Austria-based Raiffeisen Bank International AG said its management board will propose a dividend for 2017 of 62 euro cents per share at its June 21 annual general meeting, its first payout in four years.
The dividend, corresponding to a maximum payout of €204 million and a payout ratio of 18% is expected to be paid to shareholders July 2. RBI last paid a dividend of €1.02 per share for 2013.
RBI reported full-year 2017 consolidated profit of €1.12 billion, more than double from the pro forma €520 million a year earlier. EPS increased year over year to €3.34 from €1.58, while consolidated return on equity rose to 12.2% from 6.2%.
The bank said it aims to pay out between 20% and 50% of its consolidated profit in the future.
CEO Johann Strobl said in an interview published in RBI's 2017 annual report that the bank wants to "return to growth in Russia, and that should be possible going forward in view of the good fundamentals." For 2018 and 2019, the bank expects growth rates of 4.1% and 3.6% in central Europe and 3.7% and 3.3% in southeastern Europe, respectively, Strobl said, noting that the figures are lower than in years prior to the financial crisis but should be more sustainable in the absence of external shocks.
With regards to acquisitions, Strobl said the bank aims to focus on several countries with markets characterized by a "high degree of stability and excellent economic prospects," adding that it is also looking at buying portfolios.
RBI said it is preparing a carve-out of the foreign-currency retail mortgage portfolio held by Raiffeisen Bank Polska SA
RBI, which needs to float at least 15% of Raiffeisen Bank Polska by May 15 to comply with regulatory orders, said no execution decisions have been made with regards to the plans.
In January, the Polish Financial Supervisory Authority refused to approve a plan by RBI to establish a new bank in Poland that was supposed to take over a portfolio of mainly Swiss franc-denominated loans from Raiffeisen Bank Polska in a bid to make the unit more attractive to investors.
