Investor Relations by MikeJenny

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									INTERIM
REPORT
FIRST
QUARTER
2009
Contents




Overview                                                                                                                                                               3


RZB’s Performance During 1st Quarter 2009                                                                                                                              4


Segment Reports                                                                                                                                                    18
     Austria                                                                                                                                                       20
     Central Europe                                                                                                                                                22
     Southeastern Europe                                                                                                                                           24
     Russia                                                                                                                                                        26
     Other CIS Countries                                                                                                                                           28
     Rest of the World                                                                                                                                             30


IFRS-compliant Consolidated Financial Statements (Interim Report as of and for the three months ended 31 March 2009)                                               32
Income Statements                                                                                                                                                  32
Profit                                                                                                                                                             33
Balance Sheet                                                                                                                                                      34
Statement of Changes in Equity                                                                                                                                     35
Cash Flow Statement                                                                                                                                                36
Segment Reporting                                                                                                                                                  37
Notes to the Consolidated Financial Statements                                                                                                                     40
     Risk Report                                                                                                                                                   54


Publication Details                                                                                                                                                67


In this Interim Report, “RZB” refers to the RZB Group and “Raiffeisen Zentralbank” is used wherever statements refer solely to Raiffeisen Zentralbank Österreich AG.
Adding and subtracting rounded amounts in tables and charts may have led to minor discrepancies.
Overview                                                                                                                         3




Overview
RZB Group

Monetary values are in €m                                                           2009              2008        +(-) Change
Income Statement                                                             1/1 – 31/3         1/1 – 31/3
Net interest income                                                                  861                  809           6.4%
Provisioning for impairment losses                                                   (596)                (96)       520.8%
Net fee and commission                                                               347                  398         (12.9%)
Net trading income                                                                   164                  10       1,540.0%
General administrative expenses                                                      (693)            (703)            (1.4%)
Profit before tax                                                                     68                  218         (68.8%)
Profit after tax                                                                      39                  117         (67.1%)
Consolidated profit                                                                   26                   9         192.6%
Earnings per share, €                                                                4.07             1.06               3.01
Balance Sheet                                                                       31/3            31/12
Loans and advances to banks                                                        34,655          29,115              19.0%
Loans and advances to customers                                                    81,786          84,918              (3.7%)
Deposits from banks                                                                57,665          54,148               6.5%
Deposits from customers                                                            53,970          59,120              (8.7%)
Equity (including minorities and profit)                                            7,443            7,837             (5.0%)
Balance sheet total                                                            156,759            156,921              (0.1%)
Regulatory Information                                                              31/3            31/12
Risk-weighted assets (credit risk)                                                 85,662          89,040              (3.8%)
Total own funds                                                                    10,467          10,801              (3.1%)
Total own funds requirement                                                         8,286            8,505             (2.6%)
Surplus own funds ratio                                                            26.3%            27.0%            (0.7 ppt)
Tier 1 ratio (credit risk)                                                          8.2%              8.4%           (0.2 ppt)
Own funds ratio                                                                    10.1%            10.2%            (0.1 ppt)
Performance                                                                  1/1 – 31/3       1/1 – 31/12
Return on equity before tax                                                         3.6%              7.3%           (3.7 ppt)
Return on equity after tax                                                          2.0%              5.3%           (3.2 ppt)
Consolidated return on equity                                                       2.1%              0.9%            1.2 ppt
Cost/income ratio                                                                  48.9%            52.8%            (3.8 ppt)
Return on assets before tax                                                        0.17%            0.40%           (0.22 ppt)
Net provisioning ratio (average risk-weighted assets, credit risk )                2.74%            1.19%            1.55 ppt
Risk/earnings ratio                                                                69.3%            28.7%            40.6 ppt
Resources                                                                           31/3            31/12
Number of staff on the reporting date                                              65,064          66,651              (2.4%)
Business outlets                                                                    3,229            3,251             (0.7%)




Ratings                                                Long-term      Short-term     Financial strength     Long-term outlook
Moody’s Investors Service                                      A1            P-1                    D+                 Stable
Standard & Poor’s                                               A           A-1                     —               Negative




                                                                             RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 4                                                                                                     RZB’s Performance During Q1 2009




RZB’s Performance
During Q1 2009
                   Economic Conditions
                   Recession in the wake of the financial markets crisis
                   From the second half of 2008, the financial markets crisis left a deep impression on the real economy. Both the
                   United States and Europe experienced a recession of historic dimensions. The declines in construction and indus-
                   trial output, investment demand and international trade were particularly severe. The real economic effects of a
                   crisis that had, until then, been largely restricted to the financial sector came to a temporary head in the first
                   quarter of 2009. As a result, real GDP in the eurozone in the first three months of 2009 is estimated to have
                   fallen by roughly 4 per cent on the same period of the previous year. There had already been a decline of
                   1.4 per cent in the fourth quarter of 2008, and growth during 2008 as a whole was also modest, at 0.7 per
                   cent.

                   While the Austrian economy still managed to navigate fairly successfully through rough economic waters in the
                   fourth quarter of 2008, the domestic economy was nonetheless unable to escape the global downtrend in the first
                   quarter of 2009. As a result, GDP fell by 2.8 per cent per quarter. Consumption turned out to be the Austrian
                   economy’s most important pillar. Its almost unchanged rates of growth (private consumption down 0.1 per cent,
                   public sector consumption up 0.4 per cent) mitigated the effects of the serious declines in exports (down 4.4 per
                   cent), investment (down 5.1 per cent), goods production (down 8.8 per cent) and the cyclical construction indus-
                   try (down 2.8 per cent).

                   The global recession also arrived in the economies of Central and Eastern Europe (the CEE region) during the first
                   quarter of 2009. Demand for exports from the region fell sharply, direct investment fell, credit growth slowed
                   substantially and funding short-term foreign debt became a major challenge for some of the countries in the re-
                   gion. In a number of countries, industrial output was over 20 per cent down on the same period of the previous
                   year. The Ukraine and Russia appear to have been particularly hard hit by the economic downturn, suffering from
                   the drop in raw material prices and the decline in the demand for steel, as was Hungary, which was also faced
                   by the challenge of having to get its public sector budget under control.



                   Highly disinflationary economic conditions
                   The present economic climate is highly disinflationary. The sharp downward correction to raw material prices
                   since mid-2008 has been accompanied by a marked drop in rates of inflation. In the summer of 2008, inflation
                   was still running at 4 per cent per annum in the eurozone and 5.6 per cent per annum in the United States. Re-
                   cently, eurozone inflation was down sharply to 0.6 per cent per annum, and prices in the United States were
                   actually 0.4 per cent down on 2008.

                   As was already becoming apparent in the first few months of this year, average rates of inflation will fall relatively
                   sharply in most CEE countries in 2009. This will be particularly true in the new EU Member States in Central
                   Europe (the CE region) and the Southeastern European countries (the SEE region). Devaluation in Russia and the
                   Ukraine was still able to prevent a bigger drop in inflation at the beginning of the year.




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
RZB’s Performance During Q1 2009                                                                                                5




 Interest markets
 Central banks around the world were quick to react to the economic and financial markets crisis, cutting key rates
 to levels that were, in some cases, lower than they had ever been. In addition, central banks took a raft of uncon-
 ventional measures, from massively increasing their lending to directly purchasing high volumes of public and
 private sector debt securities.

 Following the total paralysis of the primary market caused by the insolvency of Lehman Brothers in September
 2008, it was November before issuing activities got underway again. Since then, the primary market has gained
 considerably in momentum, and this year, corporate bonds issuances in the non-financials sector have already
 totaled over €150 billion. Government-guaranteed bank bonds have also attracted a lot of investor interest,
 totaling the equivalent of about €130 billion.

 While yield spreads on corporate bonds initially moved sideways at the beginning of the year, they have nar-
 rowed significantly since the start of the rally in the equity markets in mid-March. Financial bonds, which had
 suffered badly, also followed this positive trend.

 Uncertainty in the capital markets triggered a flight into government bonds. Yields on 10-year German Bunds
 shrank from 4.4 per cent at the beginning of 2008 to just under 2.9 in the fourth quarter. Yields bottomed out in
 mid-January 2009, and again, after a brief recovery, at the beginning of March. At the same time, the widening
 spreads on government bonds less liquid than German Bunds peaked. 10-year Greek government bonds thus
 showed a spread of 296 basis points, Italian bonds of 156 basis points and Austrian bonds of 96 basis points.

 10-year US Treasuries bottomed out at 2.0 per cent in mid-December 2008. Cuts in the Fed rate totaling more
 than 4 percentage points and the Fed’s announcement of forthcoming unconventional measures favored this
 trend. However, a turnaround in key forward indicators and the high volume of new issuances have taken yields
 back up to nearly 3.4 per cent this year.



 Foreign exchange rates
 The weak US economy and interest rate cuts initially put the US dollar under a lot of pressure in the first half of
 2008. However, the euro rate fell sharply in the third quarter of 2008 from a high of US$1.60 in July to
 US$1.23 at the end of October. The Federal Reserve’s announcement that it would be undertaking quantitative
 easing pushed the euro up to US$1.47, but most of this effect reversed again during the first quarter of 2009.

 In October, the euro was trading at just under SFr1.43. This was already a historic high. Interest rate cuts, inter-
 vention in the currency markets and the Swiss national bank’s announcement that it would be buying bonds at the
 beginning of 2009 drove another increase in the exchange rate to over SFr1.50/€. The €/¥ roller coaster ride
 that began in mid-2008 took it from nearly ¥170 to just over ¥110 at the beginning of 2009 and back to over
 ¥130 at the beginning of spring.

 Speculation and capital outflows had already compelled Hungary and the Ukraine to ask the International Mone-
 tary Fund (IMF) for financial support at the beginning of 2008. In Hungary’s case, the European Union (EU)
 supplemented the IMF package with additional funds, demonstrating the European Union’s willingness and ability
 to stand by its new Member States in a financial emergency. The rapid, generous and pragmatic help given to
 the countries of Central and Eastern Europe (known as the CEE countries or CEE region) by a variety of suprana-
 tional institutions did much to stabilize the region’s financial markets.




                                                                                     RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 6                                                                                                                 RZB’s Performance During Q1 2009




                           Developments in the Banking
                           Industry in RZB’s Principal Markets
                           Despite the more restrictive lending guidelines that were being applied by the European banks, there was no sign
                           of the much feared credit squeeze in the eurozone during the first quarter of 2009. The annual rate of growth of
                           lending to the corporate sector in the eurozone peaked in April 2008 and has been falling since. However, credit
                           growth was still evident in the three months up to the end of March 2009, coming in at 6.6 per cent. Lending to
                           private households in the eurozone has been falling since mid-2006, but even so, despite a marked drop-off in
                           March 2009, it has not become negative.

                           The growth of aggregate bank assets in the CEE region cooled off substantially in the second half of 2008. As
                           outside funds were still scarce and expensive, the trend appears to have continued and, in part, worsened in the
                           first quarter of 2009. This has also been aggravated by banks’ reluctance to grant foreign currency loans. In
                           2008, the decline in credit growth was biggest in the countries where loan portfolios and deposit balances are in
                           equilibrium or where the comparison favors deposit balances. Overall, deposit balances — having been less in
                           the limelight in recent years — increased in importance.

                           Government capital injections in particular have helped boost banks’ capital adequacy in recent months. In
                           addition, in the first quarter of 2009, banks started buying back their subordinated debt capital instruments. Since
                           some subordinated notes were priced well below their redemption values, it was possible to record book profits,
                           in turn strengthening Tier 1.

                           Government guaranteed bank bonds were a focus of eurozone banks’ debt financing during the first three
                           months of this year. By the end of March 2009, the value of the government guaranteed euro benchmark bonds
                           issued by eurozone banks came to about €107 billion. They were first introduced in the fourth quarter of 2008.




Foreign Receivables of European Banks at the end of 2008
€bn
                                                                                                   400%
2,750                                       2,623
                                                         2,574                                                                                  2,584
2,500

2,250
                             290%
2,000
                                                                        262%
1,750
                                                                                                   1,430         210%
1,500
                                                                                                                 1,239
1,250
                              997                                                                                                                149%
                                            135%
1,000         126%                                                                                                                 850
                                                          103%                           763
 750
                                                                                                                                   78%
                                                                         511
 500           359                                                                        49%

 250

     0
             Austria        Belgium         France      Germany        Ireland           Italy   Switzerland   Netherlands        Spain           UK
           USA       CEE    UK      Spain   Rest of Western Europe   Rest of the World                                   Total exposure in per cent of GDP
         Source: BIS, Raiffeisen Research




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
RZB’s Performance During Q1 2009                                                                                                              7




 Foreign Receivables of Austrian Banks
 Austrian banks’ foreign receivables came to €359 billion or 126 per cent of GDP at the end of 2008, putting
 Austria in the middle of the European range. Looking at individual countries, Austrian banks’ receivables were
 highest in the Czech Republic (€38.8 billion) and Germany (€37.2 billion).

 When opening up new markets, the Austrian banking industry has focused primarily on the CEE Region. Roughly
 half of the Austrian banks’ exposure is in this region. Aus-
 trian banks are among the CEE region’s biggest creditors, Austrian Bank's Receivables in the                                      CEE region
 with a total exposure of €198 billion outstanding, ahead of Other CEE countries 5%                                                    Slovakia 13%
 Germany (€156 billion), Italy (€147 billion), France (€105 Ukraine 4%
 billion) and Belgium (€100 billion).                         Russia 8%                                                                 Slovenia 4%

                                                                Serbia 2%
                                                                                                                                            Czech
 One cannot treat Central and Eastern Europe as one ho-                                                                                    Republic
 mogeneous region. A detailed look at the distribution of       Croatia 8%                                                                    20%

 Austrian banks’ receivables at the end of 2008 reveals a
 strong concentration on Austria’s neighbors and Poland         Other EU Member
                                                                States in CEE region 2%
 and Romania. In all, the EU Member States accounted for
 73 per cent of the Austrian banking industry’s receivables     Romania 15%
                                                                                                                                       Hungary 13%
 in the CEE region, and eurozone countries for 17 per cent.
 The remaining foreign receivables concentrated mainly on       Poland 6%
 Croatia (€16.5 billion), Russia (€16.1 billion) and the
                                                                   EU Member State        Non-EU
 Ukraine (€7.7 billion).                                        *Total lending by Austrian banks in the CEE region: €198billion.



 Government action to strengthen the financial market
 In the autumn of 2008, the Austrian federal government announced a €100 billion package of measures to
 strengthen the Austrian financial market. It was put into effect in the first quarter of 2009. Besides a 100 per cent
 guarantee for customer deposit balances (€10 billion), it includes a bank bond guarantee (€75 billion) and
 allocates funds to strengthen the equity base of banks (€15 billion).

 By the end of March 2009, Austrian banks had issued eight government guaranteed bonds worth a total of
 €9.75 billion. These bonds were sold at an average of 69 basis points above mid-swaps with maturities of be-
 tween two and five years. In addition, one bank already issued €900 million of non-voting non-ownership stock
 (Partizipationskapital) to the Republic of Austria in the fourth quarter of 2008.




                                                                                          RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
8                                                                                                     RZB’s Performance During Q1 2009




                  Results of Operations, Financial
                  Position and Assets
                  Operating profit grows by one third
                  Unlike economic conditions, RZB’s Operating profit continued to thrive during the first quarter of 2009, increasing
                  by 34 per cent from €540 million in the first quarter of 2008 to €723 million in the period under review. The
                  result was the one of the two best quarterly result in RZB’s history, second only to the fourth quarter of 2008.

                  The principal reason was a big advance in first-quarter Net trading income, which grew by €154 million to
                  €164 million. This was primarily attributable to revaluation gains on interest rate derivatives. In euro terms, Net
                  interest income was 6 per cent up on the same period of the previous year to €861 million. The main downside
                  was the increase in funding costs caused by action to gather customer deposits and the volatile interest rate mar-
                  kets. For the first time, Net interest income included outlay on the non-voting non-ownership stock (Partizipation-
                  skapital) totaling €1.75 billion subscribed by the Republic of Austria in April 2009, for which accrued interest
                  was recognized retrospectively as of 1 January 2009 in the amount of €35 million. In the first quarter of 2009,
                  turbulence in the currency markets halted growth in commission-generating foreign exchange transactions and
                  domestic and foreign payments, and because demand was weak, commission income from securities operations
                  and investment funds fell by nearly half. As a result, Net fee and commission income was down 13 per cent or
                  €52 million to €347 million.



                  Cost/income ratio improves to below 50 per cent
                  When the crisis set in, the Group intensified its cost cutting program for a number of Group units in the CEE
                  region. The resulting measures were already beginning to have an effect in March 2009, even if the figures were
                  also distorted by movements in exchange rates. General administrative expenses were thus 1 per cent down on
                  the same period of 2008 to €693 million.

                  The Number of staff employed by the Group fell by 1,587 compared with year-end 2008 to 65,064. The big-
                  gest reductions occurred in the Ukraine (448), Russia (356) and Bulgaria (252). Staff leaving as a result of natu-
                  ral attrition were not replaced in Russia or Bulgaria.

                  RZB’s Cost/income ratio calculated on the basis of operating profit, which grew by 14 per cent to €1,416 mil-
                  lion, fell below 50 for the first time, reaching 48.9 per cent. This was 7.7 percentage points better than in the first
                  quarter of the previous year. In the 12 months up to year-end 2008, it had been 52.8 per cent.



                  Consolidated profit of €26 million
                  RZB recorded Consolidated profit for the first quarter of 2009 (after tax and minorities) of €26 million. This was
                  €17 million more than in the same period of the previous year, when results had been seriously affected by
                  revaluation losses on securities and structured products. Profit before tax in the three months ended 31 March
                  2009 came to €68 million, or 69 per cent less than in the first quarter of 2008.




RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
RZB’s Performance During Q1 2009                                                                                                  9




 Sharp increase in provisioning for impairment losses
 The developing recession and the unfavorable change in exchange rates led to a marked increase in loan de-
 faults in the first quarter of 2009, particularly affecting foreign currency loans. This necessitated a sharp increase
 in provisioning for impairment losses of €500 million to €596 million compared to Q1 2008. The result was a
 Risk/earnings ratio of 69.3 per cent, which was 40.6 percentage points more than in the 12 months up to year-
 end 2008. Most of the non-performing loans were in the Ukraine, Russia, Hungary and Serbia. The customer
 non-performing loan ratio was 1.53 percentage points up on the beginning of the year to 4.26 per cent.

