1

Raiffeisen Bausparkasse

in 2014

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Ladies and Gentlemen,

Building societies represent a successful model with a long tradition in our country. During the Second Republic, they played a very signifi cant role in helping to rebuild our country. The domestic building societies have co-funded the construction, purchase and modernisation of around 1.5 million apartments and houses. That is living space for more than 4 million people. Building societies therefore offer Austrians substantial help in creating and maintaining their house and home.

Building societies have made an important contribution towards helping people achieve a high standard of living and accumulate a wide range of property and assets with its low-cost loans and attractive forms of investment. Building societies have been the most popular form of saving in this country for a long time and have become indispensable as an instrument for personal provisions.

Raiffeisen Bausparkasse has also made a signifi cant contribution to this success. The company is the institute of Raiffeisen Banking Group specialising in fi nancing, maintaining and enhancing living spaces. Raiffeisen Bausparkasse is the largest building society in the country with the largest number of customers at almost 1.8 million and has a market share of 33.5 percent.

The company was founded in 1961. Back then, it was the smallest building society in Austria. Raiffeisen Bausparkasse is now an international company with around 3.6 million customers.

The building society system proved itself to be a safe haven during the economic crisis. It stands out by offering both security and stability, both issues will play a key role in the savings and fi nancing plans of Austrians in the future.

We would like to thank our customers for their trust. We would also like to thank our business partners for the excellent cooperation. We reserve special thanks for our employees who have made a signifi cant contribution to the positive results with their daily commitment and dedication. We look forward to continuing the successful path of Raiffeisen Bausparkasse with you all.

Building societies – An Austrian tradition

Manfred Url Johann Ertl Hans-Christian Vallant

The Executive Board of Raiffeisen Bausparkasse: Hans-Christian Vallant, Manfred Url and Johann Ertl.

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Market leader in key business areasBuilding societies demonstrated their strength in 2014 during a challenging period for the entire economy. They remained the most preferred option chosen in surveys conducted regularly in relation to interesting forms of investment. The high level of emotional approval is also evident by referring to concrete fi gures: 316,312 new building society savings agreements were concluded by Raiffeisen Bausparkasse. This meant an increase of 3.4 percent compared to the previous year – and the company came out on top again among the Austrian building societies. Raiffeisen Bausparkasse maintained its excellent position with a total of around 1.8 million contracts.

The demand for housing loans rose signifi cantly in 2014 compared to the previous year with an increase of 7.8 per-cent. Building societies were considered as an ideal instrument for making your very own dream home a reality. The building capital was, however, not only required for the acquisition of property. It was also used for refurbishments: The company’s market leadership was further enhanced with € 843.8 million in fi nancing. Moreover 107,653 loan custo-mers make Raiffeisen Bausparkasse the number one building society.

The healthy demand for low-interest building capital from Raiffeisen Bausparkasse was also refl ected in an increase in loans: They increased by 1.1 percent to € 6,294.4 million in the previous year. Deposits also experienced a similar development increasing by 1.4 percent to € 6,332.8 million. The market share for loans is 33.1 percent, while for deposits it amounts to 30.7 percent.

The balance sheet total as of 31 December 2014 amounted to € 7,820.6 million.

Key figures (as of 31 December 2014)

Contract portfolio 1,788,906 contracts New contracts 316,312 contracts

Savings contracts: 1,681,253 contracts Savings contracts: 311,801 contracts

Loan contracts: 107,653 contracts Loan contracts: 4,511 contracts

Loans Deposits

€ 6,294.4 million € 6,332.8 million

Financing Balance sheet total

€ 843.8 million € 7,820.6 million

Raiffeisen Bausparkasse in 2014

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Exporting a successful business modelBuilding societies based on the Austrian model are also helping people in Central and Eastern Europe to make progress towards owning their own property. Foreign business is therefore an integral part of the corporate strategy. It has supplemented growth and earnings for more than 20 years. The participations in Slovakia, Czech Republic and Romania have a total of 1.8 million customers with about € 5.1 billion building society deposits and 740 employees.

