13.03.2019 - Raiffeisen Bank International: Full Year Results 2018

RBI: Full year results 2018

•  Consolidated profit of EUR 1,270 million (up 14% year-on-year)

•  Operating income up 4% year-on-year driven by net interest income and net fee and commission income

•  Loans to customers up 4% despite sale of Polish core banking operations

•  Disposal of core banking operations in Poland completed on October 31 2018

•  CET1 ratio at 13.4% (fully loaded), 85bps positive effect in Q4/2018 from disposal of Polish core banking operations

•  Provisioning ratio down to 0.21%, driven by continued write-backs and low new inflows of NPL

•  NPL ratio decreased further to 3.8% while NPL coverage ratio improved 10.6PP to 77.6%

•  EUR 0.93 dividend per share will be proposed to the AGM on June 13 2019

Income Statement in	1-12/2018	1-12/2017	Change	Q4/2018
EUR million
Net interest income	3,362	3,225	4.2%	843
Net fee and commission
income	1,791	1,719	4.2%	467
Net trading income and fair
value result	17	35	(52.4)%	(3)
General administrative
expenses	(3,048)	(3,011)	1.2%	(819)
Other result	(161)	0	-	(74)
Levies and special
governmental measures	(170)	(163)	4.0%	(13)
Impairment losses on financial
assets	(166)	(312)	(46.9)%	(222)
Profit before tax	1,753	1,612	8.8%	166
Profit after tax	1,398	1,246	12.2%	127
Consolidated profit	1,270	1,116	13.8%	97
Balance Sheet in	31/12/2018	31/12/2017	Change
EUR million
Loans to customers	80,866	77,745	4.0%
Deposits from customers	87,038	84,974	2.4%
Total assets	140,115	135,146	3.7%
Risk-weighted assets (total)	72,672	71,902	1.1%
Vienna, 13 March 2019

Key ratios	31/12/2018	31/12/2017	Change
NPL ratio (non-banks)	3.8%	5.7%	(1.9)PP
NPL coverage ratio (non-banks)	77.6%	67.0%	10.6PP
CET1 ratio (fully loaded)	13.4%	12.7%	0.6PP
Total capital ratio (fully loaded)	18.2%	17.8%	0.3PP
Key ratios	1-12/2018	1-12/2017	Change	Q4/2018
Net interest margin (average
interest-bearing assets)	2.50%	2.48%	0.03PP	2.52%
Cost/income ratio	57.5%	59.1%	(1.5)PP	63.3%
Consolidated return on equity	12.6%	12.2%	0.4PP	3.5%
Earnings per share in EUR	3.68	3.34	0.34	0.25
Dividend proposal per share in
EUR	0.93	0.62	0.31	-

2017 figures have been adjusted to reflect impact from FINREP implementation.

Outlook

We will pursue loan growth with an average yearly percentage increase in the mid-single digit area. The provisioning ratio for FY 2019 is expected to be around 45 basis points.

We anticipate that the NPL ratio will further reduce.

We aim to achieve a cost/income ratio of around 55 per cent in 2021.

In the coming years we target a consolidated return on equity of approximately 11 per cent. We seek to maintain a CET1 ratio of around 13 per cent in the medium term.

Based on this target, we intend to distribute between 20 and 50 per cent of the consolidated profit.

For further information please contact:

John P. Carlson and Zsolt Benkö Group Investor Relations Raiffeisen Bank International AG Am Stadtpark 9

1030 Vienna, [e-mail] [phone]www.rbinternational.comVienna, 13 March 2019