In the first quarter of 2016 the Raiffeisen Bank International AG Group (RBI) generated a profit before tax of €229 million, which represents a year-on-year increase of 22 percent.
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The profit after tax increased 38 percent to €138 million year-on-year, while the consolidated profit increased 37 percent to €114 million.
“The result is overall satisfying, as the first quarter continued to be characterized by the ongoing low interest rate environment. A turnaround of the interest rate policy is currently not in sight. The reduction of our cost base is all the more important.
“Unfortunately, the regulatory costs are increasing year after year. The majority of the regulatory costs for the financial year 2016 have been booked in the first quarter.
“The positive results in Hungary and Ukraine are especially encouraging. I expect that both countries have made the turnaround and will deliver positive results for the full year 2016â€, said Karl Sevelda, RBI’s CEO.
With a number of shares of 292.98 million as at 31 March 2016 (previous year: 292.98 million) earnings per share stood at €0.39, which represents an increase of 36.8 percent (Q1/2015: €0.29).
Net interest income decreased 13 percentOperating income was down 1 percent year-on-year, or €14 million, to €1,104 million.
In the first three months of 2016, net interest income fell 13 percent, or €102 million, to €718 million. This was primarily attributable to continuing low market interest rates in many of the Group’s countries and to the existing excess liquidity. A volume-based decline at Group head office and in Asia also contributed to the decline in net interest income.
Due to the currency devaluations in Eastern Europe and to lower sales in Central Europe, net fee and commission income fell 4 percent year-on-year, or €13 million, to €347 million. Net trading income increased €90 million year-on-year to €28 million.
Compared to the same period last year, general administrative expenses climbed €27 million to €718 million. The cost/income ratio increased 3.2 percentage points to 65.0 percent, not least due to the lower net interest income.
At 48 percent, the largest component in general administrative expenses was staff expenses, which increased 1 percent, or €2 million, to €347 million.
Compared to the same period of the previous year, net provisioning for impairment losses fell by a total of 59 percent, or €155 million, to €106 million. This was due to a €102 million reduction in individual loan loss provisioning to €117 million.
In the reporting period, the NPL ratio fell 0.5 percentage points to 11.4 percent compared to year-end 2015. Non-performing loans compared to loan loss provisions of €5,688 million, resulting in a NPL coverage ratio of 70.2 percent, down from 71.3 percent at the year-end.
Total capital under Capital Requirements Regulation (CRR) amounted to €10,858 million as at 31 March 2016. This represents a decline of €129 million compared to the 2015 year-end figure, resulting mostly from the changed transitional provisions for 2016. ■