 During the fourth quarter of 2008, the effects of the international financial markets crisis were mainly felt in Cen-
 tral and Eastern Europe in the form of serious depreciation of a number of CEE currencies. Although the pace of
 depreciations slowed a little towards the end of the first quarter of 2009, depreciation of the Russian ruble, Polish
 zloty and Hungarian forint reduced RZB’s equity by approximately €368 million in the period under review.



 Return on equity of about 4 per cent
 The Group’s Return on equity also reflected the sharp drop in profit before tax. It was substantially down on same
 period of the 2008 (10.4 per cent) to 3.6 per cent. The average equity on which this figure is based fell by 9 per
 cent to €7.6 billion as a result, mainly, of exchange differences.

 The Consolidated return on equity (after tax and minorities) was also very low, at 2.1 per cent. However, it was
 better than the comparable figure as of the end of March 2008, which had been just 0.9 per cent in the wake of
 the financial markets crisis.



 Balance sheet total unchanged versus year-end 2008
 Currency depreciations had a perceptible impact of about €3 billion on RZB’s Balance sheet total during the
 period under review as a result. However, alongside movements in foreign exchange rates, action taken to re-
 duce and stabilize the loan portfolio also had an effect, reducing it by 4 per cent or €3.1 billion. On the other
 hand, short to medium-term assets were built up, increasing the Group’s assets by a total of €10.8 billion. Above
 all, this increased the line items Loans and advances to banks and holdings of Securities and Equity investments.

 On the equity and liabilities side of the Balance Sheet, Deposits from customers fell by 9 per cent or €5.2 billion.
 With the exception of just a few Group units, this was mainly attributable to currency depreciations. Intensive
 competition for customer deposits and economic developments in the CEE region were responsible for the rest of
 the fall in deposit balances. In addition, there had been a special reason for the high level of deposit balances in
 Slovakia at the end of 2008, namely the transition to the euro. Deposits from banks increased by 7 per cent or
 €3.5 billion as a result of the accumulation of investment positions described above.




                                                                                       RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
10                                                                                                     RZB’s Performance During Q1 2009




                      Detailed Review of Items in the
                      Income Statement
                      Operating profit (periodic comparison)

Monetary values are in €m                                 1/1 – 31/3/2009          +(-) Change   1/1 – 31/3/2008 1/1 – 31/3/2007
Net interest income                                                    861               6.4%                 809                607
Net fee and commission income                                          347            (12.9%)                 398                333
Net trading income                                                     164           >500.0%                   10                  69
Other net operating income                                              45              68.6%                  27                  44
Operating income                                                     1,416              13.9%               1,243               1,052
Staff expenses                                                        (351)            ( 6.3%)               (374)               (301)
Other administrative expenses                                         (267)              2.1%                (262)               (217)
Depreciation/amortization/write-downs                                  (75)             12.2%                  (67)               (60
General administrative expenses                                       (693)             (1.4%)               (703)               (577)
Operating profit                                                       723              33.8%                 540                475



                      Operating profit up 14 per cent
                      Operating income was 14 per cent or €173 million up on the same period of the previous year to €1,416 mil-
                      lion. The principal reason for the increase was the Group’s improved Net trading income, whereas the effects of
                      movements in foreign exchange rates and substantially higher funding costs reduced earnings. Changes in the
                      scope of consolidation did not have a significant effect during the period under review.

                      RZB’s key source of earnings has remained Net interest income during 2009. It grew by 6 per cent versus the
                      same period of the previous year from €809 million to €861 million. The increase was smaller than that of the
                      Group’s average Balance sheet total (10 per cent). This can be explained by the rise in funding costs, which was
                      particularly apparent in the customer deposit and money and capital market fields. RZB’s Net interest margin was
                      8 basis points down on the same period of 2008 to 2.19 per cent.



                      Interest on non-voting, non-ownership stock (Partizipationskapital)
                      Looking at each of the geographical reporting segments, Net interest income changed most in Austria, where it
                      was 59 per cent down on the same period of 2008 as a result, mainly, of lower dividend distributions from
                      Group members. In addition, it was dented by the retrospective recognition of accrued interest on the non-voting,
                      non-ownership stock (Partizipationskapital) subscribed by the Republic of Austria in April as of 1 January 2009 in
                      the amount of €35 million.

                      Net interest income grew most in Russia, increasing by 40 per cent. Because of intense competition to attract
                      customer deposits, increases in Southeastern Europe (2 per cent) and Central Europe (negative 3 per cent) were
                      negligible.




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
RZB’s Performance During Q1 2009                                                                                                     11




 The economic downturn and the adverse development of           Breakdown of Operating Income
 foreign exchange rates severely affected Net fee and           €m
 commission income, which fell by 13 per cent to €347.                                                                               1,600
                                                                                                                         1,416
 This was, above all, attributable to a fall in foreign ex-                                      1,243                     3%        1,400
 change transactions and payments. Furthermore, there was                                          2%                     12%
                                                                                                                                     1,200
                                                                                                   1%
 the one-off effect of the euro launch in Slovakia. Income               1,052
                                                                           4%                                             32%
                                                                                                  32%                                1,000
 from payment services fell by 13 per cent, while income                   7%

 from foreign exchange and notes and coin operations fell                 32%                                                         800

 by 9 per cent. Earnings from securities operations dropped                                                                           600
 even more, falling by 27 per cent. However, the biggest                                          65%                     61%         400
 decline was in income from managing investment and                       56%
                                                                                                                                      200
 pension funds, especially in Slovakia and Croatia. There
                                                                                                                                          0
 was also a perceptible drop in income from banking ser-
                                                                       Q1 2007                  Q1 2008                 Q1 2009
 vices, particularly in Singapore and Hungary, which fell by
                                                                  Net interest income   Net commission income   Net trading income
 32 per cent.                                                     Other operating profit



 Substantial increase in net trading income
 Net trading income grew strongly to total €164 million. This was well up on the same period of 2008, when it
 came to €10 million. Revaluation losses on securities in the wake of the financial markets crisis having come to
 more than €50 million in the first quarter of 2008, revaluation gains on interest rate derivatives acquired to hedge
 against the risks associated with global open interest rate positions boosted net trading income by about
 €68 million in the first quarter of 2009. Some of the revaluation losses on interest rate positions as a result of
 interest rate fluctuations that had still dented carrying amounts in the CEE region at the end of 2008 were also
 reversed. Overall, Net income from interest-related trading improved from negative €86 million in the first quarter
 of 2008 to positive €129 million in the period under review. In contrast, Net income from currency-related trans-
 actions fell by €52 million to €10 million. Russia accounted for most of the decline. Because of poor market
 conditions, Net income from equity and index-related trading continued to decline, falling by over half to €8
 million.

 Other operating profit increased by €18 million to €45 million. This was mainly due to disposals of tangible fixed
 assets and non-banking activities.



 General administrative expenses
 Staff expenses was the biggest item of General administrative expenses in the first quarter of 2009, accounting
 for 51 per cent thereof. However, they were €23 million or 6 per cent down on the same period of the previous
 year to €351 million. Wages and salaries accounted for 77 per cent of staff expenses, statutory social security
 contributions for 20 per cent, and voluntary staff expenses for 3 per cent.

 General administrative expenses were braked somewhat by currency depreciations in the CEE region. Based on
 average rates of exchange in the period under review, the Ukrainian hryvna fell by 34 per cent, the Polish zloty
 by 26 per cent, the Russian ruble by 22 per cent, the Hungarian forint by 13 per cent and the Romanian leu and
 Serbian dinar by 13 per cent.




                                                                                        RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 12                                                                                                   RZB’s Performance During Q1 2009




General Administrative Expenses                                             Whereas operating income was 14 per cent up on the
€m                                                                          same period of the previous year, general administrative
800                                                                         expenses fell by a total of 1 per cent or €10 million to
                                    703                    693              €693 million. This improved the Group’s Cost/income
700
             577
                                    10%                    11%              ratio by 7.7 percentage points to 48.9 per cent.
600
             10%
                                    37%
500                                                        39%           By the end of March 2009, 1,587 fewer people were
400          38%                                                         working for the Group than at the end of 2008, namely
300
                                                                         65,064. The biggest reductions occurred in the Ukraine
                                                                         (448), Russia (356) and Bulgaria (252), with staff leaving
200                                    53%               51%
               52%                                                       as a result of natural attrition not being replaced in Russia
100                                                                      and Bulgaria. The Average number of staff working for the
 0                                                                       Group in the first quarter of 2009 came to 65,985, which
            Q1 2007                Q1 2008            Q1 2009
                                                                         was 6 per cent or 3,568 more than in the same period of
      Staff expenses Other administrative expenses
                                                                         the previous year. The workforce in Southeastern Europe
      Depreciation/amortization/write-offs
                                                                         grew most, increasing by 2,033 or 12 per cent.
                                                                         The average number of staff increased by 1,045 or 8 per
                    cent in Central Europe and by 879 or 10 per cent in Russia. In the Other CIS Countries region, it fell by 501 or 3
                    per cent.

                    Unlike staff expenses, Other administrative expenses increased by 2 per cent to €267 million. They increased
                    most in Russia, growing by 28 per cent. This was due to rising rental costs. The biggest items of expenditure in the
                    category were premises costs, which increased by 21 per cent to €86 million, IT costs, which increased by 9 per
                    cent to €39 million, and advertising, PR and promotional expenses, which fell by 24 per cent to €21 million.



                    Network optimization reduces the number of business outlets in the CIS
                    region
                    The number of RZB business outlets fell by 22 to 3,229 during the first quarter of 2009, but although the number
                    of business outlets has been falling, especially since the beginning of the year, it was still 175 more than at the
                    end of the first quarter of 2008. The biggest increases compared with the end of March 2008 took place in
                    Southeastern Europe (193), including in particular in Romania (105) and Bulgaria (39). On the other hand,
                    network optimization led to a total reduction of 50 in the Other CIS Countries segment, which encompasses the
                    CIS countries without Russia. Sixty-three business outlets were closed in the Ukraine alone.

                    Depreciation/amortization/write-offs of Tangible and Intangible fixed assets increased by 12 per cent to
                    €75 million. Depreciation/write-offs of Tangible fixed assets accounted for €43 million thereof, amortiza-
                    tion/write-offs of Intangible fixed assets for €24 million, and write-downs of assets acquired under operat-
                    ing leases came to €8 million.

                    The Group invested a total of €110 million during the first quarter of 2009. Investments in tangible fixed
                    assets accounted for 66 per cent of the total, or €73 million, and investments in intangible fixed assets,
                    consisting mainly of software systems, accounted for 23 per cent, or €25 million. Assets held within the
                    scope of operating leases made up the rest.




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
RZB’s Performance During Q1 2009                                                                                                   13




 Consolidated profit
 Consolidated profit (periodic comparison)

  Monetary values are in €m                                   1/1 – 31/3/2009           +(-) Change    1/1 – 31/3/2008 1/1 – 31/3/2007
  Operating profit                                                         723               33.8%                  540          475
  Provisioning for impairment losses                                      (596)           >500.0%                    (96)         (80)
  Other profit/(loss)                                                       (59)           (74.0%)                 (226)           42
  Profit before tax                                                         68             (68.8%)                  218           436
  Income tax                                                                (29)           (70.9%)                 (101)          (78)
  Profit after tax                                                          39             (67.1%)                  117           359
  Minority interests in profit                                              (13)           (88.4%)                 (109)         (100)
  Consolidated profit                                                       26             192.6%                      9         259


 Against the backdrop of worsening economic conditions, it proved necessary to significantly increase provision-
 ing for impairment losses. It thus rose to €596 million, which was six times higher than in the same period of
 2008. The increase was biggest in the Austria segment, where the Group recognized a charge of €149 million.

 In the Austria segment, item-by-item charges for impairment losses were recognized in the amount of €143 mil-
 lion, mostly in connection with Western European financial institutions. Item-by-item charges for impairment losses
 in Central Europe came to €81 million, or 152 per cent more than in the same period of 2008. The charge was
 biggest in Hungary, at €37 million. Item-by-item charges for impairment losses in the Other CIS Countries
 segment came to €91 million. The charge in Russia was €51 million. Whereas most of the increase in the Other
 CIS Countries segment was caused by retail operations, the charge in Russia was attributable to both retail and
 key account operations. The charge in Southeastern Europe during the first quarter of 2009 came to €78 million.
 This was mainly as result of charges for retail customers in Romania and corporate customers in Croatia.

 The collective assessment of impairment of the portfolio came to €151 million. The biggest allowances were
 recognized in Russia, the Ukraine and Hungary.

 RZB had a Risk/earnings ratio of 69.3 per cent, or 40.6 percentage points more than at 31 December 2008.

 Other profit/(loss), at negative €59 million, comprises Net income from financial investments and current financial
 assets and Net income from derivative financial instruments. The loss on financial investments and current finan-
 cial assets was reduced by €108 million from €169 million in the same period of the previous year to €61 mil-
 lion in the period under review. The revaluation losses on held-to-maturity and mark-to-market securities in this total
 came to €64 million. On the other hand, there were realized gains on securities of €4 million. €1 million of the
 loss resulted from revaluations of “other” equity investments. Net income from derivative financial instruments was
 €60 million up on the first quarter of 2008 to positive €2 million.




                                                                                       RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
      14                                                                                                             RZB’s Performance During Q1 2009




                                   Income tax was 71 per cent or €71 million down to €29 million. The Group’s Tax ratio was 3 percentage points
                                   lower than in the same period of 2008 to 43 per cent.

                                   Profit after tax in the first quarter of 2009 came to €39 million, which was €79 million down on the first quarter
                                   of 2008. In the period under review, Minority interests in profit came to €13 million, compared with as much as
                                   €109 million in the same period of 2008.

                                   Consolidated profit attributable to the equity holders of Raiffeisen Zentralbank increased by €17 million to €26
                                   million. This resulted in Earnings per share of €4.07, compared with €1.06 in the same period of 2008 (increase
                                   of €3.01).




                                   The Balance Sheet
                                   At the end of the first quarter of 2009, RZB had a Balance sheet total of €156.8 billion. This was virtually the
                                   same as at 31 December 2008. The sharp depreciation of a number of currencies that had begun in the final
                                   quarter of 2008 was still being felt, albeit in a weakened form, during the first three months of this year, slowing
                                   the growth of the balance sheet total to the tune of about €3 billion. The currencies affected most were the Hun-
                                   garian forint (down 16 per cent), the Polish zloty (down 13 per cent) and the Russian ruble (down 9 per cent).
                                   Changes in the scope of consolidation did not have a significant effect on the balance sheet total.



                                   Assets
                                  The assets side of RZB’s Balance Sheet was dominated by Loans and advances to customers. Although they were
Balance Sheet                     Assets                                            4 per cent or €3.1 billion down on the end of 2008 and
€bn                                                                                 even after the deduction of Impairment losses on loans and
                                                157                   157
160                                                                                 advances, they still accounted for 50 per cent of RZB’s
                    137                         14%
                                                                       10%          balance sheet assets (2 percentage points less than on 31
140
                        8%                                                          December 2008). Corporate customers accounted for €2.5
                                                                       18%
120                                             15%
                    17%
                                                                                    billion of the drop in loans and advances, and retail custom-
100                                                                                 ers for €0.7 billion. On the other hand, there was a small
 80                                                                                 increase in lending to the public sector. The ratio of Loans
                                                                       50%
                    52%
                                                52%                                 and advances to customers to Deposits from customers
 60
                                                                                    increased by 8 percentage points to 152 per cent.
 40

 20                                                                      22%
                                                                                        On 31 March 2009, the balance of provisioning for im-
                    23%                          19%
  0                                                                                     pairment losses came to €2.8 billion. Group-wide, difficult
                   2007                         2008                  Q1 2009           economic conditions led to a net addition of about
                                                                                        €500 million, increasing this line item by 23 per cent com-
           Loans and advances to banks         Loans and advances to customers
           Securities        Other assets                                               pared with year-end 2008.




      RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
RZB’s Performance During Q1 2009                                                                                                          15




 At the end of the first quarter, Loans and advances to banks came to €34.7 billion. This translates into an in-
 crease of 19 per cent compared with year-end 2008. While balances with central banks were cut sharply, espe-
 cially in Austria and Central Europe, reducing them by 82 per cent or €6.3 billion, balances with internationally
 active commercial banks increased by 55 per cent or €11.8 billion to €33.2 billion. The proportion of RZB’s
 balance sheet assets accounted for by Loans and advances to banks increased by 3 percentage points to 22 per
 cent.

 Holdings of Securities and equity investments increased by €5.4 billion to €28.2 billion. This was, above all,
 because of the increase in the amount invested in debt securities issued by the public sector, which rose by
 80 per cent or €5.0 billion. Seventy-three per cent or €20.5 billion of the total was invested in Bonds and other
 fixed-interest securities. The proportion of balance sheet assets accounted for by Securities and equity investments
 increased by 3 percentage points to 18 per cent.

 At the end of March 2009, Other assets came to €14.9 billion, compared with €22.4 billion at the end of 2008.
 The proportion of balance sheet assets accounted for by Other assets fell by 4 percentage points to 10 per cent.
 The fall was, above all, due to the decrease in Cash and balances with central banks, balances with central
 banks having been reduced by €6.8 billion.



 Equity and liabilities
 Deposits from banks were 6 per cent or €3.5 billion up on the beginning of the year to €57.7 billion. While
 RZB’s long-term borrowings fell by 7 per cent to €13.8 billion, short-term borrowings increased by 12 per cent to
 €43.9 billion. RZB reduced its borrowings from central banks by 22 per cent or €1.8 billion to €6.4 billion. The
 proportion of this line item accounted for by commercial banks increased by 12 per cent or €5.4 billion to total
 €49.9 billion at the end of the quarter.

