € 22 million came from changes in the scope of consolidation. Retail customers accounted for almost two-thirds, or € 59 million, of the total increase of € 90 million, which is due to the higher number of transactions executed, especially in personal banking business. In regional terms, the largest increase was registered by the Southeastern Europe segment, with a plus of 63 per cent. The important product segments for net commission income are payment transfers at 43 per cent, or € 119 million, and foreign exchange, notes and coins, and precious metals business at 28 per cent, or € 78 million. Other business areas also grew significantly because of increased customer traffic.
With an increase of 19 per cent, trading profit developed less strongly, growing by € 6 million to € 36 million. At € 16 million, currency-based business was € 10 million below the last year's level, which is due to currency development in certain CEE markets and the related remeasurement of some foreign exchange positions. On the other hand, earnings from interest-based business rose by € 10 million to € 12 million which resulted from a favorable development of the interest markets, particularly in Slovakia, Poland, and Russia.
Other operating income amounted to € 17 million (after € 2 million in the comparable quarter). This increase is largely due to a special gain. The first-time inclusion of asset management units in Slovakia, Hungary, and Croatia, necessary because Group mate-
riality limits were exceeded, yielded gains on the release of negative goodwill from the initial consolidation in the amount of € 12 million. The remaining income came primarily from higher results in operating leasing.
General administrative expenses grew in the first quarter by 37 per cent, or € 129 million, on the comparable period in 2006 to € 477 million, with changes in the scope of consolidation accounting for € 35 million. The organic increase of general administrative expenses thus amounted to 27 per cent, or € 94 million. With this increase, operating expenses were below operating income in percentage terms, with the result that the cost/income ratio, a measurement of efficiency, improved by 1.2 percentage points to 57.2 per cent.
Staff expenses grew by 43 per cent, or € 71 million, on the comparable period to € 234 million, of which changes in the scope of consolidation accounted for € 21 million. Significant increases of about 70 per cent were registered in the CIS, particularly in Russia, partly because Impexbank was consolidated for the first time in the second quarter of 2006 only. Set against a moderate rise of staff costs per employee in the comparable period in Central Europe and Southeastern Europe is a greater increase in the CIS.
The average number of staff members came to 53,259 and was thus about 22 per cent, or 9,479, higher than in the first quarter of 2006, with somewhat more than half of the difference being attributable to Impexbank, which was consolidated in the second quarter of 2006 for the first time.
Other administrative expenses rose by one-third, or € 47 million, to € 191 million and thus by significantly less than staff expenses. Almost one-fourth of the increase is due to changes in the scope of consolidation. Expenses went up in Central Europe and the CIS by 47 per cent each, while only growing by 27 per cent in Southeastern Europe. An especially high plus of 72 per cent was caused by advertising expenses made to support Raiffeisen International's market presence.
On balance, 39 new business outlets were opened in the first three months. Added to that were three business outlets from the first time consolidation of the asset management companies, which brings the total number now to 2,890. Most of the new outlets were opened in Southeastern Europe.
Depreciation/amortization/write-downs of tangible and intangible fixed assets rose by 29 per cent, or € 11 million, to € 51 million, with changes in the scope of consolidation accounting for about € 4 million. Capital investments in tangible and intangible fixed assets (excluding operating leasing) amounted to € 69 million in the first quarter, with the share of intangible assets at just under 13 per cent.
Compared with the corresponding period of 2006, new allocations to provisions for impairment losses rose by 37 per cent, or € 21 million, to € 76 million. Almost € 6 million of that increase were due to changes in the scope of consolidation and hence primarily to the CIS. Altogether, more than half, or € 39 million, of the provisions for impairment losses were formed in the CIS, of which portfolio-based provisions in turn accounted for more than half. Net allocations were nearly unchanged compared with the first quarter of last year in Central Europe at € 20 million and Southeastern Europe at € 17 million.
The risk/earnings ratio came to 15.0 per cent overall. Nearly two-thirds of all provisions were formed for retail customers, while corporate customers accounted for one-third. This breakdown was unchanged from the preceding year. The largest individual case concerned a Serbian company for which a provision of € 4 million was formed.
The value shown in the table under other net remeasurements of € 15 million primarily concerned the sale of the Hungarian company SINESCO Energiaszolgáltató Kft., Budapest. This energy production company was sold at the end of March 2007; income from the disposal of this Group asset amounted to € 11 million.
| in € mn | Q1 2007 | Change | Q1 2006 | Q1 2005 |
|---|---|---|---|---|
| Profit from operating activities | 356 | 44.1% | 247 | 161 |
| Provisions for impairment losses | -76 | 37.1% | -55 | -29 |
| Other net items | 15 | – | -2 | 1 |
| Profit before tax | 292 | 50.8% | 194 | 133 |
| Income tax | -62 | 45.4% | -42 | -24 |
| Profit after tax | 231 | 52.4% | 151 | 109 |
| Minority interests in profit | -38 | 40.4% | -27 | -17 |
| Consolidated profit | 193 | 55.0% | 124 | 93 |
Development of consolidated profit in period comparison
Income tax rose by 45 per cent, or € 19 million, to € 62 million, which was a slightly lower increase than that of earnings before tax at 51 per cent. The tax rate consequently decreased on the previous period by 1 percentage point to 21 per cent. The effective tax rate is the highest in the CIS at about 25 per cent, while only amounting to 11 per cent in Southeastern Europe.
This yields an increase of profit after tax by 52 per cent to € 231 million, of which minority interests in profit are to be subtracted; those are the minority shareholders who own stakes in the various Group units. They are entitled to a total of € 38 million of profit in the first quarter of 2007. The consolidated profit allocable to Raiffeisen International's shareholders increased by 55 per cent, or € 68 million, to € 193 million. Divided by the average number of shares outstanding, this results in earnings per share for the period of € 1.35 (plus € 0.48).
Raiffeisen International's balance sheet total increased in the first quarter of this year by 7 per cent, or € 3.8 billion, to € 59.6 billion. The growth compared with the end of last year was almost entirely organic. Currency effects of about 1 percentage point had a negligible influence on the balance sheet total (plus € 0.1 billion).
The regional segments report that Central Europe, still the weightiest region, accounted for 41 per cent, or € 24.1 billion, of Group assets; the figure for the comparable period in 2006 was 42 per cent. The share attributable to the CIS rose from 24 to 27 per cent. Viewed in absolute terms, its share amounted to € 16.2 billion. Assets in the region of Southeastern Europe grew to € 19.3 billion, but their share nevertheless declined from 34 to 32 per cent.
There was scarcely any change in the structre of balance sheet assets compared with the end of last year. Growth of the balance sheet total was again driven on the asset side by loans and advances to customers (net, adjusted for provisions), which rose by about 8 per cent, or € 2.8 billion, to € 37.0 billion. Lending to retail customers grew by 8 per cent, or € 1.0 billion, which was mainly due to an increase of loans to private individuals. The share of customer loans to total assets increased by 1 percentage point to 62 per cent.
Loans and advances to banks rose by 6 percentage points to € 8.7 billion. However, the share in total assets remained un-
changed at 15 per cent.
Although other financial current assets increased by 51 per cent, or € 0.5 billion, the share of securities declined by 1 percentage point to 11 per cent because securities held to maturity and securities held for trading purposes decreased by € 0.1 billion and € 0.2 billion, respectively.
The share of other assets remained unchanged at 12 per cent compared with the end of 2006.
