Total assets reached BGN 3 240.18 mln.

As of 30 September 2006 total assets of Raiffeisenbank (Bulgaria) EAD amounted to BGN 3 240,18 mln., which is an increase of 26,6%, compared to 30 September 2005. The market share of the bank reached 8,36%, which correspondents to 4th place in the banking system. As of 30 September 2006, the loan portfolio of Raiffeisenbank (Bulgaria) went up by 29,3% to BGN 1 615,05 mln., while preserving the excellent quality of the assets. Deposits from customers increased by 37,8% to BGN 2 196,05 mln., compared to September 2005.
All figures are based on International Financial Reporting Standards (IFRS).

Efficiency ratios

Raiffeisenbank continued to improve its efficiency ratios. ROE after tax rose from 33.01% (as of 30 September 2005) to 36,9% (as of 30 September 2006). The bank maintains an excellent cost/income ratio of 45,6% as of 30 September 2006 (30 September 2005: 48,1%). As of September 2006, ROA after tax reached 2,37%.

Relationship with financial institutions

As of 30 September 2006, Raiffeisenbank has attracted a total of EUR 290 mln. in medium and long term funds, of which EUR 150 mln. Syndicated loan, EUR 120 mln. Credit Lines and EUR 20 mln. Guarantee facilities from international organizations (like the EIB, World Bank ?). The funds will be used to finance SMEs and municipalities.
In August 2006 Raiffeisenbank (Bulgaria) EAD and the European Bank for Reconstruction and Development (EBRD), London, signed a EUR 20 mln energy efficiency and renewable energy credit line for financing of private-owned companies.
This is the fourth credit line, which the EBRD lends to Raiffeisen Group in Bulgaria. In 2002, the EBRD has financed Raiffeisenbank aiming at financing SMEs. The second credit line, lent to Raiffeisenbank (Bulgaria) in 2005, aimed at financing energy efficiency projects in Bulgarian households. As of 30 September 2005, the bank extended 1.205 loans to households. EBRD works with Raiffeisen Leasing Bulgaria as well for financing SMEs

Treasury and Investment banking

Raiffeisenbank (Bulgaria) EAD further strengthened its outstanding position as a Lead Manager on the Bulgarian debt origination market. As of first nine months of 2006, the bank has structured and placed 9 new bond transactions for the total amount of EUR 66,5 mln., which correspondents to 45% market share in total volume of new debt instruments of local issuers.

Leader in financing the small business sector

The SME loan portfolio increased by 50,1% to BGN 768,23 mln., compared to 30 September 2005. The number of SME customers went up by 57%.

Growth in retail loan portfolio

Raiffeisenbank continued its dynamic growth in Retail banking segment. Compared to 30 September 2005, the loan portfolio increased by 23,12%, amounting to BGN 355,911.

Raiffeisenbank expanded its branch network and alternative distribution channels

In the first nine months of 2006, Raiffeisenbank opened 28 new offices in Sofia, Veliko Tarnovo, Haskovo, Botevgrad, Samokov, Russe, Plovdiv, Varna, Pernik, Razlog, Yambol, Svishtov, Schumen and Burgas, thus bringing the total number of outlets to 88. The Bank has 13 offices in the departments of the National Revenue Agency [in our q3-report, we list 102 business outlets in total?].
The bank continued to develop its network of mobile bankers, whose number surpassed 120. Currently the mobile consultants cover 13 Bulgarian towns – Sofia, Plovdiv, Varna, Burgass, Stara Zagora, Rousse, Pleven, Pazardjik, Blagoevgrad, Veliko Tarnovo, Shumen, Sliven and Haskovo.
In September 2006, additional 20 mobile bankers started to offer SME banking products in Sofia, Plovdiv, Varna and Burgas.

Raiffeisen Group - Bulgaria

On March 16th 2006, Raiffeisen Asset Management (Bulgaria) EAD started the public offering of 4 own local funds. In just 6 months, the company successfully accumulated BGN 31,2 mln. Raiffeisen Asset Management (Buglaria) is the fastest growing local asset management company. In terms of Net Asset Value, the market share of the company reached 15,86%, which correspondents to 3rd position on the local market (as of 30 September 2006).
The most successful fund of the company – Raiffeisen Balanced is the biggest Bulgarian balanced fund. As of 30 September 2006, the activities under management exceeded BGN 15,9 mln.
Raiffeisen Leasing Bulgaria OOD was established in 2004 with shareholders Raiffeisenbank (Bulgaria) EAD, holding 24,5% of its shares and Raiffeisen Leasing International GmbH, holding 75,5%. Raiffeisen Leasing fully owns Raiffeisen Auto Leasing Bulgaria EOOD.

As 30 September 2006 the assets of both Raiffeisen Leasing Bulgaria OOD and Raiffeisen Leasing Bulgaria EOOD went up by 117% to BGN 156 mln., compared to 31 December 2005. As of 30 September 2006 the leasing portfolio increased by 177% to BGN 134 mln., compared to 31 December 2005.

In the first nine months of 2006, Raiffeisen Leasing attracted EUR 136 million in medium and long term financial resources, of which EUR 25 mln. from international organizations. At the beginning of 2006, Raiffeisen Leasing and the Council of Europe Development Bank signed a Frame Agreement for EUR 10 million. The resources are completely utilized and are earmarked 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.

In just a few months, the newest subsidiary of Raiffeisenbank (Bulgaria) Raiffeisen Insurance Brokerage EOOD boosted on the local insurance brokerage market, offering to its customers insurance products of 12 companies.
In August 2006, Raiffeisen Insurance Brokerage launched new product “Payment Protection Insurance”, offering its customers real estate and life insurances.

Awards

Raiffeisenbank (Bulgaria) was awarded as a “Best Bank” in Bulgaria 2006 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.

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Raiffeisenbank was established in 1994. The bank is fully owned by Raiffeisen International Bank-Holding AG. Raiffeisen International operates one of the leading banking networks in CEE with subsidiary banks and leasing companies in 16 markets. More than 11,7 million customers are attended to through more than 2,775 business outlets. Representative offices in Lithuania and Moldova complement the Group's presence in the region. Raiffeisen International is a fully consolidated subsidiary of Raiffeisen Zentralbank Österreich AG (RZB), which owns 70 per cent of the common stock. The remaining 30 per cent is free float, the shares are traded on the Vienna Stock Exchange.