2014AnnualFinancialReport

04–12 Company 04 KeyData2014 05 PrefacebytheChairmanoftheSupervisoryBoards 06 CEOEditorial 07 CorporateBodies 08 ManagementBoardInterview 09 CorporateGovernance/Compliance 11

13–21 GroupManagementReport 13 EconomicEnvironment 14 DevelopmentofBusinessandEarningsin2014 14 ReviewofBusinessSegments 16 PerformanceIndicators 18 RiskManagement 18 InternalControlSystem 19 HumanResources 20 Outlook2015 20 SignificantEventsaftertheBalanceSheetDate 20 ResearchandDevelopment 20 ReportoftheSupervisoryBoard 21

21 StatementofLegalRepresentatives 21

22–29 ConsolidatedFinancialStatements2014 22 IncomeStatement 23 BalanceSheet 25 StatementofChangesinEquity 26 CashFlowStatement 27 SegmentReporting 28

AnnualFinancialReport2014:AnOverview

30–80 NotestotheConsolidatedFinancialStatements2014 30 NotestotheIncomeStatement 32 NotestotheBalanceSheet 37 DisclosurestoFinancialInstruments 46 RiskReport 54 OtherDisclosures 59 DisclosuresBasedonAustrianRegulations 60 ConsolidationRange 66 AccountingPolicies 68 Auditor'sReport 80

81–92 ManagementReport2014 81 EconomicEnvironment 82 DevelopmentofBusinessandEarningsin2014 82 ReviewofBusinessSegments 85 PerformanceIndicators 87 RiskManagement 87 InternalControlSystem 90 HumanResources 91 Outlook2015 91 SignificantEventsaftertheBalanceSheetDate 91 ResearchandDevelopment 91 DistributionoftheProfit2014 92

92 StatementofLegalRepresentatives 92

93–115 IndividualFinancialStatements2014 93 BalanceSheet 94 IncomeStatement 96 DevelopmentofFixedAssets 98 Notes 100 Auditor'sReport 115

116–117 ContactsundPublisher'sDetails 116

ThisisatranslationfromGerman.IncaseofanydiscrepanciesbetweentheEnglishandGerman version,theGermantextshallprevailandbebinding.

TheCompany

KeyData2014ofRaiffeisenCentrobank

in € thousand / in per cent 1/1-31/12/2014 1/1-31/12/2013 Change

Income Statement

Netinterestincome 3,807 3,315 14.8%

Netfeeandcommissionincome (393) 999 >100%

Tradingprofit 44,183 46,226 (4.4%)

Generaladministrativeexpenses (36,942) (41,484) (10.9%)

Profitaftertaxfromcontinuedoperations 8,354 8,532 0.0%

Profitaftertaxfromdiscontinuedoperations 72 2,723 >100%

Groupnetprofit 8,894 12,422 (28.4%)

Balance Sheet

Loansandadvancestocreditinstitutions 377,361 269,111 40.2%

Loansandadvancestocustomers 83,697 98,925 (15.4%)

Tradingassets 2,137,495 2,033,716 5.1%

Liabilitiestocreditinstitutions 71,354 106,672 (33,1%)

Liabilitiestocustomers 221,241 117,237 88.7%

Tradingliabilities 2,283,134 2,119,104 7.7%

Equityincl.groupnetprofit 102,219 106,258 (3.8%)

Totalassets 2,730,676 2,510,575 8.8%

Key ratios

Returnonequitybeforetax(fromcontinuedoperations) 9.2% 11.2% -

Cost/incomeratio(fromcontinuedoperations) 81.1% 79.6% -

Bank-specific indicators pursuant to the Austrian Banking Act

Eligibleownfunds 87,740 89,115 (1.5%)

Totalownfundsrequirement 54,639 57,436 (4.9%)

Resources

Employeesasofreportingdate(fromcontinuedoperations) 204 217 (6.0%)

Employeesasofreportingdate(fromdiscontinuedoperations) 103 122 (15.6%)

6

Afteranin-depthanalysisaspartoftheFitforFuture2016efficiencyenhancingprogramofRaiffeisenCentrobank’sparentRaiffeisenBankInternational(RBI),thefutureorientationofRaiff-eisenCentrobankwasdecidedinthesummerof2014.Goingforward,RaiffeisenCentrobankwillfocusonitsexistingcorebusinessareas:equitiestradingandsales,andcertificates.ThedecisionwasalsomadetorestructuretheEquityCapitalMarkets/Mergers&AcquisitionsandPrivateBankingsegmentsandthecommoditytradingsubsidiaries.