At the end of the first quarter, the Group's liabilities showed no structural changes compared with the end of 2006. At an unchanged 59 per cent, deposits from customers remained the dominant item on this side of the balance sheet. Deposits from banks accounted for about one-fourth of the balance sheet total. The rest was attributable to own funds (10 per cent) and other liabilities (5 per cent).
Structure of liabilities and own funds
Compared with the end of 2006, deposits from customers rose by about 5 per cent to almost € 35.0 billion. The greatest increase of € 0.9 billion, or 12 per cent, was registered in the CIS. Deposits from customers in Central Europe and Southeastern Europe grew by 3 per cent in each region. Deposits from retail customers rose by 6 per cent, or € 1.0 billion, and hence more strongly than deposits from corporate customers (plus 5 per cent, or € 0.7 billion). Time deposits from business customers and private individuals increased most strongly in the CIS with a plus of € 0.5 billion, or 15 per cent.
Deposits from banks grew from the beginning of the year to the reporting date by 11 per cent to € 15.3 billion. While a decline was registered especially in the regions of Central Europe and Southeastern Europe, funding transactions increased in the CIS and
in the parent company.
Own funds, consisting of equity and subordinated capital, declined as a share of the balance sheet total by 1 percentage point to 10 per cent. The increase by € 249 million is mainly due to the first quarter's profit. The subordinated capital included in own funds was unchanged at € 1.4 billion. Of this subordinated capital (Tier 2), eligible for local regulatory purposes of Group banks, 90 per cent was made available by RZB as Raiffeisen International's main shareholder, and 10 per cent by supranational institutions.
Equity shown on Raiffeisen International's balance sheet rose by 5 per cent, or € 247 million, from the end of 2006 to € 4,837 million on the reporting date. The increase resulted primarily from the current quarter's profit of € 231 million. Furthermore, exchange rate movements of some CEE currencies and related capital hedges increased equity by € 8 million.
The dividend of € 0.71 per share proposed for 2006 – the total payout would be € 101 million – has not been subtracted from equity in the first quarter. The dividend proposal must still be approved by the Annual General Meeting of Raiffeisen International Bank-Holding AG on 5 June 2007.
Raiffeisen International is not a banking group in its own right within the meaning of the Austrian Banking Act (Bankwesengesetz, BWG) and is therefore not itself, as a consolidated group, subject to the requirements of that statute. The following consolidated figures have been calculated according to the provisions of the BWG and enter into the accounts of the RZB banking group. They are provided here for information purposes only.
Regulatory own funds increased by € 81 million to € 4,594 million. This does not include the reporting year's current profit, which cannot be taken into account yet because of Austrian statutory regulations. Core capital (Tier 1) grew slightly, by € 20 million to € 3,725 million. Own funds also include eligible subordinated capital (Tier 2), which amounted to € 860 million (plus € 52 million) as of 31 March 2007. Set against own funds is a regulatory own funds requirement of € 3,446 million, which represents excess cover of more than 33 per cent.
We expect that corporate customer business will again make the largest contribution to overall profit in 2007. The focus on the mid-market segment will be intensified this year. The emphasis in the retail segment, which is developing very well, will be on further expansion of our branch network and of alternative distribution channels, e.g. the internet and call centers.
We expect a consolidated profit of at least € 700 million for 2007.
For the period to 2009, we anticipate annual growth of our balance sheet total by at least 20 per cent. The largest increases should continue to come from the CIS despite the absence of Raiffeisenbank Ukraine.
We forecast a return on equity (ROE) before tax of more than 25 per cent for the year 2009. The cost/income ratio is expected to be below 58 per cent. We have set a target for the risk/earnings ratio of about 15 per cent.
Raiffeisen International classifies its business primarily according to customer groups and proprietary business fields:
The secondary classification of segments for reporting is made according to regional aspects. The location of the respective business outlets is the criterion of segment assignment:
You will find a detailed description of the individual segments beginning on page 28. The figures stated are derived from the financial statements prepared according to the International Financial Reporting Standards (IFRS) that underlie the consolidated financial statements. Divergence from locally published data is possible.
The Southeastern Europe segment registered by far the largest increase of profit before tax, by € 58 million to € 98 million. Improving cost efficiency and growing lending business in this region are responsible for that.
Earnings also increased significantly in the other regions. In Central Europe, profit before tax grew by 45 per cent, or € 36 million, to € 115 million. In the CIS, strong organic balance sheet growth as well as the integration of Impexbank, which was consolidated for the first time in the second quarter of 2006 were responsible for an earnings increase of 40 per cent, or € 23 million; profit before tax reached € 80 million.
The greatest part of consolidated profit before tax came, as recently, from Group units in Central Europe, with a share of 39 per cent (minus 1 percentage point). The Southeastern Europe segment is the second-largest earnings source with a 33 per cent share and a plus of 3 percentage points. The CIS accounted for 28 per cent of earnings, with its share being 2 percentage points smaller than in the comparable period.
The CIS share in the total balance sheet assets advanced significantly. With 27 per cent it is 3 percentage points higher than at the end of March 2006. On the other hand, the share in the balance sheet assets of the Central Europe and Southeastern Europe segments decreased by 1 and 2 percentage points, respectively.
Segment shares of profit before tax (compared with 1/1–31/3/2006)
Segment shares of assets (compared with 31/3/2006)
| in € mn | 1/1–31/3/07 | 1/1–31/3/06 | Change |
|---|---|---|---|
| Net interest income | 177 | 140 | 26.3% |
| Provisioning for impairment losses | -20 | -21 | -5.0% |
| Net interest income after provisioning | 157 | 119 | 31.9% |
| Net commission income | 110 | 77 | 42.8% |
| Trading profit | 12 | 9 | 29.0% |
| Net income (loss) from financial investments | 0 | -1 | – |
| General administrative expenses | -182 | -131 | 38.9% |
| Other operating profit (loss) | 7 | 6 | 17.8% |
| Income from disposal of group assets | 11 | – | – |
| Profit before tax | 115 | 79 | 45.1% |
| Share of profit before tax | 39.2% | 40.7% | -1.5 PP |
| Total assets* | 24,106 | 17,551 | 37.3% |
| Basis of assessment, including market risk* | 18,299 | 13,741 | 33.2% |
| Average number of employees | 11,627 | 9,769 | 19.0% |
| Business outlets* | 521 | 418 | 24.6% |
| Cost/income ratio | 59.6% | 56.8% | 2.8 PP |
| Average equity | 1,935 | 1,416 | 36.7% |
| Return on equity before tax | 23.7% | 22.3% | 1.4 PP |
* Reference date value as of 31 March
In Central Europe, a considerable earnings increase was registered in the first quarter of 2007. Profit before tax reached € 115 million in the first quarter of this year, which is 45 per cent, or € 36 million, more than in the corresponding period last year. This increase also includes two special gains. First, the initial consolidation of asset management units in Slovakia and Hungary yielded gains from initial consolidation of € 9 million. In Hungary, 100 per cent of the shares in Budapest-based SINESCO Energiaszolgáltató Kft., a Group unit operating in the energy sector, were sold. The profit resulting from the deconsolidation amounted to € 11 million.
The return on equity before tax for Central Europe was 23.7 per cent and improved because of special influences by 1.4 percentage points.
