• Profit after tax grows by 15.6% yoy to BGN 50.8 million at year-end 2011
• Customer base increases by nearly 40,000 yoy, or by 5%
• 36% growth of the e-banking users
• Stable growth of loans and deposits – by 9% and 5.7% respectively on an annual basis
• Capital adequacy ratio of 17.6%, considerably above the minimum requirement

(All figures mentioned in this press release have been prepared in accordance with the local accounting legislation, which is grounded on the International Financial Reporting Standards (IFRS), and refer solely to the results posted by Raiffeisenbank (Bulgaria) EAD. The figures may also differ from the results reported by Raiffeisen Bank International for the Bulgarian market due to differences in the scope of consolidation)

Raiffeisenbank (Bulgaria) EAD reported a 15.6% growth in profit after tax for 2011 to BGN 50.8 million as against BGN 43.95 million in 2010.

At the end of December 2011, Raiffeisenbank’s total assets amounted to BGN 6.45 billion, compared to BGN 6.56 billion a year earlier, while loan portfolio reached BGN 5.05 billion, compared to BGN 4.63 billion at the end of 2010, or up 9% year-on-year – above the banking system average. The bank's deposit base registered a stable growth of 5.7% and at the end of 2011 and stood at BGN 4.36 billion, compared to BGN 4.12 billion a year earlier.

“The stable growth of loans and deposits in 2011 shows the bank’s activity in all segments and our new 40,000 customers are proof of the competitive terms we offer to the business and the individual customers,” commented Momtchil Andreev, Chairperson of the Management Board and CEO of Raiffeisenbank.

Capital adequacy ratio at 17.6%, the minimum requirement being 12%

As of 31 December 2011, Raiffeisenbank’s capital base amounted to BGN 856.6 million and the bank's total capital adequacy ratio (CAR) stood at 17.6%, considerably above the 12% minimum established by Regulation 8 of the Bulgarian National Bank.

Income from transaction services

In 2011 Raiffeisenbank reported a growth of 8.74% in income from transaction services compared to the previous year. The share of electronic transactions continued to grow reaching 70% of all transactions processed in 2011. The users of Raiffeisen Online and Multicash grew by 36.94% year-on-year.

6 new credit lines and guarantee agreements with international financial institutions and the National Guarantee Fund amounting to EUR 134.73 million

In 2011, Raiffeisenbank negotiated four new credit lines and guarantee agreements with international financial institutions (IFIs) and the National Guarantee Fund (NGF), part of the Bulgarian Development Bank. In addition, in the same period, Raiffeisen Leasing Bulgaria signed two new credit lines with IFIs totalling EUR 40 million, one with the European Bank for Reconstruction and Development (EBRD) and the second with the Council of Europe Development Bank (CEB), both for the purpose of financing leasing deals of small and mid-sized businesses. In this way, the total negotiated financing of the Raiffeisen Group in Bulgaria stood and EUR 134.73 million.

In the first quarter of 2011, Raiffeisenbank and the National Guarantee Fund signed an agreement for guaranteeing a portfolio of credit and bank guarantees for a total of BGN 40 million, with the purpose of supporting the development of the existing small and mid-sized companies or start-up SMEs in Bulgaria. In July 2011 Raiffeisenbank signed with EBRD a loan agreement under the REECL Programme designed to provide loans for energy efficiency home improvements. In the same month, the bank signed a guarantee agreement under the Joint European Resources for Micro to Medium Enterprises (JEREMIE) with the European Investment Fund, part of the European Investment Bank Group. Following the agreement, the Bank will offer financing at preferential conditions to a broad range of SMEs across the country. Additionally, the National Guarantee Fund and Raiffeisenbank (Bulgaria) EAD entered into a new Portfolio Guarantee Agreement in August 2011. The purpose of this guarantee agreement is to support small and medium-sized enterprises operating in the Fisheries sector.

As of 31 December 2011, Raiffeisenbank had attracted long-term financing totalling EUR 611 million, of which EUR 321 million in credit lines and guarantee agreements with international financial institutions such as the European Bank for Reconstruction and Development, the European Investment Bank, the European Investment Fund, KfW, the European Fund for Sourtheast Europe, etc.

The Raiffeisen group in Bulgaria

Raiffeisen Asset Management EAD
As of 31 December 2011, total net assets under management at the mutual funds of Raiffeisen Asset Management (Bulgaria) EAD reached BGN 148.88 million, which strengthened the company’s leading position among Bulgaria's asset management companies, raising its market share to 32.17%. Raiffeisen Asset Management manages the two biggest mutual funds in Bulgaria – Raiffeisen (Bulgaria) Money Market Fund and Raiffeisen (Bulgaria) Protected EUR Fund. In addition to six local funds, Raiffeisen Asset Management offers 13 foreign funds from Raiffeisen Capital Management (Vienna).

Raiffeisen Leasing Bulgaria OOD
As of 31 December 2011, the total assets of Raiffeisen Leasing Bulgaria OOD and Raiffeisen Auto Leasing Bulgaria EOOD reached BGN 338 million. The leasing portfolio of the two companies stood at BGN 318 million. According to the statistical data from the Bulgarian National Bank and the Bulgarian Leasing Association, the market share held jointly by Raiffeisen Leasing Bulgaria OOD and Raiffeisen Auto Leasing Bulgaria EOOD stood at 9% at the end of December 2011.

Raiffeisen Insurance Broker EOOD
Raiffeisenbank’s subsidiary Raiffeisen Insurance Broker EOOD is among the top 5 insurance brokerage companies in Bulgaria with a market share of 3.2% offering insurance products from 15 companies.

Raiffeisen Real Estate EOOD
In the fourth quarter of 2011, Raiffeisen Real Estate EOOD posted an increase of the number of real estate deals by 42.8% year-on-year due to bigger market activity in the segment of deals for housing estates in the big towns. In 2011 the company reported a 13.7% growth in the number of real estate deals compared to 2010, profit grew by 28.3%, while income exceeded BGN 2 million.
The company offers its services through offices in the towns of Sofia, Plovdiv, Varna, Bourgas and Rousse.
Apart from its real estate brokerage services, Raiffeisen Real Estate EOOD provides investment and project consulting, market research and analyses.

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Raiffeisenbank (Bulgaria) EAD (www.rbb.bg) was established in 1994. The bank is fully owned by Raiffeisen Bank International AG (RBI).
RBI regards both Austria, where it is a leading corporate and investment bank, and Central and Eastern Europe (CEE) as its home market. In CEE, RBI operates an extensive network of subsidiary banks, leasing companies and a range of other specialised financial service providers in 17 markets.
RBI is the only Austrian bank with a presence in both the world's financial centres and in Asia, the group's further geographical area of focus.
Around 59,000 RBI employees service about 13.8 million customers through around 2,900 business outlets, the great majority of which are located in CEE.
RBI is a fully-consolidated subsidiary of Raiffeisen Zentralbank Oesterreich AG (RZB). RZB indirectly owns around 78.5 per cent of the common stock, the remainder is in free float. RBI's shares are listed on the Vienna Stock Exchange.