Raiffeisen was the pioneer in exporting building society savings based on the Austrian model:The Slovakian company Prvá stavebná sporitelňa a.s. commenced business operations as the first foreign equity investment of Raiffeisen Bausparkasse and the first building society in Central and Eastern Europe in 1992. A year later, AR Bausparkasse AG was founded as the first building society in the Czech Republic. In 1998, it adopted the name Raiffeisen stavební spořitelna, a.s. that it has kept until today.

Raiffeisen Bausparkasse was also the first building society on the market in Romania. Raiffeisen Banca pentru Locuinţe S.A commenced its business activities in 2004. The building society concept is repeating its success story in these countries. Hundreds of thousands of customers lay the foundation for their dream of owning their own home by reaching a building society savings agreement with Raiffeisen every year.

Equity Investments of Raiffeisen Bausparkasse

Slovakia: Prvá stavebná sporitelňa a.s. (PSS)

The Slovakian unit is the leading housing financer in the country with a market share of around 85 percent.

Building society savings are also hugely popular in the Czech Republic: Around 700,000 customers place their trust in RSTS.

Czech Republic: Raiffeisen stavební spořitelna, a.s. (RSTS)

The oldest building society in Romania (founded in 2004) is showing a very promising development on the last emerging building society savings market in Europe.

Romania: Raiffeisen Banca pentru Locuinţe, S.A (RBL)

The 100 percent subsidiary of Raiffeisen Bausparkasse (founded in 1998) carries out high value projects in the best residential locations in Vienna. Two projects are currently being prepared: “Idyllicliving at Lainzer Tiergarten” and “Living in Nußdorf”.

Vienna: RBM Wohnbau Ges.m.b.H.

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A system with benefits for everybodyBuilding societies act as an important initiator and economic growth driver for housing construction. This is because the fi nancing has a stimulating effect on the numerous construction and construction-related industries. Numerous small and medium-sized enterprises benefi t from this and thousands of jobs are secured. In addition to new buildings, refurbishments, in particular, ensure additional orders. Financing for development and maintenance has also been possible since 2005 and funds are also invested in these two promising business areas.

Numerous tax payments, which are signifi cantly higher than the total of building society savings premiums (currently € 53 million a year) invested by the government, make their way back into the treasury via the building society cycle. A system that is proven over decades is maintained with relatively limited state resources which results in signifi cant economic benefi ts for all those involved.

The savings of around 5.3 million building society customers throughout Austria will benefi t the entire population. The € 20,664.5 million in funds, which the building societies currently manage, will be completely invested – according to the statutory mandate – in the fi elds of living, maintenance and development.

Building society cycle: Win-win situation for people, the economy and the governmentThe building society savings concept offers benefi ts for everyone: For savers whose money has been safely and attractively invested with the building societies, for the borrowers who can expect competitive and limited interest rates, for the building industry whose economy is signifi cantly affected by the building capital payments – and for the government who receives more money from tax payments than it spends in building society premiums. Building societies represent a win-win situation for all those involved and are therefore a key area of the Austrian national economy.

Building society savings as an economic factor

Building society customersenjoy the benefi ts of saving and fi nancing

The economyis boosted and will benefi t

The governmentmakes more money than it pays

in premiums

December 31, 2014 in €

December 31, 2013in € thousand

1. Payables to other banks 1,116,742,114.37 1,050,648

2. Payables to customers 6,243,500,498.79 6,181,987

3. Other liabilities 39,117,796.02 30,549

4. Deferred income 613,310.57 700

5. Provisions 25,596,845.46 31,087

6. Retained profit 12,077,567.98 7,488

7. Supplementary capital under Part 2, Title II, Chapter 4 of Regulation (EU) No. 575/2013 70,500,000.00 105,000

8. Subscribed capital 35,000,000.00 35,000

9. Capital reserves 8,091,830.00 8,092

10. Retained earnings 199,500,000.00 147,500

11. Liability reserve under § 57 (5) BWG (Austrian banking act) 69,848,500.00 69,848

7,820,588,463.19 7,667,899

December 31, 2014 in €

December 31, 2013 in € thousand

1. Foreign assets 246,426,232.73 258,299

December 31, 2014in €

December 31, 2013 in € thousand

1. Cash and balances with central banks 1,072.86 6,597

2. Debt instruments issued by public bodies that are eligible for refinancing with the central bank 125,207,922.42 107,665

