14.08.2008

Raiffeisen International Bank-Holding AG, which is part of the RaiffeisenZentralbank Österreich AG (RZB) Group, once again achieved a record resultbased on strong customer business. Consolidated profit (after tax andminorities) for the first half 2008 rose by 41 per cent to 566 million euros(HY 2007: 401 million euros). Profit before tax grew by 39 per cent to843 million euros (HY 2007: 607 million euros). Earnings per share rose from2.82 euros for the first half 2007 to 3.68 euros. All figures are based onInternational Financial Reporting Standards (IFRS).

Herbert Stepic, CEO of Raiffeisen International, commented on the results,“It is a robust sign of the strength of our business model that we arepresenting a record result again despite the turbulence on the global credit andcapital markets. This record result is due to a dynamic development of ourcustomer business. Our semi-annual result proves that we have a sound grip onthe indirect consequences of the global financial crisis for our business. Westick to our targets.“

“Central and Eastern Europe still shows real economic growth rates whichare two to three times higher than in the Eurozone. This fact and the verypositive development of our operating business combined with the continuedgrowth of our customer base by almost 700,000 in the first six months of2008 underline my conviction that we will be able to continue our sustainedgrowth trend“, said Stepic.Balance sheet total above 80 billion euros for thefirst time.

Record result in second quarter 2008

With a consolidated profit of 311 million euros for the second quarter 2008,Raiffeisen International recorded the best quarterly result in its history(discounting the one-off effect from the sale of Raiffeisenbank Ukraine in thefourth quarter 2006). This represents an increase of 57 million euros or22 per cent compared with the first quarter 2008. Net interest income afterprovisioning reached 678 million euros in the second quarter 2008, which isalso a record and was 37 per cent above the same quarter of the previous year.Net commission income amounted to 372 million euros, with an increase of25 per cent significantly higher than in the same quarter of 2007.

Central Europe continued to dominate in consolidated assets with a share of43 per cent, which represents an increase of 3 percentage points. As in theprevious year, Southeastern Europe had the second-largest share at 31 per cent,followed by the CIS at 26 per cent.

Outlook and targets unchanged

Raiffeisen International's go­al for consolidated profit in 2008 is about1 billion euros. The group aims to grow the balance sheet total by at least20 per cent per year in the period to 2010, with the strongest increasestargeted in the retail customer segment. Raiffeisen International has set areturn on equity (ROE) before tax of more than 25 per cent as a goal for2010. That does not take account of any acquisitions or capital increases. Thecost/income ratio should come to about 56 per cent, and the targetrisk/earnings ratio is about 15 per cent.

For more information on Raiffeisen International's se­mi-annual report goto http://qr022008.ri.co.at/.

Source: http://ri.co.at/