Credit porftolio – Financial Institutions The financial institutions asset class mainly contains banks and securities firms. The internal rating model for these financial institutions is based on a peer-group approach that takes both qualitative and quantitative information into account. The final rating for financial institutions is capped by the country rating of the respective home country.
The medium rating grades Good credit standing (rating A3) to Mediocre credit standing (rating B3) form 46.7 per cent of the portfolio. The high exposure in these rating categories mainly results from deposits of network banks at local central banks in Central and Southeastern Europe. They were mandatory for meeting the respective minimum reserve requirements or used in order to manage excess liquidity on a short-term basis and therefore were intrinsically linked to the banking business in these countries. The exposure in rating class B4 remained stable compared to the previous year, at € 2,253,625 thousand or 8.4 per cent and results mainly from short-term deposits at the central banks in the Russia and in CIS Other segments.
Collateral is divided into pledges (e.g. guarantees) and physical collateral. In RBI liens on residential or commercial properties are the main types of collateral used.
Retail customers – small and medium-sized entities 2,042,090 369,784 1,424,577 31/12/2010 Maximum credit exposure Fair value of collateral € 000 Net exposure Commitments/
Collateral ready to be sold or repledged in the absence of default of the debtor amounted to € 24,047,224 thousand (2010: € 16,820,440 thousand).
or to a restructuring unit (workout department). Employees of the workout units are specially trained and have extensive experience. They typically handle medium-sized to large cases and are assisted by in-house legal departments and/or by external specialists as well. Work-out units play a decisive role in accounting and analyzing as well as booking provisions for impairment losses (write-offs, value adjustments, provisioning). Their early involvement can help reduce losses resulting from problem loans.
Retail customers – small and medium1 Adjustments of previous year figures due to different mapping.
Restructuring of loans As of 31 December 2011 the carrying amount of loans for which terms were renegotiated in connection with a substantial and immediate loss that would otherwise be past due or impaired amounted to € 811,108 thousand (2010: € 588,276 thousand). Split by asset classes € 317,269 thousand is attributable to corporate customers and € 493,213 thousand to retail customers.-
Non-performing loans and provisioning A default and thus non-performing loan (NPL) is internally defined as the event where a specific debtor is unlikely to pay its credit obligations to the bank in full, or the debtor is overdue more than 90 days on any material credit obligation. RBI has defined twelve default indicators which are used to identify a default event in the non-retail segment. These include the insolvency or similar proceedings of a customer, if an impairment provision has been allocated or a direct write-off has been carried out, if credit risk management has judged a customer account receivable to be not wholly recoverable, or the workout unit is considering stepping in to help a company restore its financial soundness.
Impairment losses on loans and advances 530,350 447,609 186,797 490,083 5,716 196
In asset class corporate customers, non-performing loans increased by 5 per cent (€ 209,860 thousand) to € 4,591,296 thousand. Segment Southeastern Europe where NPLs increased by 46 per cent and Central Europe where NPLs increased by 13 per cent were especially affected. In contrast NPLs have been reduced in Russia by 31 per cent and in Group Corporates by 26 per cent. Loan loss provisions have been stocked up by 7 per cent (€ 207,160 thousand) to € 3,046,266 thousand which increased the coverage ratio by 1.6 percentage points to 66.3 per cent.
Portfolio-based loan loss provisions 887,999 (15) 280,577 (385,510) 0 (20,275) 762,777 1 Allocation including direct write-downs and income on written down claims. 2 Usage including direct write-downs and income on written down claims.
Portfolio-based loan loss provisions 770,512 88,880 390,664 (389,803) 0 27,746 887,999 1 Allocation including direct write-downs and income on written down claims. 2 Usage including direct write-downs and income on written down claims.
Active country risk management in RBI is based on the country risk policy which is set by the Management Board. This policy is part of the credit portfolio limit system and sets a strict limitation on cross-border risk exposure to individual countries. Consequently. in day-to-day work, business units have to submit limit applications for the respective countries for all cross-border transactions in addition to the limit applications for a customer. The limit size for individual countries is set by using a model which takes into account the internal rating for the sovereign, the size of the country, and RBI’s own capitalization.
