Romania – Raiffeisen (RBI) reportedly interested in buying part of Citibank Romania; Raiffeisen in Romania reports net profit for 2012 of € 88 mln while ING Bank reports gross profit of € 52 mln

On 7 March the Austrian newspaper Der Standard published an article on the development intentions of Austria’s Raiffeisen banking group.  According to the article, a source at Raiffeisen told the newspaper that Raiffeisen Zentralbank Österreich AG (“RZB”), the central institution of the banking group in Austria, was interested in acquiring VB-Leasing International Holding GmbH, which is 50% owned by Volksbank (Österreichische Volksbanken-AG – OVAG), and which is active in 10 countries of eastern or southeastern Europe as well as Austria and Germany.  Relations between Raiffeisen and OVAG are governed by the Volksbank stabilization agreement signed by the Austrian government and Austrian banks in February 2012.

The article also stated that a “reliable source” also informed Der Standard that Raiffeisen Bank International AG (“RBI”), which is 78.5% owned by RZB, is interested in acquiring the corporate and retail business of Citibank in Romania.  Until the end of 2008 Citibank operated in Romania as a domestic legal entity with foreign capital – Citibank România S.A. – but since January 2009 it operates through a local branch of Citibank Europe plc, Dublin.  At the end of 2011 – the last year for which data have been published – the Romanian branch had total assets of 5,752,442,467 RON (€ 1.328 bln), giving it a 1.6% market share in assets.

Sources:

Raiffeisen wirft Auge auf Volksbanken Leasing (2013-03-07 17:53)

Shareholder structure of VB-Leasing International: Beteiligungsstruktur

International presence of VB-Leasing International: Unsere Länder

Fact sheet on Volksbank stabilization agreement: Owners of Österreichische Volksbanken-AG (VBAG) and Republic of Austria conclude agreement in order to stabilize VBAG (2012-02-27)

Citibank România financial statements for 2011: Citibank Romania - Situatiile financiare pe anul 2011: INDICATORI SUCURSALA

Market share by assets of Romanian banks at end of 2011: BANCA NAŢIONALĂ A ROMÂNIEI: RAPORT ANUAL 2011: Tabel 6. Valoarea activului net bilanţier şi a fondurilor proprii la 31 decembrie 2011

In separate news, on 6 March the Romanian commercial bank Raiffeisen Bank S.A., which is 99.49% owned by Raiffeisen Bank International AG (“RBI”), issued a press release reporting a net profit for 2012 of € 88 mln, down 8.3% from the result of € 96 mln for 2011.  The bank’s president and CEO, Steven van Groningen, indicated that he was pleased with the result given the difficult economic situation in Romania, and attributed the result to tight cost control and increased efficiency.

The press release also indicated that in 2012 the bank’s total assets decreased from € 5.52 bln to € 5.31 bln, and its ratio of non-performing loans (NPLs) increased from 6.4% to 7.2%.  At the end of 2012 the bank had 525 outlets and 5,361 employees.

Source:

Raiffeisen Bank a incheiat anul 2012 cu un profit net de 88 de milioane euro (2013-03-06)

On the same day that Raiffeisen Bank S.A. was reporting lower profits in 2012, the commercial bank ING Bank România, a branch of the Dutch commercial bank ING Bank N.V., reported that despite the continuing recession in Romania, the bank in 2012 was able to earn its greatest profit to date: pre-tax profit in 2012 was 232 mln RON (€ 52.3 mln), up 44% from the previous year.  The bank reported that total assets at the end of 2012 were 16,352 mln RON (€ 3,686 mln), up 15% from the end of 2011, while in 2012 total deposits increased by 7% and total loans by 2%.

Source:

ING face in criza cel mai mare profit din istorie: 232 milioane lei in 2012. Cum explica Misu Negritoiu succesul bancii (2013-03-06 15:10)

Mark Pleas

Eastern Europe Banking & Deposits Consultant

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