 Deposits from customers were 9 per cent down on the end of 2008 to €54.0 billion. The decline affected every
 region and was biggest in Central Europe (fall of €1.7 billion) and Southeastern Europe (fall of €1.3 billion). It
 was primarily attributable to corporate customer operations, which accounted for €4.4 billion of the total. Depos-
 its from retail banking customers were unchanged versus the end of 2008 at €23.7 billion. Time and sight de-
 posit balances fell by 11 and 5 per cent, respectively, to total €53.0 billion, whereas savings deposit balances
 grew slightly, increasing by 2 per cent.
                                                                Equity and Liabilities
 Liabilities evidenced by paper — i.e. funds raised in the €bn
                                                                                                          157                       157
 capital markets by issuing debt securities — increased by 9                                                                               160
 per cent or €1.9 billion (net) to total €22.6 billion at the             137                        7%                        8%
                                                                                                                                           140
 end of the quarter.                                                        9%                      20%                      21%
                                                                                                                                           120
                                                                           15%
 The proportion of the balance sheet total accounted for by                                                                                100
 Own funds — comprising equity and subordinated debt                                                38%                      34%               80
                                                                           40%
 capital — remained unchanged versus year-end 2008 at 8
                                                                                                                                               60
 per cent. Subordinated debt capital increased by 3 per
                                                                                                                                               40
 cent compared with the end of 2008, whereas Equity fell                                                                     37%
                                                                                                    35%
 by 5 per cent or €0.4 billion. The non-voting non-ownership               36%                                                                 20
 stock (Partizipationskapital) subscribed by the Republic of                                                                                   0
 Austria was only issued at the beginning of April and was                2007                     2008                   Q1 2009
 therefore not accounted for at the end of the first quarter.     Deposits from banks     Deposits from customers   Other liabilities
 Currency depreciations dented equity by €0.4 billion.            Own funds




                                                                                        RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
     16                                                                                                        RZB’s Performance During Q1 2009




                            Equity on the balance sheet and regulatory capital
                            On 31 March 2009, Equity on RZB’s balance sheet inclusive of Consolidated profit and Minority interests came
                            to €7,443 million, or €394 million less than at the end of 2008. Currency depreciations dented equity by
                            €368 million. The effects of movements in foreign exchange rates were biggest in Hungary, Poland and Russia.


Own Funds                                                                           The cash flow hedge had a positive effect of €82 million on
€m                                                                                  Retained earnings. Changes in the equity of entities ac-
12,000                                                                              counted for using the equity method reduced retained earn-
                                                             10,801       10,467    ings by €49 million. Deferred tax recognized directly in
                                             10,297
10,000                                                                              equity reduced retained earnings by €20 million.
                                                      8,505           8,286
8,000                          7,614     7,491
                                                                                    Consolidated own funds within the meaning of Austria’s
6,000             5,199
                          5,652                                                     Bankwesengesetz (banking act) were 3 per cent or €335
          4,463                                                                     million down on the end of 2008 to €10,467 million. Tier 1
                                            37.5%        27.0%           26.3%
4,000                        34.7%                                                  came to €7,096 million, or €493 million less than at year-
             16.5%                                                                  end 2008. The decrease was largely due to currency de-
2,000
                                                                                    preciations in Hungary, Poland and Russia. Current profit in
      0                                                                             the first quarter is not included in Consolidated own funds
             2005            2006           2007         2008          Q1 2009      because Austrian legislative provisions do not allow its
           Regulatory own funds        Available own funds      Surplus own funds   recognition in this line item.

                            The non-voting non-ownership stock (Partizipationskapital) in the amount of €1.75 billion subscribed by the Re-
                            public of Austria was only issued at the beginning of April and was therefore not accounted for at the end of the
                            first quarter.

                            Additional own funds (Tier 2) grew by €140 million to €3,743 million. This was partly the result of a €35 million
                            Lower Tier 2 issuance by Raiffeisen Zentralbank and partly the result of an extension of the maturity of subordi-
                            nated debt capital issued by the Network Bank in the Ukraine by the International Finance Corporation.

                            Redemptions reduced eligible short-term Subordinated debt capital (Tier 3) by €11 million to €277 million.

                            Available own funds of €10,467 million compared with a regulatory Own funds requirement of €8,286 million,
                            which was €219 million less than at the end of March 2008. This resulted in a Surplus own funds ratio of 26 per
                            cent.

                            Looking at the own funds requirement in detail, credit risk accounted for 83 per cent thereof (€6,853 million),
                            market risk for 5 per cent (€432 million), operational risk for 8 per cent (€630 million) and open currency posi-
                            tions for 4 per cent (€371 million).

                            The Tier 1 ratio measured in relation to credit risk came to 8.2 per cent at the end of the first quarter, or 0.2
                            percentage points less than at the end of 2008. The Tier 1 ratio measured in relation to aggregate risk (credit and
                            market risk) was 6.8 per cent, compared with 7.0 per cent at the end of 2008. RZB’s Own funds ratio fell by 0.1
                            percentage points to 10.1 per cent.




     RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
RZB’s Performance During Q1 2009                                                                                                17




 Risk Report
 Alongside numerous other activities, the principal focus at Risk Management in the first quarter of 2009 was on
 actively managing the loan portfolio. Specifically, credit risk management consisted of adapting lending policy
 and lending guidelines and (re-)assessing individual industries and countries and product and concentration limits.

 A number of CEE countries too were particularly affected by the worsening global economic climate, for instance
 as a result of currency depreciation. This impacted on Raiffeisen Zentralbank by increasing its charges for im-
 pairment losses on loans an advances and detrimentally affecting the foreign currency translation of elements of
 the equity of consolidated entities within the Group. In the affected countries, risks also arose from loans exposing
 the borrower to currency risk. This was particularly true of loans to retail customers. Depreciation of the local
 currency diminished borrowers’ ability to repay loans and frequently increased default rates. In the interests of
 more cautious lending, the Bank is therefore always insisting on better collateralization and lower ratios of debt to
 a borrower’s disposable income.

 Thanks to continuous portfolio analysis and scenario simulations, Risk Management at Raiffeisen Zentralbank is
 well prepared to cope with the effects of the economic downturn. Among other things, it continued to revise
 lending guidelines, and credit policy now focuses more closely on reducing limits on unrestricted loan lines, reduc-
 ing the size of a loan for which a mortgage or other lien is required and making minimum credit repayment
 requirements more stringent. In addition, the control and monitoring processes that accompany a loan are being
 generally intensified.

 Another focus of Risk Management’s activities in the period under review was on continuing the implementation
 of Basel II throughout the Group.

 Raiffeisen Zentralbank was already using the internal ratings based (IRB) approach to measure credit risks arising
 from loans and advances to non-retail customers at year-end 2008, as were the subsidiaries in the Czech Repub-
 lic, Slovakia, Hungary, Malta and the United States. The main emphasis of the Basel II roll-out is on gradually
 putting the IRB approach in place at further Group units. For Raiffeisen Zentralbank, this has the advantage that
 credit risks can be measured with greater precision and, therefore, managed more effectively. At the same time,
 the regulators usually reward the use of this approach by setting lower equity requirements than when the stan-
 dardized approach is used.

 The standardized approach is used to calculate the own funds requirement for the trading book. For regulatory
 purposes, a simulation of changes in present value as a percentage of own funds is carried out to quantify interest
 rate risk in the banking book. The requisite key assumptions regarding maturities are made in conformity with
 regulatory standards and on the basis of internal statistics and historical experience.

 Raiffeisen Zentralbank is currently using a combination of the standardized approach and a temporary basic
 indicator approach to calculate capital charges for operational risk in accordance with Basel II.

 Detailed information is provided in the Risk Report in the Consolidated Interim Financial Statements from page 54.




                                                                                      RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
18                                                                                                                     Segment Reports




     Segment Reports
                  Segment Definitions
                  The RZB Group’s smallest controlling units (cash generating units or CGU as defined by IFRS) are Austria, the
                  individual countries in Central and Eastern Europe and other countries. Countries expected to exhibit comparable
                  long-term economic developments and that have comparable long-term economic structures are grouped together
                  into regional segments. Taking the thresholds required by IFRS into account, we have defined a total of six re-
                  gional segments to ensure transparent and clear reporting. In each case, the quantitative threshold laid down by
                  IFRS 8 is 10 per cent of specific variables, these being reported revenues, profit or loss (after tax) and segment
                  assets.

                  At 31 March 2009, this resulted in the following segments, the allocation of entities within the Group being
                  dependent on the domiciles of the business outlets concerned:

                       Austria
                       The results of business carried out by Raiffeisen Zentralbank from its Head Office and the results posted by
                       the many subsidiaries in Austria are reported under Austria.

                       Central Europe
                       This segment encompasses the five countries that jointed the EU on 1 May 2004, these being the Czech
                       Republic, Hungary, Poland, Slovakia and Slovenia. These are not just, for the most part, the CEE region’s
                       most mature banking markets. They are also the markets where RZB has been operating longest.

                       Southeastern Europe
                       Southeastern Europe includes Albania, Bosnia and Herzegovina, Croatia, Kosovo, Moldova, Serbia and
                       the two countries that joined the EU on 1 January 2007, namely Bulgaria and Romania. Moldova is in-
                       cluded as a part of Romania because of its economic ties to that country and the way it is controlled within
                       the Group as a result.

                       Russia
                       This segment encompasses the results of the companies acting for RZB within the Russian Federation. The
                       Group’s members in Russia include a bank, a leasing company and an investment fund company.

                       Other CIS Countries
                       This segment encompasses Belarus, Kazakhstan and the Ukraine.

                       Rest of the World
                       This segment includes Raiffeisen Zentralbank's branches in London, Singapore and Beijing and the Group
                       units located in other countries such as Germany, Malta, Sweden, Switzerland and the United States.

                  The figures contained in a Segment Report are taken from the separate financial statements prepared in accor-
                  dance with IFRS. These were also used in the preparation of the Consolidated Financial Statements. Figures may
                  differ from the figures published locally if they are based on different local measurement rules or different copy
                  deadlines.




RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Segment Reports                                                                                                                              19




 Segment Overview
 During the first quarter, virtually every segment at RZB registered a drop in profits. It was essentially due to higher
 charges for impairment losses on loans and advances caused predominantly by a marked deterioration of the
 lending market in every region.


 Profit before tax in Austria fell from negative €29 million in   Profit before Tax, by Segments (IFRS 8)
 first three months of 2008 to negative €42 million in the        €m
 period under review. This was mainly attributable to the         140                              130
                                                                                      116
 increase in provisioning for impairment losses and the           120
 adverse effects of mark-to-market valuations of securities       100
 and other financial instruments.                                  80                                           70          73
                                                                   60                                    55                                  50
                                                                                            43
 Central Europe registered profit before tax of €43 million.       40
                                                                                                                     20
 Net trading income grew and made a positive contribution          20
                                                                                                                                 1
 to total profit. Net interest income was static on the same        0

 period of the previous year, while net fee and commission        -20
                                                                  -40                                                                  -27
 income fell. Balance sheet assets were 8 per cent up on the             -29
                                                                               -42
 end of the first quarter of 2008.                                -60
                                                                          Austria    Central     Southeastern   Russia     Other CIS     Rest of
                                                                                     Europe         Europe                 Countries   the World
 Southeastern Europe delivered the highest profit before tax
                                                                    Q1 2008    Q1 2009
 of any segment, namely €55 million. It was generated by a
 small advance in net interest income and good net trading income. However, profit was severely dented by the
 increased provisioning for impairment losses. Balance sheet assets were 6 per cent up on the end of the first
 quarter of 2008.

 Despite a strong increase in net interest income, profit before tax in Russia fell to €20 million. Results in this seg-
 ment were affected both by the increased provisioning for impairment losses and by a net trading loss. Balance
 sheet assets in this segment were 3 per cent up on the end of the first quarter of 2008.

 Even though net interest income and net trading income grew, improving profit before tax in the Other CIS Coun-
 tries segment, it still fell to €1 million. This was a consequence of provisioning for impairment losses of €118
 million. Balance sheet assets in this segment were 6 per cent up on the end of the first quarter of 2008.

 Profit before tax in the Rest of the World segment grew to €50 million. Balance sheet assets in this segment were
 8 per cent up on the end of the first quarter of 2008.

 Austria continued to dominate Group assets, accounting for 51 per cent of the total. The Central Europe segment
 accounted for the second-largest slice, namely 17 per cent, followed by Southeastern Europe, which accounted
 for 13 per cent, the Rest of the World, which accounted for 8 per cent, Russia, which accounted for 7 per cent
 and Other CIS Countries, which accounted for 4 per cent.




                                                                                       RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 20                                                                                            Segment Reports




                       Austria
                                                                          1/1 –        1/1 –
Monetary values are in €m                                            31/3/2009    31/3/2008    +(-) Change
Net interest income                                                        68          165         (59.0%)
    of which current income from associates                                10           18         (46.2%)
Provisioning for impairment losses                                        (149)          (2)     >500.0%
Net interest income after provisioning                                     (82)        163       ( 150.1%)
Net fee and commission income                                              40           63        ( 37.1%)
Net trading income                                                        127           47        173.0%)
Net income from derivative financial instruments                           15           (39)            —
Net income from financial investments and current financial assets         (57)        (162)       (64.7%)
General administrative expenses                                           (134)        (129)         4.2%
    of which staff expenses                                                (77)         (82)        (5.8%)
    of which other administrative expenses                                 (43)         (37)        16.4%
    of which depreciation/amortization/write-offs                          (14)         (10)        42.2%
Other operating profit                                                     49           28          76.0%
Net income from deconsolidations                                            (1)          —              —
Loss before tax                                                            (42)         (29)        46.9%
Income tax                                                                   1           (9)            —
Loss after tax                                                             (41)         (38)         8.5%
Minority interests in profit                                                 9          (20)            —
Consolidated loss                                                          (32)         (58)      (44.3%)


Segment’s contribution to consolidated profit before tax               (33.5%)       (8.6%)     (24.8 ppt)
Segment’s contribution to consolidated profit after tax                (43.6%)      (16.3%)     (27.3 ppt)
Risk-weighted assets (credit risk)                                     35,344       49,757         (29.0%)
Own funds requirement                                                   3,255        4,462         (27.0%)
Total assets                                                           99,809       85,912          16.2%
Liabilities                                                            95,170       80,271          18.6%
Risk/earnings ratio                                                    220.7%         1.2%      219.4 ppt
Cost/income ratio                                                       47.3%        42.6%         4.7 ppt
Average equity                                                          2,840        3,641         (22.0%)
Return on equity before tax                                             (6.0%)       (3.2%)       (2.8 ppt)
Average number of staff                                                 2,950        2,873           2.7%
Business outlets                                                           11           10            10%




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Segment Reports                                                                                                                 21




 During the period under review, the Austria segment registered a loss that was significantly bigger than its loss in
 the same period of the previous year. Profit before tax fell by 47 per cent or €13 million to negative €42 million.
 The decline was due to a substantial increase in provisioning for impairment losses, a drop in net fee and com-
 mission income and a loss on financial investments and current financial assets.

 Net interest income fell by 59 per cent to €68 million. This was mainly a result of lower intragroup dividends and
 a retrospectively recognized interest expense of €35 million on the non-voting non-ownership stock (Partizipation-
 skapital) subscribed by the Republic of Austria in April. The Group’s assets in Austria grew by 16 per cent,
 sharply reducing the net interest margin in this segment by 52 basis points versus the end of the first quarter of
 2008, taking it to 0.28 per cent. Credit risk-weighted assets fell by 29 per cent from €49.8 billion to €35.3
 billion. This was attributable to the “Basel II effect” caused by the IRB approach, which was used by Raiffeisen
 Zentralbank for the first time in December.

 Provisioning for impairment losses increased from €2 million to €149 million. Most of the increase was due to
 item-by-item charges for impairment losses — mostly in connection with Icelandic financial institutions — recog-
 nized by Raiffeisen Zentralbank. The collective assessment of impairment of the portfolio almost doubled to €11
 million. The segment’s Risk/earnings ratio was thus substantially poorer than at the end of the same period of the
 previous year, coming to 220.7 per cent at the end of March 2009. The segment’s Non-performing loan ratio
 increased by 240 basis points to 3.54 per cent.

 Net fee and commission income in the Austria region was down 37 per cent or €24 million to €40 million. The
 33 per cent or €9 million fall in earnings from securities operations to €18 million played an important role in this
 reduction.

 Net trading income came to €127 million, which was substantially up on the same period of the previous year.
 Net income from interest-related trading — all of which was generated at Raiffeisen Zentralbank — came to
 €109 million. Net income from equity-related trading fell by 59 per cent or €13 million as a result, mainly, of a
 drop in earnings at Raiffeisen Centrobank.

 Net income from financial investments and current financial assets came to negative €57 million. This was primar-
 ily attributable to revaluation losses on securities.

 General administrative expenses were 4 per cent or €5 million up on the same period of 2008 to €134 million.
 On the one hand, the absence of variable salary components reduced Staff expenses by 6 per cent or €5 million
 to €77 million. On the other, Other administrative expenses increased by 16 per cent or €6 million to €43 mil-
 lion. The Average number of staff was 3 per cent up on the same period of the previous year to 2,950. Deprecia-
 tion/amortization/write-offs increased sharply, rising by 42 per cent to €14 million. The Cost/income ratio in the
 Austria region increased by 4.7 percentage points to 47.3 per cent.

 Other operating profit came to €49 million. This line item is comprised largely of intragroup transfers and a
 number of smaller items of income and expense.

 Thanks to deferred tax assets, the segment registered Tax income of €1 million. Profit after tax and minorities
 came to negative €32 million.




                                                                                      RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 22                                                                                            Segment Reports




                       Central Europe
                                                                          1/1 –        1/1 –
Monetary values are in €m                                            31/3/2009    31/3/2008    +(-) Change
Net interest income                                                       231          237          (2.7%)
    of which current income from associates                                 —             1      (100.0%)
Provisioning for impairment losses                                        (105)         (41)      155.3%
Net interest income after provisioning                                    126          196         (35.9%)
Net fee and commission income                                              99          135         (26.5%)
Net trading income                                                         30             4      >500.0%
Net income from derivative financial instruments                             1           (2)            —
Net income from financial investments and current financial assets         (10)           2             —
General administrative expenses                                           (204)        (215)        (5.3%)
    of which staff expenses                                                (98)        (107)        (8.8%)
    of which other administrative expenses                                 (86)         (87)        (0.7%)
    of which depreciation/amortization/write-offs                          (19)         (21)        (7.1%)
Other operating profit/(loss)                                                2           (4)            —
Profit before tax                                                          43          116        (63.0%)
Income tax                                                                 (11)         (25)       (56.4%)
Profit after tax                                                            32           91        (64.8%)
Minority interests in profit                                               (19)         (44)       (56.0%)
Consolidated profit                                                        13           48        (73.0%)


Segment’s contribution to consolidated profit before tax                33.9%        34.8%        (0.8 ppt)
Segment’s contribution to consolidated profit after tax                 33.9%        39.2%        (5.3 ppt)
Risk-weighted assets (credit risk)                                     22,371       22,456          (0.4%)
Own funds requirement                                                   2,073        2,052           1.0%
Total assets                                                           32,879       30,365           8.3%
Liabilities                                                            30,599       28,231           8.4%
Risk/earnings ratio                                                     45.6%        17.4%        28.2 ppt
Cost/income ratio                                                       56.3%        57.7%        (1.4 ppt)
Average equity                                                          1,709        1,748          (2.2%)
Return on equity before tax                                             10.0%        26.6%      (16.5 ppt)
Average number of staff                                                14,088       13,043           8.0%
Business outlets                                                          584          545           7.2%




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Segment Reports                                                                                                                23




 Profit in the Central Europe region during the first quarter of 2009 was significantly down on the same period of
 the previous year as Profit before tax fell by 63 per cent or €73 million to €43 million. This was due to higher
 Provisioning for impairment losses and fall in Net fee and commission income. The Central Europe segment’s
 Return on equity before tax fell by 16.5 percentage points to 10.0 per cent as a result

 Net interest income retreated by 3 per cent to €231 million. This resulted from an increase in funding costs that
 was particularly apparent at the Group’s unit in Poland. Balance sheet assets in Central Europe grew by 8 per
 cent. The Net interest margin was sharply down on the same period of the previous year, falling by 54 basis
 points to 2.67 per cent. Credit risk-weighted assets fell slightly from €22.5 billion to €22.4 billion. Besides the
 effects of movements in foreign exchange rates, this was a result of partially introducing the IRB approach in
 Hungary, Slovakia and the Czech Republic in December 2008.