Country risk also is reflected via the internal funds transfer pricing system in product pricing and in risk-adjusted performance measurement. Business units therefore can benefit from country risk mitigation by seeking insurance (e.g. from export credit insurance organizations) or guarantors in third countries. The insights gained from country risk analysis are not only used for limiting the total cross border exposure, but also for limiting the total credit exposure in each individual country (i.e. including the exposure that is funded by local deposits). Thereby RBI realigns its business activities according to the macro-economic development within different markets and enhances the broad diversification of its credit portfolio.
RBI does not own any banking subsidiaries that are incorporated in the so-called European periphery countries. Nonetheless, some of the bank’s customers are domiciled in these countries, resulting from credit financing and capital market activities. All in all, the bank has almost no exposure to government bonds in these countries (except for the Republic of Italy).
Public administration and defence and social insurance institutions 13,267,030 7.1% 16,182,139 9.6%
1 Adaption of previous year figures due to a new codex for industries (ÖNACE 2008)
SStructered credit portfolio RBI’s strategy for the structured credit portfolio is to reduce these investments step-by-step. This will be achieved either through repayment at maturity date or through assest sales depending on the market situation. The size of the structured credit portfolio is shown on page 206. Around 95 per cent of this portfolio is rated A or better by external rating agencies. The pools mainly contain exposures to European customers.
An important strategy for reducing counterparty credit risk is credit risk mitigation techniques such as netting agreements and collateralization. In general, RBI strives to establish standardized ISDA master agreements with all major counterparties for derivative transactions in order to be able to perform close-out netting and credit support annexes (CSA) for full risk coverage for positive fair values on a daily basis.
Organization of market risk management RBI measures, monitors, and manages all market risks on Group level.
Sensitivities (to changes in exchange rates, interest rates, gamma, vega, equity and commodity prices)
Total 48,039 56,623 40,817 81,800 60,073 1 Exchange rate risk on total bank level also includes equity positions of subsidiaries denominated in foreign currency.
Total 51,278 81,158 49,800 125,988 86,932 1 Exchange rate risk on total bank level also includes equity positions of subsidiaries denominated in foreign currency.
The risk measurement approaches employed are verified – besides analyzing returns qualitatively – on an ongoing basis through backtesting and statistical validation techniques. If model weaknesses are identified, then they are improved accordingly. In the reporting period, there were two backtesting violations for RBI’s trading book (including equity positions in network banks) as shown in the backtesting chart. This chart compares VaR and theoretical profits and losses on a daily basis. VaR denotes the maximum loss that will not be exceeded with 99 per cent confidence level on the next day. It is compared to the theoretical profits and losses, which shows the hypothetical returns that the bank would have realized due to the actual changes in market parameters on the next day. It is possible to see that the model correctly reproduces market volatility regimes and quickly reacts to changed market conditions. Starting with the year 2012, the Stressed VaR as defined by regulatory requirements will be reported in addition to the VaR.
Value-at-Risk and theoretical market price changes of RBI’s trading book in € million
Exchange rate risk and capital (ratio) hedge Market risk in RBI results primarily from exchange rate risk, which stems from foreign-currency denominated equity investments made in non-domestic Group units and the corresponding hedging positions entered into by the Group Asset/Liability Committee. The following table shows all material open foreign exchange rate positions as of 31 December 2011 and the corresponding values for the previous year. Those numbers include both trading positions as well as equity stakes in subsidiaries with foreign currency denominated statements of financial position.
RBI aims at stabilizing its core capital ratio when managing exchange rate risks. Changes in foreign exchange rates thus lead to changes in the consolidated equity amount; however, the regulatory capital requirement for credit risks stemming from assets denoted in foreign currencies also changes correspondingly. This risk is managed on a monthly basis in the Group Asset /Liability Committee based on historical foreign exchange volatilities, exchange rate forecasts, and the sensitivity of the core capital ratio to changes in individual foreign exchange rates.
Interest rate risk in the banking book Different maturities and repricing schedules of assets and the corresponding liabilities (i.e. deposits and refinancing on debt and capital markets) cause interest rate risk in RBI. This risk arises in particular from different interest rate sensitivities, rate adjustments, and other optionality of expected cash flows. Interest rate risk in the banking book is material for euro and US-dollar as major currencies as well as for local currencies of Group units located in Central and Eastern Europe.
Interest rate risk in the banking book is not only measured in a value-at-risk framework but also managed by the traditional tools of nominal and interest rate gap analyses. Since 2002, interest rate risk is subject to quarterly reporting in the context of the interest rate risk statistic submitted to the banking supervisor. This report shows the change in the present value of the banking book as a percentage of own funds in line with the requirements of Basel II. Maturity assumptions needed in this analysis are defined as specified by regulatory authorities or based on internal statistics and empirical values. In 2011, the changes in present value of banking book positions after an interest rate shock of 200 basis points were always lower than the regulatory reporting threshold of 20 per cent of eligible own funds.
