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Raiffeisenbank (Bulgaria) with 137% increase in total assets and 77% net profit growth in 2004
01 March 2005
Excellent results for 2004 have positioned Raiffeisenbank among the fastest growing institutions in Bulgaria and Central and Eastern Europe. The bank’s customer base has grown by 57%. The bank has registered a record high assets growth of 137% reaching BGN 2 bln, which represents 8% market share. Profit after tax totaled BGN 24.5 mln, indicating a strong 77% growth in 2004.
Raiffeisenbank is among the most profitable and efficient financial institutions in Bulgaria for 2004 with Return on Equity (RoE) after tax of 32.8%. Cost/Income Ratio significantly improved reaching 45.15% compared to 53% in 2003 whereas the Return on Assets (RoA) after tax increased to 2.1% compared to 2% in 2003.
“For the tenth year in a row, Raiffeisenbank has achieved considerably higher growth than the Bulgarian banking sector, resulting in increasing market shares solely through organic growth, while at the same time delivering excellent returns” says Herbert Stepic, Chairman of the Managing Board of Raiffeisen International Bank-Holding AG (Raiffeisen International) and Deputy Chairman of Raiffeisen Zentralbank Osterreich AG (RZB).
By maintaining an excellent quality of assets the bank’s loan portfolio increased by 50.9% in the past year, reaching BGN 1 bln. Customer deposits have also increased by 157% to BGN 1 320 mln. Raiffeisenbank consolidated its strong position as a leading lender to corporates with a market share above 9%. The SME loan portfolio has been growing faster than the market, while the loans to private customers recorded an exceptional three-fold increase to BGN 102 mln.
Raiffeisenbank’s market positions in payments have considerably improved. The number of transfers in local currency went up by 54% whereas payments in foreign currency grew by 31%. In 2004 8% of the total payments through RINGS and 4.5% of the payments via Bisera were executed through Raiffeisenbank.
Aiming to reinforce the dynamic growth of the bank, Raiffeisen International – the sole owner of Raiffeisenbank, has increased the paid-in capital of the bank to BGN 65.6 mln by BGN 39.1 mln raising the total capital base to BGN 155.2 mln in 2004. Raiffeisenbank has increased also its supplementary capital by another EUR 5 mln in debt-capital hybrid instrument from RZB.
In 2004 Raiffeisenbank further strengthened its position as one of the leaders on the local interbank FOREX market and a preferred counterparty for foreign exchange transactions by corporate and private customers, reaching a market share of above 14%. The bank has further strengthened its position as a major Lead Manager of corporate and mortgage bond issues with a market share exceeding 24%. Raiffeisenbank is one of the major primary dealers in Bulgarian government securities. The orders placed by the bank at the 2004 government securities auctions exceeded 22% of the total volume offered by the Ministry of Finance.
Raiffeisenbank is one of the leading Bulgarian banks in attracting medium and long term financing from international financial institutions and commercial banks. In June 2004 Raiffeisenbank received a EUR 75 mln syndicated loan from 18 banks with Deutsche Bank AG and WEST LB as Leading Managers. The total amount of the attracted credit lines from foreign banks, including the European Bank for Reconstruction and Development, European Investment Bank, Council of Europe Development Bank and Kreditanstalt fuer Wiederaufbau (KfW), totaled EUR 70 mln.
In 2004 Raiffeisenbank has continued to develop its branch network. The newly opened 15 offices in 2004 brought the total number of branches to 51. The number of employees increased by 37.6% to 823 people.
In 2004 Raiffeisenbank was the first Bulgarian bank to set up a network of its own mobile bankers. The bank also offers loans by phone through its Call Center.
At the beginning of 2004, Raiffeisenbank (Bulgaria) EAD and Raiffeisen Leasing International registered a joint leasing company - Raiffeisen Leasing Bulgaria OOD. The company finances both corporate clients and private customers for purchasing motor vehicles, industrial and other specialized equipment, as well as real estate.
Raiffeisenbank, the banking unit of the RZB Group in Bulgaria, was established in 1994. The bank is 100% owned by Raiffeisen International, the holding company for RZB's subsidiaries in Central and Eastern Europe (CEE). RZB is the central institution of the Austrian Raiffeisen Banking Group, the country's most powerful banking group. Through Raiffeisen International it operates a network of 15 subsidiary banks with more than 920 branches.