 Provisioning for impairment losses increased by 155 per cent to €105 million. Collective assessments of impair-
 ments of portfolios rose sharply, mainly as a result of developments at the Group units in Hungary. There was a
 similar rise in item-by-item charges for impairment losses in every Central European country. The segment’s
 Risk/earnings ratio deteriorated by 28.2 percentage points compared with the end of March 2008, coming to
 45.6 per cent. Its Non-performing loan ratio increased by 126 basis points to 3.93 per cent.

 Net fee and commission income in the region fell by 27 per cent or €36 million to €99 million. Much of the
 decline was caused by the drop in earnings from foreign exchange and notes and coin operations, which fell by
 38 per cent to €36 million. The principle reasons for the reduction were narrower margins on foreign exchange
 operations following the launch of the euro in Slovakia and earning losses caused by lower new business vol-
 umes, including, above all, lower foreign currency volumes. Earnings from payment and account services fell
 virtually everywhere in the region, retreating by 15 per cent to €41 million overall.

 Net trading income in the Central Europe region came to €30 million, which was significantly more than in the
 same period of the previous year. Net income from currency-related transactions came to €18 million, with Hun-
 gary making a major contribution. Net income from interest-related trading came to €13 million, most of which
 resulted from revaluation gains on interest swaps in Slovakia.

 Net income from financial investments and current financial assets came to negative €10 million. This was primar-
 ily attributable to revaluation losses on securities in the Czech Republic.

 General administrative expenses were 5 per cent or €11 million lower than in the same period of the previous
 year at €204 million. Most of the fall was due the 9 per cent drop in Staff expenses which, thanks to the absence
 of variable salary components and the effects of movements in foreign exchange rates during the first quarter of
 2009, came to just €98 million. The Average number of staff was 8 per cent up on the same period of the previ-
 ous year to 14,088. Other administrative expenses were virtually static, at €86 million. Deprecia-
 tion/amortization/write-offs decreased by €2 million to €19 million. The number of Business outlets was 7 per
 cent or 39 up on the end of March 2008 to 584. There was a particularly big increase in Hungary, where busi-
 ness outlets increased by 20. The Cost/income ratio in this region fell by 1.4 percentage points to 56.3 per cent.

 Other operating profit came to €2 million. This line item is comprised largely of Other non profit-dependent tax
 expenses incurred by the Group units in Hungary and Slovakia. Operating leases contributed €2 million to Other
 operating profit.

 Income tax fell by 56 per cent compared with the same period of the previous year to €11 million. Profit after tax
 and minorities came to €13 million.




                                                                                     RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 24                                                                                            Segment Reports




                       Southeastern Europe
                                                                          1/1 –        1/1 –
Monetary values are in €m                                            31/3/2009    31/3/2008    +(-) Change
Net interest income                                                       217          214           1.5%
    of which current income from associates                                  0            0             —
Provisioning for impairment losses                                        (112)         (28)      300.8%
Net interest income provisioning                                          105          186         (43.6%)
Net fee and commission income                                             100          101          (1.3%)
Net trading income                                                         23             9       162.7%
Net income from derivative financial instruments                            (3)          (1)      281.2%
Net income from financial investments and current financial assets           2           (3)            —
General administrative expenses                                           (180)        (171)         4.9%
    of which staff expenses                                                (79)         (77)         2.9%
    of which other administrative expenses                                 (76)         (74)         2.8%
    of which depreciation/amortization/write-offs                          (24)         (20)        20.4%
Other operating profit                                                       8          10         (20.4%)
Profit before tax                                                          55          130        (57.8%)
Income tax                                                                 (10)         (21)       (51.8%)
Profit after tax                                                            45         109         (58.9%)
Minority interests in profit                                               (12)         (35)       (65.9%)
Consolidated profit                                                        33           74        (55.6%)


Segment’s contribution to consolidated profit before tax                43.4%        39.0%         4.5 ppt
Segment’s contribution to consolidated profit after tax                 47.3%        46.9%         0.5 ppt
Risk-weighted assets (credit risk)                                     18,449       16,529          11.6%
Own funds requirement                                                   1,658        1,452          14.2%
Total assets                                                           24,443       23,153           5.6%
Liabilities                                                            21,748       20,780           4.7%
Risk/earnings ratio                                                     51.7%        13.1%        38.6 ppt
Cost/income ratio                                                       51.7%        51.4%         0.3 ppt
Average equity                                                          1,389        1,341           3.6%
Return on equity before tax                                             15.8%        38.8%      (23.0 ppt)
Average number of staff                                                19,132       17,129          11.7%
Business outlets                                                        1,200        1,007          19.2%




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Segment Reports                                                                                                                 25




 Profit before tax in the Southeastern Europe segment was 58 per cent down on the same period of 2008 to €55
 million. The principle reason was a large increase in provisioning for impairment losses, reducing the segment’s
 Return on equity before tax by 23.0 percentage points to 15.8 per cent.

 Net interest income in the Southeastern Europe segment increased by 2 per cent to €217 million. Balance sheet
 assets in this segment grew by 6 per cent to €24.4 billion. The Net interest margin fell by 24 basis points to 3.50
 per cent. Credit risk-weighted assets increased by 12 per cent from €16.5 billion to €18.4 billion.

 Having previously been very low, provisioning for impairment losses increased by €84 million to €112 million.
 Most of the difference was due to item-by-item charges for impairment losses, which increased mainly as a result
 of charges in respect of loans to retail customers at the Group unit in Romania and loans to a number of corpo-
 rate customers in Croatia. Collective assessments of impairments of portfolios were carried out at virtually every
 Group unit in the region. At the end of the first quarter, this segment had a Risk/earnings ratio of 51.7 per cent,
 which was 38.6 percentage points more than at the end of March 2008. The segment’s Non-performing loan
 ratio increased by 250 basis points compared with the first quarter of the previous year to 4.16 per cent.

 Net fee and commission income was virtually unchanged at €100 million. Payment services accounted for €35
 million thereof, and foreign exchange and notes and coin operations for an unchanged total of €21 million.
 Credit and guarantee operations contributed another €21 million. The biggest relative declines in Net fee and
 commission income took place in Romania and Serbia.

 Net trading income developed well, growing by €14 million overall to total €23 million. Net income from cur-
 rency-related transactions was substantially up on the same period of the 2008 to €22 million. Net income from
 interest-related trading came to €3 million. Equity-related trading showed a loss of €1 million caused mainly by
 positions in Croatia and Bosnia and Herzegovina.

 Net income from derivative financial instruments came to negative €3 million. This was due to revaluation losses
 on derivatives held to minimize interest rate risks in the loan portfolio of the Group unit in Kosovo. As they do not
 qualify for hedge accounting, revaluation gains and losses on these derivatives were recognized through profit or
 loss.

 Net income from financial investments and current financial assets came to €2 million, compared with negative
 €3 million in the same period of the previous year. The improvement resulted from revaluation gains on securities
 in Romania.

 General administrative expenses increased by a total of 5 per cent to €180 million. Staff expenses rose slightly,
 increasing by €2 million to €79 million. The Average number of staff was 12 per cent or 2,003 up on the same
 period of the previous year to 19,132. Other administrative expenses increased by 3 per cent to €76 million.
 Depreciation/amortization/write-offs, which related primarily to investments in branches, increased to €24 mil-
 lion. Having stood at 1,007 at the end of March 2008, the number of business outlets increased by 19 per cent
 to 1,200, thus growing faster in the Southeastern Europe region than in any other segment. This was chiefly due
 to the opening of new business outlets in Romania. The segment’s Cost/income ratio rose slightly, by 0.3 per-
 centage points, to 51.7 per cent.

 Other operating profit was €2 million down on the same period of the previous year to €8 million. Besides nu-
 merous small items of expense, this line item mainly captures income from operating leases.

 Income tax was 52 per cent down on the same period of the previous year to €10 million. Profit after tax and
 minorities came to €33 million.




                                                                                      RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 26                                                                                            Segment Reports




                       Russia
                                                                          1/1 –        1/1 –
Monetary values are in €m                                            31/3/2009    31/3/2008    +(-) Change
Net interest income                                                       209          149          40.3%
Provisioning for impairment losses                                        (110)         (16)     >500.0%
Net interest income after provisioning                                    100          133         (25.1%)
Net fee and commission income                                              51           43          17.6%
Net trading income                                                         (28)         24               –
Net income from derivative financial instruments                            (4)         (34)       (89.7%)
Net income from financial investments and current financial assets           2            0      >500.0%
General administrative expenses                                           (100)         (93)         8.2%
    of which staff expenses                                                (44)         (49)       (10.2%)
    of which other administrative expenses                                 (49)         (38)        28.0%
    of which depreciation/amortization/write-offs                           (8)          (6)        33.6%
Other operating profit/(loss)                                               (1)          (2)       (71.2%)
Profit before tax                                                          20           70        (72.3%)
Income tax                                                                  (6)         (19)       (66.9%)
Profit after tax                                                            13           51        (74.3%)
Minority interests in profit                                                (4)         (15)       (74.4%)
Consolidated profit                                                          9          36        (74.2%)


Segment’s contribution to consolidated profit before tax                15.4%        21.1%        (5.6 ppt)
Segment’s contribution to consolidated profit after tax                 13.9%        22.0%        (8.1 ppt)
Risk-weighted assets (credit risk)                                     10,016        8,829          13.5%
Own funds requirement                                                     922          818          12.7%
Total assets                                                           14,126       13,714           3.0%
Liabilities                                                            12,675       12,536           1.1%
Risk/earnings ratio                                                     52.5%        11.0%        41.5 ppt
Cost/income ratio                                                       43.3%        43.3%         0.0 ppt
Average equity                                                            777          744           4.5%
Return on equity before tax                                             10.1%        37.9%      (27.8 ppt)
Average number of staff                                                10,111        9,232           9.5%
Business outlets                                                          236          246          (4.1%)




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Segment Reports                                                                                                                27




 Profit before tax in the Russia segment was 72 per cent or €51 million down on the first quarter of 2008 to €20
 million. Although there was a much bigger increase in Net interest income than in other segments, profit was
 severely dented by provisioning for impairment losses. The segment’s Return on equity before tax fell by 27.8
 percentage points to 10.1 per cent.

 Net interest income in Russia grew by 40 per cent or €60 million to €209 million, far outstripping the increase in
 Balance sheet assets, which grew by just 3 per cent compared with the end of March 2008 to total €14.1 billion
 at the end of the period under review. One of the main reasons was a greatly improved Net interest margin,
 which increased by 115 basis points to 5.76 per cent.

 Credit risk-weighted assets increased by 14 per cent to €10.0 billion because, mainly, of an increase in off-
 balance-sheet items.

 Provisioning for impairment losses increased from €16 million in the same period of the previous year to €110
 million in the period under review. This increase was mainly due to a collective assessment of impairment of the
 portfolio of €57 million. The increase in item-by-item charges for impairment losses was predominantly related to
 loans to corporate customers. The segment’s Risk/earnings ratio increased by 41.5 percentage points to 52.5
 per cent. Its Non-performing loan ratio increased by 117 basis points to 3.34 per cent.

 Net fee and commission income increased by 18 per cent or €8 million to €51 million. Payment services ac-
 counted for €18 million thereof. The volume of foreign exchange and notes and coin operations doubled com-
 pared with the same period of 2008, contributing €20 million.

 Net trading income fell from €24 million in the first quarter of 2008 to negative €28 million in the period under
 review. This was primarily due to macro hedges that generated revaluation losses in the wake of movements in
 foreign exchange rates. Net income from interest-related trading came to €20 million, most of this total being
 generated by revaluation gains on fixed-interest securities.

 Net income from derivative financial instruments came to negative €4 million. This was primarily a result of re-
 valuation losses on interest rate swaps used to mitigate term structure risk.

 Net income from financial investments and current financial assets came to €2 million. Revaluation gains on
 securities valued using a mark-to-market approach contributed €4 million, but there were revaluation losses of €2
 million on held-to-maturity securities.

 General administrative expenses in the Russia segment increased by 8 per cent or €7 million to €100 million.
 Staff expenses fell by 10 per cent or €5 million to €44 million. The Average number of staff in the region was
 9 per cent or 879 up on the same period of the previous year to 10,111. Other administrative expenses in-
 creased by 28 per cent or €11 million to €49 million as a result, mainly, of a sharp rise in rental costs. Deprecia-
 tion/amortization/write-offs increased by €2 million to €8 million. This segment’s Cost/income ratio was un-
 changed at 43.3 per cent.

 Other operating profit/(loss) in this segment was up on the same period of 2008 to negative €1 Million. This loss
 was mainly attributable to outlay on non-profit-dependent taxes.

 Income tax was 67 per cent down on the same period of the previous year to €6 million. Profit after tax and
 minorities came to €9 million, which was 74 per cent less than in the first quarter of 2008.




                                                                                     RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 28                                                                                            Segment Reports




                       Other CIS Countries
                                                                          1/1 –        1/1 –
Monetary values are in €m                                            31/3/2009    31/3/2008    +(-) Change
Net interest income                                                       126          118           6.8%
Provisioning for impairment losses                                        (118)          (7)     >500.0%
Net interest income after provisioning                                       8         110         (92.9%)
Net fee and commission income                                              43           50         (12.9%)
Net trading income                                                         23             3       683.7%
Net income from financial investments and current financial assets           4            0      >500.0%
General administrative expenses                                            (78)         (91)       (14.2%)
    of which staff expenses                                                (43)         (50)       (13.7%)
    of which other administrative expenses                                 (26)         (31)       (17.5%)
    of which depreciation/amortization/write-offs                           (9)         (10)        (5.5%)
Other operating profit                                                       1            1         19.0%
Profit before tax                                                            1          73        (98.5%)
Income tax                                                                   0          (22)       (98.4%)
Profit after tax                                                             1           51        (98.5%)
Minority interests in profit                                                (3)         (18)       (82.7%)
Consolidated profit/(loss)                                                 (2)          33               —


Segment’s contribution to consolidated profit before tax                 0.9%        21.8%      (21.0 ppt)
Segment’s contribution to consolidated profit after tax                  0.8%        21.9%      (21.1 ppt)
Risk-weighted assets (credit risk)                                      7,511        7,046           6.6%
Own funds requirement                                                     668          633           5.6%
Total assets                                                            7,715        7,310           5.5%
Liabilities                                                             6,724        6,378           5.4%
Risk/earnings ratio                                                     93.8%         6.2%        87.6 ppt
Cost/income ratio                                                       40.4%        53.1%      (12.7 ppt)
Average equity                                                            536          525           2.1%
Return on equity before tax                                              0.8%        55.5%      (54.7 ppt)
Average number of staff                                                19,279       19,780          (2.5%)
Business outlets                                                        1,188        1,238          (4.0%)




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Segment Reports                                                                                                                29




 Because of very high Provisioning for impairment losses, Profit before tax in the Other CIS Countries segment was
 €72 million down on the first quarter of 2008 to €1 million. Fluctuations in foreign exchange rates had a
 particularly marked effect in this segment. For instance, the average exchange rate of the Ukrainian hryvna versus
 the euro was 34 per cent down on the first quarter of 2008. This reduced the segment’s Return on equity by 54.7
 percentage points to 0.8 per cent.

 Net interest income in the Other CIS Countries segment grew by 7 per cent or €8 million to €126 million. Bal-
 ance sheet assets were 6 per cent up on the end of March 2008 to €7.7 billion. The Net interest margin fell
 slightly, by 3 basis points, to 6.38 per cent. Credit risk-weighted assets increased by 7 per cent to €7.5 billion.

 Provisioning for impairment losses increased several times over from €7 million in the same period of the previous
 year to €118 million in the first quarter of 2009. This was the result of both extensive item-by-item charges for
 impairment losses in connection with loans to retail customers in the Ukraine and collective assessments of im-
 pairments of portfolios. The segment’s Risk/earnings ratio increased by 87.6 percentage points to 93.8 per cent.
 Its Non-performing loan ratio increased by 740 basis points to 10.5 per cent.

 Because of movements in foreign exchange rates, Net fee and commission income in this segment fell by €7
 million to €43 million. Payment services made the biggest contribution to this line item, namely €27 million, and
 foreign exchange and notes and coin operations contributed €16 million.

 Net trading income grew from €3 million to €23 million. Almost all of this income was generated by currency-
 related operations. Net income from interest-related trading came to €1 million.

 Net income from financial investments and current financial assets came to €4 million. Revaluation gains on
 securities valued using a mark-to-market approach had a positive impact, especially at RZB’s Group unit in the
 Ukraine.

 General administrative expenses fell by 14 per cent or €13 million to €78 million. Staff expenses were down
 14 per cent or €7 million to €43 million. The Average number of staff employed by the Group units included in
 this segment came to 19,279, which was 3 per cent or 501 fewer than in the same period of 2008. Other
 administrative expenses fell by 18 per cent to €26 million, thanks mainly to the reduction of 63 in the number of
 business outlets in the Ukraine. Depreciation/amortization/write-offs was static on the same period of 2008 at €9
 million. This segment’s Cost/income ratio improved considerably, falling by 12.7 percentage points to 40.4 per
 cent.

 Other operating profit in this segment was unchanged from the same period of the previous year at €1 million.

 Mirroring Profit for the period, Income tax fell by 98 per cent compared with the same period of the previous year
 to €0.3 million. Profit after tax and minorities fell to negative €2 million.




