The FINANCIAL — Raiffeisen Bank International AG (RBI) posted a consolidated profit of € 157 million for the first quarter of 2013, which represents a decrease of 71 per cent compared to the first quarter of the preceding year (Q1 2012: € 541 million).
However, last year’s period had been impacted by one-off effects such as gains achieved from the sale of bonds and the repurchase of hybrid core capital totaling € 272 million, according to Raiffeisen Bank Aval.
Furthermore, the quarterly result was negatively distorted by € 82 million due to valuation effects on long-term structured notes as well as senior and subordinated liabilities. This valuation result has no effect on regulatory capital or capital ratios. As the credit spreads of RBI decreased significantly recently, the fair value of these liabilities also increased significantly, according to Raiffeisen Bank Aval.
"We started the year on good terms. Despite the low interest rate environment and the weak economic cycle, we increased our operating income compared to the first quarter of 2012. We expect the economic cycle to pick up in the second half of the year and therefore we are optimistic to achieve a pleasing result", said RBI-CEO Herbert Stepic.
Profit before tax decreased by 63.4 per cent to € 251 million (Q1 2012: € 685 million), while profit after tax declined by 69.7 per cent to € 174 million (Q1 2012: € 574 million). Earnings per share declined from € 2.52 in the first quarter of 2012 by € 1.97 to € 0.55.
Return on equity before tax declined by 15.9 percentage points to 9.2 per cent.
Discussion about this post