08.08.2019 - RBI: Semi-Annual Financial Report 2019

RBI: Semi-Annual Financial Report 2019
Solid loan growth, capital strengthened further

  • Consolidated profit of € 571 million
  • Positive NII and net fee and commission income development (year-on-year up 8 per cent and 5 per cent respectively, adjusted for revenues from Polish core banking operations sold in 2018)
  • Net trading income impacted by fair value result on hedges and on liabili­ties which neutralize over lifetime of portfolios
  • Loans to customers up 9 per cent YTD mainly at head office, in Russia and Central Europe
  • Net interest margin slightly lower year-on-year reflecting higher volumes of short-term business at head office and lower margins in Russia
  • Risk costs remain low (€ 12 million)
  • NPE ratio further improved to 2.3 per cent
  • CET1 ratio increased to 13.8 per cent including YTD results

In the first half of 2019, Raiffeisen Bank International (RBI) generated a consolidated profit of € 571 million.

“Customer loans grew by 9 per cent, especially in Austria, Russia and Central Europe, in the first half of 2019. Despite the low interest rate environment, net interest income and net fee and commission income developed very positively, and risk costs remained at a very low level,” said CEO Johann Strobl.

Overall, net interest income rose slightly by € 2 million to € 1,664 million. The net interest mar­gin declined 7 basis points to 2.42 per cent, mainly due to growth in low-margin business at head office and to margin developments in Russia and Belarus.

General administrative expenses increased € 3 million year-on-year to € 1,497 million. The cost/income ratio increased 4.8 percentage points to 60.7 per cent.

Moderate impairment losses on financial assets

Impairment losses on financial assets remained low in the reporting period at € 12 million, com­pared to an € 83 million net release of loan loss provisions – mainly due to inflows and recover­ies – in the comparable period of the previous year.

The NPE ratio decreased 0.3 percentage points since the start of the year to 2.3 per cent. The NPE coverage ratio improved 0.7 percentage points to 59.0 per cent. 

Total capital ratio (fully loaded) at 17.8 per cent

The common equity tier 1 ratio (fully loaded) was 13.8 per cent, the tier 1 ratio (fully loaded) was 15.3 per cent (up 0.4 percentage points each) and the total capital ratio (fully loaded) was 17.8 per cent (down 0.3 percentage points).

Quarterly comparison

Net interest income was up 2 per cent quarter-on-quarter, or € 15 million, to € 840 million, reflecting a € 14 million volume-related rise in Russia. In Ukraine higher volumes of loans to non-financial corporations and households also generated a € 4 million increase in net interest income; whereas in Hungary, lower interest income from derivatives resulted in a € 3 million decrease. The net interest margin declined 2 basis points to 2.40 per cent due to an ncrease in the volume of mainly short-term, low-margin business at head office.

General administrative expenses amounted to € 773 million in the second quarter of 2019, a € 49 million increase compared to the previous quarter.

In the second quarter of 2019, impairment losses on financial assets amounted to € 2 million, compared to € 9 million in the previous quarter.

Consolidated profit improved € 119 million to € 345 million, mainly reflecting the € 97 million reduction in expenses for levies and special governmental measures, the majority of which must be posted in their entirety in the first quarter.

Outlook

RBI will pursue loan growth with an average yearly percentage increase in the mid-single digit area.
 

The provisioning ratio for FY 2019 is expected to be below 45 basis points.
 

The bank anticipates that the NPE ratio will further reduce.
 

RBI aims to achieve a cost/income ratio of around 55 per cent in 2021.
 

In the coming years the bank targets a consolidated return on equity of approximately 11 per cent.
 

It seeks to maintain a CET1 ratio of around 13 per cent in the medium term.
 

Based on this target, RBI intends to distribute between 20 and 50 per cent of the consolidated profit.

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You can access the online version of the semi-annual report at qr022019.rbinternational.com, the German version is available at zb022019.rbinternational.com.

Survey of key data

Presentation H1 2019 Results


Krenn-Ditz

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