Raiffeisen Bank International preliminary results 2016: EUR 574 mn net profit; CET1 ratio (fully loaded) of 13.5%

Today, Raiffeisen Bank International AG (RBI) announced its preliminary results for the 2016 financial year.

The CET1 ratio (fully loaded) at 31 December 2016 stood at 13.5%, above market expectations and significantly above RBI’s capital target, said the bank in a statement.

The CET1 ratio (fully loaded) was 12.3% at 30 September 2016. The increase in Q4 2016 was primarily due to the closing of the sale of the Polish leasing business (approximately 30 basis points), a reduction in other risk-weighted assets (approximately 15 basis points), foreign exchange movements (approximately 20 basis points positive effect on fully loaded CET1 capital), Q4 2016 profit after tax of around EUR 99 million (approximately 17 basis points) and recognition of Q3 2016 profit after tax of EUR 213 million in the year- end capital ratios (approximately 35 basis points).

Q3 2016 profit was not yet recognized in the 30 September 2016 capital ratios due to regulatory requirements.

Income Statement in EUR mn 1-12/2016 1-12/2015

Net interest income 2,935 3,327

Net provisioning for impairment losses (754) (1,264)

Net fee and commission income 1,497 1,519

Net trading income 215 16

General administrative expenses (2,848) (2,914)

Other results (204) (40)

Profit before tax 886 711

Profit after tax 574 435

Consolidated profit 463 379

Balance Sheet in EUR bn 31/12/2016 31/12/2015

Loans and advances to customers ~70.5 69.9

Deposits from customers ~71.5 69.0

Total assets ~112 114.4

Risk-weighted assets (total) ~60 63.3

Key ratios 1-12/2016 1-12/2015

Net interest margin ~2.8% 3.00%

NPL ratio ~9.3% 11.9%

NPL coverage ratio ~75.6% 71.3%

Common equity tier 1 ratio (fully loaded) ~13.5% 11.5%

Common equity tier 1 ratio (transitional) ~13.8% 12.1%

Total capital ratio (fully loaded) ~18.8% 16.8%

Total capital ratio (transitional) ~19.1% 17.4%

The information contained in this release is based on unaudited figures. On 15 March 2017, RBI will publish its full Annual Report for 2016 as well as pro forma figures for the Combined Bank and further details on the 2016 business year.

Source: RBI statement