                                                                                     RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 30                                                                                            Segment Reports




                          Rest of the World
                                                                          1/1 –        1/1 –
Monetary values are in €m                                            31/3/2009    31/3/2008    +(-) Change
Net interest income                                                        43           32          36.9%
Provisioning for impairment losses                                          (2)          (1)      123.5%
Net interest income after provisioning                                      41           31         34.3%
Net fee and commission income                                              16             7       138.1%
Net trading income                                                           6          (42)            —
Net income from derivative financial instruments                             1           (4)            —
Net income from financial investments and current financial assets          (1)          (6)       (82.2%)
General administrative expenses                                            (16)         (15)         7.0%
    of which staff expenses                                                (10)          (9)         3.9%
    of which other administrative expenses                                  (6)          (5)        14.3%
    of which depreciation/amortization/write-offs                           (1)          (1)        (5.5%)
Other operating profit                                                       3            3         17.4%
Profit/(loss) before tax                                                   50           (27)             —
Income tax                                                                  (5)          (5)         4.7%
Profit/(loss) after tax                                                     45          (32)             —
Minority interests in profit                                                —            —              —
Consolidated profit/(loss)                                                 45           (32)             —


Segment’s contribution to consolidated profit before tax                39.8%        (8.0%)       47.8 ppt
Segment’s contribution to consolidated profit after tax                 47.6%       (13.7%)       61.3 ppt
Risk-weighted assets (credit risk)                                      4,802        5,335         (10.0%)
Own funds requirement                                                     427          547         (22.0%)
Total assets                                                           16,530       15,384           7.5%
Liabilities                                                            15,992       15,025           6.4%
Risk/earnings ratio                                                      4.9%         3.0%         1.9 ppt
Cost/income ratio                                                       23.7%            —              —
Average equity                                                            369          405          (8.9%)
Return on equity before tax                                             54.5%       (26.4%)       80.9 ppt
Average number of staff                                                   425          360          18.1%
Business outlets                                                           10             8         25.0%




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Segment Reports                                                                                                                 31




 Profit before tax in the Rest of the World segment came to €50 million. This was a big improvement on the loss of
 €27 million registered in the same period of 2008. A large part of the improvement was attributable to an in-
 crease in Net interest income and — in contrast to the same period of the previous year — positive Net trading
 income. As a consequence, the segment’s Return on equity before tax came to 54.5 per cent.

 Net interest income in this segment increased by 37 per cent or €12 million to €43 million. Balance sheet assets
 grew by 8 per cent to €16.5 billion. The Net interest margin increased by 18 basis points to 0.99 per cent. On
 the other hand, Credit risk-weighted assets fell by 10 per cent from €5.3 billion to €4.8 billion.

 Provisioning for impairment losses doubled to €2 million. The segment’s Risk/earnings ratio increased by 1.9
 percentage points to 4.9 per cent. Its Non-performing loan ratio was 96 basis points higher than in the same
 period of the previous year at 1.56 per cent.

 Net fee and commission income grew strongly to €16 million in the three months up to the end of March. Credit
 and guarantee operations contributed €15 million to this total, most of which was generated by the Group unit in
 Malta.

 Net trading income also developed well. Almost all of the total of €6 million consisted of earnings booked by the
 Group unit in London.

 There was a small loss of €1 million on Financial investments and current financial assets.

 General administrative expenses increased by 7 per cent to total €16 million. Staff expenses increase slightly, to
 €10 million. The Average number of staff in this segment was 18 per cent or 65 up on the same period of the
 previous year to 425. Other administrative expenses rose by €1 million to €6 million. Deprecia-
 tion/amortization/write-offs was static on the same period of 2008 at €1 million. The segment’s Cost/income
 ratio came to 23.7 per cent.

 Other operating profit was slightly up on the same period of the previous year, coming to €3 million.

 Income tax was nearly unchanged compared with the same period of the previous year at €5 million. Profit after
 tax and minorities came to €45 million.




                                                                                      RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 32                                                                                                       Consolidated financial statements




        Consolidated
        financial
        statements
        (Interim report as of 31 March 2009)
                       Income statement
                                                                                           1/1–31/3        1/1–31/3
€m                                                                             Notes           2009            2008            Change
Interest income                                                                             2,158.9          2,061.2             4.7%
Current income from associates                                                                  10.1            18.7           (45.9%)
Interest expenses                                                                           (1,308.5)       (1,271.1)            2.9%
Net interest income                                                               (2)          860.5           808.8              6.4%
Provisioning for impairment losses                                                (3)         (596.4)           (95.9)       >500.0%
Net interest income after provisioning                                                         264.1           712.9           (63.0%)
Fee and commission income                                                                      414.9           465.2           (10.8%)
Fee and commission expense                                                                     (68.2)           (66.9)           1.9%
Net fee and commission income                                                     (4)          346.7           398.3           (12.9%)
Net trading income                                                                (5)          164.2              9.8        >500.0%
Net income from derivatives                                                       (6)            2.6            (57.4)                –
Net income from financial investments                                             (7)          (61.0)         (169.1)          (64.0%)
General administrative expenses                                                   (8)         (693.1)         (703.0)           (1.4%)
Other net operating income                                                        (9)           44.8            26.6            68.6%
Net income from disposal of group assets                                                         (0.4)            0.1                 –
Profit before tax                                                                               67.9           218.2           (68.8%)
Income taxes                                                                                   (29.3)         (100.7)          (70.9%)
Profit after tax                                                                                38.6           117.5           (67.1%)
Minority interests in profit                                                                   (12.6)         (108.6)          (88.4%)
Consolidated profit                                                                             26.0              8.9         192.6%



                                                                                            1/1–31/3        1/1–31/3
€                                                                                               2009            2008           Change
Earnings per share                                                                              4.07            1.06              3.01


                       Earnings per share are obtained by dividing consolidated profit by the average number of common shares out-
                       standing. As of 31 March 2009, the number of common shares outstanding was 5,539,885 compared to
                       5,290,494 as of 31 March 2008.

                       There were no conversion or option rights outstanding, so undiluted earnings per share are equal to diluted earn-
                       ings per share.




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Consolidated financial statements                                                                     33




 Profit performance
 Quarterly results
  €m                                         Q1/2008    Q2/2008     Q3/2008       Q4/2008       Q1/2009
  Net interest income                          808.8      924.7      1,040.8       1,236.0         860.5
  Provisioning for impairment losses           (95.9)    (103.8)       (172.1)      (778.7)       (596.4)
  Net interest income after provisioning       712.9      820.9         868.8        457.3         264.1
  Net fee and commission income                398.3      444.6        462.5         462.4         346.7
  Net trading income                             9.8       91.9         (53.3)        (29.0)       164.2
  Net income from derivatives                  (57.4)       4.3         (29.9)         (7.8)         2.6
  Net income from financial investments       (169.1)      72.3        (377.6)      (483.8)         (61.0)
  General administrative expenses             (703.0)    (790.6)       (816.9)      (806.5)       (693.1)
  Other net operating income                    26.6       11.0         22.1          48.4          44.8
  Net income from disposal of group assets       0.1        5.9          (0.4)          1.9          (0.4)
  Profit/loss before tax                       218.2      660.3          75.3        (357.1)        67.9
  Income taxes                                (100.7)    (126.9)        50.2          12.7          (29.3)
  Profit/loss after tax                        117.5      533.4         125.5        (344.4)        38.6
  Minority interests in profit                (108.6)    (149.1)       (115.7)        (10.8)        (12.6)
  Consolidated profit/loss                       8.9      384.3           9.9       (355.2)         26.0




                                                            RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 34                                                                    Consolidated financial statements




                         Balance sheet
Assets                                                        31/3          31/12
€m                                                 Notes      2009           2008           Change
Cash reserve                                                  6,891       13,712            (49.7%)
Loans and advances to banks                      (11, 30)    34,655       29,115             19.0%
Loans and advances to customers                  (12, 30)    81,786       84,918             (3.7%)
Provisioning for impairment losses                   (13)    (2,825)       (2,304)           22.6%
Trading assets                                   (14, 30)     9,581         9,482             1.0%
Derivatives                                      (15, 30)     2,828         2,853            (0.9%)
Financial investments                            (16, 30)    17,495       12,188             43.5%
Investments in associates                            (30)     1,127         1,158            (2.7%)
Intangible fixed assets                              (17)     1,072         1,090            (1.7%)
Tangible fixed assets                                (18)     1,584         1,619            (2.1%)
Other assets                                     (19, 30)     2,565         3,090           (17.0%)
Total assets                                                156,759      156,921             (0.1%)




Equity and liabilities                                        31/3          31/12
€m                                                 Notes      2009           2008           Change
Deposits from banks                              (20, 30)    57,665       54,148              6.5%
Deposits from customers                          (21, 30)    53,970       59,120             (8.7%)
Liabilities evidenced by paper                   (22, 30)    22,566       20,700              9.0%
Provisions for liabilities and charges           (23, 30)      636            695            (8.4%)
Trading liabilities                              (24, 30)     5,067         5,042             0.5%
Derivatives                                      (25, 30)     2,658         2,524             5.3%
Other liabilities                                (26, 30)     1,416         1,655           (14.5%)
Subordinated capital                             (27, 30)     5,338         5,200             2.7%
Equity                                               (28)     7,443         7,837            (5.0%)
   Consolidated equity                                        4,973         5,114            (2.8%)
   Consolidated profit                                          26              48          (45.6%)
   Minority interests                                         2,444         2,675            (8.6%)
Total equity and liabilities                                156,759      156,921             (0.1%)




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Consolidated financial statements                                                                                               35




 Statement of changes in equity
                                           Subscribed        Capital     Retained    Consolidated      Minority
  €m                                          capital       reserves     earnings           profit     interests              Total
  Equity as of 1/1/2008                            424          906        3,559             778         2,755               8,422
  Capital increases                                   –           –            –                –           52                  52
  Transferred to retained earnings                    –           –          778             (778)            –                  –
  Dividend payments                                   –           –            –                –            (5)                (5)
  Comprehensive income                                –           –          (69)               9           83                  23
  Other changes                                       –           –          (11)               –           20                   9
  Equity as of 31/3/2008                          424          906         4,257                9        2,905               8,501



                                           Subscribed        Capital     Retained    Consolidated      Minority
  €m                                          capital       reserves     earnings           profit     interests              Total
  Equity as of 1/1/2009                            444        1,051        3,620               48        2,675               7,837
  Transferred to retained earnings                    –           –           48              (48)            –                  –
  Dividend payments                                   –           –            –                –            (3)                (3)
  Comprehensive income                                –           –         (234)              26         (118)               (326)
  Changes in shares                                   –           –           62                –         (112)                (50)
  Other changes                                       –           –          (16)               –             1                (15)
  Equity as of 31/3/2009                          444        1,051         3,479               26        2,444               7,443



 Comprehensive income
                                                                            Group equity                Minority interests
  €m                                                                   31/3/2009      31/3/2008      31/3/2009       31/3/2008
  Consolidated profit                                                         26                9            13               109
  Exchange differences                                                      (244)             (99)        (124)                (39)
  Capital hedge                                                                (1)             29             –                 16
  Cash flow hedge                                                             82               50            (1)                (3)
  Changes in equity from associates                                          (49)             (18)           (7)                 –
  Valuation result of available-for-sale financial assets                      (2)            (14)            1                  –
  Deferred taxes on sundry income and expenses directly
  recognised in equity                                                       (20)             (17)            –                  –
  Comprehensive income                                                      (208)             (60)        (118)                 83




                                                                                RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 36                                                           Consolidated financial statements




                      Cash flow statement
                                                                   1/1–             1/1–
€m                                                            31/3/2009        31/3/2008
Cash and cash equivalents at the end of the previous period       13,712            5,748
Net cash from operating activities                                (1,183)             (299)
Net cash from investing activities                                (5,199)             (189)
Net cash from financing activities                                    (22)             (21)
Effect of exchange rate changes                                      (417)             (57)
Cash and cash equivalents at the end of period                     6,891            5,182




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Consolidated financial statements                                                                                              37




 Segment reporting
 RZB reports the following operating segments. The location of the respective business outlets serves as the criteria
 for the segment assignment:

       Austria
       Head Office and Austrian subsidiaries

       Central Europe
       Czech Republic, Hungary, Poland, Slovakia, and Slovenia

       Southeastern Europe
       Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Moldova, Romania, and Serbia

       Russia

       CIS Other
       Belarus, Kazakhstan, and Ukraine

       Rest of the World
       RZB’s branches in London, Singapore and Beijing and Group units located in countries such as Germany,
       Malta, Switzerland and the United States

 The reconciliation mainly implies the amounts resulting from the elimination of intra-group results and the consoli-
 dation between segments




                                                                                     RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 38                                                                                                        Consolidated financial statements




1/1–31/3/2009                                                               South-                        Rest of
                                                                Central    eastern                 CIS       the      Recon-
€m                                                   Austria    Europe     Europe     Russia     other    World      ciliation     Total
Net interest income                                    67.6      231.0      217.2      209.4     125.5      43.3        (33.6)     860.5
     of which current income from associates            9.8           –        0.3         –         –          –           –       10.1
Provisioning for impairment losses                   (149.1)     (105.4)    (112.3)   (109.9)   (117.7)      (2.1)          –     (596.4)

Net interest income after provisioning                (81.5)     125.6      104.9       99.6       7.8      41.2       (33.6)      264.1
Net fee and commission income                          39.9       98.9       99.6       50.5      43.3      16.5         (1.9)     346.7
Net trading income                                    127.4       29.8       22.9      (27.9)     23.3       6.1        (17.4)     164.2
Net income from derivatives                            14.7         0.6       (2.6)     (3.6)      0.1       0.7         (7.4)       2.6
Net income from financial investments                  (57.0)     (10.3)       2.1       1.6       3.7       (1.1)        0.0      (61.0)
General administrative expenses                      (134.3)     (203.7)    (179.8)   (100.2)    (77.9)    (16.4)       19.2      (693.1)
     of which staff expenses                           (77.3)     (97.9)     (79.2)    (43.9)    (43.0)      (9.6)          –     (350.9)
     of which other administrative expenses            (43.3)     (86.4)     (76.4)    (48.5)    (26.0)      (6.0)      19.2      (267.4)
     of which depreciation/amortization/write-offs     (13.8)     (19.3)     (24.2)     (7.8)     (9.0)      (0.7)        0.0      (74.8)
Other net operating income                             49.1         2.0        7.8      (0.6)      0.8       3.3        (17.5)      44.8
Net income from disposal of group assets                (0.5)       0.1          –         –         –          –         0.0       (0.4)

Profit/loss before tax                                (42.3)      42.9       54.9       19.5       1.1      50.4       (58.5)       67.9
Income taxes                                            1.2       (10.9)     (10.3)     (6.4)     (0.3)      (5.4)        2.8      (29.3)

Profit/loss after tax                                 (41.2)      32.0       44.7       13.2       0.7      45.0       (55.7)       38.6
Minority interests in profit                            8.8       (19.2)     (11.9)     (3.9)     (3.1)         –       16.5       (12.6)

Consolidated profit/loss                              (32.4)      12.9       32.8        9.3      (2.3)     45.0       (39.2)       26.0
Share of profit before tax                           (33.5%)     33.9%      43.4%     15.4%      0.9%     39.8%             –    100.0%
Share of profit after tax                            (43.6%)     33.9%      47.3%     13.9%      0.8%     47.6%             –    100.0%
Risk-weighted assets (credit risk)                   35,344     22,371     18,449     10,016     7,511     4,802     (12,832)     85,662
Own funds requirement                                 3,255      2,073      1,658       922       668        427        (717)      8,286
Total assets                                         99,809     32,879     24,443     14,126     7,715    16,530     (38,743)    156,759
Liabilities                                          95,170     30,599     21,748     12,675     6,724    15,992     (33,591)    149,316
Risk/earnings ratio                                  220.7%      45.6%      51.7%     52.5%     93.8%       4.9%            –     69.3%
Cost/income ratio                                     47.3%      56.3%      51.7%     43.3%     40.4%     23.7%             –     48.9%
Average equity                                        2,840      1,709      1,389       777       536        369            –      7,620
Return on equity before tax                                –     10.0%      15.8%     10.1%      0.8%     54.5%             –      3.6%
Average number of staff                               2,950     14,088     19,132     10,111    19,279       425            –     65,985
Business outlets                                         11        584      1,200       236      1,188        10            –      3,229




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Consolidated financial statements                                                                                                      39




  1/1–31/3/2008                                                               South-                        Rest of
                                                                  Central    eastern                 CIS       the      Recon-
  €m                                                   Austria    Europe     Europe     Russia     other    World      ciliation     Total
  Net interest income                                   164.8      237.4      214.0      149.3     117.5      31.6      (105.9)      808.8
       of which current income from associates           18.3         0.7       (0.3)        –         –          –           –       18.7
  Provisioning for impairment losses                      (2.0)     (41.3)     (28.0)    (16.4)     (7.2)      (0.9)          –      (95.9)

  Net interest income after provisioning                162.8      196.1      186.0      132.9     110.3      30.7      (105.9)      712.9
  Net fee and commission income                          63.4      134.5      100.9       43.0      49.7       6.9         (0.2)     398.3
  Net trading income                                     46.7         4.2        8.7      23.7       3.0      (42.2)      (34.3)       9.8
  Net income from derivatives                            (39.0)      (1.8)      (0.7)    (34.5)        –       (3.8)      22.3       (57.4)
  Net income from financial investments                (161.6)        1.8       (3.3)      0.0       0.0       (6.0)        0.0     (169.1)
  General administrative expenses                      (129.0)     (215.1)    (171.4)    (92.6)    (90.8)     (15.3)      11.2      (703.0)
       of which staff expenses                           (82.1)    (107.3)     (77.0)    (48.9)    (49.8)      (9.3)                (374.3)
       of which other administrative expenses            (37.2)     (87.1)     (74.3)    (37.9)    (31.5)      (5.3)      11.2      (262.0)
       of which depreciation/amortization/write-offs      (9.7)     (20.8)     (20.1)     (5.8)     (9.5)      (0.8)        0.0      (66.7)
  Other net operating income                             27.9        (3.6)       9.8      (2.0)      0.6       2.8         (8.9)      26.6
  Net income from disposal of group assets                0.0           –          –         –         –       0.2          0.0        0.1

  Profit/loss before tax                                (28.8)     116.1      130.1       70.4      72.9     (26.7)     (115.8)      218.2
  Income taxes                                            (9.1)     (25.0)     (21.3)    (19.3)    (22.0)      (5.1)        1.0     (100.7)

  Profit/loss after tax                                 (37.9)      91.1      108.8       51.1      50.9     (31.9)     (114.8)      117.5
  Minority interests in profit                           (20.2)     (43.5)     (34.9)    (15.1)    (17.8)         –       22.9      (108.6)

  Consolidated profit/loss                              (58.1)      47.6       73.9       36.1      33.1     (31.9)      (91.9)        8.9
  Share of profit before tax                            (8.6%)     34.8%      39.0%     21.1%     21.8%      (8.0%)           –    100.0%
  Share of profit after tax                            (16.3%)     39.2%      46.9%     22.0%     21.9%     (13.7%)           –    100.0%
  Risk-weighted assets (credit risk)                   49,757     22,456     16,529      8,829     7,046     5,335     (17,690)     92,261
  Own funds requirement                                 4,462      2,052      1,452       818       633        547      (1,333)      8,631
  Total assets                                         85,912     30,365     23,153     13,714     7,310    15,384     (28,576)    147,262
  Liabilities                                          80,271     28,231     20,780     12,536     6,378    15,025     (24,461)    138,761
  Risk/earnings ratio                                    1.2%      17.4%      13.1%     11.0%      6.2%       3.0%            –     11.9%
  Cost/income ratio                                     42.6%      57.7%      51.4%     43.3%     53.1%           –           –     56.6%
  Average equity                                        3,641      1,748      1,341       744       525        405            –      8,403
  Return on equity before tax                                –     26.6%      38.8%     37.9%     55.5%           –           –     10.4%
  Average number of staff                               2,873     13,043     17,129      9,232    19,780       360            –     62,417
  Business outlets                                         10        545      1,007       246      1,238         8            –      3,054




                                                                                        RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 40                                                                                                          Consolidated financial statements




                       Notes
                       Accounting and valuation principles
                       The consolidated financial statements of Raiffeisen Zentralbank are prepared in conformity with the International
                       Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB) and the
                       international accounting standards adopted by the EU on the basis of IAS Regulation (EC) 1606/2002 including
                       the applicable interpretations of the International Financial Reporting Interpretations Committee (IFRIC/SIC). The
                       unaudited interim report as of 31 March 2009 is prepared in conformity with IAS 34. In the interim reporting,
                       exactly the same accounting and measurement principles and consolidation methods are applied as in the prepa-
                       ration of the 2008 consolidated financial statements.



