Raiffeisen BANK d.d. Bosna i Hercegovina is a subsidiary of Raiffeisen International Bank-Holding AG, which in turn is a fully consolidated subsidiary of Vienna-based Raiffeisen Zentralbank Österreich AG (RZB). Founded in 1927,RZB is Austria's third-largest bank and the central institution of the Austrian Raiffeisen Banking Group, the country's largest banking group by total assets with the widest local distribution network.

RZB and Raiffeisen International have time and again underpinned their reputation as early movers and pioneers in CEE, having founded the first subsidiary bank in Hungary already in 1986, three years prior to the fall of the Iron Curtain. In more than 20 years of market presence, ten banks were founded and another ten were acquired. The resulting network covers the region with universal banks in the following 15 markets, servicing more than 15 million customers in over 3,000 business outlets.

Raiffeisen International acts as these banks' steering company, owning the majority of shares (in most cases 100 or almost 100 per cent). Furthermore, many finance leasing companies (including one in Kazakhstan and in Moldova) are part of the Raiffeisen International Group. RZB owns about 70 per cent of Raiffeisen International's common stock. The balance is free float, owned by institutional and retail investors. The company's shares are traded on the Vienna Stock Exchange.

The Raiffeisen International Group posted a consolidated profit (after tax and minorities) of € 212 million in 2009. While this marks a decrease of 78 per cent against 2008, the result nevertheless underlines the strength of the company's operative business and business model when seen in light of the sharply deteriorated economic environment and the record result the Group achieved in the previous year. Raiffeisen International's balance sheet total declined by 11 per cent to € 76.3 billion as of year-end 2009, reflecting both currency effects and the reduction in lending business on account of the economic crisis.

The RZB Group's balance sheet total amounted to € 147.9 billion as of year-end 2009, down 6 per cent year-on-year. The Group achieved a pre-tax profit of € 824 million in 2009, up 38 per cent against the preceding year. This result represents a significant accomplishment when seen against the backdrop of world-wide crisis and the fact that most of the countries in the RZB Group's home market experienced recession in 2009. At the reporting date, the Group employed a staff of 59,800 worldwide.

In addition to its banking operations – which are complemented by a representative office in Russia (Moscow) – RZB runs several specialist companies in CEE offering solutions, among others, in the areas of M&A, real estate development, fund management and mortgage banking.

In Western Europe and the USA, RZB operates a branch in London and representative offices in Brussels, Frankfurt, Madrid, Milan, Paris, Stockholm, and New York. A finance company in New York (with representative offices in Chicago and Houston) and a subsidiary bank in Malta complement the scope. In Asia, RZB runs branches in Beijing (with representative offices in Harbin and Zhuhai), Xiamen and Singapore as well as representative offices in Ho Chi Minh City, Hong Kong, Mumbai and Seoul. This international presence clearly underlines the bank's emerging markets strategy.

RZB is rated as follows (as of March 2010):

• Standard & Poor's  Short term                A-1

                                      Long term                 A

• Moody's                  Short term                P-1

                                      Long term                 A1

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