DGAP-Adhoc: Raiffeisen Bank International AG: First Quarter Report 2014 and repayment of participation capital

| Source: EQS Group AG
Raiffeisen Bank International AG  / Key word(s): Interim Report

22.05.2014 07:32

Dissemination of an Ad hoc announcement, transmitted by DGAP - a company of
EQS Group AG.
The issuer is solely responsible for the content of this announcement.


Following the successful capital increase in the first quarter of 2014, RBI
expects to receive approval from the Financial Market Authority (FMA) for
full repayment of the participation capital in the near future. As a first
step, RBI intends to repay the total amount or at least a substantial part
of the state-held tranche. The FMA has notified RBI that the approval will
be granted promptly, enabling repayment to take place in the next 3 to 4

- Net interest income of EUR 979 mn (up 13.2% y-o-y)
- Net trading income of minus EUR 19 mn, mainly due to currency-driven
valuation losses in Ukraine
- General administrative expenses decreased to EUR 755 mn (down 4.2% y-o-y)
driven by FX effects
- Net provisioning for impairment losses increased to EUR 281 mn (up 28.1%
- Profit before tax declined to EUR 240 mn (down 4.3% y-o-y )
- Consolidated profit increased to EUR 161 mn (up 2.5% y-o-y)
- NPL ratio decreased to 10.6% (down 0.2PP compared to FY 2013)
- NPL coverage ratio increased to 65.2% (up 2.1PP compared to FY 2013)
- Common equity tier 1 ratio (transitional) at 13.9% (including
participation capital)
- Common equity tier 1 ratio (fully loaded) of 9.9% 
- Leverage ratio of 5.9% comfortably surpasses the 3% envisaged regulatory

Income Statement in EUR mn    Q1/2014    Q1/2013                          
Net interest income           979        865                              
Net provisioning for 
impairment losses             (281)      (220)                            
Net interest income after 
provisioning                  697        645                              
Net fee and commission 
income                        376        375                              
Net trading income            (19)       80                               
General administrative 
expenses                      (755)      (788)                            
Net income from derivatives 
and liabilities               (27)       (121)                            
Net income from financial 
investments                   37         87                               
Profit before tax             240        251                              
Profit after tax              173        174                              
Consolidated profit           161        157                              

Balance Sheet in EUR mn       31/03/14   31/12/13                         
Equity                        12,821     10,364                           
Total assets                  125,410    130,640                          
NPL ratio                     10.6%      10.7%                            
NPL coverage ratio            65.2%      63.1%                            

Bank Specific Information     31/03/14   31/12/13                         
Common equity tier 1 ratio 
(transitional)                13.9%      10.7%                            
Common equity tier 1 ratio 
(fully loaded)                9.9%       n. a.                            

Performance                   Q1/2014    Q1/2013                          
Net interest margin           3.35%      2.89%                            
Return on equity before tax   7.9%       9.2%                             
Return on equity 
(consolidated)                4.8%       5.6%                             
Cost/income ratio             56.1%      58.5%                            
Earnings per share in EUR     0.41       0.55                             

Resources                     31/03/14   31/12/13                         
Employees                     57,217     57,901                           
Business outlets              2,991      3,025                            

The outlook was adapted to the changed environment:

We expect loans and advances to customers in 2014 to remain at the
approximate level of the previous year.
We anticipate a net provisioning requirement of between EUR 1,300 million
and EUR 1,400 million in 2014, however, results may be impacted by the ECB
Asset Quality Review process and further deterioration of the situation in
Ukraine and Russia.
In the course of our cost reduction program, we plan to reduce general
administrative expenses to below the level of 2012 by 2016. We aim to
achieve a cost/income ratio of between 50 to 55 per cent by 2016.
Costs in 2014 are expected to be below the level of 2013.
We aim for a return on equity before tax of approximately 15 per cent and a
consolidated return on equity of approximately 12 per cent in the medium

For further information please contact:

Susanne E. Langer
Head of Group Investor Relations
Raiffeisen Bank International AG
Am Stadtpark 9
1030 Vienna, Austria
phone +43-1-71 707-2089

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Language:     English
Company:      Raiffeisen Bank International AG
              Am Stadtpark 9
              A-1030 Vienna
Phone:        +43-1-71707-2089
Fax:          +43-1-71707-2138
E-mail:       ir@rbinternational.com
Internet:     www.rbinternational.com
ISIN:         AT0000606306
WKN:          A0D9SU
Listed:       Wien (Amtlicher Handel / Official Market)
End of Announcement                             DGAP News-Service