10.08.2017 - Half Year 2017: RBI posts consolidated profit of € 587 million

  • Net interest income increases 1.3 per cent year-on-year to € 1,588 million (HY/2016 pro forma: € 1,567 million)
  • Operating income increases 5.2 per cent to € 2,597 million (HY/2016 pro forma: € 2,469 million)
  • General administrative expenses increase 2.1 per cent to € 1,573 million (HY/2016 pro forma: € 1,541 million)
  • Net provisioning for impairment losses decreases 81.1 per cent to € 76 million (HY/2016 pro forma: € 403 million)
  • Profit before tax increases 79.1 per cent to € 849 million (HY/2016 pro forma: € 474 million)
  • Profit after tax increases 121.1 per cent to € 656 million (HY/2016 pro forma: € 297 million)
  • Consolidated profit increases 149.1 per cent to € 587 million (: € 236 million)
  • Non-performing loan ratio decreases 1.3 percentage points to 7.3 per cent compared to year-end 2016 (pro forma)
  • Common equity tier 1 ratio (transitional) increases 0.3 percentage points to 12.9 per cent compared to year-end (pro forma)
  • Common equity tier 1 ratio (fully loaded) increases 0.4 percentage points to 12.8 per cent compared to year-end (pro forma)
  • Earnings per share increase to € 1.79 (HY/2016 pro forma: € 0.72)

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 € 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 € 21 million, to € 1,588 million compared to the first half of 2016. This was mainly attributable to a € 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 € 32 million to € 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 € 327 million, to € 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 € 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 € 4 million, to € 792 million in the second quarter of 2017.

In the second quarter of 2017, general administrative expenses were € 758 million, down 7 per cent, or € 56 million, quarter-on-quarter.

In the first quarter of 2017, net provisioning for impairment losses amounted to € 80 million. In the second quarter, however, a net release of € 4 million was posted.

In the second quarter of 2017, consolidated profit amounted to € 367 million representing an increase of € 147 million compared to the first quarter of 2017.


Outlook

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 (€ 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 qr022017.rbinternational.com.
The German version is available under zb022017.rbinternational.com.
Printed versions can also be ordered via this webpage.

Survey of key data

Presentation H1 2017 Results

Ingrid Krenn-Ditz

Head of Group Communications | Corporate Spokeswoman
Raiffeisen Bank International AG
Am Stadtpark 9, 1030 Wien
Tel: +43-1-71707-6055
Fax: +43-1-71707-3802
ingrid.krenn-ditz@rbinternational.com
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