The following table shows the change in the present value of RBI’s banking book given a one-basis-point interest rate increase for the whole yield curve in € thousand for reporting dates 31 December 2011 and 31 December 2010. Currencies with total interest rate sensitivity exceeding € 10 thousand are shown separately. Interest rate risk in the banking book decreased mainly due to a reduction of holdings in government bonds.
Other (7) (9) (1) (8) 2 5 9 (1) (3) 0 0 (1) 1 The representation of currencies has changed year on year depending on the absolute value of the interest rate sensitivity
Liquidity management, i.e. ensuring that the Group maintain its ability to pay at all times, is performed both centrally by the Treasury division in Vienna and on a decentralized basis by local banking subsidiaries. Cash flows are calculated and analyzed by currency on a weekly basis in an internal monitoring system. Based on this data, the Group creates liquidity balances, and analyzes whether the Group conforms to legal regulations on liquidity positions and defined internal liquidity limits. Liquidity analyses also include simulations on defined market or name specific liquidity crises in scenario-based cash flow forecasts. All these analyses are discussed in the Group Asset/Liability Committee of the bank.
Short-term liquidity risk The following table shows excess liquidity and the ratio of expected cash inflows plus counterbalancing capacity to cash outflows (liquidity ratio) for select maturities on a cumulative basis, taking into account balance sheet items and off-balance-sheet transactions. Based on expert opinions, statistical analyses and country specifics, this calculation also incorporates estimates on the prolongation of defined assets, the so-called sediment of customer deposits, and the liquidity counterbalancing capacity (in particular, assets that are eligible for refinancing at central banks and that can be used as collateral in repo transactions). Excess liquidity has been further increased in all maturity buckets. In particular the ongoing effort to acquire stable customer deposits and the prudential management of available liquidity lead to the high liquidity ratio.
In RBI’s funding plans, special attention is paid to a diversified structure of funding to mitigate funding liquidity risk. In the Group, funds are not only raised by RBI as the Group’s parent institution, but also individually by different banking subsidiaries. Those efforts are coordinated and optimized through a joint funding plan. Moreover, RBI arranges medium-term and long-term
funding for its subsidiaries through syndicated loans, bilateral funding agreements with banks, and financing facilities of supranational institutions. These funding sources are based on long-term business relationships.
As with other risk types the principle of firewalling between risk management and risk controlling is also applied to operational risk in RBI. Operational risk controlling units are mainly responsible for the implementation and refinement of methods for operational risk management in different Group units (e.g. performing self assessment, defining and monitoring key risk indicators, etc.) and for reporting to the central operational risk controlling function. Business line managers are responsible for controlling and mitigating operational risks. They decide on pro-active operational risk steering actions, such as buying insurance, and the use of further risk mitigating instruments.
Quantification and mitigation RBI currently calculates regulatory capital requirements for operational risks according to Basel II using the Standardized Approach. This approach applies to all major Group units.
The total volume of unsettled financial instruments as of 31 December 2011 breaks down as follows: Nominal amount by maturity Fair values
Foreign exchange rate and gold contracts 51,886,998 8,971,521 1,894,690 62,753,209 896,210 (1,425,303)
Equity/index futures - forward pricing 596,579 458 1,299 598,336 26,881 (31,793)
Equity/index futures - forward pricing 498,142 0 1,298 499,439 11,316 (1,319)
Fair values which are different from the carrying amount are calculated for fixed-interest loans and advances to and deposits from banks or customers, if the remaining maturity is more than 1 year. Variable-interest loans and advances and deposits are taken into account if they have an interest rollover period of more than 1 year. The fair value of loans and advances is calculated by discounting future cash flows and using interest rates at which similar loans and advances with the same maturities could have been granted to customers with similar creditworthiness. Moreover, the specific credit risk and collaterals are considered for the calculation of fair values for loans and advances.
Positive fair values of derivatives1 166,781 8,001,726 102,707 69,408 4,117,769 0
Call/time deposits from trading purposes 0 6,872 0 0 0 0
Financial assets at fair value through profit or loss 5,056,336 2,268,679 34,780 5,613,367 2,301,548 155,352
Bonds, notes and other fixed-interest securities 4,925,965 2,149,701 30,035 5,466,589 2,169,834 154,058
Positive fair values of derivatives from hedge accounting 0 426,350 0 0 925,409 0 1 Including other derivatives. 2 Includes only securities traded on the stock exchange.