                       Changes in consolidated group

                                                                               Fully consolidated                 Equity method
Number of units                                                             31/3/2009 31/12/2008              31/3/2009 31/12/2008
As of beginning of period                                                          357              335                13              13
Included for the first time in the financial period                                  10              53                 –                2
Merged in the financial period                                                         –              (2)               –                –
Excluded in the financial period                                                      (2)           (29)                –               (2)
As of end of period                                                                365              357                13              13



                       The following companies were firstly integrated in the consolidated financial statements:

Name                                                                                             Share      Included as of            Fact
3 subsidiaries of Raiffeisen Leasing Gesellschaft m.b.H., Vienna (AT)                                 –              1/3       Materiality
Centrotrade Singapore Pte. Ltd., Singapore (SG)                                                100.0%                1/1       Materiality
Regional Card Processing Center s.r.o., Bratislava (SK)                                         46.2%                1/1      Foundation
Raiffeisen Leasing Kosovo LLC, Pristina (KO)                                                    71.6%                1/1      Foundation
Raiffeisen Investment Ltd., Moscow (RU)                                                        100.0%                1/1       Materiality
Raiffeisen Investment (Malta) Limited, Sliema (MT)                                             100.0%                1/1       Materiality
Raiffeisen Investment Polska sp.z.o.o., Warsaw (PL)                                            100.0%                1/1       Materiality
Raiffeisen Investment Romania LLC, Bucharest (RO)                                              100.0%                1/1       Materiality


                       Two companies – RPN Verwaltungs GmbH, Vienna, and OVIS Raiffeisen-Immobilien-Leasing GesmbH, Vienna –
                       were excluded from the Group as of 1 January and deconsolidated as of 1 February.




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Consolidated financial statements                                                                                                   41




 Notes to the income statement
 (1) Income statement according to measurement
 categories
 The following table shows income statement according to IAS 39 valuation categories:

                                                                                                               1/1–31/3       1/1–31/3
  €m                                                                                                               2009           2008
  Net income from financial assets and liabilities held-for-trading                                               376.2         (211.7)
  Net income from financial assets and liabilities at fair value through profit or loss                             66.9        (130.0)
  Net income from financial assets available-for-sale                                                                1.9          12.6
  Net income from loans and receivables                                                                         1,289.7        1,816.8
  Net income from financial assets held-to-maturity                                                               102.4           96.7
  Net income from financial liabilities measured at amortized cost                                              (1,301.2)     (1,253.0)
  Net income from derivatives (hedging)                                                                              1.5          (16.5)
  Net revaluations from exchange differences                                                                      (177.6)        162.6
  Other net operating income/expenses                                                                             (291.9)       (259.2)
  Total profit before tax from continuing operations                                                                67.9         218.3



 (2) Net interest income
                                                                                                               1/1–31/3       1/1–31/3
  €m                                                                                                               2009           2008
  Interest income                                                                                                2,146.9        2,053.6
       from loans and advances to banks                                                                           286.6          487.5
       from loans and advances to customers                                                                     1,505.0        1,326.7
       from financial investments                                                                                 206.7          142.5
       from leasing claims                                                                                          97.6          96.9
       from derivative financial instruments (non-trading), net                                                     51.0              –
  Current income from shareholdings                                                                                  3.9            4.4
  Interest-like income                                                                                               8.0            3.2
  Interest and interest-like income, total                                                                       2,158.9       2,061.2
  Current income from associates                                                                                    10.1          18.7
  Interest expenses                                                                                             (1,296.0)      (1,263.5)
       on deposits from banks                                                                                     (419.0)       (519.7)
       on deposits from customers                                                                                 (533.1)       (499.0)
       on liabilities evidenced by paper                                                                          (235.7)       (177.3)
       on subordinated capital                                                                                    (108.2)         (51.0)
       on derivative financial instruments (non-trading), net                                                          –          (16.5)
  Interest-like expenses                                                                                           (12.5)          (7.6)
  Interest and interest-like expenses, total                                                                    (1,308.5)     (1,271.1)
  Net interest income                                                                                             860.5          808.8




                                                                                          RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 42                                                            Consolidated financial statements




                      (3) Provisioning for impairment losses
                                                                1/1–31/3         1/1–31/3
€m                                                                  2009             2008
Individual loan loss provisions                                    (444.1)            (74.3)
Allocation to provisions for impairment losses                     (540.9)           (137.2)
Release of provisions for impairment losses                         103.5              64.9
Direct write-downs                                                   (12.1)             (7.9)
Income received on written-down claims                                 5.4              5.9
Portfolio-based loan loss provisions                               (152.3)            (21.6)
Allocation to provisions for impairment losses                     (206.8)            (79.3)
Release of provisions for impairment losses                          54.5              57.7
Total                                                              (596.4)            (95.9)



                      (4) Net fee and commission income
                                                                1/1–31/3         1/1–31/3
€m                                                                  2009             2008
Payment transfer business                                           129.4            149.1
Loan administration and guarantee business                           61.5              63.4
Securities business                                                  28.0              38.2
Foreign currency and precious-metals business                        99.8            109.3
Management of investment and pension funds                             5.2             10.5
Agency services for own and third party products                       6.0              3.9
Credit derivatives business                                           (0.4)             (1.7)
Other banking services                                               17.2              25.6
Total                                                               346.7            398.3



                      (5) Net trading income
                                                                1/1–31/3         1/1–31/3
€m                                                                  2009             2008
Interest-based transactions                                         129.2             (85.7)
Currency-based transactions                                            9.6             62.2
Equity-/index-based transactions                                       8.3             17.4
Credit derivative transactions                                       10.8              12.5
Other transactions                                                   (11.3)             1.9
Net income from liabilities designated at fair value                 17.6               1.5
Total                                                               164.2               9.8




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Consolidated financial statements                                                                                         43




 (6) Net income from derivatives
                                                                                                      1/1–31/3      1/1–31/3
  €m                                                                                                      2009          2008
  Net income from hedge accounting                                                                         4.0              –
  Net income from credit derivatives                                                                     (15.6)         (70.6)
  Net income from other derivatives                                                                       14.2          13.2
  Total                                                                                                    2.6         (57.4)



 (7) Net income from financial investments
                                                                                                     1/1–31/3       1/1–31/3
  €m                                                                                                     2009           2008
  Net income from financial investments held-to-maturity                                                  (3.1)             –
  Net valuations from financial investments held-to-maturity                                              (1.6)             –
  Net proceeds from sales of financial investments held-to-maturity                                       (1.5)             –
  Net income from equity participations                                                                   (1.0)          11.4
  Net valuations from equity participations                                                               (1.0)           0.9
  Net proceeds from sales of equity participations                                                           –          10.5
  Net income from securities at fair value through profit and loss                                       (56.9)        (180.5)
  Net valuations of securities at fair value through profit and loss                                     (62.6)       (177.7)
  Net proceeds from sales of securities at fair value through profit and loss                              5.7           (2.8)
  Total                                                                                                  (61.0)       (169.1)



 (8) General administrative expenses
                                                                                                     1/1–31/3       1/1–31/3
  €m                                                                                                     2009           2008
  Staff expenses                                                                                        (350.9)       (374.3)
  Other administrative expenses                                                                         (267.4)       (262.0)
  Depreciation on intangible and tangible fixed assets                                                   (74.8)         (66.7)
  Total                                                                                                 (693.1)       (703.0)




                                                                                RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
44                                                                   Consolidated financial statements




                     (9) Other net operating income
                                                                      1/1–31/3         1/1–31/3
€m                                                                        2009             2008
Sales revenues from non-banking activities                                323.9            297.9
Expenses arising from non-banking activities                             (303.1)           (280.5)
Net income from additional leasing services                                  1.0              (0.6)
Net income from investment property                                          1.8              0.5
Net income from operating lease                                            11.7               9.2
Net proceeds from disposal of tangible and intangible fixed assets          (0.4)             (6.1)
Other taxes                                                                (12.9)           (12.5)
Income from release of negative goodwill                                     4.8              3.7
Net expense from allocation and release of other provisions                  1.5              (0.5)
Other net operating income                                                 24.9              21.6
Other operating expenses                                                    (8.4)             (6.1)
Total                                                                       44.8             26.6




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Consolidated financial statements                                                                                             45




 Notes to the balance sheet
 (10) Balance sheet according to measurement
 categories
 The following table shows balance sheet according to IAS 39 measurement categories:

  Assets according to measurement categories
  €m                                                                                                      31/3/2009    31/12/2008
  Trading assets                                                                                              11,523      11,691
  Financial assets at fair value through profit or loss                                                        6,562       6,259
  Financial assets available-for-sale                                                                            717         709
  Loans and advances                                                                                        123,038      128,487
  Financial assets held-to-maturity                                                                            9,945       4,962
  Derivatives (hedging)                                                                                          885         644
  Other assets                                                                                                 4,089       4,169
  Total assets                                                                                              156,759      156,921


 Positive market values of derivatives not designated as hedging instrument according to IAS 39 hedge accounting
 are reported in the measurement category trading assets. The measurement category financial assets available-for-
 sale comprises only other equity participations. Loans and advances are reported net of any provisions for im-
 pairment losses. Other assets comprise intangible and tangible fixed assets, investments in associates and other
 affiliated companies.

  Equity and liabilities according to measurement categories
  €m                                                                                                      31/3/2009    31/12/2008
  Trading liabilities                                                                                          7,216       7,122
  Liabilities at amortized cost                                                                             139,394      140,219
  Liabilities at fair value through profit and loss                                                            1,561         604
  Derivatives (hedging)                                                                                          509         444
  Provisions for liabilities and charges                                                                         636         695
  Equity                                                                                                       7,443       7,837
  Total equity and liabilities                                                                              156,759      156,921


 Negative market values of derivatives not designated as hedging instrument according to IAS 39 hedge account-
 ing are reported in the measurement category trading liabilities.




                                                                                   RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
46                                                                                                        Consolidated financial statements




                      (11) Loans and advances to banks
€m                                                                                                         31/3/2009      31/12/2008
Giro and clearing business                                                                                       2,077          2,126
Money market business                                                                                           23,732         15,520
Loans to banks                                                                                                   6,562          9,058
Purchased loans                                                                                                    46              114
Leasing claims                                                                                                     80               97
Claims evidenced by paper                                                                                        2,158          2,200
Total                                                                                                           34,655         29,115


                      Loans and advances to banks classified regionally (counterparty’s seat) are as follows:

€m                                                                                                         31/3/2009      31/12/2008
Austria                                                                                                         12,996          8,920
Central Europe                                                                                                    884           2,836
Southeastern Europe                                                                                              1,374          1,423
Russia                                                                                                            476              535
CIS other                                                                                                         316              302
Other countries                                                                                                 18,609         15,099
Total                                                                                                           34,655         29,115


                      Loans and advances break down into the following bank segments:

€m                                                                                                         31/3/2009      31/12/2008
Central banks                                                                                                    1,402          7,676
Commercial banks                                                                                                33,204         21,389
Multilateral development banks (MDB)                                                                               49               50
Total                                                                                                           34,655         29,115



                      (12) Loans and advances to customers
€m                                                                                                         31/3/2009      31/12/2008
Credit business                                                                                                 47,373         50,103
Money market business                                                                                            9,503          9,440
Mortgage loans                                                                                                  17,556         17,360
Purchased loans                                                                                                   898           1,309
Leasing claims                                                                                                   5,261          5,515
Claims evidenced by paper                                                                                        1,195          1,191
Total                                                                                                           81,786         84,918




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Consolidated financial statements                                                                                                     47




 Loans and advances to customers break down into business divisions according to Basel II definition as follows:

  €m                                                                                                               31/3/2009   31/12/2008
  Sovereigns                                                                                                          1,695        1,632
  Corporate customers – large                                                                                        53,307       55,498
  Corporate customers – small business                                                                                5,116        5,397
  Retail customers – private individuals                                                                             18,800       19,315
  Retail customers – small and medium-sized entities                                                                  2,710        2,909
  Other                                                                                                                 158          167
  Total                                                                                                              81,786       84,918


 Loans and advances to customers classified regionally (counterparty’s seat) are as follows:

  €m                                                                                                               31/3/2009   31/12/2008
  Austria                                                                                                             9,743       10,218
  Central Europe                                                                                                     23,786       24,640
  Southeastern Europe                                                                                                12,799       12,944
  Russia                                                                                                              7,915        8,819
  CIS other                                                                                                           6,633        6,602
  Other countries                                                                                                    20,910       21,695
  Total                                                                                                              81,786       84,918



 (13) Impairment losses on loans and advances
 Provisions for impairment losses are allocated to the following asset classes according to Basel II definition:

  €m                                                                                                               31/3/2009   31/12/2008
  Sovereigns                                                                                                              4            2
  Banks                                                                                                                 304          203
  Corporate customers – large                                                                                         1,289        1,131
  Corporate customers – small business                                                                                  220          178
  Retail customers – private individuals                                                                                858          674
  Retail customers – small and medium-sized entities                                                                    150          116
  Total                                                                                                               2,825        2,304




                                                                                       RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 48                                                                                                                                         Consolidated financial statements




                       The following table shows the geographic breakdown of provisioning (including provisions for contingent liabili-
                       ties) by the entities’ head office:

                                                         Change in                                                                             Transfers,
                                                 As of consolidated                                                                            exchange           As of
€m                                           1/1/2009         group                                Allocation*     Release      Usage**       differences    31/3/2009
Individual loan loss
provisions                                           1,690                               –                548         (103)          (20)             (33)         2,082
Austria                                                 534                              –               143              –           (1)               2            678
Central Europe                                          449                              –               138            (57)          (8)             (28)           494
Southeastern Europe                                     239                              –               104            (26)          (8)              (3)           306
Russia                                                  223                              –                 68           (18)          (1)             (18)           254
CIS other                                               200                              –                 93             (2)         (2)             13             302
Other countries                                            45                            –                  2             –            –                1             48
Portfolio-based provisions                              698                              –                206           (55)           –              (18)           831
Austria                                                    90                            –                  7             –            –                –             97
Central Europe                                          166                              –                 54           (31)           –               (7)           182
Southeastern Europe                                     148                              –                 43             (8)          –               (4)           179
Russia                                                  150                              –                 64             (5)          –              (13)           196
CIS other                                               135                              –                 38           (11)           –                6            168
Other countries                                              9                           –                  –             –            –                –               9
Total                                               2,388                                –               754          (158)          (20)            (51)         2,913
                       * Allocation includes direct write offs and income on written off claims.
                       ** Usage includes direct write offs and income on written off claims.



