Raiffeisen Zentralbank Österreich AG

EANS-Adhoc: Raiffeisen Zentralbank Österreich AG
EBA analysis addresses capital needs for RZB Group on the basis of a dramatically raised capital ratio target

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  ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
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  announcement.
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27.10.2011

EBA analysis addresses capital needs for RZB Group on the basis of a
dramatically raised capital ratio target

• RZB welcomes in principle decisions that aim to ensure greater stability in
the eurozone.
• More than doubled Core Tier 1 ratio target of 9 per cent results, according to
EBA, in an additional calculatory capital requirement of EUR 1.9 billion for the
RZB Group. RZB considers this amount to be excessive. For example, EUR 1 billion
in participation capital subscribed by private investors was not taken into
account.
• RZB's sub-group RBI was not addressed in the EBA analysis, but would have a
lower additional calculatory capital requirement.
• RZB will take all necessary measures to comply with the new requirements. From
today's perspective, the RZB Group will not need state support to do so.

Raiffeisen Zentralbank Österreich AG (RZB) in principle welcomes decisions that
aim to guarantee more stability in the eurozone. However, the additional capital
requirement as determined by the European Banking Authority (EBA) appears to be
excessive, also in comparison with banks in such strongly impacted countries as
Germany or France. Austrian banks are seen having a calculatory capital gap of
EUR 2.9 billion, while the respective figures for France and Germany are EUR 8.8
billion and EUR 5.2 billion.

The RZB Group has no sovereign exposure in either Greece or Ireland and only a
low volume of sovereign exposure in Italy, Spain and Portugal. Moreover, the EBA
did not take into consideration EUR 1 billion of participation capital that the
RZB Group had placed with private investors.

The RZB Managing Board will undertake all measures necessary to ensure
compliance with the new requirements. From today's perspective, the RZB Group
will not need state support to do so.

Due to the sovereign debt crisis in Europe, the EBA conducted a survey among 70
systemic banks in the EU to establish how these would be impacted by a
mark-to-market valuation of their sovereign exposure. In doing so, the EBA
applied a Core Tier 1 capital target of 9 per cent, more than twice as high as
previous targets, as the baseline for establishing the banks' additional capital
requirements. This new capital target ratio is to be achieved by 30 June 2012.
On the basis of these assumptions, the EBA calculated that the analysed banks
collectively had an additional capital requirement of EUR 106 billion, with EUR
1.907 million attributed to the RZB Group. These results reflect not only the
drastic rise in the core capital target from its current level of 4 per cent (or
4.5 per cent according to Basel III) to 9 per cent, but also the specific
methodology and assumptions applied by the EBA. The results of the EBA's
analysis were based on the RZB Group's half-year 2011 figures and will be
updated to reflect the Group's results as per 30 September 2011 

In its analysis, the EBA did not address the RZB Group's sub-group Raiffeisen
Bank International AG (RBI); however, had it done so, RBI would have evidenced a
lower additional capital requirement on the basis of the applied assumptions and
methodology. The EBA stress test results published in July 2011 established that
RBI was well-capitalised, with a Core Tier 1 ratio (according to the EBA's
definition) of 7.8 per cent in the adverse scenario applied in the stress test. 

As per the end of June 2011, the RZB Group's own funds volume stood at EUR
12,538 million, while its Core Tier 1 capital amounted to EUR 9,290 million. The
RZB Group's own funds ratio was 12.4 per cent, its Tier 1 ratio (credit risk)
stood at 11.4 per cent, while its Tier 1 ratio including market and operational
risk was 9.1 per cent. The corresponding ratios for RBI were 13.0 per cent, 11.8
per cent, and 9.4 per cent. RBI will be issuing its results for the first three
quarters of 2011 on 24 November 2011.


Further inquiry note:
Raiffeisen Zentralbank Österreich AG 
Am Stadtpark 9
Andreas Ecker 
43 1 71707-2222
andreas.ecker@rzb.at

end of announcement                               euro adhoc 
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issuer:      Raiffeisen Zentralbank Österreich AG
             Am Stadtpark  9
             A-1030 Wien 
phone:       43 1 71707-2761
FAX:         43 1 71707-2371
mail:     andreas.ecker@rzb.at
WWW:      www.rzb.at
sector:      Banking
ISIN:        -
indexes:     
stockmarkets: stock market: Luxembourg Stock Exchange, SIX Swiss Exchange,
             Euronext Paris, Wien 
language:   English
 



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