€ 000 Level I Level II Level III Level I Level II Level III
Negative fair values of derivatives financial instruments1 105,421 8,992,319 57,208 555,680 4,761,952 48
Financial assets at fair value through profit or loss 2,565 0 3,507 (161) 34,780
The following table contains revocable credit lines which are unweighted according to Basel II: Revocable credit lines 14,847,947 11,755,884
(50) Capital management and regulatory own funds according to the Austrian Banking Act (BWG)
RBI uses target values for internal regulation, which comprise all risk types (including trading book, currency risk and operational risk). The current planning/budgeting is shaped by the developments in Basel and Brussels regarding the advancement and harmonising of own funds regulations. Parallel to the development of these regulations, RBI will introduce new target values, which are sufficiently above the 7 per cent tier 1 capital (full expansion stage Basel 3) in order to avoid regulatory limitations regarding management decisions (e.g. amount of dividend). An additional dimension has been added with the requirements of the European Banking Authority (EBA). Here the underlying rules differ from the previously valid BWG, as well as from the draftscontained in the CRR/CRD 4.
Control on a Group level is exerted in cooperation between the departments Treasury, Planning & Finance and Group Strategy. The individual Group units are responsible for the observation of the targets in coordination with central departments responsible for the participation management of the respective unit.
The determination of the target values in relation to the compulsory minimum requirements needs additional internal control calculations. The department Risk Controlling calculates the value-at-risk in comparison with the above defined risk taking capacity. Moreover, a balance between economic capital and the respective cover is drawn. The economic capital is integral part of the planning and control of RBI. Further details regarding this calculation are stated in the risk report.
The own funds of RBI according to Austrian Banking Act (BWG) 1993/Amendment 2006 (Basel II) break down as follows: Paid-in capital 4,933,077 4,913,878
Tier 2 capital available to be redesignated as tier 3 capital 100,079 69,078
Own funds requirement for position risk in bonds, equities and commodities 519,912 326,655
In the event of termination of function or employment contract and retirement from the company, two members of the Management Board are in principle entitled to severance payments according to the Salaried Employees Act (Angestelltengesetz) or Bank Collective Agreement (Bankenkollektivvertrag), two members of the Management Board according to contractual agreements and three members of the Management Board according to the Company Retirement Plan Act (Betrieblichen Mitarbeitervorsorgegesetz ). The entitlement to receive severance payments according to the Salaried Employee Act or according to contractual agreements lapses with the exemption of one member of the Management Board in case of termination by the employee.
Remuneration of members of the Management Board The members of the Management Board of Raiffeisen Bank International AG are remunerated as follows: Fixed and performance-based remunerations 7,545 8,191
Performance-based remuneration components of the Management Board normally consist of bonus payments of the year 2010 that are linked to the achievement of the Group objectives regarding profit after tax, return on risk adjusted capital (RORAC), cost/income ratio, to the personal objectives that are agreed upon annually and to the amount of allotment regarding SIP (see page 168 share-based remuneration). For three members of the Management Board who changed from RZB to RBI the bonus calculation for 2010 was performed according to RZB return on equity (ROE). According to the contractual provisions applicable to these persons until the end of 2010 bonus payments were granted in the amount of € 941 thousand, which will be due in 2012 (€ 297 thousand) and 2013 (€ 644 thousand). The actual payment is at the discretion of the Personel Committee of RBI.
It should be noted that the figures of the remuneration of the Management Board for 2011 are not directly comparable with those of 2010, because two board members resigned during the year 2010.
Remuneration of members of the Supervisory Board The members of the Supervisory Board are remunerated as follows: Remunerations supervisory board 423 380
The Annual General Meeting held on 8 June 2011 decided an annual remuneration for the members of the Supervisory Board of € 423 thousand and transferred the distribution to the Board itself. The members of the Supervisory Board settled the distribution in their meeting on 8 June 2011 as follows: Chairman € 70 thousand, Deputy Chairman € 60 thousand, members of the Supervisory Board € 50 thousand. Session fees are not paid.
Moreover, no contracts subject to approval in the meaning of Section 95 (5) items 12 Austrian Joint Stock Company Act (AktG) were concluded with members of the Supervisory Board in the financial year 2011.
