Q2 2017: RBI posts consolidated profit of EUR 587 million
In the first six months of 2017, net interest income increased 1 per cent, or EUR 21 million, to EUR 1,588 million compared to the first half of 2016
Vienna, 10 August 2017
All figures are based on International Financial Reporting Standards (IFRS).
As of January 2017, RZB contributed business is fully included. Current RBI figures refer to the combined bank; unless specified otherwise, the historical pro forma data is based on the combined bank (consideration of the merger).
In the first half of 2017, Raiffeisen Bank International AG (RBI) generated a consolidated profit of EUR 587 million.
“We are very satisfied with our semi-annual result. We now reap the fruits of our transformation program. We do not lean back but work intensely on making RBI fit for the digital age,“ said Johann Strobl, CEO of RBI.
In the first six months of 2017, net interest income increased 1 per cent, or EUR 21 million, to
EUR 1,588 million compared to the first half of 2016. This was mainly attributable to a EUR 52 million currency-related increase in net interest income in Russia; whereas small declines were booked in other markets, due to persistently low interest rates.
Compared to the same period of the previous year, general administrative expenses rose EUR 32 million to EUR 1,573 million, mainly due to currency effects. The cost/income ratio improved 1.8 percentage points to 60.6 per cent, largely due to higher operating income.
“We perform well in all our segments. I am especially pleased with the solid profit contributions from Hungary and Ukraine. We already see first successes of our rightsizing program in Poland,” said Strobl.
Total capital ratio (fully loaded) of 17.4 per cent
Based on total risk, the common equity tier 1 ratio (transitional) was 12.9 per cent as at 30 June 2017 and the total capital ratio (transitional) was 17.5 per cent.
Excluding the transitional provisions as defined in the CRR, the common equity tier 1 ratio (fully loaded) stood at 12.8 per cent and the total capital ratio (fully loaded) was 17.4 per cent.
Net provisioning for impairment losses down 81 per cent
Net provisioning for impairment losses fell 81 per cent overall year-on-year, or EUR 327 million, to EUR 76 million.
Compared to year-end, the NPL ratio improved 1.3 percentage points to 7.3 per cent. Non-performing loans compared to loan loss provisions amounting to EUR 4,184 million, resulting in a NPL coverage ratio of 70.5 per cent, in comparison to 75.2 per cent at the year-end 2016.
“The sustained strong economic development in CEE has contributed to our risk costs developing significantly better than expected. Moreover, our strategy of selectively selling non-performing loans is paying off,” said Strobl.
Comparison of results with the previous quarter
Net interest income fell 1 per cent quarter-on-quarter, or EUR 4 million, to EUR 792 million in the second quarter of 2017.
In the second quarter of 2017, general administrative expenses were EUR 758 million, down 7 per cent, or EUR 56 million, quarter-on-quarter.
In the first quarter of 2017, net provisioning for impairment losses amounted to EUR 80 million. In the second quarter, however, a net release of EUR 4 million was posted.
In the second quarter of 2017, consolidated profit amounted to EUR 367 million representing an increase of EUR 147 million compared to the first quarter of 2017.
RBI targets a CET1 ratio (fully loaded) of around 13 per cent in the medium term.
After stabilizing loan volumes, the bank looks to resume growth with an average yearly percentage increase in the low single digit area.
RBI expects net provisioning for impairment losses for 2017 to be significantly below the level of 2016 (EUR 758 million), supported by a high level of recoveries and gains on NPL sales.
After reaching the previous goal of approximately 8 per cent ahead of schedule, the bank expects the NPL ratio to reduce further in the medium term.
RBI further aims to achieve a cost/income ratio of between 50 and 55 per cent in the medium term, unchanged from our previous target.
The bank´s medium term return on equity before tax target is unchanged at approximately
14 per cent, with a consolidated return on equity target of approximately 11 per cent.
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You can access the online version of the semi-annual report at http://qr022017.rbinternational.com.
The German version is available under http://zb022017.rbinternational.com.
Printed versions can also be ordered via this webpage.
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Raiffeisen Bank International AG (RBI) regards Austria, where it is a leading corporate and investment bank, as well as Central and Eastern Europe (CEE) as its home market. 14 markets of the region are covered by subsidiary banks. Additionally, the Group comprises numerous other financial service providers, for instance in the fields of leasing, asset management, as well as M&A.
In total, almost 50,000 employees service approximately 16.5 million customers through more than 2,400 business outlets, thereof a majority in CEE. RBI's shares are listed on the Vienna Stock Exchange. The Regional Raiffeisen Banks own around 58.8 per cent of the shares, the remainder is in free float. Within the Raiffeisen Banking Group (RBG), RBI is the central institute of the Regional Raiffeisen Banks and other affiliated credit institutions and renders important services in this function.
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