The Group's assets allocable to the region rose on the preceding year by 37 per cent, or € 6.6 billion, to € 24.1 billion. The volume increase was thus somewhat higher than that of net interest income, which grew by 26 per cent to € 177 million. The net interest margin fell on the comparable period by 22 basis points to 2.99 per cent.
Provisioning for impairment losses fell by 5 per cent to € 20 million. The decline was due to releases and to lower new allocations in some countries. The risk/earnings ratio dropped to 11.3 per cent from 15.0 per cent in the comparable period.
Net commission income rose by € 33 million to € 110 million. This dynamic growth was based on continuously increased transaction volumes, especially in the area of payment transfers and in securities business.
Trading profit in the region of Central Europe amounted to € 12 million. The increase by € 3 million was largely attributable to valuation gains involved in interest-based transactions achieved despite slightly lower trading assets.
General administrative expenses allocable to Central Europe rose on the comparable period by 39 per cent, or € 51 million, to € 182 million. This is attributable to the larger number of staff members in Central Europe, the inclusion of eBanka, the realization of projects, and particularly higher spending on advertising. In view of this increase, the cost/income ratio in Central Europe rose by 2.8 percentage points to 59.6 per cent. The average number of staff members climbed by 19 per cent to 11,627, and the number of business outlets in Central Europe by one-fourth from 418 to 521.
| in € mn | 1/1–31/3/07 | 1/1–31/3/06 | Change |
|---|---|---|---|
| Net interest income | 152 | 122 | 24.3% |
| Provisioning for impairment losses | -17 | -17 | 1.8% |
| Net interest income after provisioning | 135 | 105 | 27.9% |
| Net commission income | 81 | 50 | 62.6% |
| Trading profit | 15 | 13 | 11.8% |
| Net income (loss) from financial investments | 1 | -1 | – |
| General administrative expenses | -145 | -112 | 30.0% |
| Other operating profit (loss) | 11 | 1 | – |
| Profit before tax | 98 | 58 | 69.7% |
| Share of profit before tax | 33.4% | 29.7% | 3.7 PP |
| Total assets* | 19,340 | 14,327 | 35.0% |
| Basis of assessment, including market risk* | 12,055 | 10,128 | 19.0% |
| Average number of employees | 13,763 | 11,981 | 14.9% |
| Business outlets* | 755 | 593 | 27.3% |
| Cost/income ratio | 56.0% | 56.8% | -0.8 PP |
| Average equity | 1,344 | 1,036 | 29.7% |
| Return on equity before tax | 29.1% | 22.2% | 6.9 PP |
* Reference date value as of 31 March
The region of Southeastern Europe made a very strong showing in the first quarter of 2007. Profit before tax rose by almost 70 per cent to € 98 million. The return on equity before tax likewise improved from 22.2 per cent in the comparable period to 29.1 per cent.
Net interest income increased by 24 per cent, or € 30 million, to € 152 million. While business volume rose by almost 35 per cent, the net interest margin in the region fell by 28 basis points on the first quarter of 2006 to 3.19 per cent.
Provisions for impairment losses remained at € 17 million, the same level as in the comparable period, despite the increased business volume. The risk/earnings ratio thus dropped from 13.9 to 11.4 per cent.
Net commission income grew from € 50 million to € 81 million, with the largest increases achieved in Croatia, Romania, and Serbia. The most important earnings sources were payment transfers at € 35 million, foreign exchange, notes and coins business at € 17 million.
At € 15 million, the region of Southeastern Europe registered the highest trading profit of all segments. By far the largest part of this amount came from currency-based business, with earnings in that area up 12 per cent.
The development of general administrative expenses, which rose by 30 per cent to € 145 million, continues to be shaped by expansion of the business outlet network (increase by 27 per cent from 593 to 755 business outlets). In particular, that involved increased depreciation for capital investments in branches (32 per cent) and expenditures for advertising measures (60 per cent). The average number of staff members grew by 1,782 to 13,763. The cost/income ratio improved by 0.8 percentage points to 56.0 per cent.
| in € mn | 1/1–31/3/07 | 1/1–31/3/06 | Change |
|---|---|---|---|
| Net interest income | 176 | 116 | 52.0% |
| Provisions for impairment losses | -39 | -17 | 122.3% |
| Net interest income after provisioning | 137 | 98 | 39.5% |
| Net commission income | 85 | 58 | 44.7% |
| Trading profit | 9 | 7 | 19.8% |
| Net income (loss) from financial investments | 0 | 0 | – |
| General administrative expenses | -149 | -105 | 42.5% |
| Other operating profit (loss) | -4 | -2 | 133.7% |
| Profit before tax | 80 | 57 | 39.9% |
| Share of profit before tax | 27.5% | 29.6% | -2.1 PP |
| Total assets* | 16,175 | 10,105 | 60.1% |
| Basis of assessment, including market risk* | 12,723 | 7,926 | 60.5% |
| Average number of employees | 27,869 | 22,030 | 26.5% |
| Business outlets* | 1,614 | 1,497 | 7.8% |
| Cost/income ratio | 55.7% | 59.2% | -3.6 PP |
| Average equity | 1,301 | 823 | 58.2% |
| Return on equity before tax | 24.7% | 27.9% | -3.2 PP |
* Reference date value as of 31 March
In the CIS, profit before tax increased in the first quarter of 2007 by almost 40 per cent, or € 23 million, to € 80 million despite the deconsolidation of Raiffeisenbank Ukraine. Because of a significant increase of the equity base by 58 per cent, the return on equity decreased by 3.2 percentage points to 24.7 per cent. This is due to the absence of Raiffeisenbank Ukraine, which required less capital, and a high new allocation to portfolio-based provisions.The region's contribution to group earnings was 28 per cent.
Net interest income increased in the first quarter of 2007 by 52 per cent, or € 60 million, to € 176 million. It thus developed in line with the region's balance sheet assets, which grew by € 6.1 billion to € 16.2 billion. The net interest margin hardly changed. At 4.68 per cent, it was 6 basis points below the figure for the comparable period.
Provisioning for impairment losses increased by € 22 million to € 39 million. This is a consequence of greatly expanded business volume in both the retail and corporate customer segments and is largely due to the Group's two Russian units. The share of portfolio-based provisions in the CIS was just over 51 per cent. Among specific provisions, there are no large problem cases. The largest new allocation took place in Ukraine and amounted to about € 1 million. The risk/earnings ratio was 22.0 per cent, and the coverage ratio (provisions to non-performing loans) was 166 per cent.
Net commission income increased by € 26 million to € 85 million. The most important product areas for net commission income were payment transfers at € 49 million as well as foreign exchange and notes and coins business, which contributed a further € 13 million.
Trading profit grew from € 7 million to € 9 million. This was mostly due to a constantly expanded portfolio of trading assets, which now amounts to € 0.8 billion and to increases in interest-based business.