The Management Board of Raiffeisen Bank International AG is as follows: First assignment End of period
Martin Grüll 3 January 2005 31 December 20151 1 In the board meeting on 7 June 2011 the renewal ot mandates of the board was decided to 31 December 2015. 2 After the retirment of Patrick Butler – at his own request – the Management Board appinted Klemens Breuer as successor for this function for the duration from 16 April 2012 until 31 December 2015.
3 Assignment effective with registration of the merger in the Companies Register as of 10 October 2010.
The members of the Management Board had mandates in the Supervisory Board or similar functions, board functions, business management mandates and interest in companies at home and abroad which are not included in the consolidated group: Herbert Stepic: OMV AG, Österreichische Kontrollbank AG, "NONUSDECIMUS" FRANKE IMMOBILIEN HANDEL
SECUNDUS FRANKE IMMOBILIEN HANDEL KG, Michael Stranz Immobilienverwaltung Gamma KG Johann Strobl: Raiffeisen Leasing Management GmbH, Raiffeisen Zentralbank Österreich AG,
The Supervisory Board of Raiffeisen Bank International AG is as follows: First assignment End of period
The members of the Supervisory Board had further mandates in the Supervisory Board or similar functions in quoted companies at home and abroad: Walter Rothensteiner: UNIQA Versicherungen AG Erwin Hameseder: AGRANA Beteiligungs-AG, STRABAG SE, UNIQA Versicherungen AG, Südzucker AG, Flughafen Wien AG Ludwig Scharinger: voestalpine AG, Austria Metall AG Christian Teufl: AGRANA Beteiligungs-AG, VK Mühlen AG Hannes Schmid: UNIQA Versicherungen AG Kurt Geiger: Demir Bank OJSC
The committees of the Supervisory Board of Raiffeisen Bank International AG are as follows: Members of the Supervisory Board Working Committee Audit Committee Personnel Committee
RBI signed an agreement with the Greek EFG Eurobank Ergasias S.A. (Eurobank EFG) on 3 February 2011 for the acquisition of a majority share of 70 per cent in its business unit Polbank EFG (Polbank) as a first step. With its strong focus on private customers, Polbank would complement Raiffeisen Bank Polska ideally, which mainly focuses on corporate customers.
Significant steps towards acquiring Polbank – for example the approvals by the European Commission and the transition to an independently licensed bank – as well as the preparations for the future organizational structure of the merged bank were successfully carried out in the 2011 financial year. Closing the transaction now depends on the regulatory approval in Poland.
The tender offer period for buying back several RBI hybrid bonds ended on 5 March 2012. In total, RBI bought back securities with a total nominal value and at a liquidation preference amount of € 358 million. The buyback increases the core tier 1 capital by approximately € 113 million (the difference between the nominal and redemption amount) or the core tier 1 ratio by 0.12 percentage points. This strengthens the capital structure accordingly against the backdrop of the changes in the regulatory requirements.
On the completion of this measure -- which is still subject to approval from the relevant regulatory authorities -- RBI’s equity share in Tatra banka in Slovakia will increase from 65.8 per cent to 78.6 per cent and from 51.0 per cent to 75.0 per cent in Raiffeisenbank in the Czech Republic. The purchase price for the shares will total approximately € 344 million, which will initially impact RBI's core tier 1 ratio by around 0.35 percentage points.
Centralised Raiffeisen International Services & Payments S.R.L., Bucharest (RO) 19,800,000 RON 100.0% BR
Raiffeisen Bank d.d. Bosna i Hercegovina, Sarajevo (BA) 237,388,000 BAM 97.0% BA
Raiffeisen Compulsory Pension Fund Management d.d., Zagreb (HR) 110,000,000 HRK 75.0% FI
RZB Finance (Jersey) III Ltd, St. Helier (JE) 200,001,000 EUR *2 FI
The following tables show a selection of equity participations. The complete list of the equity participations of Raiffeisen Bank International AG is deposited with the Group parent’s headquarters.
We have audited the accompanying consolidated financial statements of Raiffeisen Bank International AG, Vienna, for the year from 1 January 2011 to 31 December 2011. These consolidated financial statements comprise the consolidated balance sheet as of 31 December 2011, the consolidated statement of comprehensive income, the consolidated cash flow statement and the consolidated statement of changes in equity for the year ended 31 December 2011 and a summary of significant accounting policies and other explanatory notes.