3. Receivables from other banks 939,017,843.41 669,725

4. Mortgage-backed loans 5,240,097,897.66 5,102,917

5. Other loans 795,396,797.32 889,437

6. Bonds and other fixed-interest securities 372,936,596.80 500,607

7. Shares and other variable-yield securities 187,121,592.37 235,711

8. Equity investments 211,306.39 194

9. Investments in subsidiaries 98,833,484.68 97,049

10. Intangible non-current assets 1,387,587.10 14

11. Property, plant and equipment (Of which land and buildings used by the Bank within the scope of its own activities: € 131,575.00; previous year: € 176 thousand) 407,903.33 557

12. Other assets 59,638,983.91 56,917

13. Prepaid expenses 329,474.94 509

7,820,588,463.19 7,667,899

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Balance Sheet at December 31, 2014

Assets

Equity and Liabilities

Off-balance sheet items

2014 in €

2013 in € thousand

1. Interest income and similar income 215,220,273.55 223,444

2. Interest expense and similar charges (118,045,935.84) (132,309)

I. NET INTEREST INCOME 97,174,337.71 91,135

3. Income from securities and equity investments 36,260,252.27 6,807

4. Other operating income 30,713,408.19 33,228

II. OPERATING INCOME 164,147,998.17 131,170

5. General administrative expenses (97,460,146.86) (94,237)

6. Impairment allowances on assets recognized in items 10 and 11 (160,149.55) (169)

7. Other operating expenses (413,137.51) (81)

III. OPERATING EXPENSES (98,033,433.92) (94,487)

IV. PROFIT FROM OPERATIONS 66,114,564.25 36,683

8. Realized and unrealized gains and losses on receivables and securities and provisions made for commitments 3,090,932.10 (5,933)

9. Realized and unrealized gains and losses on securities classified as financial investments and on equity investments and investments in subsidiaries (967,635.22) 179

V. PROFIT FROM ORDINARY ACTIVITIES 68,237,861.13 30,929

10. Income tax (4,366,199.46) (8,057)

11. Other taxes (not included in item 10) (282,288.48) (182)

VI. PROFIT FOR THE YEAR 63,589,373.19 22,690

12. Changes in reserves (52,000,000.00) (15,500)

VII. NET PROFIT FOR THE YEAR 11,589,373.19 7,190

13. Retained profit brought forward 488,194.79 298

VIII. RETAINED PROFIT 12,077,567.98 7,488

December 31, 2014 in €

December 31, 2013in € thousand

1. Contingent liabilities under guarantees 31,085.77 31

2. Commitments 571,078,595.60 661,649

3. Eligible own funds pursuant under Part 2 of Regulation (EU) No. 575/2013 297,989,455.23 335,626

4. Own funds requirement under Article 92 of Regulation (EU) No. 575/2013 2,860,302,021.06 3,017,535

5. Foreign liabilities 20,111,917.25 15,229

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Income Statement for the 2014 Financial Year

Off-balance sheet items

Masthead

Media owner: Raiffeisen Bausparkasse Gesellschaft m.b.H., 1190 ViennaEditorial office: Raiffeisen Bank International AG, Group Communications, 1030 Vienna

Raiffeisen Bausparkasse Gesellschaft m.b.H.Mooslackengasse 12, 1190 Vienna p | +43 1 546 46-0 w | www.bausparen.at

Raiffeisen Zentralbank Österreich AGAm Stadtpark 9, 1030 Vienna p | +43 1 262 16-0 w | www.rzb.at

Prvá stavebná sporitelňa, a.s.Bajkalská 30, P.O.Box 48, SK 829 48 Bratislava 25 p | +421 2 58 23 11 11 w | www.pss.sk

Raiffeisen stavební spořitelna, a.s.Konìvova 2747/99, CZ 130 45 Praha 3 p | +420 2 71 03 11 11 w | www.rsts.cz

Raiffeisen Banca pentru Locuinţe, S.A.246 D Calea Floreasca, 6th Floor, Area A, Sector 1, Bucharest,Postal Code 014476, Romania p | +40 372 13 31 10 w | www.rbl.ro

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