Publication of EBA stress test results for Raiffeisen-Landesbanken-Holding GmbH (press release):

The results of the European Central Bank (ECB) stress test for Raiffeisen-Landesbanken-Holding GmbH, the majority shareholder of Raiffeisen Zentralbank Österreich AG (RZB), have been published.

RZB and consequently Raiffeisen Bank International AG (RBI) were – as part of Raiffeisen-Landesbanken-Holding GmbH – also examined in the ECB stress test. The data published relates to Raiffeisen-Landesbanken-Holding GmbH. This year, the ECB did not set a minimum capital ratio requirement (CET1 ratio) for passing the stress test. The results of the scenarios were calculated based on the balance sheet structure as at 31/12/2015.

“The initial CET1 ratio of 10.5 per cent was very low. Hence, our expectations were moderate right from the beginning. The adverse scenario constructed by EBA assumed very low GDP growth rates for the markets in CEE and a particularly negative NPL development”, says Walter Rothensteiner, CEO of Raiffeisen Zentralbank Österreich AG (RZB).

As at 31/12/2015, the CET1 ratio (transitional) of Raiffeisen-Landesbanken-Holding GmbH stood at 10.5% and the CET1 ratio (fully loaded) was 10.2%. In the baseline scenario, the CET1 ratio (transitional) increased to 12.4% at the end of 2018, and the CET1 ratio (fully loaded) stood at 12.3% as at the same date. In the adverse scenario, the CET1 ratio (transitional) and CET1 ratio (fully loaded) are both 6.1% as at 31.12.2018.

Strengthening the capital position is a principal objective of the RZB Group. For this reason, RBI launched a transformation program at the beginning of 2015, with the aim of reaching a CET1 ratio (fully loaded) of at least 12% by the end of 2017.

As the stress test is based on the balance sheet as at 31/12/2015, key aspects of the transformation program are not reflected in the scenarios. These include the planned sale of the Polish operations, the sale of the Slovenian bank (now concluded), the winding down of the US operations, downscaling in Asia and further reduction of risk-weighted assets in Russia. Furthermore, RZB has initiated additional measures with a positive impact on the capital structure.

„We are aware of our capital situation and have been implementing for some time appropriate measures to strengthen our capital base. RBI’s transformation program, the announced partial sale of UNIQA shares and simplifying the Group’s structure are part of these measures”, says Rothensteiner.