Like operating income, general administrative expenses were significantly above the level a year earlier, increasing by 43 per cent, or € 44 million, to € 149 million. This is due to higher staff expenses, especially in Russia, which arose because of Impexbank's inclusion in the second quarter of 2006. The region's cost/income ratio fell significantly, from 59.2 to 55.7 per cent, despite the strong retail emphasis of Raiffeisen Bank Aval and Impexbank. The average number of staff members grew under the influence of acquisitions by 5,839 to 27,869, with the region showing by far the greatest number of Raiffeisen International employees.
| Notes | 1/1–31/3 | 1/1–31/3 | Change | |
|---|---|---|---|---|
| in € mn | 2007 | 2006 | ||
| Interest income | 983.1 | 675.5 | 45.5% | |
| Interest expenses | (478.1) | (297.3) | 60.8% | |
| Net interest income | (2) | 505.0 | 378.2 | 33.5% |
| Provisioning for impairment losses | (3) | (75.9) | (55.4) | 37.1% |
| Net interest income after provisioning | 429.1 | 322.8 | 32.9% | |
| Commission income | 318.3 | 216.3 | 47.2% | |
| Commission expense | (43.2) | (31.3) | 38.0% | |
| Net commission income | (4) | 275.1 | 185.0 | 48.7% |
| Trading profit | (5) | 35.6 | 29.9 | 19.1% |
| Net income from financial investments and | ||||
| current financial assets | (6) | 0.8 | (1.9) | – |
| General administrative expenses | (7) | (476.5) | (347.5) | 37.1% |
| Other operating profit/loss | (8) | 14.3 | 5.7 | 153.1% |
| Income from disposal of group assets | (8) | 14.1 | – | – |
| Profit before tax | 292.5 | 193.9 | 50.8% | |
| Income taxes | (61.7) | (42.4) | 45.4% | |
| Profit after tax | 230.8 | 151.5 | 52.4% | |
| Minority interests | (38.2) | (27.2) | 40.4% | |
| Consolidated profit | 192.6 | 124.2 | 55.0% |
| in € | 1/1–31/3 2007 |
1/1–31/3 2006 |
Change |
|---|---|---|---|
| Earnings per share | 1.35 | 0.87 | 0.48 |
Earnings per share are obtained by dividing consolidated profit by the average number of common shares outstanding. As of 31 March 2007, the number of common shares outstanding was 142.5 million, compared with 142.8 million as of 31 March 2006.
There were no conversion or option rights outstanding, so undiluted earnings per share are equal to diluted earnings per share.
| in € mn | Q2 2006 | Q3 2006 | Q4 2006 | Q1 2007 |
|---|---|---|---|---|
| Net interest income | 411.6 | 460.9 | 513.1 | 505.0 |
| Provisioning for impairment losses | (69.6) | (104.3) | (79.6) | (75.9) |
| Net interest income after provisioning | 342.0 | 356.6 | 433.6 | 429.1 |
| Net commission income | 230.6 | 245.4 | 272.4 | 275.1 |
| Trading profit | 41.4 | 40.5 | 63.0 | 35.6 |
| Net income from financial investments and current financial assets |
0.2 | 100.8 | 4.1 | 0.8 |
| General administrative expense | (396.6) | (412.2) | (537.3) | (476.5) |
| Other operating profit/loss | 9.6 | 0.4 | (15.2) | 14.3 |
| Income from disposal of group assets | – | – | 506.6 | 14.1 |
| Profit before tax | 227.2 | 331.5 | 727.0 | 292.5 |
| Income taxes | (45.1) | (53.7) | (64.0) | (61.7) |
| Profit after tax | 182.1 | 277.8 | 663.0 | 230.8 |
| Minority interests | (17.1) | (27.7) | (20.2) | (38.2) |
| Consolidated profit | 165.0 | 250.1 | 642.8 | 192.6 |
| in € mn | Q2 2005 | Q3 2005 | Q4 2005 | Q1 2006 |
|---|---|---|---|---|
| Net interest income | 277.0 | 305.5 | 361.0 | 378.2 |
| Provisioning for impairment losses | (34.9) | (56.1) | (47.7) | (55.4) |
| Net interest income after provisioning | 242.1 | 249.4 | 313.2 | 322.8 |
| Net commission income | 146.8 | 150.9 | 175.5 | 185.0 |
| Trading profit | 18.4 | 24.7 | 52.7 | 29.9 |
| Net income from financial investments and current financial assets |
1.8 | 1.9 | 6.2 | (1.9) |
| General administrative expense | (261.7) | (280.2) | (379.7) | (347.5) |
| Other operating profit/loss | (7.5) | (3.6) | (15.7) | 5.7 |
| Profit before tax | 140.0 | 143.1 | 152.1 | 193.9 |
| Income taxes | (28.2) | (29.3) | (27.5) | (42.4) |
| Profit after tax | 111.8 | 113.8 | 124.7 | 151.5 |
| Minority interests | (18.8) | (20.6) | (21.4) | (27.2) |
| Consolidated profit | 93.0 | 93.2 | 103.3 | 124.2 |
| Assets in € mn |
Notes | 31/3 2007 |
31/12 2006 |
Change |
|---|---|---|---|---|
| Cash reserve | 4,109 | 4,064 | 1.1% | |
| Loans and advances to banks | (9) | 8,686 | 8,202 | 5.9% |
| Loans and advances to customers | (10) | 37,928 | 35,043 | 8.2% |
| Impairment losses on loans and advances | (11) | (924) | (872) | 5.9% |
| Trading assets | (12) | 2,516 | 2,684 | (6.2)% |
| Other current financial assets | (13) | 1,500 | 995 | 50.8% |
| Financial investments | (14) | 2,674 | 2,787 | (4.1)% |
| Intangible fixed assets | (15) | 1,215 | 1,221 | (0.5)% |
| Tangible fixed assets | (16) | 1,056 | 1,056 | 0.1% |
| Other assets | (17) | 860 | 688 | 25.1% |
| Total assets | 59,621 | 55,867 | 6.7% |
| Equity and liabilities | Notes | 31/3 | 31/12 | Change |
|---|---|---|---|---|
| in € mn | 2007 | 2006 | ||
| Deposits from banks | (18) | 15,287 | 13,814 | 10.7% |
| Deposits from customers | (19) | 34,921 | 33,156 | 5.3% |
| Liabilities evidenced by paper | (20) | 1,455 | 1,422 | 2.4% |
| Provisions for liabilities and charges | (21) | 242 | 218 | 11.2% |
| Trading liabilities | (22) | 487 | 486 | 0.1% |
| Other liabilities | (23) | 974 | 766 | 27.2% |
| Subordinated capital | (24) | 1,418 | 1,416 | 0.1% |
| Equity | (25) | 4,837 | 4,590 | 5.4% |
| Consolidated equity | 3,979 | 2,804 | 41.9% | |
| Consolidated profit | 193 | 1,182 | (83.7)% | |
| Minority interests | 666 | 604 | 10.3% | |
| Total equity and liabilities | 59,621 | 55,867 | 6.7% |
| in € mn | Subscribed capital |
Capital reserves |
Retained earnings |
Consolidated profit |
Minority interests |
Total |
|---|---|---|---|---|---|---|
| Equity as of 1/1/2007 | 434 | 1,390 | 980 | 1,182 | 604 | 4,590 |
| Capital increases | – | – | – | – | 18 | 18 |
| Transferred to retained earnings | – | – | 1,182 | (1,182) | – | – |
| Dividend payments | – | – | – | – | (10) | (10) |
| Consolidated profit | – | – | – | 193 | 38 | 231 |
| Exchange differences | – | – | (11) | – | 4 | (7) |
| Capital hedges | – | – | 15 | – | – | 15 |
| Own shares/share incentive | ||||||
| program | – | 2 | – | – | – | 2 |
| Other changes | – | – | (13) | – | 13 | – |
| Equity as of 31/3/2007 | 434 | 1,391 | 2,153 | 193 | 666 | 4,837 |
| in € mn | Subscribed capital |
Capital reserves |
Retained earnings |
Consolidated profit |
Minority interests |
Total |
|---|---|---|---|---|---|---|
| Equity as of 1/1/2006 | 434 | 1,395 | 589 | 382 | 475 | 3,276 |
| Transferred to retained earnings | – | – | 382 | (382) | – | – |
| Dividend payments | – | – | – | – | (24) | (24) |
| Consolidated profit | – | – | – | 124 | 27 | 151 |
| Exchange differences | – | – | (20) | – | (6) | (26) |
| Capital hedges | – | – | 37 | – | – | 37 |
| Own shares/share incentive | ||||||
| program | – | 1 | – | – | – | 1 |
| Other changes | – | – | (10) | – | 8 | (2) |
| Equity as of 31/3/2006 | 434 | 1,396 | 978 | 124 | 481 | 3,413 |
The total nominal share capital of Raiffeisen International Bank-Holding AG as stated in its memorandum and Articles of Association amounted to € 434.5 mn.
