The FINANCIAL -- Despite the ongoing difficult market environment and subdued economic forecasts, Raiffeisen Bank International AG (RBI) generated in the first three quarters of 2013 a profit before tax of € 696 million, according to Raiffeisen Bank Aval.
The fall of € 419 million versus the comparable period was primarily attributable to one-off effects in 2012 such as the sale of bonds and the hybrid tier 1 capital buyback totaling € 269 million. Profit after tax declined by 48.0 per cent to € 461 million (Q3 2012: € 889 million) due to the increased tax quota. The consolidated profit declined by 51.2 per cent to € 411 million (Q3 2012: € 842 million). Earnings per share declined by € 2.21 to € 1.34. In the same period last year it was € 3.55, according to Raiffeisen Bank Aval.
"Thanks to our substantially improved net interest margin, we were able to increase the operating income by almost 7 per cent within the first nine months. It is a great partial success that our income increased stronger than our expenses. But we want to become significantly better and we are therefore aiming at holding the 2016 cost base flat compared to 2012. In view of the herewith achieved inflation absorption this would correspond to savings of around € 450 million in the next three years. With "Fit for Future 2016" we have developed and started a comprehensive cost savings programme for the entire Group in order to reach this goal", said RBI CEO Karl Sevelda.
Return on Equity before tax declined by 5.4 percentage points to 8.6 per cent. Operating income increased by 6.7 per cent, according to Raiffeisen Bank Aval.
Operating income increased by 6.7 per cent or € 267 million to € 4,267 million year-on-year (Q3 2012: € 4,000 million). Thereby, net interest income also developed favourably:
The net interest margin (calculated on interest-bearing assets) improved by 48 basis points to 3.08 per cent due to an optimisation of liquidity and repricing measures. This resulted in a 7 per cent increase in inrest income to € 2,776 million.
Net fee and commission income rose 7 per cent, or € 82 million, to € 1,203 million year-on-year. Of this increase, € 53 million is attributable to a significant improvement in net income from payment transfer business. This resulted from a volume-driven increase in income from credit card business in Russia and the Polbank consolidation.
Net trading income rose 9 per cent, or € 20 million, to € 240 million year-on-year. Group head office recorded an improved net income from currency-based transactions, credit derivatives business and other transactions, which offset the decline in net income from interest-based transactions, amounting to € 61 million, due to valuation losses on derivatives.
In total, RBI’s operating result amounted to € 1,837 million for the first three quarters of 2013, which represents a rise of 10.4 per cent compared to the same period of 2012 (Q3 2012: € 1,664 million),according to Raiffeisen Bank Aval.