Raiffeisen in Europe. Raiffeisen Bank AG - a guide to the famous bank of Austria. Raiffeisenbank in Russia
Raiffeisen Zentralbank (RZB) is the third largest bank in Austria and one of the leading commercial and investment banks in the country. In addition to Austria, the bank has a strong presence in Central and Eastern Europe, serving approximately 15 million customers through more than 3,150 branches. RZB is the flagship of the Raiffeisen Banking Group (RBG). RBG's total assets as of December 31, 2009 were €260.3 billion.
Structure of Raiffeisen Banking Group in Austria
The 3-tier Raiffeisen cooperative banking group consists of RZB - the central organization for 8 autonomous regional banks (called Raiffeisenlandesbanks), which are shareholders of RZB, and 535 local banks (called Raiffeisenbanks), which are owned by 8 regional banks. The first Raiffeisenbank was created in 1886, and after just 10 years there were more than 600 of them. Beginning in 1894, local Raiffeisen banks began to form regional Raiffeisen banks (Raiffeisenlandesbanks) and in 1927 the Raiffeisen Zentralbank (RZB) was established.
Raiffeisen Zentralbank address:
Am Stadtpark 9, A-1030 Vienna
Tel: +43-1-71707-0
Website: http://www.rzb.at
Raiffeisenbank in Russia
ZAO Raiffeisenbank is a 100% subsidiary bank of the Austrian banking group Raiffeisen. The bank has been operating in Russia since 1996 and provides a full range of services to private and corporate clients, including consumer and mortgage loans, car loans, credit cards, bank deposits, deposits, lending to small and medium-sized businesses, cash management services, salary transfer services, treasury services. Today, Raiffeisen is represented in 75 cities, from Kaliningrad to Kamchatka, and has the largest service network among foreign banks in Russia, which includes more than 250 branches and over 1,000 ATMs.
Raiffeisenbank was registered in mid-1996 as a credit institution with 100% Austrian capital under the name Raiffeisenbank Austria. The Central Bank of the Russian Federation received a general license in 2001, and in the same year it was transformed into a closed joint-stock company. In February 2005, it became a member of the deposit insurance system for individuals.
At the beginning of 2006, ImpexBank OJSC (see “Book of Memory”), which once acted as a bridger for Boris Ivanishvili’s Russian Credit Bank, became one of the banks of the Raiffeisen group. The merger of the Russian Raiffeisenbank and ImpexBank was completed in November 2007. Since December 2007, the merged bank has been operating under the name ZAO Raiffeisenbank. In February 2015, the organizational and legal form was changed to a joint stock company.
In November 2015, reports appeared in a number of media outlets that the Russian division of Raiffeisenbank could be put up for sale and that Alfa-Bank was showing interest in this transaction. However, this information was categorically denied by the press service of the Russian subsidiary of Raiffeisen Bank International (RBI), noting that the group has no plans to sell its business in the Russian Federation. Nevertheless, in November 2015, a deal was concluded to sell NPF Raiffeisen, which belonged to Raiffeisenbank, to the BIN group.
Currently, the sole shareholder of the bank is Raiffeisen Bank International AG with a 100% stake.
The bank has a developed network of separate divisions, including five branches (in St. Petersburg, Yekaterinburg, Novosibirsk, Nizhny Novgorod and Krasnodar) and 177 branches as of June 30, 2018. The number of bank personnel as of this date was 8,636 people (at the end of 2017 - 8,171 people). Plastic card holders have access to about 2 thousand of Raiffeisenbank’s own ATMs, as well as about 16 thousand ATMs of partner networks, where they can withdraw cash at “home” rates. The total number of places and points for replenishing cards and bank accounts is 8.7 thousand.
The bank provides a wide range of services to individuals and legal entities. The main activities of the bank are lending to the real sector of the economy and, above all, to large Russian manufacturers and exporting enterprises, lending to individuals (cash loans, car loans, mortgages, refinancing) and SMEs, conversion operations, cash settlements, attracting deposits from legal entities and individuals, documentary operations, operations with securities, issuance and servicing of bank cards (MasterCard and Visa), depository and brokerage services, investment banking operations.
The volume of net assets based on the results of the first eight months of 2018 showed a significant increase (by 19.8%) and exceeded the mark of 1 trillion rubles as of September 1. During this period, all main sources of funding (with the exception of its own bonds, which the bank almost completely repaid), including client funds, interbank loans and equity capital, showed a noticeable increase in liabilities (from 11% to 53%). In the structure of assets, more than half of the total growth was accounted for by investments in securities (+140.1%), although the loan portfolio also showed a very noticeable increase (+13.9%). The bank received part of its liquidity from the repayment of issued interbank loans (the portfolio decreased by 18%). There is also a 17% reduction in the volume of highly liquid balances.
