• Net interest income increases by 7.4 per cent year-on-year to € 3,729 million (2012: € 3,472 million)
• Operating income (excl. impairment of goodwill and bank levies) increases by 8.2 per cent to € 5,729 million (2012: € 5,297 million)
• General administrative expenses rise by 2.5 per cent to € 3,340 million (2012: € 3,258 million)*
• Net provisioning for impairment losses increased by 13.9 per cent to € 1,149 million (2012: € 1,009 million)
• Profit before tax decreases by 19.5 per cent to € 835 million (2012: € 1,037 million)*
• Consolidated profit decreases by 23.6 per cent to € 557 million (2012: € 730 million)*
• Non-performing loan ratio increases to 10.7 per cent (up 0.9 percentage points compared to year-end 2012)
• Core Tier 1 ratio (total risk) stable at 10.7 per cent
• Earnings per share decrease by € 0.89 to € 1.83* (2012: €2.72)

* Adaptation of previous year's values due to retrospective application of IAS 19R.

All figures are based on International Financial Reporting Standards (IFRS).

RBI realized profit before tax of € 835 million in 2013. The year-on-year decrease of € 203 million was primarily attributable to one-off effects in 2012, such as the sale of bonds and the hybrid tier 1 capital buyback totaling € 276 million. Operating result improved significantly by 17 per cent, or € 351 million. This pleasing result contrasted with higher net provisioning for impairment losses (up € 140 million), increased bank levies, and a negative result from derivatives and liabilities. „Our good operating result proves once again that our business model is sound, also in challenging times and despite allowing forhigh provisions. We have posted the best result of an Austrian bank for the fourth time in a row,” said Karl Sevelda, CEO of RBI. Profit after tax for the reporting period was 20 per cent, or € 149 million, below the value for the previous year. As a result of the decline in profit after tax, return on equity after tax decreased 1.3 percentage points to 5.7 per cent. After deducting profit attributable to non-controlling interests, which increased € 23 million to minus € 46 million, consolidated profit amounted to € 557 million. This resulted in earnings per share of € 1.83 (2012: € 2.72) based on an average of 194.9 million shares outstanding.

The Management Board will propose to the Annual General Meeting that a dividend of € 1.02 per share be paid for the 2013 financial year.

Operating income increased 8 per cent

Operating income increased 8 per cent, or € 432 million, to € 5,729 million year-on-year.

General administrative expenses rose 2.5 per cent

RBI's general administrative expenses rose 2.5 per cent, or € 81 million, to € 3,340 million in the reporting period, due mainly to increases in Russia, the Czech Republic and Poland (resulting from the consolidation and integration of Polbank in May 2012). However, the cost/income ratio improved 3.2 percentage points to 58.3 per cent due to increased operating income.

Staff expenses, the largest component in general administrative expenses at 49 per cent, rose 2 per cent, or € 31 million, to € 1,632 million in 2013.

As of 31 December 2013, RBI had 57,901 employees (full-time equivalents), 2,183 people, or 4 per cent, fewer than at the end of 2012.

Net provisioning for impairment losses rose 14 per cent

Net provisioning for impairment losses rose 14 per cent, or € 140 million, to € 1,149 million year-on-year. Individual loan loss provisions increased € 33 million to € 1,215 million, while net releases of portfolio-based loan loss provisions fell € 112 million. In 2013, net releases of portfolio-based loan loss provisions amounted to € 52 million, after € 164 million in the previous year. Net provisioning for impairment losses includes income from the sale of impaired loans amounting to € 14 million (2012: € 9 million).

Impairment needs in the Group Corporates segment, where various loans to major customers became non-performing, were € 145 million higher year-on-year. In Russia, net provisioning for impairment losses of € 48 million was made for both large corporate customers and retail customers, whereas net releases of € 16 million were booked the previous year. Similarly, in

Slovenia, net provisioning for impairment losses increased € 31 million year-on-year, particularly due to non-performing loans and the revaluation of collateral. A positive trend was revealed in Hungary and Poland, where net provisioning for impairment losses was significantly lower year-on-year. Net provisioning for impairment losses declined € 89 million in Hungary, and decreased by € 41 million in Poland.

The NPL ratio – i.e., the ratio of non-performing loans to total customer loans – was 10.7 per cent in the reporting year after 9.8 per cent in the previous year.

Total assets declined 4 per cent

RBI’s total assets declined 4 per cent, or € 5.5 billion, to € 130.6 billion year-on-year. A large part of this decrease (around € 3.4 billion) was attributable to currency effects, which largely consisted of the weakening of the US dollar, Russian rouble, Czech koruna, and the Ukrainian hryvnia against the euro.

Loans and advances to customers (before deduction of loan loss provisions) fell 3 per cent, or € 2.7 billion, to € 80.6 billion. Besides the mentioned currency effects, the principal reason for the decrease was weak credit demand from corporate customers.

The loan/deposit ratio (loans and advances to customers in relation to deposits from customers) decreased by 1 percentage point compared with year-end 2012 to 120.7 per cent.

Number of business outlets decreased primarily due to Polbank merger

The number of business outlets fell by 81 to 3,025 year-on-year, predominantly due to the optimization of the branch network following the merger with Polbank.

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You can access the online version of the annual report at http://ar2013.rbinternational.com
The German version is available under http://gb2013.rbinternational.com
A printed English version can also be ordered via that webpage.