| in € mn | 1/1–31/3 2007 |
1/1–31/3 2006 |
|---|---|---|
| Cash and cash equivalents at the end of the previous period | 4,064 | 2,908 |
| Net cash from operating activities | (26) | (521) |
| Net cash from investing activities | 60 | 4 |
| Net cash from financing activities | 8 | 3 |
| Effect of exchange rate changes | 3 | (10) |
| Cash and cash equivalents at the end of period | 4,109 | 2,384 |
The consolidated financial statements of Raiffeisen International are prepared in conformity with the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB) and the international accounting standards adopted by the EU including the applicable interpretations by the International Financial Reporting Interpretations Committee (IFRIC). The unaudited interim report as of 31 March 2007 is prepared in conformity with IAS 34. In the interim reporting, exactly the same accounting and valuation principles and consolidation methods are applied as in the preparation of the 2006 consolidated financial statements.
IFRS 7 (Disclosure requirements related to financial instruments) is effective for annual periods beginning on or after 1 January 2007. IFRS supersedes IAS 30 (Disclosures in the financial statements of banks and similar financial institutions) and IAS 32 (Financial instruments: Presentation) regarding disclosure requirements. The changes mainly concern the separate disclosure of valuation categories. In the interim report, valuation categories are disclosed separately for the first time.
Balance sheet relating to valuation categories
| Assets | 31/3 | 31/12 | Change |
|---|---|---|---|
| in € mn | 2007 | 2006 | |
| Cash reserve | 4,109 | 4,064 | 1.1% |
| Trading assets | 2,557 | 2,719 | (6.0)% |
| Positive fair values of derivative financial instruments | 383 | 349 | 9.7% |
| Shares and other variable-yield securities | 34 | 27 | 27.0% |
| Bonds, notes and other fixed-interest securities | 2,119 | 2,285 | (7.2)% |
| Loans held for trading | 21 | 59 | (64.9)% |
| Financial assets at fair value through profit or loss | 1,501 | 995 | 50.8% |
| Shares and other variable-yield securities | 43 | 40 | 7.6% |
| Bonds, notes and other fixed-interest securities | 1,457 | 955 | 52.7% |
| Available-for-sale financial assets | 9 | 8 | 11.6% |
| Other interests | 9 | 8 | 11.6% |
| Loans and advances to banks | 46,473 | 42,960 | 8.2% |
| Loans and advances to banks | 8,686 | 8,202 | 5.9% |
| Loans and advances to customers | 37,891 | 34,978 | 8.3% |
| Other non-derivative financial assets | 819 | 652 | 25.7% |
| Impairment losses on loans and advances | (924) | (872) | 5.9% |
| Held-to-maturity investments | 2,637 | 2,784 | (5.3)% |
| Bonds, notes and other fixed-interest securities | 2,601 | 2,719 | (4.4)% |
| Purchased loans | 36 | 65 | (44.1)% |
| Other assets | 2,335 | 2,336 | (0.1)% |
| Total assets | 59,621 | 55,867 | 6.7% |
| Equity and liabilities in € mn |
31/3 2007 |
31/12 2006 |
Change |
|---|---|---|---|
| Deposits from central banks | 131 | 107 | 22.5% |
| Trading liabilities | 510 | 505 | 1.1% |
| Negative fair values of other derivative financial instruments | 373 | 383 | (2.8)% |
| Call/time deposits for trading purposes | 137 | 122 | 12.2% |
| Liabilities | 53,901 | 50,447 | 6.8% |
| Deposits from banks | 15,157 | 13,708 | 10.6% |
| Deposits from customers | 34,921 | 33,156 | 5.3% |
| Liabilities evidenced by paper | 1,455 | 1,422 | 2.4% |
| Subordinated capital | 1,418 | 1,416 | 0.1% |
| Other non-derivative financial liabilities | 950 | 745 | 27.5% |
| Provisions for liabilities and charges | 242 | 218 | 11.2% |
| Equity | 4,837 | 4,590 | 5.4% |
| Total equity and liabilities | 59,621 | 55,867 | 6.7% |
| Fully consolidated | Equity method | |||
|---|---|---|---|---|
| Number of units | 31/3/2007 | 31/12/2006 | 31/3/2007 | 31/12/2006 |
| As of beginning of period | 105 | 65 | 3 | 3 |
| Included for the first time in the financial period | 5 | 45 | – | – |
| Excluded in the financial period | (2) | (4) | – | – |
| Merged in the financial period | – | (1) | – | – |
| As of end of period | 108 | 105 | 3 | 3 |
As of 1 January 2007, the following three companies engaged in fund management were included in the consolidated financial statements for the first time: Tatra Asset Management sprav.spol., a.s., Bratislava, Raiffeisen Invest d.o.o., Zagreb, Raiffeisen Investment Fund Management Zrt., Budapest. Perseus Property, s.r.o., Prague, a company operating in real estate leasing activities, was consolidated as of 1 January 2007 for the first time. As of 1 March 2007, Raiffeisen Equipment Leasing Company Limited by Shares, Budapest, working in equipment leasing, was also included for the first time.
In the first quarter 2007, Raiffeisen Lízing Zrt., Budapest, sold its 100 per cent share in SINESCO Kft., Budapest. The company was excluded as of 1 March 2007; the result of deconsolidation amounted to € 11.4 mn. Due to the fact that Raiffeisen Non-Government Pension Fund, Moscow, became immaterial, the company was excluded from the consolidated group as of 1 January 2007, resulting to a profit of € 2.7 mn.
Raiffeisen International primarily divides its business according to the following customer and proprietary business segments:
The Corporate customers segment encompasses business with local and international medium-sized enterprises and key accounts. Retail customers comprise private individuals and small and medium-sized enterprises whose annual revenues generally do not exceed € 5 milllion. The Treasury segment includes the Treasury department´s proprietary trading as well as investment banking activities, which are only carried out by a few group units. Besides non-banking business, the Participations and other segment also encompasses the management of equity participations. In addition, this segment covers other cross-segment activities, including especially those in parent company Raiffeisen International Bank-Holding AG.
