RBI: First Quarter Report 2018
- Consolidated profit of EUR 399 mn (up 81% year-on-year) driven by strong positive contribution from risk costs
- Exceptionally high net releases of loan loss provisions led to positive impairment losses on financial assets (risk costs). Despite the positive result, risk costs for 2018 are expected to be around the level of the previous year
- NPL ratio decreased further to 5.4%
- NIM stable at 2.49%, with improvements in Czech Republic and Romania
- IFRS 9 impact on equity of EUR 130 mn; minus 10 bps on CET1 ratio (fully loaded)
- CET1 ratio at 12.8% (fully loaded, incl. YTD results and IFRS 9 impact)
- Disposal of core banking assets in Poland, with expected positive impact of 90 bps on Group CET1 ratio (fully loaded) on closing
| Income Statement in EUR million |
Q1/2018 |
Q1/2017 |
Q4/2017 |
| Net interest income |
829 |
797 |
818 |
| Net fee and commission income |
410 |
409 |
446 |
| Net trading income and fair value result |
(1) |
2 |
10 |
| General administrative expenses |
(740) |
(745) |
(798) |
| Other result |
27 |
24 |
(31) |
| Levies and expenses from special governmental measures |
(132) |
(120) |
(17) |
| Impairment losses on financial assets |
83 |
(82) |
(121) |
| Profit before tax |
529 |
330 |
311 |
| Profit after tax |
430 |
255 |
234 |
| Consolidated profit |
399 |
220 |
206 |
| |
|
|
|
| Balance Sheet in EUR million |
31/03/2018 |
31/12/2017 |
|
| Loans and advances to customers |
80,226 |
77,745 |
|
| Deposits from customers |
87,229 |
84,974 |
|
| Total assets |
140,033 |
135,146 |
|
| Risk-weighted assets (total) |
73,102 |
71,902 |
|
| |
|
|
|
| Key ratios |
31/03/2018 |
31/12/2017 |
|
| NPL ratio |
5.4% |
5.7% |
|
| NPL coverage ratio |
69.7% |
67.0% |
|
| CET1 ratio (fully loaded, incl. YTD results) |
12.8% |
12.7% |
|
| CET1 ratio (fully loaded) |
12.2% |
12.7% |
|
| CET1 ratio (transitional, incl. YTD results) |
12.8% |
12.9% |
|
| CET1 ratio (transitional) |
12.2% |
12.9% |
|
| |
|
|
|
| Key ratios |
Q1/2018 |
Q1/2017 |
Q4/2017 |
| Net interest margin |
2.49% |
2.44% |
2.55% |
| Consolidated return on equity |
16.6% |
9.6% |
8.9% |
| Cost/income ratio |
57.3% |
59.5% |
62.5% |
| Earnings per share in EUR |
1.17 |
0.67 |
0.60 |
Outlook
We will pursue loan growth with an average yearly percentage increase in the mid-single digit area.
Impairment losses on financial assets (risk costs) in 2018 are expected to be around the 2017 level.
We anticipate that the NPL ratio will further reduce in the medium term.
We aim to achieve a cost/income ratio of below 55 per cent in the medium term.
We target a consolidated return on equity of approximately 11 per cent in the medium term.
We target a CET1 ratio (fully loaded) of around 13 per cent post dividend in the medium term.
Based on this target, we intend to distribute between 20 and 50 per cent (dividend payout ratio) of the consolidated profit.
The targets in this outlook include the impact from IFRS 9 and FINREP; the sale of the core banking operations in Poland is not reflected.
For further information please contact:
Susanne E. Langer
Head of Group Investor Relations
Spokesperson
Raiffeisen Bank International AG
Am Stadtpark 9
1030 Vienna, Austria
ir@rbinternational.com
phone +43-1-71 707-2089
www.rbinternational.com
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