In the structure of the bank's liabilities as of September 1, 2018, 41.7% accounted for deposits of individuals. The volume of deposits of individuals since the beginning of 2018 has increased by 13.7% and as of the reporting date was 76.2% formed by funds on current and card accounts. About 31% of liabilities are funds in accounts and deposits of companies, non-profit and financial organizations (including funds from budgetary organizations). At the same time, a significant part of client funds of legal entities is formed by balances on current accounts (about 73% as of September 1, 2018). A share of 7% of liabilities comes from borrowings from banks (both Russian and foreign, including from the parent company); the volume of issued securities decreased by the reporting date to almost zero due to the repayment of own bonds. A share of 0.5% - balances on correspondent accounts of loro Russian credit institutions and non-resident banks.
Raiffeisenbank has a strong and very active client base, which includes a large number of large Russian and foreign companies, as well as individuals. Intramonth turnover on customer accounts since the beginning of 2018 amounted to 2.5-4.1 trillion rubles monthly. An extremely important part of the passive base is the funds of individuals (including balances on card accounts), which implies a significant level of dependence on this source of funding. Another important source of funds for development was long-term deposits attracted from the banks of the parent group. The bank's strength has been its ability to attract significant volumes of long-term funding in both Russian and international markets. The credit institution's client base demonstrates a slight concentration on large clients: as of June 30, 2018, funds from the twenty largest clients accounted for 9.6% of the total amount of client liabilities under IFRS (at the end of 2017 - 7.2%). The basis of the client base consists of companies and organizations from the real estate, manufacturing, trade and financial sectors.
Own funds as of the reporting date formed about 12% of liabilities. Since the beginning of 2018, the amount of capital calculated according to the Central Bank’s methodology has increased by 11%, amounting to 143.4 billion rubles as of September 1, 2018. However, the bank's equity adequacy ratio (N1.0) decreased over the corresponding period from 13.3% to 12.9% (with a minimum of 8%) due to an increase in the value of risk-weighted assets. As of July 1, 2018, the bank attracted subordinated loans from the parent group in the amount of 32.8 billion rubles.
As part of the assets, 62.1% is accounted for by the loan portfolio, 17.2% is formed by investments in securities, 8.9% is a portfolio of placed interbank loans, 4.1% is highly liquid assets (mainly cash balances and correspondent accounts with the Central Bank). Other assets occupy 6.3%, fixed assets and investments in the capital of other organizations in the aggregate account for no more than 1.5%.
The loan portfolio as of the reporting date was dominated by loans to enterprises and organizations with a share of 58.7%. However, since the beginning of 2018, loans to individuals have shown the greatest growth, both in absolute and relative terms (+47.5 billion rubles and +21.6%, respectively). However, loans to legal entities also contributed to the overall portfolio growth since the beginning of 2018 (+13.9%), adding 9.1%, or 31.6 billion rubles. The level of overdue debt in the total portfolio amounted to 3.4% by the reporting date, having decreased slightly since the beginning of 2018. The provisioning level as of the reporting date more than doubled the share of overdue loans, amounting to almost 7%. The level of collateral for the loan portfolio with property collateral is traditionally low and amounted to 36.7% at the reporting date (at the beginning of 2018 - 48.7%). According to IFRS reporting, the industry structure of the corporate loan portfolio as of June 30, 2018 was dominated by manufacturing (38.4%), trade (22.9%), real estate (11.7%) and mining (10.8%). In the retail sector, the bank has a strong position in consumer lending (56.0% in the retail portfolio at the end of the first half of 2018), mortgages (30.8%) and loans for the purchase of housing (excluding mortgages, 12.2%).
The securities portfolio grew almost 2.5 times during the study period: if at the beginning of 2018 its share in assets was 8.6%, then by the reporting date the share increased to 17.2%. Securities are almost entirely represented by bonds, the structure of which, in turn, is dominated by Russian government securities with a share of 72%. The remainder of the portfolio is represented by Eurobonds (14.5% of the portfolio), bonds of Russian companies (10.5%) and banks (3.6%). The portfolio turnover is low, including on repo transactions carried out on an irregular basis.
The bank is extremely active in the interbank loan market. Constantly places excess liquidity both overnight to foreign banks and to Russian banks. It also actively attracts liquidity - both from the parent company and from Russian banks and the Central Bank of the Russian Federation. The credit institution is one of the market makers of the market of conversion operations (Forex), the turnover of which during the period under study ranged from 10 trillion to 20 trillion rubles per month.
