PRESS RELEASE
Prague, 27 November 2013
RAIFFEISENBANK WITH PROFIT OF CZK 1.5 BILLION BY SEPTEMBER

Net profit decreased by 28 per cent year-on-year, totalling 1.502 billion crowns

Declined profits are particularly due to lower interest revenue and costs of new IT
infrastructure

Total loans increased by 1.5 per cent to 152.6 billion crowns

Capital adequacy at 13.72 per cent; equity 6.5 per cent up

Amongst products, increased demand for new eKonto KOMPLET accounts; focus on advisory
and investments
[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 27 November 2013.]
„The bank’s third quater results are so far as expected. The continuously dampened Czech economy
reflected in reduced economic activity and weaker demand for banking services, which in turn
contributed to our declining interest revenue. In addition, increased costs are caused by the successful
launch the first phase of the bank’s new/improved IT architecture. Without these one-time IT costs, the
decline seen in the bank’s profits would amount to approximately one half of the actual figure,“
Raiffeisenbank’s CEO Mario Drosc explained the main reasons behind the results attained.
„We believe, and the first statistical data confirm our point, that the Czech economy will get back on
the track and that particularly demand for loan products will start recovering next year. We are
prepared for such an increase, however very slow, and we want to strengthen our position in the key
client segments further,“ Mr. Drosc added.
„Besides modernising our IT infrastructure, our focus this year remains on the further development of
services rendered to premium clients, particularly in the area of advisory and investments. We are
registering high demand for our eKonto KOMPLET accounts and we are introducing new investment
opportunities for clients over time. As part of our emphasis on quality advisory, we have recently
launched the unique Advisor’s Mortgage Loan; also, we are preparing a consulting concept for our
corporate clients’ CFO’s. It is particularly with regard to our focus on quality advisory that I am
pleased to see us being awarded for the best service in mortgage loan sales again,“ Mr. Drosc
mentioned the bank’s main product innovations.
DETAILED INFORMATION ON ECONOMIC RESULTS FOR THE FIRST THREE
QUARTERS
NET PROFIT AND REVENUE The bank’s net profit dropped 28.6 per cent on a year-to-year
basis to 1.502 billion crowns. The development of net profits is particularly influenced by lower
interest revenue and increased operating costs due to the bank’s investments in IT infrastructure
renewal.
Net interest revenue dropped by 10.9 per cent over the year to 4.38 billion crowns, while net fee and
commission income increased by 4.7 per cent and amounted to 1.7 billion crowns. A particular rise
was seen in the corporate sector due to increased lending activity; revenue from fees in the retail
segment is stagnating. Other revenue of the bank, including gains from financial market operations
and dividend income, declined 6.4 per cent annually to one billion crowns, mostly due to higher
income from revaluation of financial derivatives in 2012.
DEPOSITS AND LOANS Total assets reached 189.8 billion crowns and declined 5.2 per cent
annually. The volume of provided loans added 1.5 per cent and reached 152.6 billion crowns. The
volume of deposits dropped 5.7 billion crowns on a year-to-year basis, totalling 137.6 billion crowns.
COSTS Operating costs rose 9.9 per cent year on year to CZK 4.51 billion. The increase of costs in
the first nine months of 2013 is mainly due to increased marketing and IT costs. This year, the bank
successfully launched the first part of its new IT infrastructure, which resulted in higher one-time IT
costs.
RISK MANAGEMENT Losses from non-performing loans and other debts saw an annual drop of
22.2 per cent to 640 million crowns.
CAPITAL The bank’s equity rose 6.5 per cent annually to 19.48 billion crowns. The bank’s capital
adequacy ratio as per the end of the third quarter reached 13.72 per cent, rising from 13.24 per
cent at the same period a year earlier. In May 2013, the bank increased its registered capital by 835.4
million crowns.
MAIN NON-FINANCIAL NEWS OF THIS YEAR
INVESTMENT COMPANY STARTED - Raiffeisen investiční společnost a.s. (RIS) acquired an
investment management company license and started its business, introducing its first two products for
retail clients.
eKONTO DEVELOPMENT This February, the bank launched its new eKonto KOMPLET
account, providing clients with a top-featured account with one transparent fee. Thus, clients pay no
account transaction fees; unlimited withdrawals from ATMs of any bank in the Czech Republic or
abroad are free of charge as well. eKonto can be provided with various unique services, such as an
account number of choice, multiple currencies of the account, or the payment card locking service.
With a linked credit card, clients can hold a full-featured account and receive loyalty bonuses from the
bank. Furthermore, the account is now offered with contactless debit cards. The bank also increased
availability of the account by reducing the condition of incoming payments to 15 thousand crowns.
More than 80 thousand clients of the bank chose eKonto KOMPLET so far. Raiffeisenbank’s
smartphone application is also increasingly popular amongst clients and was awarded the best
financial application in the Mobile Application 2013 survey. In addition, eKonto KOMPLET scored
again in this year’s “Bank of the Year” competition.
ADVISOR’S MORTGAGE – Raiffeisenbank is the only bank in the Czech market to introduce a
unique service named “Advisor’s Mortgage”. In addition to the loan itself, the service includes an
advisor who arranges for negotiating a better price, checking the contract for fairness, inspecting
the real estate and getting a free real estate appraisal. At the stage of searching for a suitable home,
the advisor assists the client with his or her choice. All these services are only subject to the bank’s
commission derived from the successfully negotiated discount on the purchase price, if any. The
average amount saved on behalf of clients during the pilot run reached 113 thousand crowns; the
highest discount attained was 660 thousand crowns. Advisors revealed technical defects worth 323
thousand crowns per average apartment.
COOPERATION WITH EIB IN SUPPORTING “GREEN” PROJECTS - Raiffeisenbank is the
first bank in the Czech Republic to enter into a EUR 100 million loan contract with the
European Investment Bank in respect of grant support for “green” projects. The funds are
primarily intended for the support of medium-sized companies with up to 250 employees. Cooperation
with EIB ensures preferential terms of client loans.
BEST BANK IN QUALITY OF MORTGAGE LOAN SALES - Raiffeisenbank was awarded
“Best Service in Mortgage Loan Sales” according to a survey conducted by Market Vision, attaining
superior scores mostly in the rating of sales staff quality.
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.
Total assets of the bank amount to nearly CZK 200 billion. According to this particular figure,
Raiffeisenbank is the fifth largest bank operating in the Czech market. The bank’s reported profits for
2012 reach nearly two billion crowns; the same figure for the first nine months of this year is 1.5
billion crowns.
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 78.5 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.
Tomáš Kofroň, Raiffeisenbank a.s.