                       The following table gives an overview of the loans and advances as well as loan loss provisions according to
                       Basel II asset classes

31/3/2009                                                              Total gross                 Individual     Portfolio-    Total net    Individually
                                                                         carrying                   loan loss       based       carrying        impaired
€m                                                                        amount                   provisions    provisions      amount            assets      Fair value
Banks                                                                       34,655                       304              –      34,351              467         34,377
Sovereigns                                                                     1,695                        4             –       1,691               10          1,625
Corporate customers – large                                                 53,307                       981           308       52,018           2,340          52,261
Corporate customers – small business                                           5,116                     174            46        4,896              445          4,984
Retail customers – private individuals                                      18,800                       460           398       17,942              889         18,457
Retail customers – small and medium-sized
entities                                                                       2,710                      98            52        2,560              211          2,630
Other                                                                              158                      –             –         158                 –            159
Total                                                                     116,441                      2,021           804      113,616           4,362        114,493




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Consolidated financial statements                                                                                                     49




  31/12/2008                                         Total gross      Individual    Portfolio-   Total net   Individually
                                                       carrying        loan loss      based      carrying       impaired
  €m                                                    amount        provisions   provisions     amount           assets      Fair value
  Banks                                                29,115              203              –     28,912            336          29,002
  Sovereigns                                             1,632                2             –      1,630               6          1,567
  Corporate customers – large                          55,498              854           277      54,367          2,000          54,974
  Corporate customers – small business                   5,397             129            49       5,219            318           5,281
  Retail customers – private individuals               19,315              373           301      18,641            507          18,921
  Retail customers – small and medium-sized
  entities                                               2,909               77           39       2,793            132           2,879
  Other                                                      167              –             –        167                 –          169
  Total                                               114,033            1,639           665     111,729          3,299        112,793



 (14) Trading assets
  €m                                                                                                         31/3/2009       31/12/2008
  Bonds, notes and other fixed-interest securities                                                              4,225             4,730
  Shares and other variable-yield securities                                                                       411              521
  Positive fair values of derivative financial instruments                                                      4,429             3,710
  Call/time deposits for trading purposes                                                                          516              521
  Total                                                                                                          9,581            9,482



 (15) Derivatives
  €m                                                                                                         31/3/2009       31/12/2008
  Positive fair values of derivatives in fair value hedges (IAS 39)                                                344              239
  Positive fair values of derivatives in cash flow hedges (IAS 39)                                                 542              405
  Positive fair values of credit derivatives                                                                        64              103
  Positive fair values of other derivatives                                                                     1,878             2,106
  Total                                                                                                          2,828            2,853



 (16) Financial investments
  €m                                                                                                         31/3/2009       31/12/2008
  Bonds, notes and other fixed-interest securities                                                             16,313            10,970
  Shares and other variable-yield securities                                                                       438              473
  Equity participations                                                                                            744              745
  Total                                                                                                        17,495            12,188




                                                                                       RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 50                                                                     Consolidated financial statements




                      (17) Intangible fixed assets
€m                                                                      31/3/2009       31/12/2008
Goodwill                                                                       609               620
Software                                                                       325               335
Other intangible fixed assets                                                  138               135
Total                                                                        1,072            1,090



                      (18) Tangible fixed assets
€m                                                                      31/3/2009       31/12/2008
Land and buildings used by the Group for own purposes                          608               614
Other land and buildings (investment property)                                   48               49
Office furniture and equipment as well as other tangible fixed assets          620               639
Leased assets (operating lease)                                                308               317
Total                                                                        1,584            1,619



                      (19) Other assets
€m                                                                      31/3/2009       31/12/2008
Tax assets                                                                     428               438
Receivables arising from non-banking activities                                289               315
Prepayments and other deferrals                                                375               473
Clearing claims from securities and payment transfer business                  418               507
Lease in progress                                                              213               226
Assets held for sale (IFRS 5)                                                    14               14
Inventories                                                                    136               187
Any other business                                                             692               930
Total                                                                        2,565            3,090



                      (20) Deposits from banks

€m                                                                      31/3/2009       31/12/2008
Giro and clearing business                                                   3,297            2,819
Money market business                                                      40,629            36,532
Long-term loans                                                            13,739            14,797
Total                                                                       57,665           54,148




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Consolidated financial statements                                                                                             51




 Deposits from banks classified regionally (counterparty’s seat) break down as follows:

  €m                                                                                                    31/3/2009    31/12/2008
  Austria                                                                                                  25,612         25,321
  Central Europe                                                                                            1,663          1,609
  Southeastern Europe                                                                                         967            556
  Russia                                                                                                    1,024          1,333
  CIS other                                                                                                   120            180
  Other countries                                                                                          28,279         25,149
  Total                                                                                                    57,665         54,148


 The deposits break down into the following bank segments:

  €m                                                                                                    31/3/2009    31/12/2008
  Central banks                                                                                             6,355          8,113
  Commercial banks                                                                                         49,938         44,587
  Multilateral development banks (MDB)                                                                      1,372          1,448
  Total                                                                                                    57,665         54,148



 (21) Deposits from customers
  €m                                                                                                    31/3/2009    31/12/2008
  Sight deposits                                                                                           19,712         20,747
  Time deposits                                                                                            33,283         37,413
  Savings deposits                                                                                            975            960
  Total                                                                                                    53,970         59,120


 Deposits break down as follows according to Basel II definition:

  €m                                                                                                    31/3/2009    31/12/2008
  Sovereigns                                                                                                2,074          2,954
  Corporate customers – large                                                                              24,989         28,872
  Corporate customers – small business                                                                      2,542          3,085
  Retail customers – private individuals                                                                   20,697         20,775
  Retail customers – small and medium-sized entities                                                        2,983          2,914
  Others                                                                                                      685            520
  Total                                                                                                    53,970         59,120




                                                                                    RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 52                                                                                                          Consolidated financial statements




                       Deposits from customers classified regionally (counterparty’s seat) are as follows:

€m                                                                                                           31/3/2009       31/12/2008
Austria                                                                                                           6,634            7,378
Central Europe                                                                                                  18,708            20,432
Southeastern Europe                                                                                             11,866            13,143
Russia                                                                                                            5,251            5,834
CIS other                                                                                                         2,883            2,985
Other countries                                                                                                   8,628            9,348
Total                                                                                                            53,970           59,120



                       (22) Liabilities evidenced by paper

€m                                                                                                           31/3/2009       31/12/2008
Bonds and notes issued                                                                                          21,956            19,924
Money market instruments issued                                                                                       14                 8
Other liabilities evidenced by paper                                                                                596               768
Total                                                                                                            22,566           20,700



                       (23) Provisions for liabilities and charges

€m                                                                                                           31/3/2009       31/12/2008
Severance payments                                                                                                    60               60
Retirement benefits                                                                                                   60               60
Taxes                                                                                                               104               151
Contingent liabilities and commitments                                                                                88               84
Restructuring                                                                                                          3                 4
Pending legal issues                                                                                                  67               69
Overdue vacation                                                                                                      50               50
Bonus payments                                                                                                      144               163
Others                                                                                                                60               54
Total                                                                                                               636               695



                       (24) Trading liabilites

€m                                                                                                           31/3/2009       31/12/2008
Negative fair values of derivative financial instruments                                                          4,801            4,897
Shortselling of trading assets                                                                                      255               124
Call/time deposits for trading purposes                                                                               11               21
Total                                                                                                             5,067            5,042




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Consolidated financial statements                                                                               53




 (25) Derivatives
  €m                                                                                      31/3/2009    31/12/2008
  Negative fair values of derivatives in fair value hedges (IAS 39)                               26            40
  Negative fair values of derivatives in cash flow hedges (IAS 39)                              484            404
  Negative fair value of credit derivatives                                                     156            190
  Negative fair values of other derivatives                                                   1,992          1,890
  Total                                                                                       2,658          2,524



 (26) Other liabilities
  €m                                                                                      31/3/2009    31/12/2008
  Liabilities arising from non-banking business                                                 168            316
  Accruals and deferred items                                                                   278            392
  Liabilities arising from dividends                                                               1             8
  Clearing claims from securities and payment transfer business                                 395            323
  Any other business                                                                            574            616
  Total                                                                                       1,416          1,655



 (27) Subordinated capital
  €m                                                                                      31/3/2009    31/12/2008
  Hybrid tier 1 capital                                                                       1,090          1,076
  Subordinated liabilities                                                                    2,805          2,768
  Supplementary capital                                                                         643            606
  Participation capital                                                                         800            750
  Total                                                                                       5,338          5,200



 (28) Equity and minorities
  €m                                                                                      31/3/2009    31/12/2008
  Consolidated equity                                                                         4,973          5,114
       Subscribed capital                                                                       444            444
       Capital reserves                                                                       1,051          1,051
       Retained earnings                                                                      3,479          3,619
  Consolidated profit                                                                             26            48
  Minority interests                                                                          2,444          2,675
  Total                                                                                       7,443          7,837




                                                                      RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 54                                                                                                           Consolidated financial statements




                       Risk Report
                       Credit Risk
                       Corporate Customers
                       The internal rating model used for corporate customers takes into account both qualitative factors and a variety of
                       business and performance figures (e.g. interest coverage, ordinary income margin, EBTDA margin, equity ratio,
                       overall return on assets, debt amortization period) that are individually tailored to the various industries and finan-
                       cial reporting standards.

                       The following table provides a breakdown of credit exposures (including off-balance sheet items) for each score
                       applying the internal rating model for the Corporate Customers division. These figures relate solely to credit expo-
                       sures. Collateral must also be taken into account in the overall assessment of credit risk:

Internal rating                                                                                Proportion                        Proportion
€’000                                                                       31/03/2009            of Total    31/12/2008            of Total
0.5     Minimal risk                                                           723,251              0.9%         694,829              0.8%
1.0     Excellent credit standing                                            9,351,034             11.5%     10,076,676             11.5%
1.5     Very good credit standing                                            7,885,623              9.7%       8,665,710              9.9%
2.0     Good credit standing                                                10,031,891             12.3%     10,998,272             12.6%
2.5     Sound credit standing                                               10,587,361             13.0%     11,637,149             13.3%
3.0     Acceptable credit standing                                          13,057,820             16.0%     14,453,961             16.5%
3.5     Marginal credit standing                                            13,904,398             17.0%     15,375,114             17.6%
4.0     Weak credit standing/sub-standard                                    8,056,754              9.9%       7,830,950              9.0%
4.5     Very weak credit standing/doubtful                                   2,774,392              3.4%       2,640,842              3.0%
5.0     Default (Basel II definition)                                        2,372,653              2.9%       1,541,348              1.8%
NR      Not rated                                                            2,908,561              3.6%       3,519,932              4.0%
Total                                                                       81,653,737           100.0%      87,434,784            100.0%


                       We stress that the scores in this table relate solely to the borrower and do not take account of collateral furnished
                       for any transaction.

                       The aggregate credit exposure to corporate customers fell by about 6.6 per cent during the first quarter of 2009.
                       This was partly due to the effects of movements in foreign exchange rates and was in part the result of active
                       measures to reduce the portfolio, especially in the area of off-balance-sheet transactions. The average credit
                       quality of corporate customers deteriorated somewhat in the period under review. Although the proportion of the
                       portfolio accounted for by the best rating classes (up to 2.0) was almost unchanged compared with the first quar-
                       ter of 2008, falling by just 0.5 percentage points to 34.3 per cent, the proportion of customer loans in the middle
                       range up to 3.0 fell by 0.9 percentage points to 29.0 per cent. This affected the proportion of the portfolio ac-
                       counted for by the weaker rating classes, which increased by 0.7 percentage points to 30.3 per cent. The pro-
                       portion accounted for by customers in default (rating of 5.0) increased by 1.8 per cent to 2.9 per cent.




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Consolidated financial statements                                                                                                    55




 RZB introduced new 5-class project finance rating model in 2007. The following table presents a breakdown of
 project finance exposures:

  Project Rating                                                                               Proportion                    Proportion
  €’000                                                                          31/03/2009       of Total    31/12/2008        of Total
  6.1      Excellent project risk profile – very low risk                        3,252,474        47.3%       3,291,876         47.8%
  6.2      Good project risk profile – low risk                                  2,268,119        33.0%       2,450,412         36.3%
  6.3      Acceptable project risk profile – average risk                        1,045,375        15.2%         879,548         13.0%
  6.4      Poor project risk profile – high risk                                   194,735          2.8%        112,340           1.7%
  6.5      Default                                                                  12,667          0.2%         13,711           0.2%
  NR       Nor rated                                                               108,953          1.6%         74,571           1.1%
   Total                                                                          6,882,323      100.0%        6,822,458       100.0%


 The amount of the exposures designated as project finance was virtually unchanged versus year-end 2008 at
 €6.9 billion. There was a small shift from rating class 6.2 to 6.3. The Austria and Central Europe regions ac-
 counted for most of these exposures. These good rating profiles reflect the high collateralization of these special
 finance transactions.

 Retail Customers
 The Retail Customers division is subdivided into personal banking customers and small and medium-sized entities
 (SMEs). A dual scoring system is used for retail customers. It is based on a combination of initial and ad hoc
 analyses using customer data and behavioral scoring using account data. Below is a regional breakdown of
 credit exposures (including off-balance sheet items), by domicile of Group unit:

  31/03/2009                                                            Central Southeastern                     Other CIS   Rest of the
  €’000                                   Total         Austria         Europe       Europe          Russia      Countries       World
  Retail – private individual       20,522,647         23,343        8,529,599     7,486,345   2,083,268       2,400,091             —
  Retail – SMEs                      2,689,319              5,892    1,382,265       965,893       34,235        301,035             —
  Total                             23,211,966         29,235        9,911,864     8,452,238   2,117,503       2,701,126              —


  31/12/2008                                                            Central Southeastern                     Other CIS   Rest of the
  €’000                                   Total         Austria         Europe       Europe          Russia      Countries       World
  Retail – private individual       20,709,130         19,343        8,658,926     7,204,791   2,436,984       2,389,087             —
  Retail – SMEs                      2,972,128              7,189    1,533,447     1,026,792       39,032        365,669             —
  Total                             23,681,259         26,532       10,192,373     8,231,583   2,476,016       2,754,755              —


 The aggregate retail loan portfolio shrank by 2 per cent to €23.1 billion during the first quarter of 2009. This was
 mainly the result of movements in foreign exchange rates. Most of the decrease was in loans to small and me-
 dium-sized entities (reduction of 10 per cent). The portfolio of loans to personal banking customers was almost
 unchanged. Looking at individual regions, the retail loan portfolio shrank most in Russia, namely by 10 per cent,
 and it grew by 10 per cent in Southeastern Europe.

 Financial Institutions
 The Financial Institutions division encompasses banks and securities firms. The internal rating model for financial
 institutions is based on a peer-group approach that takes both qualitative and quantitative information into ac-
 count. The final rating for a financial institution is capped by the respective country rating.




                                                                                        RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
56                                                                                                            Consolidated financial statements




                       Both loans and advances to banks and the securities portfolio in the Financial Institutions division grew substan-
                       tially in the first quarter of 2009, increasing by 29 per cent to €23.5 billion. A breakdown of rating distributions
                       shows an increase in the proportion of the total accounted for by rating class A3 from 48.9 to 52.6 per cent.
                       Although exposures in rating classes A1 and A2 increased, their contribution to the total was almost unchanged.
                       Because of the crisis in the Icelandic banking sector, the exposure to financial institutions in default increased to
                       €0.5 billion.

                       The following table presents credit exposures to financial institutions (including off-balance sheet items but exclud-
                       ing central banks) by internal rating class:

Internal Rating                                                                              Proportion                         Proportion
€’000                                                                     31/03/2009            of Total    31/12/2008             of Total
A1      Minimal risk                                                         541,378               1.0%         442,070              1.1%
A2      Excellent credit standing                                          8,207,834             15.4%        6,394,029             15.5%
A3      Very good credit standing                                         28,142,634             52.6%      20,137,998              48.9%
B1      Good credit standing                                               7,917,164             14.8%        5,853,370             14.2%
B2      Average credit standing                                            4,009,271               7.5%       4,033,333              9.8%
B3      Mediocre credit standing                                           1,545,629               2.9%       1,372,595              3.3%
B4      Weak credit standing                                               1,573,103               2.9%       1,704,315              4.1%
B5      Very weak credit standing                                            489,248               0.9%         582,735              1.4%
C       Doubtful/high default risk                                           101,672               0.2%         113,563              0.3%
D       Default                                                              489,488               0.9%         361,369              0.9%
NR      Not rated                                                            450,107               0.8%         194,338              0.5%
Total                                                                     53,467,528            100.0%      41,189,716            100.0%


                       Sovereigns and Other
                       Sovereigns, central banks, regional authorities and other sovereign-like organizations make up a further customer
                       group. The table below presents credit exposures to sovereigns (including central banks and off-balance sheet
                       items) by internal rating class:

Internal Rating                                                                              Proportion                         Proportion
€’000                                                                     31/03/2009            of Total    31/12/2008             of Total
A1      Minimal risk                                                       2,115,644             12.6%        7,792,855             31.4%
A2      Excellent credit standing                                            326,813               1.9%         245,878              1.0%
A3      Very good credit standing                                          2,307,665             13.7%        4,713,251             19.0%
B1      Good credit standing                                                 981,424               5.8%       1,342,987              5.4%
B2      Average credit standing                                            3,853,706             22.9%        3,986,289             16.0%
B3      Mediocre credit standing                                           4,525,564             26.9%        4,027,879             16.2%
B4      Weak credit standing                                               1,939,240             11.5%        2,002,325              8.1%
B5      Very weak credit standing                                            589,148               3.5%         564,834              2.3%
C       Doubtful/high default risk                                                    0            0.0%                 0            0.0%
D       Default                                                                 6,266              0.0%            4,172             0.0%
NR      Not rated                                                            161,577               1.0%         172,920              0.7%
Total                                                                     16,807,047            100.0%      24,853,390            100.0%




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Consolidated financial statements                                                                                                     57




 The credit exposure to sovereigns fell by 32 per cent because, above all, of reallocations to financial institutions.
 As the money markets gradually normalized, larger amounts were again invested with other commercial banks
 rather than central banks, and RZB also invested in securities such as government guaranteed bonds that are not
 included in this customer group.

