Raiffeisen Bank Romania ends 2008 with a record net profit of EUR 165 million

Raiffeisen Bank recorded at the end of 2008 a net profit of EUR 165 million, 75.6% higher than year-end 2007 when it reached EUR 94 million (according to IFRS, audited, unconsolidated). Profit before tax was approximately EUR 196 million, compared to EUR 116 million at the end of 2007. Total assets reached EUR 4.65 billion. Loans to customers exceeded EUR 2.67 billion, a 14% increase compared to the similar period of the previous year. At the same time, customer deposits exceeded EUR 3.65 billion, said the bank in a press release.rnrnStaff and administrative expenses at the end of 2008 increased by 12% compared to 2007. Concomitantly, net interest income grew by nearly 23%, reaching EUR 245 million, while the net commission income grew by 27%, to EUR 246 million.rnrn“Despite the current difficult period generated by the international financial crisis, Raiffeisen Bank succeeded in obtaining record results for 2008. These results are a consequence of our solid customer base, of the fact that we became more efficient in what we do and thus were able to increase the bank’s profitability. Along with that, we focused on increasing the quality of our services and on developing long-term partnerships with our customers”, said Steven van Groningen, President & CEO of Raiffeisen Bank.rnrnRaiffeisen Bank continued in 2008 the expansion of it s network, reaching 553 business outlets as of December 31st 2008. „After the rapid expansion of our network in the previous years, we believe that it now reflects the position we hold on the banking market (that is market shares in terms of business outlets and assets are at this moment comparable), therefore we no longer need such a fast growth. In 2009 we will focus more on current, maintenance activities at network level rather than on expansion. The outlets play a significant role in our relationship with the customers; we are a universal bank and, obviously, we have a wide range of products and services to provide the market with” said Steven van Groningen, Raiffeisen Bank’s CEO.rnrnRaiffeisen Bank’s main objective for 2009 remains the strengthening of its market position. Raiffeisen International (who owns 99.49% of the bank’s shares) fully supports this objective and the activity of its subsidiary on the Romanian market. “The activities of Raiffeisen Group in Romania started in 1997 with the setting up of Raiffeisen Bank (Romania) SA. In 2001 Banca Agricola was taken over. In 2002 Banca Agricola and Raiffeisen Bank (Romania) SA merged into the current Raiffeisen Bank S.A. Raiffeisen has invested since 1997 over EUR 200 million in capital. As at December 31st 2008, Raiffeisen Bank has given over EUR 1,155 million in loans to over 100.000 Romanian private companies, EUR 1,281 million to individuals and EUR 242 million to Romanian Public Sector entities. In order to meet the strong need for credits in Romania, that by far exceeded the local savings, Raiffeisen International has supported the lending activity of its Romanian subsidiary with financing lines. At the same time, all profits of the Romanian bank since 2003 have been used to cover the losses of the former Banca Agricola. Only in 2008 the 17,000 Raiffeisen Bank shareholders received dividends for the first time. As majority shareholder, Raiffeisen International received 11.8 million euros in dividends in 2008 and will not withdraw any money from Romania, except for shareholders’ dividends. We will provide Raiffeisen Bank Romania with sufficient liquidity and capital to achieve its goals” said Dr. Herbert Stepic, CEO of Raiffeisen International and Chairman of Raiffeisen Bank’s Supervisory Board.rnrnRaiffeisen Bank provides its customers with multiple access channels: Raiffeisen Direct, myBanking, Raiffeisen Online, which marked important increases in terms of customers and traded volumes. ATMs and E-POS networks reached at year-end 2008 more than 1,000 ATMs and nearly 8,000 EPOS.rnrnRaiffeisen Bank services 2 million retail customers (of which 100,000 are SMEs) and more than 4,400 medium and large corporations. rnrnRaiffeisen Bank resulted from the merger of Banca Agricola – Raiffeisen and Raiffeisenbank (Romania), completed at the end of June 2002. Raiffeisen International, who owns 99.49% of the bank’s shares, operates one of the largest banking networks in Central and Eastern Europe. 17 markets in Europe’s growth region are covered by subsidiaries, leasing companies and a range of financial services providers. 14.6 million customers are serviced in more than 3,100 business outlets. Raiffeisen International is the fully consolidated subsidiary of Raiffeisen Zentralbank Oesterreich AG (RZB), which owns 68.5% of the common stock. The remainder is free float, the shares are listed on the Vienna Stock Exchange. RZB is a leading corporate and investment bank in Austria and the central institution of Raiffeisen Banking Group, the country’s largest banking group. rn