Secondary segment reporting shows earnings components and portfolio figures by regional aspects. The criterion of assignment is the location of the head office of the respective business outlets.
| 1/1–31/3/2007 | Corporate | Retail | Participations | ||
|---|---|---|---|---|---|
| in € mn | customers | customers | Treasury | and other | Total |
| Net interest income | 159.2 | 306.7 | 34.8 | 4.3 | 505.0 |
| Provisioning for impairment losses | (26.6) | (48.0) | 0.0 | (1.3) | (75.9) |
| Net interest income after provisioning | 132.6 | 258.7 | 34.8 | 3.0 | 429.1 |
| Net commission income | 96.6 | 174.0 | 3.4 | 1.0 | 275.1 |
| Trading profit/loss | 2.1 | 0.3 | 31.5 | 1.6 | 35.6 |
| Net income from financial investments | |||||
| and current financial assets | 0.7 | 0.0 | 0.1 | 0.0 | 0.8 |
| General administrative expenses | (94.7) | (326.9) | (19.3) | (35.7) | (476.5) |
| Other operating profit/loss | 5.3 | 5.3 | (2.3) | 6.0 | 14.3 |
| Income from disposal of group assets | – | – | – | 14.1 | 14.1 |
| Profit before tax | 142.7 | 111.4 | 48.3 | (9.9) | 292.5 |
| Risk-weighted assets, incl. market risk | 19,182 | 13,828 | 6,629 | 3,438 | 43,077 |
| Own funds requirement | 1,535 | 1,106 | 530 | 275 | 3,446 |
| Average number of employees | 7,721 | 42,374 | 1,120 | 2,045 | 53,259 |
| Cost/income ratio | 35.9% | 67.2% | 27.6% | – | 57.2% |
| Average equity | 2,083 | 1,523 | 655 | 320 | 4,581 |
| Return on equity before tax | 27.7% | 29.5% | 29.7% | – | 25.5% |
| 1/1–31/3/2006 in € mn |
Corporate customers |
Retail customers |
Treasury | Participations and other |
Total |
|---|---|---|---|---|---|
| Net interest income | 134.0 | 214.2 | 32.1 | (2.1) | 378.2 |
| Provisioning for impairment losses | (19.2) | (36.4) | (0.0) | 0.2 | (55.4) |
| Net interest income after provisioning | 114.8 | 177.8 | 32.1 | (1.9) | 322.8 |
| Net commission income/loss | 69.4 | 115.5 | (0.6) | 0.6 | 185.0 |
| Trading profit/loss | 1.4 | 2.8 | 30.6 | (4.9) | 29.9 |
| Net income/loss from financial investments and current financial assets |
(0.1) | – | (1.8) | 0.0 | (1.9) |
| General administrative expenses | (70.3) | (246.3) | (13.9) | (17.0) | (347.5) |
| Other operating profit/loss | 2.2 | 1.2 | 3.9 | (1.8) | 5.7 |
| Profit before tax | 117.5 | 51.0 | 50.3 | (25.0) | 193.9 |
| Risk-weighted assets, incl. market risk | 14,910 | 9,906 | 5,502 | 1,477 | 31,796 |
| Own funds requirement | 1,193 | 792 | 440 | 118 | 2,544 |
| Average number of employees | 7,538 | 32,989 | 987 | 2,267 | 43,780 |
| Cost/income ratio | 34.0% | 73.8% | 22.4% | – | 58.4% |
| Average equity | 1,536 | 1,020 | 567 | 152 | 3,275 |
| Return on equity before tax | 30.6% | 20.0% | 35.5% | – | 23.7% |
| 1/1–31/3/2007 | CE | SEE | CIS | Total |
|---|---|---|---|---|
| in € mn | ||||
| Net interest income | 177.0 | 152.2 | 175.8 | 505.0 |
| Provisioning for impairment losses | (19.9) | (17.3) | (38.7) | (75.9) |
| Net interest income after provisioning | 157.1 | 134.9 | 137.1 | 429.1 |
| Net commission income | 109.8 | 80.7 | 84.6 | 275.1 |
| Trading profit | 11.9 | 14.9 | 8.9 | 35.6 |
| Net income/loss from financial investments and current financial assets |
(0.3) | 1.1 | (0.1) | 0.8 |
| General administrative expenses | (182.3) | (145.0) | (149.3) | (476.5) |
| Other operating profit/loss | 6.9 | 11.0 | (3.6) | 14.3 |
| Income from disposal of group assets | 11.4 | – | 2.7 | 14.1 |
| Profit before tax | 114.5 | 97.6 | 80.3 | 292.5 |
| Total assets | 24,106 | 19,340 | 16,175 | 59,621 |
| Risk-weighted assets, incl. market risk | 18,299 | 12,055 | 12,723 | 43,077 |
| Own funds requirement | 1,464 | 964 | 1,018 | 3,446 |
| Average number of employees | 11,627 | 13,763 | 27,869 | 53,259 |
| Cost/income ratio | 59.6% | 56.0% | 55.7% | 57.2% |
| Average equity | 1,935 | 1,344 | 1,301 | 4,581 |
| Return on equity before tax | 23.7% | 29.1% | 24.7% | 25.5% |
| 1/1–31/3/2006 | CE | SEE | CIS | Total |
| in € mn | ||||
| Net interest income | 140.1 | 122.5 | 115.7 | 378.2 |
| Provisioning for impairment losses | (21.0) | (17.0) | (17.4) | (55.4) |
| Net interest income after provisioning | 119.1 | 105.5 | 98.2 | 322.8 |
| Net commission income | 76.9 | 49.7 | 58.5 | 185.0 |
| Trading profit | 9.2 | 13.3 | 7.4 | 29.9 |
| Net income/loss from financial investments and current financial assets |
(0.8) | (0.6) | (0.4) | (1.9) |
| General administrative expenses | (131.2) | (111.6) | (104.7) | (347.5) |
| Other operating profit/loss | 5.8 | 1.4 | (1.5) | 5.7 |
| Profit before tax | 78.9 | 57.5 | 57.4 | 193.9 |
| Total assets | 17,551 | 14,327 | 10,105 | 41,983 |
| Risk-weighted assets, incl. market risk | 13,741 | 10,128 | 7,926 | 31,796 |
| Own funds requirement | 1,099 | 810 | 634 | 2,544 |
| Average number of employees | 9,769 | 11,981 | 22,030 | 43,780 |
| Cost/income ratio | 56.8% | 59.7% | 59.2% | 58.4% |
| Average equity | 1,416 | 1,036 | 823 | 3,275 |
| 1/1–31/3 | 1/1–31/3 | |
|---|---|---|
| in € mn | 2007 | 2006 |
| Interest income | 982.2 | 675.0 |
| from loans and advances to banks | 124.8 | 78.3 |
| from loans and advances to customers | 747.2 | 497.3 |
| from current financial assets | 16.3 | 17.7 |
| from financial investments | 36.9 | 37.3 |
| from leasing claims | 47.7 | 36.1 |
| from derivative financial instruments (non-trading), net | 9.3 | 8.3 |
| Current income from shareholdings | 0.2 | 0.0 |
| Interest-like income | 0.7 | 0.4 |
| Interest and interest-like income, total | 983.1 | 675.5 |
| Interest expenses | (476.7) | (296.5) |
| on deposits from banks | (170.5) | (112.9) |
| on deposits from customers | (267.1) | (167.8) |
| on liabilities evidenced by paper | (20.5) | (9.0) |
| on subordinated capital | (18.6) | (6.8) |
| Interest-like expenses | (1.4) | (0.8) |
| Interest and interest-like expenses, total | (478.1) | (297.3) |
| in € mn | 1/1–31/3 2007 |
1/1–31/3 2006 |
|---|---|---|
| Individual loan loss provisions | (27.2) | (43.4) |
| Allocation to provisions for impairment losses | (95.2) | (110.5) |
| Release of provisions for impairment losses | 77.1 | 72.3 |
| Direct write-downs | (15.1) | (7.4) |
| Income received on written-down claims | 5.9 | 2.2 |
| Portfolio-based loan loss provisions | (48.7) | (12.0) |
| Allocation to provisions for impairment losses | (104.2) | (37.7) |
| Release of provisions for impairment losses | 55.5 | 25.7 |
| Total | (75.9) | (55.4) |
| 1/1–31/3 | 1/1–31/3 | |
|---|---|---|
| in € mn | 2007 | 2006 |
| Payment transfer business | 118.8 | 79.4 |
| Loan administration and guarantee business | 33.1 | 21.5 |
| Securities business | 15.5 | 10.0 |
| Foreign currency and precious-metals business | 77.6 | 56.2 |
| Other banking services | 30.1 | 17.8 |
