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Press Release


Vienna, 14 October 2005

Keen Interest in First Raiffeisen International Capital Markets Day

More than 80 analysts and investors attended the first Raiffeisen International Capital Markets Day. Focus of attention on acquisition of Ukrainian Bank Aval.

The first Raiffeisen International Bank-Holding AG (Raiffeisen International) Capital Markets Day was extremely well attended. More than 80 analysts and investors from around the world came to Vienna to learn first-hand about Raiffeisen International.

Herbert Stepic, CEO of Raiffeisen International, providing an outlook for 2005 said: "For this financial year we expect a strong profit increase". The Management Board expects group profits (after minorities) to be approximately 50 per cent above the level of last year (2004: € 209 million), excluding Bank Aval. For 2006 to 2007, the management anticipates an average total asset growth of 20 per cent per year.

For the year 2007 the company still targets a return on equity (ROE) before tax of at least 25 per cent, a cost/income ratio of below 60 per cent and risk/earnings ratio of below 15 per cent. Due to the continuously improving conditions in Central and Eastern Europe (CEE) the management board considers a core capital ratio (tier1) of 8 per cent as sufficient.

The main focus of the day was Raiffeisen International’s most recent acquisition of Joint Stock Post Pension Bank Aval (Bank Aval). With a combined market share of about 12 per cent JSCB Raiffeisenbank Ukraine and Bank Aval are clear market leaders in Ukraine. The assets of Bank Aval have increased by almost 40 per cent to USD 2.9 billion in the first half of 2005. A balance sheet according to international financial reporting standards will be prepared for the financial report for the business year 2005.

The agreement on the purchase of Bank Aval was signed in Kiev on 20 August, 2005. The purchase price for 93.5 per cent of the shares was USD 1.028 billion. Raiffeisen International has committed itself to take over the shares of minority shareholders at the same price. The purchase price includes the cost of the shares of the authorized capital increase from February 2005 in the amount of approximately USD 100 million – of which 30 per cent were paid in August and the remaining 70 per cent will be paid by the sellers at the time of the closing of the transaction.

"The main emphasis for the next year is on the integration of Bank Aval. As the number one bank in Ukraine, we will fully utilize the potential of this 50 million people market. We now operate an area-wide network of approximately 1,400 branches and the most recognised banking brand in the country. Through this acquisition we have gained 3 million new customers to give the group a total of 9.2 million customers in the CEE-region. Dynamic growth will continue and in 2007 we aim to service 12 million customers", Stepic emphasized.

Raiffeisen International will conduct a Capital Markets Day annually in autumn, enabling the continuous information flow and exchange of views with the financial community on the top level. From 2006 onwards the Capital Markets Day will be held in a different capital in CEE each year.