RBI reports consolidated profit of € 226 million for the first quarter of 2019
Net interest income stable year-on-year at € 825 million.
• Consolidated profit of € 226 million, primarily impacted by € 92 million change in risk costs after net releases in the first quarter last year, negative hedge valuations and sale of the Polish core banking operations
• Net interest income stable year-on-year at € 825 million. Excluding Poland, net interest income improved approximately 8 per cent year-on-year
• Loans to customers up 6 per cent YTD
• Net interest margin down 10 basis points quarter-on-quarter to 2.43 per cent, due to tightening in Russia and a higher proportion of short-term lower margin business at head office
• Risk costs still very low at € 9 million (4 basis points provisioning ratio) but fewer write-backs and recoveries than last year
• NPE ratio improved to 2.5 per cent
• CET1 ratio improved to 13.6 per cent (fully loaded) including YTD results
Raiffeisen Bank International (RBI) generated a consolidated profit of € 226 million in the first quarter of 2019, the operating result amounted to € 465 million.
“Loan growth and net interest income are developing positively. Due to various one-off effects, the first quarter of 2019 can be compared with the prior-year quarter only to a limited extent. I expect that RBI will achieve a good business result also in 2019. We have a strong capital base that allows us further growth,” said RBI CEO Johann Strobl.
Despite the sale of the Polish core banking business, overall, net interest income fell only slightly by € 4 million to € 825 million year-on-year. Excluding this sale, net interest income would have increased by approximately 8 per cent. The net interest margin declined 7 basis points to 2.43 per cent, mainly driven by growth in low-margin business at head office and negative margin developments in Russia and Belarus
General administrative expenses declined € 16 million year-on-year to € 724 million. The cost/income ratio increased 3.6 percentage points primarily due to hedge valuations to 60.9 per cent.
Moderate impairment losses on financial assets
Impairment losses on financial assets were moderate in the reporting period at € 9 million, compared to an € 83 million net release of loan loss provisions in the comparable period of the previous year – due in particular to inflows and recoveries.
The NPE ratio remained relatively stable, decreasing 0.1 percentage points to 2.5 per cent since the start of the year. At 58.4 per cent, the NPE coverage ratio also remained virtually unchanged.
Total capital ratio (fully loaded) at 18.0 per cent
The common equity tier 1 ratio (fully loaded) was 13.4 per cent, the tier 1 ratio (fully loaded) was 14.9 per cent and the total capital ratio (fully loaded) was 18.0 per cent. All the ratios are essentially unchanged from the end of 2018. These capital ratios including interim profit from the first quarter would be around 18 basis points higher than the presented ratios.
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You can access the online version of the annual report at http://qr012019.rbinternational.com, the German version is available at http://zb012019.rbinternational.com.
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RBI regards Austria, where it is a leading corporate and investment bank, as well as Central and Eastern Europe (CEE) as its home market. 13 markets of the region are covered by subsidiary banks. Additionally, the RBI Group comprises numerous other financial service providers, for instance in leasing, asset management or M&A.
Around 47,000 employees service 16.3 million customers through more than 2,100 business outlets, the by far largest part thereof in CEE. RBI's shares are listed on the Vienna Stock Exchange. The Austrian Regional Raiffeisen Banks own around 58.8 per cent of the shares, the remainder is in free float. Within the Austrian Raiffeisen Banking Group, RBI is the central institute of the Regional Raiffeisen Banks and other affiliated credit institutions.
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