RaiffeisenCentrobank’sneworientationwillalsobringchangesintheManagementBoard.StartinginJanuary2015,theformerdirectorofthecorebusinessareas,WilhelmCeleda,willassumethefunctionofCEO.MarkusKirchmairwillassumethefunctionofChiefFinancialandChiefRiskOfficer.GiventhecombinationofthemeasuresfortherestructuringofRaiffeisenCent-robankandthecontinuedturbulentmarketcon-ditions,theemployeesdeliveredexceptionalperformanceinthereportingperiod.RaiffeisenCentrobankremainedthelargestplayerontheAustrianstockmarketwithashareof9.2percentofthespotmarketontheViennaStockEx-change,expandeditsshareoftheinstitutionalinvestormarkethereto10.2percent,andalsoachievedthelargesttradingvolumeofanymar-ketmakeratover19percent.Alarge

numberofmarketmakermandateswerewonforAustrianandEasternEuropeanbluechipsontheEurexFrankfurt.Activitieswerealsosuccess-fullyexpandedonforeignexchangesincludingtheWarsawStockExchangeandtheBucharestStockExchange.TheStructuredProductsdepartmentclosedtheyearwitharecordresult.IntheEquityCapitalMarketssegment,Raiffei-senCentrobankdefendeditspositionontheViennaStockExchangeandalsoconcludedalargenumberofequitytransactionsinrelevantEuropeanmarketstogetherwiththeRBInetworkbanks.TheperformanceoftheM&Abusinesssegmentwasbelowexpectations.

InthenameoftheSupervisoryBoard,IwouldliketothankexitingManagementBoardmem-bersEvaMarchart,MichaelSpiss,andGer-hardGrundfortheirgoodworkoverthepastyears–theseeffortslaidthefoundationforthesuccessfulgrowthofRaiffeisenCentrobank.

Iwouldalsoliketothankeveryonewhocontri-butedtothegoodresultsofthepastyear,andwishthenewManagementBoardallthebestandmuchsuccess.

PrefacebytheChairmanoftheSupervisoryBoard

KlemensBreuerChairmanoftheSupervisoryBoard

7

LadiesandGentlemen,dearReader,

Financialyear2014wasanexcitingperiodofchangeandstability,growthandreductionforRaiffeisenCentrobank.Theconcentrationonthecorebusinessareasofequitytradingandsalesandonissuanceandmarketmakingforstructu-redproductsisthemostimportantelementofcontinuityandgrowthatRaiffeisenCentrobank.Atthesametime,thedecisionwasmadetodis-poseofourcommoditytradingsubsidiariesandthePrivateBankingsegment.TheMergers&AcquisitionsandEquityCapitalMarketsseg-mentwillalsobecarvedoutofRaiffeisenCent-robankandintegratedintotheexistingInvest-mentBankingdivisionofourGroupparent,RaiffeisenBankInternational,in2015.There-structuringofRaiffeisenCentrobankalsobroughtchangesintheManagementBoard.EvaMarchart,MichaelSpiss,andGerhardGrund,whowereresponsibleforthesuccessfuldevelopmentoftheBankformanyyears,lefttheBoardtotakeonotherduties.MarkusKirch-mairandIarenowdirectingtheoperationsofthebanktogetherandwilldoourutmosttofulfillourresponsibilitiesprofessionallyandwiththegreatestpossiblecareandvision.

ThefundamentalrestructuringofRaiffeisenCentrobankisnotonlysettingthestageforthefutureofourBank,itisalsopointingustowardsamajorgoal:raisingourprofileonthebasisofourstrengths,offeringourcustomersevengrea-terserviceandproductquality,steadilyexpan-dingourmarketshares,andequippingoursel-vesasbestaspossibleforthecomingyears.TheRaiffeisenCentrobankteamisworkinginconcerttoattainthisgoal–withtheenergyandcommitmentthathaslongsetitapart.Thisisalsoagainreflectedintheresultforthe2014financialyear,includingall-timehighstructuredproductsalesandtheimpressiveresultfromse-curitiesactivitiesoverall–despitethepersistent-lychallengingbusinessconditions.ThenumerousnationalandinternationalawardstakenbyRaiffeisenCentrobankoverthepastyeararealsoatestamenttotheoutstandingqualityofourwork.

