Annual Report
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ANNUAL REPORT 2012 Client inspired banking Everyone deserves an individual approach Annual report 2012 Client inspired banking 2 Contents Survey of Key Data ������������������������������������������������������������������������������������������������������������3 Introducing Raiffeisenbank ������������������������������������������������������������������������������������������������4 Important Events in 2012 ���������������������������������������������������������������������������������������������������5 CEO‘s Statement ����������������������������������������������������������������������������������������������������������������6 Corporate Social Responsibility Report ����������������������������������������������������������������������������8 Report of the Supervisory Board ���������������������������������������������������������������������������������������9 Statutory and Supervisory Bodies���������������������������������������������������������������������������������� 10 Report of the Supervisory Board of Raiffeisenbank a�s� ������������������������������������������������12 Organisational Chart �������������������������������������������������������������������������������������������������������14 Economic Development in the Czech Republic ��������������������������������������������������������������17 Raiffeisenbank’s Market Position �������������������������������������������������������������������������������������18 Financial Section ������������������������������������������������������������������������������������������������������������� 20 Auditor’s Report to the Shareholders of Raiffeisenbank a.s. Unconsolidated Financial Statements Consolidated Financial Statements Information about Capital General Information about the Issuer The principles of remuneration Information about Securities Report on Related PartyTransactions Supervisory Board of Raiffeisenbank a.s. Report Persons Responsible for the Annual Report The RZB Group and Raiffeisen International at a glance ������������������������������������������� 194 Addresses and Contacts ����������������������������������������������������������������������������������������������� 195 The Raiffeisen Financial Group in the Czech Republic �����������������������������������������������202 Directory of Branches ���������������������������������������������������������������������������������������������������205 3 www.rb.cz Survey of Key Data Branches in accord with IFRS /IAS Raiffeisen in the CZ CZK thousand 2012 2011 Change Income Statement Net interest income after provisioning 4,563,081 4,906,560 (7.0)% RZB Group Net commission income 2,187,978 2,199,273 (0.5)% Trading profit 1,339,646 1,208,935 10.8% General administrative expenses (5,711,730) (5,583,516) 2.3% Profit before tax 2,477,986 2,851,830 (13.1)% Financial Section Profit after tax 1,973,161 2,219,585 (11.1)% Earnings per share 2.28 2.98 (23.6)% Aspect Balance Sheet Loans and advances to banks 14,452,117 12,240,278 18.1% Loans and advances to customers 150,138,242 158,507,269 (5.3)%, Analysis Deposits from banks 6,818,953 8,686,719 (21.5)%, Deposits from customers 144,143,741 143,900,472 0.2% Equity 18,151,012 16,182,391 12.2% Market Balance-sheet total 197,628,174 202,947,359 (2.6)% Regulatory information Risk-weighted assets, incl. market risk 120,216,978 142,024,425 (15.4)% Development Total own funds 16,414,704 17,100,354 (4.0)% Total own funds requirement 9,617,358 11,361,954 (15.4)% Excess cover ratio 70.7% 50.5% 20.2 PB Structure Core capital ratio (Tier 1), banking book 12.5% 8.9% 3.5 PB Core capital ratio (Tier 1), incl. market risk 10.7% 7.9% 2.8 PB Bodies Own funds ratio 13.7% 12.0% 1.6 PB Performance Return on average equity (ROAE) before tax* 14.4% 18.9% (4.5) PB Statement Return on average equity (ROAE) after tax* 11.4% 14.7% (3.3) PB Cost/income ratio 57.8% 54.7% 3.1 PB CEO´s Return on average assets (ROAA) before tax* 1.2% 1.5% (0.2 ,PB Net provisioning ratio 0.9% 1.0% (0.1) PB Risk/earnings ratio 18.2% 18.6% (0.4) PB Events Resources Average number of staff 2,927 2,954 (0.9)% Business outlets 125 122 2.5% RBCZ Unconsolidated data according to IFRS. * Since 2012 Bank started to report ratios ROAE and ROAA instead of ratios ROE and ROA (2011 figures were recalculated). Key Data Key www.rb.cz 4 Introducing Raiffeisenbank Raiffeisenbank‘s majority shareholder is Raiffeisen Bank Interna- tional AG (RBI), which resulted from the October 2010 merger between Raiffeisen International Bank-Holding AG and the principal business areas of its majority shareholder, Raiffeisen Zentralbank Österreich AG (RZB). Raiffeisen Bank International AG (RBI) regards both Austria, where it is a leading corporate and investment bank, and Central and