| Total | 275.1 | 185.0 |
| in € mn | 1/1–31/3 2007 |
1/1–31/3 2006 |
|---|---|---|
| Interest-based transactions | 12.5 | 2.4 |
| Currency-based transactions | 16.1 | 26.5 |
| Equity-/index-based transactions | 5.8 | 0.9 |
| Other transactions | 1.2 | 0.1 |
| Total | 35.6 | 29.9 |
| in € mn | 1/1–31/3 2007 |
1/1–31/3 2006 |
|---|---|---|
| Net income from financial investments | 0.0 | 0.0 |
| Net valuations of financial investments and equity participations | 0.0 | 0.1 |
| Net proceeds from sales of financial investments and equity participations | 0.0 | (0.1) |
| Net income from other current financial assets | 0.8 | (2.0) |
| Net valuations of other current financial assets | 1.0 | (2.3) |
| Net proceeds from sales of other current financial assets | (0.2) | 0.3 |
| Net valuations of claims evidenced by paper | – | 0.1 |
| Total | 0.8 | (1.9) |
| 1/1–31/3 | 1/1–31/3 | |
|---|---|---|
| in € mn | 2007 | 2006 |
| Staff expenses | (234.4) | (163.7) |
| Other administrative expenses | (191.5) | (144.4) |
| Depreciation on intangible and tangible fixed assets | (50.6) | (39.4) |
| Total | (476.5) | (347.5) |
| in € mn | 1/1/–31/3/ 2007 |
1/1/–31/3/ 2006 |
|---|---|---|
| Sales revenues from non-banking activities | 13.8 | 10.0 |
| Expenses arising from non-banking activities | (9.1) | (6.4) |
| Net result from additional leasing services | (0.3) | 0.1 |
| Net result from real estate | 0.7 | 0.4 |
| Net result from operating lease | 4.4 | 2.4 |
| Net result from hedge accounting | 0.0 | 0.1 |
| Net result from other derivative instruments | (2.6) | 4.0 |
| Net proceeds from disposal of tangible and intangible fixed assets | (0.3) | (0.2) |
| Other taxes | (10.6) | (8.5) |
| Income from release of negative goodwill | 12.4 | – |
| Net expense from allocation and release of other provisions | (1.9) | 0.8 |
| Sundry operating income | 11.3 | 7.3 |
| Sundry operating expenses | (3.4) | (4.4) |
| Total | 14.3 | 5.7 |
The income from disposal of group assets consists of the income resulting from the sale of SINESCO Kft. amounting to € 11.4 mn and the effect of excluding the Raiffeisen Non-Government Pension Fund from the consolidated group which amounted to € 2.7 mn.
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Giro and clearing business | 774 | 1,571 |
| Money market business | 4,696 | 5,332 |
| Loans to banks | 3,155 | 1,241 |
| Purchased loans | 56 | 45 |
| Leasing claims | 1 | 1 |
| Claims evidenced by paper | 5 | 13 |
| Total | 8,686 | 8,202 |
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Credit business | 17,971 | 17,615 |
| Money market busines | 7,709 | 7,089 |
| Mortgage loans | 9,180 | 7,382 |
| Purchased loans | 626 | 633 |
| Leasing claims | 2,437 | 2,307 |
| Claims evidenced by paper | 5 | 17 |
| Total | 37,928 | 35,043 |
| in € mn | As of 1/1/2007 |
Change in scope of consolidation |
Allocation1) | Release | Usage2) | Transfers, Exchange differences |
As of 31/3/2007 |
|---|---|---|---|---|---|---|---|
| Individual loan loss provisions | 618 | – | 104 | (77) | (14) | (2) | 630 |
| Loans and advances to | |||||||
| customers | 574 | – | 87 | (66) | (14) | (2) | 579 |
| CE | 226 | – | 41 | (24) | (1) | 1 | 242 |
| CIS | 152 | – | 28 | (28) | (9) | (2) | 142 |
| SEE | 194 | – | 17 | (14) | (3) | (1) | 193 |
| Other | 2 | – | – | – | – | – | 2 |
| Off-balance sheet obligations | 44 | – | 18 | (11) | – | – | 51 |
| Portfolio-based provisions | 304 | – | 104 | (55) | – | (1) | 352 |
| Loans and advances to | |||||||
| customers | 298 | – | 102 | (55) | – | (1) | 345 |
| Off-balance sheet obligations | 6 | – | 2 | (1) | – | – | 8 |
| Total | 922 | – | 209 | (133) | (14) | (2) | 982 |
1) Allocation including direct write-downs and income from written-down claims
2) Usage including direct write-downs and income from written-down claims
The following table gives an overview of the credit exposure and its impairments:
| 31/3/2007 in € mn |
Total gross carrying |
Individual loan loss |
Portfolio based |
Total net carrying |
Individually impaired |
|---|---|---|---|---|---|
| amount | provisions | provisions | amount | assets | |
| Banks | 8,686 | – | – | 8,686 | – |
| Sovereigns | 841 | – | – | 841 | 17 |
| Corporate customers – large | 19,842 | 273 | 115 | 19,454 | 1,213 |
| Corporate customers – small | |||||
| business | 3,706 | 90 | 12 | 3,604 | 205 |
| Retail customers – private | |||||
| individuals | 11,291 | 134 | 201 | 10,956 | 191 |
| Retail customers – small and | |||||
| medium-sized entities | 2,155 | 81 | 17 | 2,057 | 185 |
| Other | 92 | – | – | 92 | 2 |
| Total | 46,614 | 579 | 345 | 45,690 | 1,814 |
| 31/12/2006 | Total gross carrying |
Individual loan loss |
Portfolio based |
Total net carrying |
Individually impaired |
|---|---|---|---|---|---|
| in € mn | amount | provisions | provisions | amount | assets |
| Banks | 8,202 | – | – | 8,202 | – |
| Sovereigns | 870 | – | – | 870 | 1 |
| Corporate customers – large | 18,019 | 273 | 102 | 17,644 | 1,326 |
| Corporate customers – small | |||||
| business | 3,658 | 90 | 11 | 3,557 | 190 |
| Retail customers – private individuals |
10,299 | 130 | 178 | 9,991 | 150 |
| Retail customers – small and | |||||
| medium-sized entities | 2,114 | 81 | 7 | 2,026 | 152 |
| Other | 82 | – | – | 82 | – |
| Total | 43,245 | 574 | 298 | 42,373 | 1,819 |
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Bonds, notes and other fixed-interest securities | 2,119 | 2,285 |
| Shares and other variable-yield securities | 34 | 25 |
| Positive fair values of derivative financial instruments | 342 | 313 |
| Loans held for trading | 21 | 59 |
| Pledged securities ready to be sold/repledged by transferee | – | 2 |
| Total | 2,516 | 2,684 |
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Bonds, notes and other fixed-interest securities | 1,457 | 955 |
| Shares and other variable-yield securities | 37 | 35 |
| Pledged securities ready to be sold/repledged by transferee | 7 | 5 |
| Total | 1,500 | 995 |
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Bonds, notes and other fixed-interest securities | 2,601 | 2,719 |
| Equity participations | 73 | 68 |
| Total | 2,674 | 2,787 |
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Goodwill | 837 | 839 |
| Software | 164 | 166 |
| Other intangible fixed assets | 214 | 216 |
| Total | 1,215 | 1,221 |
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Land and buildings used by the Group for own purposes | 498 | 487 |
| Other land and buildings (investment property) | 11 | 13 |
| Office furniture and equipment as well as other tangible fixed assets | 430 | 451 |
| Leased assets (operating lease) | 117 | 105 |