Forfurtherdetailsaboutthedevelopmentofbusinessin2014,pleaseseetheManagementBoardinterviewonthefollowingpages,themanagementreport,andthenotestotheconsolidatedfinancialstatements.Iwishyouaninterestingreviewofthefinancialyear!

Sincerely,

CEOEditorial

WilhelmCeledaCEOofRaiffeisenCentrobankAG

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

8

CorporateBodiesManagement Board EvaMarchart (ChiefExecutiveOfficeruntil31December2014) AlfredMichaelSpiss (DeputyChiefExecutiveOfficeruntil31December2014) GerhardGrund (MemberoftheManagementBoarduntil31December2014) WilhelmCeleda ChiefExecutiveOfficerasof1January2015 (MemberoftheManagementBoarduntil31December2014) MarkusKirchmair MemberoftheManagementBoardasof1January2015 Supervisory Board KlemensBreuer Chairman MemberoftheManagementBoard, RaiffeisenBankInternationalAG,Vienna WalterRothensteiner 1stDeputyChairman(until31December2014) ChiefExecutiveOfficer, RaiffeisenZentralbankÖsterreichAG,Vienna

KarlSevelda 1stDeputyChairman(since1January2015) ChiefExecutiveOfficer, 2ndDeputyChairman(until31December2014) RaiffeisenBankInternationalAG,Vienna

JohannStrobl Member(until29April2014)) DeputyChiefExecutiveOfficer, RaiffeisenBankInternationalAG,Vienna, HannesMösenbacher Member(since29April2014) DivisionHead, RaiffeisenBankInternationalAG,Vienna

WernerKaltenbrunner Member DivisionHead, RaiffeisenBankInternationalAG,Vienna

State Commissioners AlfredHacker,TamaraEls

Vienna,15April2015TheManagementBoard

WilhelmCeledaChiefExecutiveOfficer

MarkusKirchmairMemberoftheManagementBoard

9

Wilhelm Celeda (Chief Executive Officer) and Markus Kirchmair (Chief Financial Officer/Chief Risk Officer) have been the new Manage-ment Board of Raiffeisen Centrobank (RCB) since 1 January 2015. In this interview, they talk about the restructuring of the Bank that was announced in 2014, challenging overall condi-tions, and the development of the markets and course of business in 2014.

Restructuring was a central theme of financial year 2014 for Raiffeisen Centrobank (RCB). As part of a comprehensive strategic review, Raiffei-sen Centrobank throughly assessed its future ori-entation and position within the Group. You an-nounced concrete changes for the Bank in No-vember 2014. What can we look forward to?

Celeda:Goingforward,wewillbefurtherincreasingourfocusonourcorebusinessare-as.WehaveanoutstandingmarketpositioninAustriaandinourextendedcoremarketsinCentralandEasternEurope,andintendtofurtherexpandthispositioninthecomingyears.

Kirchmair:Inotherwords,RaiffeisenCentro-bankwillbefocusingonitscorebusinessare-asofequitiesandderivativestrading,broke-rage,equityanalysis,andtheissueandtra-dingofcertificates.RaiffeisenCentrobank’sthreeotherbusinessareasarecurrentlyunder-goingcomprehensiverestructuring.

Wewillbesellingourcommoditytradingacti-vitiesafteradetailedassessment.ThePrivateBankingsegmentwillbecarvedoutofRaiffei-senCentrobankbythemiddleof2015andintegratedintoKathreinPrivatbankAG,asistercompanyofRaiffeisenCentrobank.

Wearepursuingasimilarstrategyforourin-vestmentbankingactivities.Inthepast,ECMandM&AadvisoryserviceswereofferedinnumerousEasternEuropeanmarketsbyRaiffei-senCentrobankandbythenetworkbanksofRaiffeisenCentrobank’sGroupparent,Raiffei-senBankInternational(RBI).Inthefuture,theseactivitieswillbeintegratedintotheinvestment

bankingunitofRaiffeisenBankInternational,therebyeliminatingredundancies,ensuringdi-rectaccesstotheRaiffeisenBankInternationalcustomerplatform,andmakingthebestpossi-bleuseoftheexistingservicestructuresforcor-poratesandinstitutionalcustomersthroughouttheentirenetwork.

