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Raiffeisen International Bank-Holding with 78% fall in profits

Raiffeisen International Bank-Holding AG, a member of RZB Group headed by Raiffeisen Zentralbank Osterreich AG, reported 78 percent drop in consolidated net profit in 2009 to 212 million EUR. Raiffeisen Iterneshanal result is significantly influenced by the growth of net charges for provisions, which increased by 123% to 1.738 billion euros. There was a slight delay in growth of the provisions after the second quarter of 2009, when they made the most charges. Assets of Raiffeisen International Group fell by 11 percent in 2009 to 76.3 billion euros, which have influenced the measures to reduce and stabilize the credit portfolio and increased supplies. Return on equity before tax was 5.7% and 22% in 2008. The forthcoming General Meeting of the Company will be voted allocation to 30,9 million euro dividend by 79% less than last year. At the beginning of the economic crisis in Central and Eastern Europe as programs were initiated to reduce costs, as general administrative expenses decreased significantly during the period and fell by 14 percent to 2.270 billion euros. Personnel costs are 46 percent of all spending for last year, fell by 17% year to 1.054 billion euros. The number of employees in 2009 decreased by 11% to 56 530. For some time Raiffeisen Zentralbank Osterreich AG and its subsidiary Raiffeisen International Bank-Holding AG considered a strategic opportunity for a merger between two companies, the road to which, however, is complex. "We want to make this step to make sure that we strengthen and expand its excellent position in CEE and Austria in the coming years and decades," said Walter Rothensteiner, Chairman of the Managing Board of RZB and Chairman of the Supervisory Board of Raiffeisen International.