For January - August 2018, the credit institution earned a profit of 13.2 billion rubles according to RAS (for the same period in 2017, the profit amounted to 16.2 billion rubles). For the entire 2017, the bank's net profit amounted to 23.2 billion rubles.
Supervisory Board: Johann Strobl (chairman), Andrey Stepanenko, Martin Grüll, Andreas Gschwenter, Peter Lennkh, Hannes Mösenbacher.
Governing body: Sergey Monin (chairman), Nikita Patrakhin, Andrey Popov, Gert Hebenstreit, Roland Wass, Roman Zilber.
*Raiffeisen Bank International AG (RBI) occupies a leading position in the field of corporate and investment business in the banking market of Austria, as well as in Central and Eastern Europe, where it has a developed network of subsidiary banks. After the mergerRBIwith its main shareholder Raiffeisen Zentralbank Österreich AG (RZB) in March 2017, the new combined structure operates under the name Raiffeisen Bank International AG. The total number of employees of the group is about 50 thousand people. The group serves 16.7 million clients and has 2.4 thousand branches. Since 2005, the group's shares have been listed on the Vienna Stock Exchange (about 41.2% of the bank's shares are in free float).
RBIis the second largest bank in Austria. As of June 30, 2018, the group’s total assetsRBIamounted to 143.6 billion euros (+6.3% for the first half of 2018), loans to customers - 77.9 billion euros (+0.3%), customer deposits - 79.9 billion euros (-6%). Net profit for the first half of 2018 was 820 million euros (for the same period in 2017 - 656 million euros).
Raiffeisen Bank International AG is the main bank of the Raiffeisen Group, which offers corporate and investment banking services to Austrian and international companies, individuals and legal entities.
Owners
Raiffeisen Bank International is a fully consolidated subsidiary Raiffeisen Zentralbank (Raiffeisen Central Bank), as of 2014, owning about 60.7% of ordinary shares listed on the Vienna Stock Exchange, the rest of the shares are in free float.
Assets
As of 2018, RBI operates a network of subsidiary banks, leasing and other companies in 14 countries of Central and Eastern Europe such as Poland, Croatia, Bulgaria, Czech etc., as well as in Asian countries and in the main financial centers of the world.
Number of employees
The decrease in headcount in 2018 was mainly due to the sale of business in Poland (-3,675 employees). Number of employees in Russia over the year increased by 769 people.
The average age of employees at RBI is 39 years. 66% of employees are women.
Performance indicators
As of January 2015, based on the results of 2015, the entire RBI group (operates in most European countries, USA and Asian countries), despite the positive results of the Russian division, expects losses of up to €500 million. Investors' concerns about possible losses are reflected in the value of the group's securities. RBI's €500 million subordinated bonds with a coupon of 4.5% and maturing in 2025 were trading at 44% of par on January 29, 2015. Credit default swaps on them are trading at levels indicating that investors estimate the likelihood of an RBI default within five years to be 70%. RBI shares traded on the Vienna Stock Exchange halved their value in 2014 - from €24.42 to €12.53; at the close of trading on January 28, 2015, the shares cost only €9. Capitalization on the Vienna Stock Exchange was €2.988 billion on January 29.
Business in Russia
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2014: 14.6 million clients, 2900 branches
Raiffeisen Bank International AG is a corporate and investment bank in the financial markets of Austria and Central and Eastern Europe. In Central and Eastern Europe, Raiffeisen Bank International operates a network of subsidiary banks, leasing companies and a range of other specialized financial services providers in 15 markets.
Raiffeisen Bank International is an Austrian bank operating in global financial centers and in the Asian market. The bank's more than 56,000 employees serve 14.6 million clients in more than 2,900 branches, most of which are located in Central and Eastern Europe.
2011: Raiffeisen Zentralbank owns 78.5% of the bank's shares
For 2011, Raiffeisen Bank International is a subsidiary of Raiffeisen Zentralbank Austria AG (RZB), owning about 78.5% of ordinary shares listed on the Vienna Stock Exchange, the rest of the shares are in free float.
Raiffeisen Bank International AG views Austria, where it acts as a leading corporate and investment bank, and Central and Eastern Europe as its main markets. In Central and Eastern Europe, Raiffeisen Bank International operates an extensive network of subsidiary banks, leasing companies and a wide range of other specialized financial service providers in 17 markets. The Bank's more than 59,000 employees serve approximately 15 million customers in its 3,000 branches, most of which are located in Central and Eastern Europe. Raiffeisen Bank International is the only Austrian bank operating in both global financial centers and the Asian market, which is its next focus.
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