OREANDA-NEWS. May 10, 2007. Raiffeisen International Bank-Holding AG, which is part of the Raiffeisen Zentralbank Osterreich AG (RZB) Group, began the year 2007 with a record result. For the first quarter 2007, consolidated profit (after taxes and minorities) rose by 55,0 per cent to 192,6 million euros (Q1/2006: 124,2 million euros). Profit before tax (292,5 million euros, plus 50,8 per cent) and profit after tax (230,8 million euros, plus 52,4 per cent) were also on a record level. Earnings per share for the first quarter went up by 0,48 euros to 1,35 euros. All figures are based on International Financial Reporting Standards (IFRS), reported the press-centre of Raiffeisen.
Herbert Stepic, CEO of Raiffeisen International, was satisfied with the start into the new business year, "With a consolidated profit of almost 193 million euros, we have achieved yet another record result and are fully in line with our plans. With more than 12,4 million customers to date, the base for our future business continues to expand vigorously."
Southeastern Europe with largest profit hike
The region Southeastern Europe achieved the largest growth in its result during the first quarter 2007: The increase of 69,7 per cent to 97,6 million euros translates into a hike in the total profit contribution of three percentage points to 33 per cent. This growth is primarily due to the vigorous expansion of the operating income, especially of the net commission income. Accordingly, ROE before tax of this segment also went up by a solid 6,9 percentage points to 29,1 per cent. The cost/income ratio of this segment improved from 59,7 per cent to 56,0 per cent.
Central Europe continued to be the largest geographical segment. It earned a pre-tax profit of 114,5 million euros (Q1/2006: 78.9 million euros, plus 45 per cent) in the first quarter and thus had a share of 39 per cent in the pre-tax result. Return on equity improved over the first quarter 2006 by 1,4 percentage points to 23,7 per cent. The cost/income ratio went up from 56,8 per cent to 59,6 per cent.
The Group’s entities active in the CIS showed a profit before tax of 80,3 million euros. The figure for the same period last year was 57,4 million euros (plus 39,9 per cent). The respective cost/income ratio improved from 59,2 per cent to 55,7 per cent. ROE before taxes went down from 27,9 per cent to 24,7 per cent, on account of the clearly higher attributable equity.
Outlook remains unchanged
The corporate customer business is again expected to 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 the branch network and of alternative distribution channels, e.g. the internet and call centres.
The management expects a consolidated profit of at least 700 million euros for 2007.
For the period to 2009, Raiffeisen International anticipates annual growth of the 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.
Raiffeisen International forecasts an 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 and the target for the risk/earnings ratio is set of about 15 per cent.
You can download the report at http://qr012007.ri.co.at.
Raiffeisen International operates one of the leading banking networks in CEE. 18 markets are covered by subsidiary banks, finance leasing companies and two representative offices. More than 12.4 million customers are attended to through 2,890 business outlets. Raiffeisen International is a fully consolidated subsidiary of Raiffeisen Zentralbank Osterreich AG (RZB), which owns 70 per cent of the common stock. The remaining 30 per cent is free float; the shares are traded on the Vienna Stock Exchange. RZB is a leading corporate and investment bank in Austria and the central institution of the Austrian Raiffeisen Banking Group, the country's largest banking group.