Raiffeisen International's consolidated profit

Raiffeisen International's consolidated profit rises to € 100 million in the first quarter of 2010

Raiffeisen International:

• -Profit before tax nearly doubles to € 166 million
• -Net allocations to provisions for impairment losses decline by 33.8 per cent year-on-year to € 295 million (Q1 2009: € 445 million)
• -Return on equity before tax improves by 4.3 percentage points year-on-year to 9.6 per cent (Q1 2009: 5.3 per cent)
  
  

RZB Group:

• -Consolidated profit nearly quadruples to € 292 million (Q1 2009: € 76 million)
• -Net allocations to provisions for impairment losses drop by 45.5 per cent year-on-year to € 325 million (Q1 2009: € 596 million)
  
  

Raiffeisen Bank International:

• -Consolidated profit of € 332 million on a pro forma basis
• -Return on equity before tax of 16.3 per cent on a pro forma basis
  
  

Exchange ratio:

• -Managing boards set the exchange ratio at 30.7 shares of Raiffeisen Bank International for one share of the RZB subholding Cembra
• -Share of Raiffeisen International free float will amount to 21.5 per cent following the transaction
• -Earnings per share (pro forma) of € 1.45 following the merger
  
  

All figures are based on International Financial Reporting Standards (IFRS).

Raiffeisen International Bank-Holding AG, a member of RZB Group headed by Raiffeisen Zentralbank Österreich AG (RZB), posted a consolidated profit (after tax and minorities) of € 100 million in the first quarter of 2010, which represents an increase of 77.8 per cent compared to the same period a year earlier (Q1 2009: € 56 million). The net allocations to provisions for impairment losses, which declined by 33.8 per cent compared to the first quarter of 2009 to reach € 295 million (Q1 2009: € 445 million), and valuation gains on marketable securities were the main positive influences on Raiffeisen International's first-quarter results. Profit before tax rose by 98.8 per cent to € 166 million (Q1 2009: € 84 million), while profit after tax increased 94.7 per cent to € 124 million (Q1 2009: € 64 million).

"We nearly doubled our profit before tax on a year-on-year basis due to the decline in our net allocations to provisions for impairment losses. Our results reflect the slight economic recovery that is taking place in Central and Eastern Europe. Consequently, our confidence in the region's long-term potential remains unbroken," said Herbert Stepic, CEO of Raiffeisen International.

Return on equity before tax at nearly 10 per cent

While a 20 per cent lower operating result weighed on Raiffeisen International’s profit and hence on its rates of return, the significantly better situation in respect to provisioning for impairment losses and the positive net income from financial investments brought an improvement of return on equity before tax. At the end of the first three months, it amounted to 9.6 per cent and was thus 4.3 percentage points higher than in the comparable period of 2009 (5.3 per cent).

RZB Group quadruples consolidated profit in first quarter of 2010

The RZB Group headed by Raiffeisen Zentralbank Österreich AG posted a profit before tax of € 374 million in the first quarter of 2010, which corresponds to an increase of 217.4 per cent in comparison to the same quarter a year earlier (Q1 2009: € 118 million). The Group's consolidated profit (after tax and minorities) rose by 284.3 per cent to € 292 million (Q1 2009: € 76 million). This positive development was attributable primarily to valuation gains: the net allocations to provisions for impairment losses declined by 45.5 per cent to € 325 million, income from financial investments rose by € 203 million to € 142 million.

"Our pre-tax profit for the first quarter of 2010 is more than three times larger than it had been during the same period a year earlier. This earnings performance is very gratifying, even if the operating business posted some declines. Our strong capital base and sustainable business model provide a solid foundation for a continuously positive development," said Walter Rothensteiner, Chairman of RZB's Board of Management.

Raiffeisen Bank International

Putting together Raiffeisen International and RZB contributed businesses would provide the following pro forma results for Raiffeisen Bank International:

Raiffeisen Bank International would have posted a profit before tax of € 388 million in the first quarter of 2010. The consolidated profit (after tax and minorities) would have amounted to € 332 million. Net allocations to provisions for impairment losses would have come in at € 325 million.

Raiffeisen Bank International's net interest income would have been € 833 million. General administrative expenses would have amounted to € 714 million, while profit from operating activities would have stood at € 602 million. The new bank would have posted a cost/income ratio of 54.3 per cent.

The Tier 1 ratio measured in relation to credit risk would have been11.7 per cent (a rise of 0.4 percentage points in comparison to the end of 2009). The Tier 1 ratio measured in relation to total risk would have amounted to 9.3 per cent (an increase of 0.3 percentage points in comparison to the end of 2009). The core Tier 1 ratio (Tier 1 capital less hybrid capital in relation to total risk) would have been 8.4 per cent (an increase of 0.2 percentage points in comparison to the end of 2009).

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The financial report for the first quarter of 2010 for Raiffeisen International is available at

http://qr012010.ri.co.at

The financial report for the first quarter of 2010 for the RZB Group is available at

http://www.rzb.at/q1report2010

Supporting documents for Raiffeisen International's 2010 annual general meeting, as well as the spin-off documents RZB/Cembra, will be available in the Investor Relations section of www.ri.co.at

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Raiffeisen Zentralbank Österreich AG (RZB) is the central institution of the Austrian Raiffeisen Banking Group, the country's largest banking group. It is a leading corporate and investment bank in Austria and also considers Central and Eastern Europe (CEE) as its home market. RZB is the only Austrian bank with a global network of business units reaching all important finance centres around the globe. It is also present in Asia with branches and representative offices in nine locations.

Via listed subsidiary Raiffeisen International Bank-Holding AG, RZB operates one of the largest banking networks in CEE, covering 17 markets across the region through subsidiary banks, leasing companies and a range of other financial service providers. The group's 56,000 employees service more than 15 million customers through around 3,000 business outlets.

For further information please contact Andreas Ecker-Nakamura (+43-1-71 707-2222, andreas.ecker@rzb.at) or Michael Palzer (+43-1-71 707-2828, michael.palzer@ri.co.at).

http://www.rzb.at, http://www.ri.co.at