Celeda:Allinall,thecomingchangesareaimedatleveragingsynergiesinthefieldofinvestmentbankingwithourGroupparentRaiffeisenBankInternationalandatplacingRaiffeisenCentrobank’sfuturefocussquarelyonequitiesandcertificates.Asspecialistsinthisarea,weatRaiffeisenCentrobankwillworkhardonrefiningexactlytheseproductsandonboostingourservicequalitysoastofurtherimprovetheeffectivenessandefficiencyofourBank.

How have these changes been received by employees and customers?

Celeda:Theyear2014wasdefinitelyachal-lengingtimefortheemployeesofRaiffeisenCentrobank.Therewasasenseofinsecuritythatwasnotunjustifiedfromtheannouncementoftheevaluationprocessforthefutureorienta-tioninthesummeruntilthedecisionwasmadeabouttheconcretereorientationintheautumn.Thefactthatouremployeescontinuedtofulfilltheirdutiesconsistentlyandwithgreatcommit-mentandachievedarespectableresultfortheyeardespitethedifficultconditionsismorethanimpressiveinmyeyes.Iwouldliketoex-pressmygratitudeforthisagainhere!Sincethen,thedrivehasgrownfurtheramongtheRaiffeisenCentrobankteamtocontinuedeve-lopingourcoreareasofbusinesstogether.As

„Goingforward,wewillbefurtherincreasingourfocusonourcorebusinessareas“

We experienced growing revenue in all of our core business areas, both for certificates and stocks. We also defended or expanded our market shares.

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

10

Centrobankdidwhatitstandsforoverthepastyear,namelyenablingitscustomerstoexploitmarketopportunities.

What will Raiffeisen Centrobank focus on in 2015?

Kirchmair:Inadditiontotheconcentrationonourcoreareasofbusinessasdiscussedaboveandtheassociatedrestructuringofthecompa-ny,weseethefollowingstrategicfocuses:con-tinuedgrowthinsecuritiesbusiness,theexpan-sionofRaiffeisenCentrobankastheGroup-widecompetencecenterforequitiesandcerti-ficates,efficiencyincreasesespeciallyinthemanagementandsupportfunctions,andtheproactiveimplementationandfulfillmentofsu-pervisoryregulations.Thecurrentandexpec-tedtighteningoftheregulatoryprovisionsnotonlyentailshighownfundsrequirements,butalsorequirescontinuousandextensiveadap-tationsinourprocessesandsystems.

What do you expect from the current financial year?

Celeda:Ithinkwewillseeapositiveyearforequities.Thecontinuedlowinterestratelevelalonewillleaveinvestorslittlealternativetostocks.However,itisnotagiventhatprivateinvestorswillshiftmoretoindividualstocks.MiFIDII(theEU’sMarketsinFinancialInstru-mentsDirective)willmakeitincreasinglydif-ficulttoactivelyrecommendindividualinvest-mentsinstocks.Forthisreason,privateinves-torsareoftenbetteroffinvestingthroughcertificateswithlowerriskorthroughotherin-dexforms.MiFIDIIaffectscertificatesdifferent-ly.Thedirectivebringsgreaterproducttrans-parencyanddisclosure.Webelievethatthiswilleventuallyreducetherangeofpreferred

farasourcustomersareconcerned,weinfor-medthematanearlystageandcomprehensi-velyaboutthecomingchanges.Ithinkwewereabletoeffectivelycommunicatethead-vantagesthatthisnewstructurewillbringforourcustomers:increasedsynergiesattheBankandGrouplevel,thefocusingofcorecompe-tencesandresourcesindedicatedunits,andtheresultingfurtherimprovementofcustomerservice.