Statement of the Management Board We confirm to the best of our knowledge that the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group as required by the applicable accounting standards and that the Group management report gives a true and fair view of the development and performance of the business and the position of the Group, together with a description of the principlal risks and uncertainties the Group faces.
Deputy to the Chief Executive Officer responsible for Corporate Customers, Group Products, Network
Member of the Management Board responsible for Credit Markets, Raiffeisen Research, Capital Markets and
Chief Financial Officer responsible for Tax Management, Treasury, Planning and Finance and
Associated companies – Entities over which the investor has signifi cant infl uence.
Basel III – Basel-II-regulatory broadened with the experiences and insights of the fi nancial and economic crisis to harmonize incurred risks and the banks risktaking capacity (deduced from the equity’s amount and quality).
Cash fl ow hedge – Protection against the risk of variability in projected cash fl ows, resulting either from risk associated with a recognized asset or liability or risk associated with a forecasted transaction. While the eff ective portion of the hedge relating to changes in value of the hedging instruments can be directly recognized in equity, the ineff ective portion has an immediate eff ect on profi t and loss statement.
CE – Central Europe. For RBI this segment encompasses the Czech Republic, Hungary, Poland, Slovakia and Slovenia.
Consolidated ROE – Return on Consolidated Equity, i.e. the equity attributable to the shareholders of RBI. It is calculated by consolidated profi t in relation to average equity on the statement of fi nancial position (excluding noncontrolling interests). Average equity is based on month-end fi gures excluding non-controlling interest and does not include current year profi t.
Credit exposure – Comprises all exposures on the statement of fi nancial position (loans, debt securities) and all exposures off the statement of fi nancial position (guarantees, commitments) that expose RBI to credit risk.
Credit spread (or simply “spread”) – Diff erence in yield between top-rated bonds (usually government bonds) and bonds with the same residual maturity but lower issuer quality.
Default risk – Risk that counterparties in a fi nancial transaction will not be able to fulfi l an obligation, causing the other party a fi nancial loss.
Earnings per share (EPS) – Adjusted consolidated profi t (after deduction of dividend for participation capital) divided by the weighted average number of ordinary shares outstanding.
EBRD (European Bank for Reconstruction and Development) – An institution that promotes the transition to an open market economy and to private and entrepreneurial action in the countries of Central and Eastern Europe. Through its investments, it supports activity of the private sector and strengthens fi nancial institutions, legal systems, and development of infrastructure needed by the private sector.
Fair Value Level I – (quotation on an active market). If market prices are available, the fair value is refl ected by the market price.
Gross investment value – The aggregate of minimum lease payments receivable by the lessor under a fi nance lease and any unguaranteed residual value accruing to the lessor.
Held-for-trading – Securities held to take advantage of short-term market fl uctuations.
IFRIC, SIC – International Financial Reporting Interpretations Committee – committee responsible for the offi cial interpretation of the International Financial Reporting Standards, formerly also SIC (Standing Interpretations Committee).
Market risk – The risk that the value of a fi nancial instrument will fl uctuate because of changes in market prices whether those changes are caused by factors specifi c to the individual security or its issuer or factors aff ecting all securities traded in the market.
Operating result – In IFRS-compliant fi nancial statements, it consists of operating income less general administrative expenses. Operating income comprises net interest income, net fee and commission income, net trading income and other net operating income. General administrative expenses comprise staff expenses and other administrative expenses and depreciation on intangible and tangible fi xed assets.
Quarter-on-quarter – Compared to the quarter which precedes the quarter under consideration; for example, the third quarter of 2010 in comparison to the second quarter of 2010.
ROE (return on equity) – Return on the total equity including non-controlling interests, i.e. profi t before tax respectively after tax in relation to weighted average equity on the statement of fi nancial position. Average equity is calculated on month-end fi gures including non-controlling interest and does not include current year profi t.
Segment reporting – Disclosure of earnings and asset data for segments representing the organizational structure (country and functional responsibility).
Share Incentive Program (SIP) – Performance-based allotments of company shares for eligible employees for a given period of time.
Tier 1 ratio (credit risk) – This ratio’s numerator is core capital (tier 1) and its denominator is the risk-weighted assets of credit risk.
Trading book – Bank regulators’ term for assets held by a bank for short-term resale to exploit fl uctuations in prices and interest rates.