| Total | 1,056 | 1,056 |
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Tax assets | 94 | 95 |
| Receivables arising from non-banking activities | 65 | 48 |
| Prepayments and other deferrals | 267 | 243 |
| Positive fair values of derivatives in fair value hedges (IAS 39) | 4 | 6 |
| Positive fair values of banking book derivatives without hedge-accounting | 37 | 30 |
| Any other business | 393 | 266 |
| Total | 860 | 688 |
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Giro and clearing business | 973 | 981 |
| Money market business | 5,771 | 5,565 |
| Long-term loans | 8,543 | 7,268 |
| Total | 15,287 | 13,814 |
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Sight deposits | 15,100 | 14,519 |
| Time deposits | 18,456 | 17,309 |
| Savings deposits | 1,365 | 1,328 |
| Total | 34,921 | 33,156 |
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Bonds and notes issued | 996 | 843 |
| Money market instruments issued | 76 | 61 |
| Other liabilities evidenced by paper | 383 | 518 |
| Total | 1,455 | 1,422 |
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Taxes | 69 | 61 |
| Contingent liabilities and commitments | 58 | 50 |
| Pending legal issues | 34 | 34 |
| Overdue vacation | 21 | 21 |
| Restructuring | 4 | 3 |
| Others | 56 | 46 |
| Total | 242 | 218 |
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Negative fair values of derivative financial instruments | 349 | 364 |
| Liabilities from trading activities | 137 | 122 |
| Total | 487 | 486 |
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Liabilities arising from non-banking business | 103 | 79 |
| Accruals and deferred items | 166 | 133 |
| Negative fair values of derivatives in fair value hedges (IAS 39) | – | 1 |
| Negative fair values of bankbook derivatives without hedge-accounting | 23 | 20 |
| Any other business | 682 | 533 |
| Total | 974 | 766 |
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Subordinated liabilities | 817 | 821 |
| Supplementary capital | 601 | 595 |
| Total | 1,418 | 1,416 |
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Consolidated equity | 3,979 | 2,804 |
| Subscribed capital | 434 | 434 |
| Capital reserves | 1,391 | 1,390 |
| Retained earnings | 2,153 | 980 |
| Consolidated profit | 193 | 1,182 |
| Minority interests | 666 | 604 |
| Total | 4,837 | 4,590 |
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Contingent liabilities | 3,973 | 3,676 |
| Commitments | 9,002 | 9,361 |
As a subsidiary of Raiffeisen Zentralbank Österreich AG, Raiffeisen International Bank-Holding AG does not have its own banking group as defined by the Austrian Banking Act (BWG). Therefore, it is not itself subject to the relevant regulatory requirements. However, the following figures are accounted for within the scope of RZB-Kreditinstitutsgruppe. They are provided here for information purposes only.
The own funds of Raiffeisen International according to the Austrian Banking Act (BWG) break down as follows:
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Tier 1 capital (core capital) | 3,725 | 3,705 |
| Tier 2 capital (additional own funds) | 860 | 808 |
| Less interests in banks and financial institutions | (23) | (24) |
| Eligible own funds | 4,562 | 4,489 |
| Tier 3 capital (short-term subordinated own funds) | 32 | 24 |
| Total own funds | 4,594 | 4,513 |
| Total own funds requirement | 3,446 | 3,284 |
| Excess own funds | 1,148 | 1,229 |
| Excess cover ratio | 33.3% | 37.4% |
| Core capital ratio (Tier 1), banking book | 9.3% | 9.8% |
| Core capital ratio (Tier 1), including market risk | 8.6% | 9.0% |
| Own funds ratio | 10.7% | 11.0% |
The total own funds requirement is as follows:
| in € mn | 31/3/2007 | 31/12/2006 |
|---|---|---|
| Risik-weighted assets according to Sec. 22 Banking Act | 40,041 | 38,002 |
| of which 8 per cent own funds requirement | 3,203 | 3,040 |
| Own funds requirement for the trading book according to Sec. 22b (1) Banking | ||
| Act | 134 | 137 |
| Own funds requirement for open currency positions according to Sec. 26 | ||
| Banking Act | 109 | 107 |
| Total own funds requirement | 3,446 | 3,284 |
The average number of staff employed during the financial period (full-time equivalents) break down as follows:
| 1/1–31/3 | 1/1–31/3 | |
|---|---|---|
| Full-time equivalents | 2007 | 2006 |
| CE | 11,581 | 9,702 |
| SEE | 13,709 | 11,924 |
| CIS | 27,760 | 21,977 |
| Austria | 209 | 177 |
| Total | 53,259 | 43,780 |
| 5 June | Annual General Meeting |
|---|---|
| 13 June | Ex-dividend date and dividend payment day |
| 26 July | Start of quiet period |
| 9 August | Semi-annual report, conference call |
| 25 October | Start of quiet period |
| 8 November | Third quarter report, conference call |
Published by Raiffeisen International Bank-Holding AG, Am Stadtpark 9, 1030 Vienna, Austria Edited by Investor Relations Copy deadline: 8 May 2007 Produced in Vienna Website: www.ri.co.at This report is also available in German.
Inquiries to Investor Relations Inquiries to Public Relations E-mail: [email protected] E-mail: [email protected] Website: www.ri.co.at → Investor Relations Website: www.ri.co.at → Public Relations Phone: +43 (1) 71 707 2089 Phone: +43 (1) 71 707 1504
Some market participants are inclined to draw claims from statements about expected future development and then assert them in court. The occasionally considerable effects of such action on the company in question and its shareholders have caused many companies to limit their statements about expected future development to the legally required minimum. However, Raiffeisen International does not view its reports only as an obligation, but would also like to use them as an opportunity for open communication. So that we can continue to do that, we emphasize: The forecasts, plans, and statements addressing the future are based on knowledge and estimates at the time at which they are drawn up. Like all statements addressing the future, they are exposed to risks and uncertainty factors that may lead to considerable deviations in the result. No guarantees can therefore be provided that the forecasts and targeted values, or the statements addressing the future, will actually materialize. We have exercised utmost diligence in the preparation of this annual report and checked the data contained therein. However, rounding, transmission, printing, and typographical errors cannot be ruled out. The present English version is a translation of the report that the company originally prepared in the German language. The company only recognizes the German version as the authentic version.
www.ri.co.at
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.