PRESS RELEASE
Prague, 26 May 2014
RAIFFEISENBANK WITH CZK HALF A BILLION PROFIT BY MARCH
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Continued growth of product sales in the 1st quarter; growing demand for loans,
investments and business accounts
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Client deposits 3% up at CZK 142.7 billion
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Client loans 1% up at CZK 154.8 billion
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Net profit 9% down, particularly due to lower interest revenues
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Capital adequacy ratio stable at 13.10%; equity 4% up
[All figures mentioned in this press release are non-audited and have been prepared in
accordance with IFRS accounting legislation. The figures refer solely to the results posted by
Raiffeisenbank a.s. and might differ from those that Raiffeisen Bank International AG (RBI)
released for its operations in the Czech market on 22 May 2014.]
"The first months of this year brought us very good sales results, particularly in respect of business
accounts, including the very successful new eKonto ŽIVNOST account. Also, we did well in selling
loans to private individuals while building up our position in investment products,“ Raiffeisenbank’s
CEO and Chairman of the Board of Directors Mario Drosc commented on the start of this year.
„The moderate decline of profits is in line with our expectations and the overall market development is
particularly due to ever-decreasing interest revenues caused by low interest rates and margins.
Another effect was purely of accounting nature, as we released certain provisions last year, which
resulted in an increase in provisioning on a year-to-year basis,“ Mario Drosc added.
DETAILED INFORMATION ON ECONOMIC RESULTS FOR THE 1st QUARTER
NET PROFIT AND INCOME The bank’s net profit for the first three months of 2014 reached
506.6 million crowns, with an 9% decrease on a year-to-year basis. Total operating revenue of the
bank is 3.7% down, mostly due to low interest rates and their influence on interest revenue. Net
interest income thus dropped 5.1% to CZK 1.4 billion and net provisions income is 8.2% down at
513.8 million crowns, compared against the first quarter of 2013. Other revenue of the bank,
including gains from financial market operations, added 13% on a year-to-year basis, amounting to
306.8 million crowns.
DEPOSITS AND LOANS Total assets reached 191.5 billion crowns, with a 0.3% annual decline.
The volume of loans provided to clients added 0.8 per cent year on year, amounting to 154.8 billion
crowns. Growth was particularly seen in loans provided to individuals, where the volume of both
consumer and mortgage loans increased. The volume of client deposits rose 3.1 percent to CZK 142.7
billion.
COSTS Operating costs dropped 7.9% year on year to 1.3 billion crowns. The decline is mostly
due to various cost-reducing measures adopted in recent years.
RISK MANAGEMENT Losses from non-performing loans and other debts rose 44.2% year on
year, totalling 265.9 million crowns. Increased costs of provisioning and reserves are not due to
increased credit risk of the bank. In early 2013, the bank released certain, no longer needed,
provisions, resulting in a low figure for the annual comparison.
CAPITAL The bank’s equity rose 3.7% annually to 19.4 billion crowns. The bank’s capital
adequacy ratio as per the end of March reached 13.10%. In late April, the bank’s general meeting
approved an increase of the bank’s registered capital by 868.4 million crowns, to be included in the
bank’s registered capital after the relevant entry in the Commercial Register will be made in the
second quarter.
MAIN PRODUCT NEWS OF 2014
NEW BUSINESS ACCOUNT Raiffeisenbank launched its new Podnikatelské eKonto ŽIVNOST
account, developed for its clients who are sole traders. It will be unique to the Czech market, offering a
free personal account to an unlimited business account. Entrepreneurs will thus easily separate their
personal and business finance at no unnecessary cost, moreover with an easy access to business loans.
In addition, the bank’s new pricelist effective as of 1 July brings notable discounts on other types of
business accounts.
INVESTMENTS AND ADVISORY – the bank keeps developing its concept of quality advisory and
long-term financial planning. The investment management company, Raiffeisen investiční
společnost, will be building up its market position, launching new products over the year. An
important innovation in investments is RBroker, an application for clients allowing online trading
in capital markets. Also, the bank launches a financial portal with financial and capital market news.
PRIVATE BANKING - Euromoney awarded Friedrich Wilhelm Raiffeisen for the best private
banking in the Czech Republic. FWR won in three categories: Best private bank in the Czech
Republic, Best relationship management and Best service for super affluent clients with net worth
above 500 thousand US dollars.
100 THOUSAND CLIENTS OF EKONTO KOMPLET – One year after launch, 100 thousand
clients are using eKonto KOMPLET, Raiffeisenbank’s comprehensive account for one transparent fee.
Of the account’s many benefits, clients particularly appreciate an unlimited number of withdrawals
from ATMs of any bank in the Czech Republic or abroad, as well as the smart phone application or
loyalty discounts provided to credit cards. This year, the bank will prepare more innovations to the
eKonto KOMPLET account.
BASIC INFORMATION ABOUT RAIFFEISENBANK A.S.
Raiffeisenbank a.s. (RBCZ) has been providing a wide range of banking services to individuals and
corporate clients in the Czech Republic since 1993. Raiffeisenbank renders services to its clients via a
network of more than 120 branch offices and client centres. The bank also provides services of
specialized mortgage centres, personal, corporate and business advisors. Measured by total assets,
Raiffeisenbank is the fifth largest bank operating in the Czech market.
Raiffeisenbank celebrated 20 years of operations in the Czech market in 2013. From a bank with two
branch offices and 39 employees in 1993, it evolved over the 20 years through successful organic
growth into the market’s fifth largest bank, currently managing assets worth 190 billion crowns,
running a network of 123 branch offices located all over the Czech Republic, and employing nearly
three thousand members of staff.
Various local and international awards testify to the quality of the services the bank offers.
Raiffeisenbank has been regularly awarded mainly for its dynamics; in terms of products, eKonto has
been traditionally named the best account in the Czech Republic and the bank’s internet banking is
also considered the market’s best choice.
Raiffeisenbank’s primary focus in the Czech Republic is on premium clients with higher income and
active interest in their finance management. The bank thus emphasizes quality of its services, a wide
range of products, high quality advisory and long-term financial planning. As such, it introduces
various new products and services to the Czech market on a regular basis, most recently the new
eKonto account, a new portfolio of credit cards, or smartphone account control. Given the scope of
their features and benefits, the two services immediately ranked among the best rated in the Czech
market.
The majority shareholder of the bank is Austria’s Raiffeisen Bank International AG (RBI), established
in October 2010 through the merger of Raiffeisen International Bank-Holding AG and the principal
business areas of Raiffeisen Zentralbank Österreich AG (RZB). RBI regards both Austria, where it is a
leading corporate and investment bank, and Central and Eastern Europe (CEE) as its home market.
RBI is a fully-consolidated subsidiary of RZB, which indirectly owns around 60 per cent of the
common stock; the remainder is in free float on the Vienna Stock Exchange.
The Raiffeisen group has been regularly recognized as the “Best Bank in Central and Eastern Europe”
by such prestigious business publications such as Euromoney, Global Finance or The Banker.
Moreover, Raiffeisen's network banks in CEE have regularly won "best bank" distinctions for their
respective countries.