 Non-Performing Loans
 The tables below present lending in the stated assets classes recognized on the Balance Sheet in the line items
 Loans and advances to banks and Loans and advances to customers (without off-balance-sheet items) and the
 percentage of non-performing loans they accounted for, furnished collateral and provisioning for impairment losses
 on loans and advances, by domicile of Group unit:

  31/3/2009                                        Central   Southeastern                       Other CIS      Rest of the
  €'000                              Austria       Europe         Europe           Russia       Countries          World            Total
  Corporate Customers        21,274,408        14,973,403      8,191,990      5,869,153        3,972,445       4,299,049      58,580,448
  Non-performing                599,191          630,087        416,268         110,936         209,187         226,881       2,192,550
      Collateral                    81,105       224,600        338,281          16,718         213,719           60,609        935,031
  Provisioning for
  impairment losses             457,135          387,906        191,772         247,197         169,341           55,725      1,509,076
  Retail Customers                   87,489     9,113,395      7,336,509      2,353,149        2,615,630            3,757     21,509,929
  Non-performing                     6,857       360,645        266,983         167,617         480,608                  —    1,282,710
      Collateral                       526       143,770         71,366          42,645         435,948                  —      694,255
  Provisioning for
  impairment losses                  7,562       241,464        264,291         197,372         297,670                  —    1,008,360
  Financial Institutions     28,068,869         1,469,191       780,722         637,852          326,371       1,920,635      33,203,640
  Non-performing                473,994                —           1,318             628               —           1,328        477,268
      Collateral                     5,645             —              —                —               —                 —        5,645
  Provisioning for
  impairment losses             296,624            6,179              14             159               —           1,328        304,304
  Sovereigns                        555,991      651,032       1,719,120        175,641           32,120          12,391       3,146,296
  Non-performing                         —         4,726              —           2,568                —                 —        7,294
      Collateral                         —           297              —                —               —                 —          297
  Provisioning for
  impairment losses                      —         2,437              —           1,310                —                 —        3,747
  Total                      49,986,757        26,207,020    18,028,340       9,035,796        6,946,567       6,235,833     116,440,313
  Non-performing              1,080,042          995,458        684,569         281,748         689,795         228,209       3,959,822
      Collateral                    87,276       368,667        409,647          59,363         649,667           60,609      1,635,228
  Provisioning for
  impairment losses             761,321          637,985        456,078         446,038         467,011           57,053      2,825,486




                                                                                      RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 58                                                                                                             Consolidated financial statements




31/12/2008                                         Central   Southeastern                         Other CIS       Rest of the
€'000                             Austria          Europe         Europe             Russia       Countries           World              Total
Corporate Customers          22,002,153       15,665,845        8,470,176       6,486,680        3,933,930        4,503,373      61,062,156
Non-performing                  480,140         488,012          184,160           44,234          107,643           49,542       1,353,732
   Collateral                    68,396         208,868          179,046           79,296           51,620           14,746         601,972
Provisioning for
impairment losses               406,007         363,348          145,746          212,426          130,473           51,065       1,309,064
Retail Customers                  96,873       9,222,402        7,604,771       2,668,794        2,631,449                20     22,224,308
Non-performing                     5,815        327,035          197,953          133,550          292,205                 0        956,559
   Collateral                        675        113,328          206,019           48,259          163,776                 0        532,057
Provisioning for
impairment losses                  7,646        214,314          211,685          155,031          201,736                 0        790,412
Financial Institutions       16,533,293          673,803          834,304         629,068          514,124        2,203,971      21,388,563
Non-performing                  344,581                  0            431                 0                0          1,357         346,370
   Collateral                      7,260                 0               0                0                0               0           7,260
Provisioning for
impairment losses               196,805            4,162                16             173                 0          1,357         202,514
Sovereigns                    4,558,919        2,823,485        1,693,074         191,235            78,865          12,801        9,358,378
Non-performing                         —           5,206                —                —                —                —           5,206
   Collateral                          —              236               —                —                —                —             236
Provisioning for
impairment losses                      —           2,153                —                —                —                —           2,153
Total                        43,191,238       28,385,534      18,602,325        9,975,777        7,158,367        6,720,165     114,033,406
Non-performing                  830,536         820,254          382,544          177,784          399,849           50,899       2,661,867
   Collateral                    76,330         322,432          385,065          127,555          215,396           14,746       1,141,524
Provisioning for
impairment losses               610,458         583,977          357,446          367,630          332,209           52,423       2,304,143


                         The economic problems caused by the global financial markets crisis led to a sharp rise in default rates in a
                         number of countries. The increase in non-performing loans was biggest in the corporate customers portfolio, rising
                         by 62 per cent to €2,192 million. It was particularly marked in the Russia and Other CIS Countries segments.
                         Provisioning for impairment losses was increased by 15 per cent to €1,509 million, reducing the Coverage ratio
                         in the corporate customers portfolio from 97 to 69 per cent.

                         Non-performing loans in the retail portfolio increased by 34 per cent to €1,283 million. The bulk of the increase
                         took place in the Southeastern Europe region (increase of 35 per cent). The Non-performing loan ratio rose by
                         1.7 percentage points to 6.0 per cent. At the same time, the total Provisioning for impairment losses in respect of
                         retail customers was increased by 28 per cent to €1,008 million, reducing the Coverage ratio in the retail portfo-
                         lio by 4.0 percentage points to 78.6 per cent.

                         The financial market crisis has continued to cause default losses on exposures to financial institutions in Iceland. At
                         the end of the first quarter, non-performing loans in this area came to €477 million. Impairment losses of €304
                         million had been recognized in respect of these exposures.




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Consolidated financial statements                                                                                            59




 Concentration Risk
 The geographical breakdown of RZB’s receivables reflects the broad diversification of its lending operations
 across European markets. Loans and advances to banks and customers and off-balance-sheet items broke down
 as follows based on the domicile or place of residence of each customer:

                                                                                         Proportion                  Proportion
  €'000                                                               31/03/2009            of Total   31/12/2008       of Total
  Austria                                                             36,353,947            20.0%      41,821,035        22.3%
  Hungary                                                             10,268,968              5.6%     11,710,628         6.2%
  Slovakia                                                              9,687,146             5.3%     12,445,680         6.6%
  Germany                                                               9,128,151             5.0%      6,337,032         3.4%
  Czech Republic                                                        8,674,034             4.8%      9,053,677         4.8%
  Romania                                                               8,263,094             4.5%      7,456,209         4.0%
  United Kingdom                                                        7,626,469             4.2%      6,227,747         3.3%
  Poland                                                                7,440,360             4.1%      8,468,934         4.5%
  France                                                                6,167,609             3.4%      3,413,901         1.8%
  Bulgaria                                                              5,055,041             2.8%      5,498,258         2.9%
  Other EU Member States                                              16,490,012              9.1%     15,537,093         8.3%
  Total European Union                                                125,154,831            68.8%     127,970,192       70.3%
  Far East                                                            13,857,475              7.6%     12,685,998         6.8%
  Russia                                                              13,438,450              7.4%     14,802,200         7.9%
  Croatia                                                               6,592,295             3.6%      6,337,804         3.4%
  Ukraine                                                               6,509,452             3.6%      6,747,754         3.6%
  USA                                                                   4,977,272             2.7%      5,238,510         2.8%
  Serbia                                                                4,400,083             2.4%      4,739,225         2.5%
  Other                                                                 7,063,554             3.9%      9,138,022         4.9%
  Total                                                              181,993,412           100.0% 187,659,705          100.0%


 Raiffeisen Zentralbank also takes a borrower’s sector or industry into account when assessing creditworthiness.
 The table below presents the Group’s credit exposures and off-balance-sheet items (without banks or central
 banks) from this point of view:

                                                                                         Proportion                  Proportion
  €'000                                                               31/03/2009            of Total   31/12/2008       of Total
  Manufacturing                                                       20,583,606            16.8%      24,892,374        18.7%
  Real estate                                                         21,443,161            17.5%      24,234,931        18.2%
  Retailing and wholesaling                                           18,340,977            15.0%      22,257,143        16.7%
  Private households                                                  21,216,960            17.4%      21,544,546        16.2%
  Public administration, social security                              10,223,347              8.4%     10,506,022         7.9%
  Credit and insurance                                                  9,402,840             7.7%      9,086,059         6.8%
  Construction                                                          7,329,445             6.0%      6,686,035         5.0%
  Transport and communication                                           5,050,011             4.1%      5,589,150         4.2%
  Other                                                                 8,649,903             7.1%      8,130,920         6.1%
  Total                                                              122,240,250           100.0% 132,927,181          100.0%




                                                                                  RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 60                                                                                                          Consolidated financial statements




                     Market Risk
                     Market risk in Raiffeisen Zentralbank’s trading books consists mainly of currency risk, which arises from the equity
                     of foreign Group units denominated in foreign currencies and from the corresponding hedges, which are man-
                     aged by Raiffeisen Zentralbank’s Assets Liability Management Committee. Big fluctuations in foreign exchange
                     rates heightened this risk during the period under review.

                     Interest rate risks and price risks (arising from equities, funds, etc.) are also material, but commodity risk is negli-
                     gible. The table below quantifies market risk in the trading book for each risk category at RZB-
                     Kreditinstitutsgruppe at the end of the first quarter of 2009 (10-day 99% VaR):

                                                                              VaR at           Average         Minimum          Maximum
€'000                                                                     31/3/2009                VaR             VaR              VaR
Interest rate risk                                                            10,767           16,830            10,767           21,666
Currency risk                                                               264,680           258,117          238,840           291,436
Price risk                                                                    14,674           15,063            13,596           18,056


                     Market risk at year-end 2008 is presented in the following table:

                                                                              VaR at             Average        Minimum         Maximum
€'000                                                                    31/12/2008                  VaR            VaR             VaR
Interest rate risk                                                            20,336                8,630          3,114          20,336
Currency risk                                                                238,840             108,346         38,652          238,840
Price risk                                                                    14,094              18,231         14,094           21,769


                     Besides value-at-risk techniques, classical principal and interest maturity analysis techniques are used to quantify
                     interest rate risk in the banking book. The table below presents the change in the present value of Raiffeisen
                     Zentralbank’s banking book assuming a general interest rate increase of one basis point as of 31 March 2009:



Change in present value (€'000)                                         6 – 12 Months      >1 – 2 Years      >2 – 5 Years        >5 Years
€                                                                               (14.3)            (17.0)          (196.5)           194.7
US$                                                                              24.3             22.3            304.7            (222.6)
¥                                                                                 (0.1)            (1.8)             0.0               0.0
SFr                                                                              11.7              (0.8)             8.9             (29.3)
Other                                                                            61.8             (83.7)          (123.4)            (45.3)




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Consolidated financial statements                                                                                                       61




 For the purposes of comparison, the table below presents the change in the present value of Raiffeisen Zentral-
 bank’s banking book that would have resulted from a general interest rate increase of one basis point at year-end
 2008:

  Change in present value (€'000)                                           6 – 12 Months       >1 – 2 Years     >2 – 5 Years      >5 Years
  €                                                                                 301.6               (3.1)            52.4        176.3
  US$                                                                                83.8              22.9             220.2       (179.8)
  ¥                                                                                   (0.2)             (0.1)            (2.0)         0.0
  SFr                                                                                 (2.0)             (3.5)                2.5     (24.1)
  Other                                                                              34.0            (36.1)             (51.3)       (18.5)




 Liquidity Risk
 The breakdown that follows present the cumulative liquidity surplus and the ratio of matured assets to liabilities
 (liquidity ratio) for selected maturities including all line items on the Balance Sheet as well as off-balance-sheet
 transactions. Based on expert opinions, statistical analyses and factors specific to each country, calculations also
 took into account cautious estimates of the liquidity of specific asset items and the basic balances normally kept in
 customer deposit accounts.

  €m                                              1/1 – 31/3/2009                                                2008
  Maturity                              1 Week            1 Month              1 Year            1 Week            1 Month          1 Year
  Surplus liquidity                     10,686             17,041              -3,148            14,469              9,131           2,537
  Liquidity ratio                         128%               133%                97%               140%               117%           103%


 Limits have been set for each Group unit to limit liquidity risk. Based on equally conservative estimates of the
 marketability of liquid assets and possible outflows on the liabilities side of the account, they too call for a positive
 short-term liquidity gap.




                                                                                         RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 62                                                                                                          Consolidated financial statements




                         Additional notes
                         (29) Contingent liabilities and commitments
€m                                                                                                           31/3/2009       31/12/2008
Contingent liabilities                                                                                          10,184            11,716
Commitments (irrevocable credit lines)                                                                          10,198            11,522


                         Moreover, revocable credit lines were granted to an amount of € 11,940 million (2008: € 13,142 million) which
                         currently bear no credit risk.



                         (30) Related parties
                         Transactions with related parties who are natural persons are limited to banking business transactions which are
                         carried out at fair market conditions. Business transactions, especially large banking business transactions with
                         related parties who are natural persons were not concluded in the reporting period.

                         Transactions with related companies are shown in the tables below:

31/3/2009                                                                  Companies
                                                                                   with                      Companies
                                                              Parent        significant         Affiliated    valued at              Other
€m                                                         companies         influence        companies          equity           interests
Loans and advances to banks                                          –          2,947                   1           343               412
Loans and advances to customers                                      –             14                620            795               177
Trading assets                                                       –             59                   –             78               68
Financial investments                                                –               –               306               3              616
Investments in associates                                            –               –                  –         1,127                  –
Other assets including derivatives                                   –               –                31               –               27
Deposits from banks                                                  –          4,927                   1         8,929               547
Deposits from customers                                             1                –                93              13              398
Provisions for liabilities and charges                               –               –                  –              –                 1
Trading liabilities                                                  –               –                  –             41               43
Other liabilities including derivatives                              –               –                  1              –               15
Subordinated capital                                                 –            267                   –              –                 –
Guarantees given                                                     –               1                  6             28               14
Guarantees received                                                  –            345                   –           309                34




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Consolidated financial statements                                                                           63




  31/3/2008                                             Companies
                                                                with                   Companies
                                               Parent    significant      Affiliated    valued at         Other
  €m                                        companies     influence     companies          equity      interests
  Loans and advances to banks                      –         1,619                –          328           332
  Loans and advances to customers                  –            15             625           775           229
  Trading assets                                   –            46                –           89            55
  Financial investments                            –              –            304             2           521
  Investments in associates                        –              –               –        1,158              –
  Other assets including derivatives               –              –             33             –              –
  Deposits from banks                              –         3,709                1        8,786         2,244
  Deposits from customers                          –              –            160            26           513
  Provisions for liabilities and charges           –              –               –            –            10
  Trading liabilities                              –              –               –           42            35
  Other liabilities including derivatives          –              –               1            –              3
  Subordinated capital                             –            29                –            –              –
  Guarantees given                                 –              –               2            –              –
  Guarantees received                              –           345                1          359            28
  Loans and advances to banks                      –         1,619                –          328           332




                                                                  RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
 64                                                                                                 Consolidated financial statements




                        (31) Regulatory own funds
                        The own funds of RZB credit institution group according to the Austrian Banking Act 1993/Amendment 2006
                        (Basel II) are comprised of as:

€m                                                                                                  31/3/2009       31/12/2008
Paid-in capital                                                                                          2,252            2,253
Earned capital                                                                                           2,042            2,291
Minority interests                                                                                       2,054            2,309
Hybrid tier 1 capital                                                                                    1,050            1,050
Intangible fixed assets                                                                                    (302)            (314)
Core capital (tier 1 capital)                                                                             7,096            7,589
Deductions from the core capital                                                                           (103)            (118)
Eligible core capital (after deductions)                                                                 6,993            7,471
Additional own funds according to Section 23 (1) 5 BWG                                                      600              600
Provision excess of internal rating approach positions                                                      186              194
Hidden reserves                                                                                             465              465
Long-term subordinated own funds                                                                         2,492            2,344
Additional own funds (tier 2 capital)                                                                     3,743            3,603
Deductions from the additional own funds                                                                   (546)            (561)
Eligible additional own funds (after deductions)                                                          3,197            3,042
Tier 2 capital available to be redesignated as tier 3 capital                                               277              288
Short-term subordinated own funds (tier 3)                                                                  277              288
Total own funds                                                                                         10,467           10,801
Total own funds requirement                                                                               8,286            8,505
Excess own funds                                                                                         2,181            2,296
Excess cover ratio                                                                                       26.3%            27.0%
Core capital ratio (tier 1), credit risk                                                                  8.2%             8.4%
Core capital ratio (tier 1), incl. market and operational risk                                            6.8%             7.0%
Own funds ratio                                                                                          10.1%            10.2%


                        The total own funds requirement is as follows:

€m                                                                                                  31/3/2009       31/12/2008
Risk-weighted assets according to Section 22 BWG                                                       85,662            89,040
     of which 8 per cent minimum own funds for the credit risk according to Sections
     §§ 22a to 22h BWG                                                                                   6,853            7,123
     Standardized approach                                                                               4,367            4,537
     Internal ratings based approach                                                                     2,486            2,586
Own funds requirement for position risk in bonds, equities and commodities                                 432               440
Own funds requirement for open currency positions                                                          371               362
Own funds requirement for the operational risk                                                             630               580
Total own funds requirement                                                                              8,286            8,505




 RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
Consolidated financial statements                                                                                               65




 Risk-weighted assets for the credit risk according to asset classes break down as follows:

  €m                                                                                                      31/3/2009      31/12/2008
  Risk-weighted assets according to Section 22 BWG on standardized approach                                   54,592         56,710
  Central governments and central banks                                                                        3,973         4,065
  Regional governments                                                                                             484         498
  Public administration and non-profit organizations                                                               64           68
  Multilateral development banks                                                                                   28           28
  Banks                                                                                                        1,204         1,296
  Corporates                                                                                                  30,215        32,662
  Retail (including small and medium-sized entities)                                                          13,379        13,595
  Investment funds                                                                                                 113         142
  Securitization positions                                                                                         76           49
  Other positions                                                                                              5,056         4,307
  Risk-weighted assets according to Section 22 BWG on internal rating approach                                31,070         32,330
  Central governments and central banks                                                                            93          139
  Banks                                                                                                        5,497         5,441
  Corporates                                                                                                  25,258        26,019
  Equity exposures                                                                                                 124         582
  Securitization positions                                                                                         98          149
  Total                                                                                                       85,662        89,040



 (32) Average number of staff
 The average number of staff employed during the reporting period (full-time equivalents) break down as follows:

                                                                                                           1/1– 31/3      1/1– 31/3
  Full-time equivalents                                                                                         2009           2008
  Austria                                                                                                      2,950         2,873
  Central Europe                                                                                              14,088        13,043
  Southeastern Europe                                                                                         19,132        17,129
  Russia                                                                                                      10,111         9,232
  CIS Other                                                                                                   19,279        19,780
  Rest of the World                                                                                                425         360
  Total                                                                                                       65,985        62,417




                                                                                      RZB GROUP – INTERIM REPORT 1 s t QUARTER 2009
66                                            Consolidated financial statements




RZB GROUP – ZWISCHENBERICHT 1. QUARTAL 2009
Publication details                                                                                                        67




 Publication details

 Publication details
 The forecasts, plans and forward-looking statements contained in this report are based on RZB’ s state of knowl-
 edge and assessments at the time of its preparation. Like all statements of this kind, they are subject to risks and
 uncertainties that could cause actual results to differ materially from those expressed or implied by such state-
 ments. No guarantee can be provided for the accuracy of forecasts, plan values or forward-looking statements.

 We prepared this Annual Report and checked the data with the greatest possible care. Nonetheless, transmis-
 sion, typesetting and printing errors cannot be ruled out.

 Adding and subtracting rounded amounts in tables may have led to minor discrepancies. Statements of rates of
 change (percentages) are based on actual figures and not on the rounded figures presented in tables.

 This Annual Report was prepared in German. The Annual Report in English is a translation of the original Ger-
 man report. The only authentic version is the German version.


 Published by
 Raiffeisen Zentralbank Österreich AG

 Editorial team
 Debt Investor Office:       Wilfried Peter Stöckl
 Group Finance:              Getraud Hannauer-Pichlmayr, Teresa Hogl, Annemarie Lackner, Ulf Leichsenring,
                             Magdalena Michalak
 Integrated Risk Management: Robert Gutlederer, Gebhard Kawalirek

 Published in
 Vienna




 Contact
 Wilfried Peter Stöckl
 Raiffeisen Zentralbank Österreich AG
 Debt Investor Office
 Am Stadtpark 9
 A-1030 Vienna
 Austria
 Tel. +43-1/717 07-1959
 E-mail: investor@rzb.at
 www.rzb.at




                                                                                   RZB GROUP – ZWISCHENBERICHT 1. QUARTAL 2009

								
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