Raiffeisen Group establishes itself as the third force in the Swiss banking market
St. Gallen/Zurich, 5 March 2009. Raiffeisen further strengthened its position as the thirdlargest
Swiss banking group in 2008. Client deposits and mortgage loans exceeded 100
billion Swiss francs for the first time. Despite a difficult economic environment, the
banking group posted a gross profit of 883 million Swiss francs – the fourth best result
in Raiffeisen’s history.
“The Raiffeisen’s business model has proved to be worthwhile in the current difficult situation,”
explained Pierin Vincenz, Chairman of the Executive Board, at the Annual Media Conference of
the Raiffeisen Group. 158,000 new clients and 105,000 new members joined Raiffeisen in 2008.
This brought the number of Raiffeisen’s members to more than 1.5 million and the number of
clients to more than 3.2 million. In the retail business, Raiffeisen accrued a net amount of 11.6
billion Swiss francs in new money. The total of client deposits rose to 104.1 billion Swiss francs
(+10.6%). The Raiffeisen Group has thus further strengthened its strong position and established
itself the “third force” in the Swiss banking market, said Pierin Vincenz.
Strong growth even in the loans sector
Roughly two-thirds of the new client deposits were given back to members in the form of loans.
Total amount of loans rose by 7.1 billion Swiss francs to 108,6 billion Swiss francs (+7%) in 2008.
However, this did not lead to any cuts as far as security is concerned. The Group’s actual losses
from credit transactions fell to 0.04% of total loans. Loans to corporate clients rose by 5.8% to
16.4 billion Swiss francs.
With a total of 101.4 billion Swiss francs, mortgages accounted fort he the biggest share of loans,
rising by 7.1 billion Swiss francs (+7.6%) in 2008 to exceed 100 billion Swiss francs for the first
time. Raiffeisen is thus clearly outperforming the market (+3.6%) in its core business of home
financing and has now a market share of 14.7% (+0.5%).
A good result in a difficult environment
The gross profit of 883 million Swiss francs in 2008 (-8.4%) is representing the fourth best result
in the history of the Raiffeisen Group. Returns in the interest business rose by 2.4% to 1.9 billion
Swiss francs. Due to the difficult conditions on the stock markets, the profit from commission
business and service transactions fell by 5.6% to 230 million Swiss francs. The Group recorded a
slight decline (-3.1%) in trading transactions. Group profit fell to 564 million Swiss francs
(-19.5%). At the same time, downward valuation adjustments primarily had an impact on the
strategic holdings in Helvetia Insurance and Bank Vontobel in the amount of 71.3 million Swiss
francs as well as an increase in depreciations as a result of the Group’s high investment activities.
Creation of over 450 new jobs
Total operating expenditure rose by 111 million (+8.3%) to 1.4 billion Swiss francs. General and
administrative expenses rose by 29 million Swiss francs (+6.3%) and personnel expenses by 82
million Swiss francs (+9.3%). The Raiffeisen Group created over 450 new jobs, in 2008. The
majority being in client advisory services at Raiffeisen banks. With high project and investment
volumes, Raiffeisen is preparing to meet future challenges. The modernisation of bank branches,
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the expansion of the branch network and the first steps towards the introduction of a new bank
software had cost-increasing effects.
High level of security guaranteed
Thanks to the high amounts set aside for reserves, equity capital increased by 7.8% over the
previous year to 8 billion Swiss francs by the end of 2008. This exceeds the statutory requirements
by far; the degree of equity capital performance is 236%.
In addition to the solid equity capital base and the security-oriented lending policy, Raiffeisen also
benefits from a security system based on mutual liability, which guarantees its clients and
members a high level of security. The cooperative and decentralised structures of the individual
Raiffeisen banks and the Group as a whole, secure the stability and diversification of risk with a
Raiffeisen also wants to outperform the market in 2009
Raiffeisen has got off to a good start in 2009. The influx of new monies is unabated. In addition
to its efforts to acquire new clients, Raiffeisen will enhance support for existing clients and
members. To do this, Raiffeisen has invested in additional client advisors. Raiffeisen will cling to its
growth strategy and further extend its presence in agglomeration areas. Raiffeisen is also planning
further expansion in its corporate banking segment. In order to achieve these objectives,
Raiffeisen will extend its range of products and open new Competence Centres in Zurich,
Bellinzona and Bern.
Details published on the Group’s remuneration system
Starting with the 2009 fiscal year, the Raiffeisen Group will publish the remuneration system of
the Board of Directors and the Executive Board of Raiffeisen Switzerland. The maximum
remuneration for members of the Board of Directors is 260,000 Swiss francs per year. The
members of the Board of Directors are not entitled to a performance-related component. The cap
on the total remuneration for members of the Executive Board is a maximum of 2,000,000 Swiss
francs per year in the case of complete performance, including any business-related fees payable
to members of the Board of Directors. The maximum compensation can only be achieved by the
Chairman of the Executive Board. The variable, performance-related component will be
determined by the BoD Committee.
Raiffeisen: third-largest banking group in Switzerland
The third-largest banking group in Switzerland, Raiffeisen is one of Switzerland’s leading retail banks. The third largest bank in
the Swiss banking sector has 3.2 million customers, over 1.5 million of which are cooperative members and therefore coowners
of their Raiffeisen bank. They value the crucial advantages Raiffeisen brings: client proximity, empathy, trustworthiness
and the exclusive advantages for cooperative members.
The Raiffeisen Group consists of the 367 cooperatively structured Raiffeisen banks and the Raiffeisen Switzerland cooperative
with a total of 1,151 branches as well as the Group companies.
The legally autonomous Raiffeisen banks are amalgamated into the Raiffeisen Switzerland cooperative, which has its head office
in St. Gallen. Raiffeisen Switzerland is responsible for strategic management and risk controlling for the entire Raiffeisen Group,
coordinates the Group’s activities, creates the framework conditions for the business activities of the local Raiffeisen banks and
provides them with advice and support where necessary. Raiffeisen Switzerland has an Aa1 rating from Moody’s.
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The Raiffeisen Group at a glance
2007 Changes Change
(in CHF m) (in CHF m) (in CHF m)
Balance sheet total 131,574,9 123,075.7 8,499.2 6.9
Loans to clients 108,594.7 101,526.9 7,067.8 7.0
Mortgage receivables 101,435.0 94,298.6 7,136.4 7.6
Client deposits 104,097.8 94,154.9 9,942.9 10.6
Custody account volumes 32,672.3 35,840.6 -3,168.3 -8.8
Operating income 2,326.7 2,297.0 29.7 1.3
Interest income 1,926.3 1,881.4 44.9 2.4
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1,443.3 1,332.5 110.8 8.3
Gross profit 883.4 964.5 -81.1 -8.4
Group profit 564,4 701,3 -136,9 -19,5
Employees (units) 7,665 7,208 457 6.3
Total employees 9,133 8,606 527 6.1
Members 1,549,190 1,443,841 105,349 7.3
Clients 3,232,949 3,075,171 157,778 5.1
Audio note: A videocast in MP3 format on the highlights of 2008 will be provided on the web site at
www.raiffeisen.ch/medien, available from 7:30 a.m. After 2:00 p.m., a recording of the
media conference will be available. The conference language will be standard German.
Picture note: Pictures from the media conference will be available for download from the web site at
www.raiffeisen.ch/medien after 2:00 p.m.
Contact: Franz Würth
Phone: 071 225 84 84
Head of External Communications / Press Officer
Phone: 071 225 94 41