How would you sum up the course of business in 2014

Celeda:Ingeneral,theyearwasverysatisfac-toryoverall.Ithinkthatwemarketedtheassetclassesofequitiesandcertificatesasbestaswaspossiblegiventheprevailinglackofin-vestmentalternativesandtheinterestratecon-ditionsandthatwecommunicatedtheadvan-tagesoftheseassetstoevenmoreprivateandinstitutionalinvestors.Weexperiencedgro-wingrevenueinallofourcorebusinessareas,bothforcertificatesandstocks.Wealsode-fendedorexpandedourmarketshares.Withashareof9.2percentoftheViennaStockExchange’sspotmarket,wewereagainthelargestplayeronthedomesticstockmarket,forexample.RaiffeisenCentrobankalsogene-ratedthegreatestsalesofanymarketmakerandspecialistontheViennaStockExchange.Aparticularhighlightwastheimpressivesuc-cessofourstructuredproductsteam,whichsurpassedthepre-crisisyearsof2006/2007withabsoluterecordcertificatesales.EquityCapitalMarkets(ECM)activitiesalsodevelo-pedencouragingly.Here,wewereinvolvedinnumerouscapitalmarkettransactionsinEuro-pe.Ofallareas,onlyourM&Aactivitiessuffe-redlossesbecauseofthedifficulteconomicconditionsthatresultedfromthetensionsbet-weenUkraineandRussia.TheclosingofsomeM&AofficesinCentralandEasternEuropealsocausednegativeone-offeffects.Allinall,IcansaythatRaiffeisen

certificatesandincreasetheproductquality.Thisshouldhaveapositiveeffectondemandforandthesaleofcertificates,includinginEas-ternEurope–thoughtheconditionsvaryfromcountrytocountryinsomecases.Regulatorychangeswillcontinueatthelevelofindividualproductsandatthelevelofbanksandtheen-tireindustry.Inshort,2015willbeayearofopportunityandchallengingconditionsforusandforourcustomers.

Kirchmair:Thegeopoliticalenvironmentwillre-maintense,especiallyinRussiaandUkraine.Afewmonthsago,theECBannouncedthatitwouldbeconductinganextensivebondpurchasingprogram.Thelong-termeffectsthatthisquantitativeeasingwillhaveareunclearatthispoint,butweexpectpositiveeconomicef-fectsovertheshortterm.TheincreasingsignsofeconomicrecoveryintheEurozonealsomakeusoptimistic.TherobusteconomicgrowthseeninthenewEUmemberstatesintheEastin2014willcontinue.Allofthisiscauseforustoantici-pategoodthingsforthecurrentfinancialyear.Inparticular,weexpectourrestructuringtobesuccessfulandtomeetourambitiousearningsandcosttargets.

I expect our restructuring to be successful and to meet our ambitious earnings and cost targets.

11

CollaborationbetweentheSupervisoryBoardandManagementBoard

AkeyprincipleofgoodcorporategovernanceisopendiscussionbetweentheManagementBoardandSupervisoryBoardandwithinthesegoverningbodies.

TheManagementBoardsubmitsregular,timelyandcomprehensivere-portstotheSupervisoryBoardaboutallrelevantissuesoftheBank’sbusi-nessdevelopment,includingtherisksituationandriskmanagementmeasu-resattheBankandallmaterialGroupcompanies.ThechairmanoftheSupervisoryBoardisinregularcontactwiththeChiefExecutiveOfficeranddiscussesthedevelopmentofbusinessandriskmanagementwithher.TheManagementBoardimmediatelyreportsallimportanteventstothechairmanoftheSupervisoryBoardandalsoreportsimmediatelyonallcircumstancesthatareofmaterialrelevancetotheprofitabilityorliquidityoftheCompany.

TheManagementBoardcoordinatesthestrategicorientationoftheCom-panywiththeSupervisoryBoardanddiscussesthestatusoftheimplemen-tationofthestrategyatregularintervalswiththisBoard.

TheSupervisoryBoardmeetsatleastfourtimesperfinancialyear.

TransparentInformationPolicy

RaiffeisenCentrobankattachesconsiderableimportancetoopenandtransparentcommunicationwithitsshareholdersandotherstakeholders.Tothisend,itprovidesextensiveinformationonitswebsite:

•Pressreleases,keydata•Shareholderstructure•DownloadableannualreportsinPDFformat•DownloadablesecuritiesprospectusesinPDFformat•DownloadableRaiffeisenCentrobankstockanalysesandproduct brochuresinPDFformat,etc.

