• Profit after tax reached BGN 33,25 million – a 45,62% growth, compared to 30.06.2005.
• Compared to the same period last year total assets rose by 35,4%.
• Deposits increased by 45,7%, compared to June 30th 2006.

Total assets reached BGN 3 030,5 million

As of 30.06.2006 total assets of Raiffeisebank (Bulgaria) EAD amounted to BGN 3 030,5 million, which is an increase of 35,4%, compared to H1 2005. The market share of the bank reached 8,42%, which correspondents to 4th place in the banking system (5th as of 31.12.2005). The Loan portfolio of Raiffeisenbank (Bulgaria) amounted to BGN 1 545,7 million, while preserving the excellent quality of the assets. Deposits from customers increased by 45,7% and totaled BGN 1 961,7 million, compared to 30.06.2005.
All figures are based on International Financial Reporting Standards (IFRS).

Efficiency ratios

Raiffesienbank continued to improve its efficiency ratios. ROE after tax rose from 30,78% (as of 31.12.2005) to 36,7% (as of 30.06.2006). The bank maintains an excellent cost/income ratio of 44,4%, as of June 30th 2006. ROA after tax rose to 2,47%, compared to 2,09% as of December 2005.

Relationship with financial institutions

For the first half of 2006, Raiffeisenbank (Bulgaria) attracted a total of EUR 270 million. mid and long term funds, of which EUR 150 million Syndicated Loan, EUR 100 million Credit Lines and EUR 20 million Guarantee Facility from international organisations. The funds will be used to finance SMEs and municipalities.
Raiffeisenbank (Bulgaria) and the Council of Europe Development Bank (CEB) signed EUR 20 mln. Framework Loan Agreement to benefit small and medium-sized enterprises (SMEs) throughout Bulgaria. In May 2006, Raiffeisenabnk (Bulgaria) EAD has signed another EUR 20 million Portfolio Guarantee issued by the European Investment Fund under the European Community’s Multinational programme for Enterprise and Entrepreneurship. The funds will be available at favorable conditions to SMEs, aiming at creating new jobs and contributing to the SME sector development.
Raiffeisenbank (Bulgaria) continued the successful utilization of the Residential Energy Efficiency Credti Line from the European Bank for Reconstruction and Development (EBRD). As of 30.06.2006 some 800 projects have been financed the total amount of which are more than BGN 2 million. The borrowers benefit from a grant of up to 20% of the loan amount provided by the Kozloduy International Decommissioning Support Fund.

Treasury and Investment Banking

Raiffeisenbank further strengthened its outstanding position as a Lead Manager on the Bulgarian debt origination market. As of H1 2006 Raiffeisenbank structured and placed 7 new bond transactions for the total amount of EUR 46,3 million, which correspondents to 52% market share in total volume of new debt instruments of local issuers.

Leader in financing the small business

In H1 2006, the SME loan portfolio increased by 42,76%, compared to June 30th 2005, amounting to BGN 711,01 million,; the number of SME customers rose by 61,1%.
More than 60 000 Bulgarian companies, members of M-Tel Business Club Initiative, will benefit from the special program, developed by Raiffeisenbank. Under the program the bank offers these companies and their employees preferential conditions for bank services, as well as preferential lending conditions.

Dynamic growth in retail loan portfolio

In H1 2006 Raiffeisenbank continued its dynamic growth in Retail banking segment. The retail loan portfolio increased by 97,06% to BGN 420,6 million, compared to 30.06.2005.

Innovative products

At the end of June 2006, Raiffeisenbank launched Raiffeisen ONLINE – internet banking which provides fast and secure access to all personal and corporative bank accounts at any time and any place through the internet site online.rbb.bg. The Internet banking allows the client to make payments in BGN or foreign currency, using its PC or laptop, to inform him about its current bank accounts, as well as to get information about its loans or deposits.
The users of Raiffeisen ONLINE can make transfers in BGN, EUR or USD between their bank accounts, using their PC and internet, to order mass payments to the employees of their company, as well as to pay their taxes.

