Raiffeisen International Bank-Holding AG, a member of the RZB Group headed byRaiffeisen Zentralbank Österreich AG, continued its course based on organicgrowth during the first quarter of 2008. Consolidated profit (after tax andminorities) for the first three months increased by 32.1 per cent to254.4 million Euros (Q1/2007: 192.6 million Euros). Profit before tax grew by26.4 per cent and amounted to 369.6 million Euros (Q1/2007: 292.5 millionEuros), and profit after tax advanced by 21.1 per cent to 279.4 million Euros(Q1/2007: 230.8 million Euros). All data according to International FinancialReporting Standards (IFRS).

Again the best quarterly result in the Group's history

The consolidated profit for the first quarter of 254.4 million Euros is onceagain a record result, disregarding one-off effects in the previous periods. Netinterest income (plus 41 per cent) and net commission income (plus 20 percent) contributed most. The increase in general administrative expenses (plus23 per cent) was considerably lower than the one in net interest income. Thelargest contribution to profit before tax came from the CIS and accounted for36 per cent (Q1/2007): 27 per cent).

„This quarterly result corroborates our claim that the current environmenton the global financial markets has only limited influence on our business modeland growth perspective. By covering 17 markets in Central and Eastern Europeand by having an excellent strategic alignment we are again able to achievesignificant organic growth and increasing profitability at the same time in2008,“ commented CEO Herbert Stepic on the result.

Asset growth according to plan

Compared with the end of 2007, the balance sheet total Euros, to76.5 billion Euros. That growth was entirely organic, since no material changesoccurred in the scope of consolidation. However, significant devaluation ofcurrencies correlated with the US dollar (especially in the CIS) had a negativeinfluence on the balance sheet total of about 1 percentage point, or0.8 billion Euros. Consequently, adjusted growth of the balance sheet totalcame to about 6 per cent.

Best quarterly result in the CIS

Of the three regional segments, the CIS registered the highest profit beforetax in the first quarter with an increase of 65 per cent to 133 million Euros.That was mainly due to strong increases in interest income and low newprovisioning needs. Balance sheet assets rose by 33 per cent, which is also thestrongest plus of all the segments. The contribution to profit before taxamounted to 36 per cent, which is 8 percentage points above thesegment’s share in the comparable period.

The region of South-eastern Europe contributed the second-largest share toprofit before tax at 34 per cent (Q1/2007: 33 per cent). The segmentregistered a considerable increase of 30 per cent, or 29 million Euros, to127 million Euros. That was largely based on solid growth of net interest andcommission income.

In Central Europe, profit before tax remained at the same high level as inthe comparable period. The segment contributed a share of 30 per cent to thetotal result. That represents a decline of 9 percentage points on lastyear’s level, which was influenced by some special effects. Balance sheetassets grew by 30 per cent in comparison with last year.

The shares of balance sheet assets attributable to the individual segmentsremained nearly unchanged compared with December 2007. Central Europe continuedto dominate consolidated assets with a share of 41 per cent, followed bySouth-eastern Europe at 31 per cent and the CIS at 28 per cent.

Outlook and targets unchanged

Building on Raiffeisen International's suc­cessful mid-market strategy, thecorporate customers segment will make the largest contribution to profit beforetax again in 2008. In the retail business, the company continues to emphasizeexpansion of the branch network to support the broadening of the customer base.Moreover, it will further develop its product range in the areas of assetmanagement and insurance in the current year.

Raiffeisen International's go­al for consolidated profit in 2008 is about1 billion Euros.

The group aims to grow the balance sheet total by at least 20 per cent peryear in the period to 2010, with the strongest increases targeted in the retailcustomer segment.

Raiffeisen International has set a return on equity (ROE) before tax of morethan 25 per cent as a goal for 2010. That does not take account of anyacquisitions or capital increases. The cost/income ratio should come to about56 per cent, and the target risk/earnings ratio is about 15 per cent.

You can download the Interim Report for the first quarter fromqr012008.ri.co.at.

Raiffeisen International operates one of the largest banking networks in CEE.17 markets of Europe's growth region are covered by subsidiary banks, financeleasing companies and a number of other financial service providers. Over14 million customers are attended to through more than 3,000 business outlets.Raiffeisen International is a fully consolidated subsidiary of RaiffeisenZentralbank Österreich AG (RZB), which owns 68.5 per cent of the common stock.The balance is free float, the shares are traded on the Vienna Stock Exchange.RZB is a leading corporate and investment bank in Austria and the centralinstitution of the Austrian Raiffeisen Banking Group, the country's largestbanking group.