Eastern Europe (CEE) as its home market. Raiffeisenbank in the Czech Republic focuses mainly on pre- mium clients, that is to say, clients with higher incomes who are interested in the management of their finances. In this respect, the bank emphasises the quality of the services it provides and has expanded on its range of products, expert consultation, and long-term financial planning. As such, it regularly introduces many new products to the Czech market. In 2012, it introduced a new portfolio of credit cards and launched a service for managing accounts via smart phones. Thanks to the scope of these services and benefits, they were both immediately ranked among the best on the Czech market. From the very beginning, Raiffeisenbank has offered its services with emphasis on the particular needs of clients in the various regions. Besides its business activities, Raiffeisenbank is also involved in a number of community service activities related to culture, education and charity, reflecting Raiffeisen’s 140-year tradition. The traditional emblem and trademark of the Raiffeisen Group is the Giebelkreuz – crossed horse heads. For hundreds of years, the Giebelkreuz has adorned the facades of buildings Raiffeisenbank a.s. is an important banking institution that throughout Europe and is a symbol of protection for families provides a wide range of banking services to private and gathered under one roof against evil and life-threatening situa- corporate clientele in the Czech Republic. Raiffeisenbank is a tions. Raiffeisenbank is also a symbol of security and stability for member of the Austrian Raiffeisen Financial Group that also its clients. offers products and services in the Czech Republic in the area of building savings (Raiffeisen stavební spořitelna), insurance (UNIQA pojišťovna) and leasing (Raiffeisen-Leasing, Raiffeisen- Leasing Real Estate). In 2008, Raiffeisenbank successfully merged with eBanka, a.s. Raiffeisenbank now serves clients at more than 120 branch offices and client centres throughout the Czech Republic. The total assets of the bank exceed CZK 197 billion, and the core capital of the bank reached CZK 9.357 billion. The bank employs almost 3000 people. The bank’s outstanding products and services have received many awards both in the Czech Republic and abroad. 5 www.rb.cz Important events in 2012 Branches January October Raiffeisen in the CZ Market Vision: Raiffeisenbank advisors provide the best services Raiffeisenbank introduces new corporate tariffs. Corporate in the area of investment life insurance. Clients obtain the clients can choose from three various tariffs according to their highest quality services with respect to the products offered in specific needs, from the basic account type up to an account investment life insurance at Raiffeisenbank branch offices. The with an unlimited number of transactions and an unlimited num- advisors have especially excelled in analysing the needs of cli- ber of ATM withdrawals in the Czech Republic and abroad. RZB Group ents, in explaining the essence of insurance and investment, and in offering concrete solutions. This success confirms the bank’s New credit cards are offered, which combine advantageous focus on quality consultancy and financial planning. interest rates, loyalty bonuses, discounts of up to 50% on goods and services, attractive insurance, and assistance services. Both cards can be obtained free of charge and with an attractive interest rate. Clients also receive a range of discounts and the Financial Section April possibility of obtaining 2% back on every purchase. In addition, the card offers very extensive insurance and assistance services. The Raiffeisen group is also interested in the upcoming pension With these features, these cards easily rank among the top Aspect reform. In this respect, Raiffeisenbank has founded a pension credit cards on the Czech market. company Raiffeisen penzijní společnost and applied for a licence at the Czech National Bank. During the past four years, the pension company has obtained a licence for its funds as Analysis well, and starting in the new year, it will begin to offer funds November in the second and third pillars of the supplementary pension system. Starting in November, eKonto can be accessed via smart phones and tablets. The application Mobile eKonto offers Market The general meeting of Raiffeisenbank a.s. decides to distribute many unique services, such as QR payment support, best price the profit and strengthen the capital of the bank. From the 2011 searches, or active lending. In preparing this application, the profit, the bank pays dividends of CZK 1.846 billion, and share- bank also focuses on a high level of security. The application holders immediately reinvest this amount back into the bank by immediately receives a range