Raiffeisenbank expanded its branch network and alternative distribution channels

In H1 2006, Raiffeisenbank opened 9 new offices – in Sofia, Veliko Tarnovo, Haskovo, Botevgrad, Samokov, Rousse, Sliven, Plovdiv and Varna bringing the total number of outlets to 82.
The bank continued to develop its network of mobile bankers, whose number surpassed 100. Currently the mobile consultants cover 13 Bulgarian towns – Sofia, Plovdiv, Varna, Burgass, Stara Zagora, Rousse, Pleven, Pazardjik, Blagoevgrad, Veliko Tarnovo, Shumen, Sliven and Haskovo.

Raiffeisen Group - Bulgaria

On March 16th Raiffeisen Asset Management (Bulgaria) started the public offering of 4 own local funds and in just 4 months the company successfully accumulated BGN 18 million. Raiffeisen Asset Management (Bulgaria) is the fastest growing local asset management company. The company has a market share of 12.08%, which correspondents to 4th position on the market, in terms of net asset value.
The most successful fund of the company - Raiffeisen Balanced Fund is among the biggest Bulgarian Balanced funds in terms of Net Asset Value. The activities under management as of June 30th 2006 exceeded BGN 6,6 million.
Raiffeisen Asset Management (Bulgaria) is the first asset management company in Bulgaria, which offers a mix between foreign and local funds - 8 of Raiffeisen Capital Management’s funds and 4 local funds. As of Q2 2006 EUR 2,5 mln. Raiffeisen Capital Management’s funds are sold.

Raiffeisen Leasing (Bulgaria) Raiffeisen Leasing Bulgaria OOD is established in 2004 with shareholders Raiffeisenbank (Bulgaria) EAD holding 24,5% of its shares and Raiffeisen Leasing International GmbH holding 75,5%. Raiffeisen Leasing owns 100% of the shares of Raiffeisen Auto Leasing Bulgaria EOOD.
As of 30 June 2006 the assets of both Raiffeisen Leasing Bulgaria OOD and Raiffeisen Auto Leasing Bulgaria EOOD reached BGN 130 million, which is a 80% increase compared to 31 December 2005. As of 30 June 2006 the leasing portfolio amounts to BGN 98 million, which is a 103% increase compared to the leasing portfolio as of end of 2005 financial year.
In H1 2006 Raiffeisen Leasing attracted EUR 113 million mid and long term financial resources from financial institutions, of which EUR 20 million from international organizations. At the beginning of 2006 Raiffeisen Leasing Bulgaria OOD and the Council of Europe Development Bank singed a Frame Agreement for EUR 10 million. The resources are completely utilized and are for financing small and medium enterprises. Raiffeisen Leasing signed and started utilization of a credit line from the European Bank for Reconstruction and Development amounting to EUR 10 million. The project is focused on financing of small and medium enterprises aiming at creating new jobs and development of small and medium business in Bulgaria.

Raiffeisen Insurance Brokerage EOOD – the new subsidiary of Raiffeisen Group-Bulgaria is fully owned by Raiffeisenbank (Bulgaria) EAD. It was registered in the Financial Supervision Commission on April 1 2006.
In the first half of 2006 Raiffeisen Insurance Brokerage has signed contracts with leading insurance companies on the Bulgarian market and works actively with the full range of insurance products.

Awards

Raiffeisenbank (Bulgaria) was awarded as a “Best Bank” in Bulgaria 2005 by Global Finance magazine - the decision was based on factors such growth in assets, profitability, customer service, competitive pricing, and innovative products.
Euromoney awarded Raiffeisenbank (Bulgaria) as a Best Debt House in Bulgaria.

Raiffeisen International Bank-Holding AG (RI) awarded Raiffeisenbank (Bulgaria) for strongest growth in the segment of small and medium business among all Network banks.