Raiffeisen Bank International: Semi-Annual Financial Report 2017
- Consolidated profit above expectations at EUR 587 mn
- CET1 ratio (fully loaded) at 12.8% including reviewed H1/2017 results
- NPL ratio further reduced to 7.3% driven by low new NPL inflows and NPL sales
- Ongoing favorable development in risk costs across the Group
- Updated outlook to reflect positive asset quality trend
- Stable net interest margin, despite interest rate cuts primarily in Eastern Europe
- Progress in rightsizing program in Poland; IPO of Raiffeisen Polbank suspended
- Successful placement of EUR 650 mn AT1 notes
Income Statement
in EUR mn |
1-6/2017 |
1-6/2016
pro forma |
Q2/2017 |
Q1/2017 |
| Net interest income |
1,588 |
1,567 |
792 |
796 |
| Net provisioning for impairment losses |
(76) |
(403) |
4 |
(80) |
| Net interest income after provisioning |
1,512 |
1,164 |
795 |
716 |
| Net fee and commission income |
842 |
773 |
433 |
409 |
| Net trading income |
133 |
88 |
69 |
64 |
| General administrative expenses |
(1,573) |
(1,541) |
(758) |
(815) |
| Other results |
(99) |
(51) |
(26) |
(73) |
| Profit/loss before tax |
849 |
474 |
519 |
330 |
| Profit/loss after tax |
656 |
297 |
401 |
255 |
| Consolidated profit/loss |
587 |
236 |
367 |
220 |
| |
|
|
|
|
Balance Sheet
in EUR mn |
30/06/17 |
31/03/17 |
31/12/16
pro forma |
|
| Equity |
10,234 |
10,067 |
9,752 |
|
| Total assets |
138,603 |
138,489 |
134,804 |
|
| NPL ratio |
7.3% |
8.3% |
8.7% |
|
| NPL coverage ratio |
70.5% |
74.0% |
75.2% |
|
| Risk-weighted assets (total RWA) |
69,021 |
69,864 |
67,911 |
|
| |
|
|
|
|
| Ratios |
30/06/17 |
31/03/17 |
31/12/16
pro forma |
|
| Common equity tier 1 ratio (fully loaded) |
12.8% |
12.2% |
12.4% |
|
| Common equity tier 1 ratio (transitional) |
12.9% |
12.4% |
12.7% |
|
| Total capital ratio (fully loaded) |
17.4% |
16.8% |
17.1% |
|
| Total capital ratio (transitional) |
17.5% |
17.0% |
17.4% |
|
| Ratios |
1-6/2017 |
1-6/2016
pro forma |
Q2/2017 |
Q1/2017 |
| Net interest margin |
2.46% |
2.40% |
2.43% |
2.49% |
| Return on equity before tax |
17.4% |
10.5% |
21.3% |
13.4% |
| Consolidated return on equity |
12.9% |
5.6% |
16.2% |
9.6% |
| Cost/income ratio |
60.6% |
62.4% |
58.4% |
62.8% |
| Earnings per share in EUR |
1.79 |
0.72 |
1.12 |
0.67 |
| |
|
|
|
|
| Resources |
30/06/17 |
31/03/17 |
31/12/16
pro forma |
|
| Employees (full-time equivalents) |
49,688 |
50,094 |
50,203 |
|
| Business outlets |
2,425 |
2,500 |
2,522 |
|
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).
Outlook
We target a CET1 ratio (fully loaded) of around 13 per cent in the medium term.
After stabilizing loan volumes, we look to resume growth with an average yearly percentage increase in the low single digit area.
We expect 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, we expect the NPL ratio to reduce further in the medium term.
We aim to achieve a cost/income ratio of between 50 and 55 per cent in the medium term, unchanged from our previous target.
Our 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.
For further information please contact:
Susanne E. Langer Raiffeisen Bank International AG
Head of Group Investor Relations Am Stadtpark 9
Spokesperson 1030 Vienna, Austria
ir@rbinternational.com www.rbinternational.com
phone +43-1-71 707-2089
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