Wholesale funding – Refi nancing of banks by way of external sources, i.e. not through their own funds or customer deposits.
Year-on-year – Compared to the point in time, or the time period, which occurs one year before the point in time, or the time period, under consideration; for example, the fi rst half year of 2011 in comparison to the fi rst half year of 2010, or 30 June 2011 in comparison to 30 June 2010.
Austria Am Stadtpark 9 1030 Vienna Phone: +43-1-71707 0 Fax: +43-1-71707 1715 www.rbinternational.com ir@rbinternational.com rbi-pr@rbinternational.com
Russia ZAO Raiff eisenbank Smolenskaya-Sennaya Sq. 28 119020 Moscow Phone: +7-495-721 9900 Fax: +7-495-721 9901 SWIFT/BIC: RZBMRUMM www.raiff eisen.ru
Slovakia Tatra banka, a.s. Hodžovo námestie 3 81106 Bratislava Phone: +421-2-5919 1111 Fax: +421-2-5919 1110 SWIFT/BIC: TATRSKBX www.tatrabanka.sk
Austria Raiff eisen-Leasing International GmbH Am Stadtpark 3 1030 Vienna Phone: +43-1-71707 2966 Fax: +43-1-71707 762966 www.rli.co.at
Belarus JLLC “Raiff eisen-leasing” 31-A, V. Khoruzhey Str. 220002 Minsk Phone: +375-17-289 9394 Fax: +375-17-289 9394 www.priorbank.by
Moldova I.C.S. Raiff eisen Leasing S.R.L. Alexandru cel Bun 51 2012 Chisinau Phone: +373-22-2793 13 Fax: +373-22-2283 81 www.raiff eisen-leasing.md
Poland Raiff eisen-Leasing Polska S.A. Ul. Prosta 51 00-838 Warsaw Phone: +48-22-326 3666 Fax: +48-22-326 3601 www.rl.com.pl
Romania Raiff eisen Leasing IFN S.A. Nusco Tower Sos Pipera Nr. 42 Etaj 1A 020112 Bucharest Phone: +40-21-306 9696 Fax: +40-37-287 9998 www.raiff eisen-leasing.ro
Slovakia Tatra Leasing s.r.o. Hodžovo námestie 3 81106 Bratislava Phone: +421-2-5919 3168 Fax: +421-2-5919 3048 www.tatraleasing.sk
Czech Republic Raiff eisen Leasing Real Estate s.r.o. Hvezdova 1716/2b 14078 Prague 4 Phone: +420-221-511 610 Fax: +420-221-511 641 www.rlre.cz
Sweden RBI Representative Offi ce Nordic Countries Drottninggatan 89 P.O. Box 3294 10365 Stockholm
China RBI Beijing Branch Beijing International Club 200 2nd fl oor Jianguomenwai Dajie 21 100020 Beijing Phone: +86-10-653 23388 Fax: +86-10-653 25926
Korea RBI Representative Offi ce Korea Leema Building, 8th fl oor 146-1 Soosong-dong Chongro-ku Seoul 110-755 Phone: +82-2-398 5840 Fax: +82-2-398 5807
Malaysia RBI Labuan Branch Suite No. 28.02, Level 28 Johor Bahru City Square Offi ce Tower 106-108 Jalan Wong Ah Fook 80000 Johor Bahru Phone: +607-291 3800 Fax: +607-291 3801
RBI Representative Offi ce New York 1133 Avenue of the Americas, 16th Floor 10036 New York
Vietnam RBI Representative Offi ce Ho Chi Minh City 6 Phung Khac Khoan Street, Room G6 District 1, Ho Chi Minh City Phone: +84-8-3829 7934 Fax: +84-8-3822 1318
Austria Am Stadtpark 9 1030 Vienna Phone: +43-1-71707 0 Fax: +43-1-71707 1715 www.rzb.at
ZUNO BANK AG Am Stadtpark 3 1030 Vienna Phone: +43-1-71707 2691 Fax: +43-1-71707 762691 www.zuno.eu
The online issue of the annual report is available in German at The English report is available online at
Publication details The forecasts, plans and forward-looking statements contained in this annual report are based on the state of knowledge and assessments of Raiff eisen Bank International AG at the time of its preparation. Like all statements about the future, they are subject to known and unknown risks and uncertainties that could cause actual results to diff er materially from those expressed or implied by such statements. No guarantee can be provided for the accuracy of forecasts, plan values or forward-looking statements.