CriteriafortheIndependenceoftheSupervisoryBoardMembersforthePurposesoftheAustrianCodeofCorporateGovernance

ASupervisoryBoardmemberisconsideredtobeindependentwhenheorsheisnotinanybusinessorpersonalrelationshipwiththeCompanyoritsManagementBoardthatcouldcauseamaterialconflictofinterestsandthatcouldthereforeinfluencethebehaviouroftheBoardmember.

All members of the Supervisory Board of Raiffeisen Centrobank are independent according to the defined criteria for independence.

Compliance

RaiffeisenCentrobankfullyappliestheStandardComplianceCodethatwasdevelopedbytheAustrianbankingindustryasthebasisforitsbusinessactivities,inparticularintheareasoftradingfinancialinstruments,providinginvestmentadvice,assetmanagement,issuingsecurities,financialanalysis,publicrelationsworkandmarketing,andinmanycasesgoesaboveandbeyondthestandardsdefinedinthiscodeandinthenationalandEuropeanregulations(MiFID).Tothisend,acodeofconductwasputinplacebytheGroupcomplianceofficeasabindingsetofrulesforethicalbehaviourinaccordancewiththehigheststandardsinallbusinessdealings.

CorporateGovernanceThesharesofRaiffeisenCentrobankarenotlistedonastockexchange.AstheissuerofalargenumberofstructuredproductsandasoneofthemostimportantsecuritiesbrokersinViennaandotherfinancialcentres,RaiffeisenCentrobankorientsitselftowardstherulesandprinciplesofgoodandres-ponsiblecorporategovernanceassetforthintheAustrianCodeofCorpo-rateGovernancetotheextentthattheserulesandprinciplesareapplicableforRaiffeisenCentrobank.RaiffeisenCentrobankhasnot(yet)formallyunder-takentocomplywiththeAustrianCodeofCorporateGovernance.

EfficientcollaborationbetweenthevariousbodiesoftheCompanyonastrongfoundationoftrust,protectionofitsshareholder’sinterestsandopenandtransparentcommunicationarekeyelementsofRaiffeisenCentrobank’sapproachtogoodcorporategovernance.ThefollowingcommentsillustratesomeaspectsofRaiffeisenCentrobank’scompliancewiththeCodeinthereportingperiod(1Januaryto31December2014).

ManagementBoard

TheManagementBoardismadeupofseveralpersons,withonememberactingasthechairperson.Therulesofproceduregovernhowresponsibili-tiesareassignedandhowthemembersoftheBoardworktogether.

TheBoardisresponsibleforcommunicationmeasuresthatmateriallyshapetheimageoftheCompanyandissupportedbythecorrespondingdepartmentsinfulfillingthisresponsibility.

AninternalauditingdepartmenthasbeensetupasaseparatestaffunitoftheManagementBoard;thisdepartmentcreatesanauditingplanandre-portsregularlytotheBoardontheresultsofitsactivities.

RulesforProprietaryTrading

TheManagementBoardmakesitsdecisionsonthebasisofthemembers’professionalexpertiseandirrespectiveofanypersonalinterests.MembersoftheManagementBoarddiscloseallmaterialpersonalinterestsintran-sactionsofRaiffeisenCentrobankanditsGroupcompaniesandanyotherconflictofintereststotheSupervisoryBoard.AlltransactionsbetweenRaiffeisenCentrobankoritsGroupcompaniesandthemembersoftheManagementBoardorpartiesrelatedtothemareconductedinac-cordancewithgenerallyacceptedindustrystandardsandareapprovedbytheSupervisoryBoardinadvance.

MembersoftheManagementBoardandmanagerialstaffarenotpermittedtooperatebusinessesorbeofficersinotherbusinessentitieswit-houttheapprovaloftheSupervisoryBoardunlesstheseentitiesareinagrouprelationshipwithRaiffeisenCentrobankorunlessRaiffeisenCentro-bankholdsaninterestintheseentities.MembersoftheManagementBoardandmanagerialstaffarealsonotpermittedtoconductbusinesstransactionsfortheirownaccountortheaccountofanotherpartyortoholdashareinanothercompanyasapersonallyliablepartnerintheare-asinwhichRaiffeisenCentrobankisactivewithouttheapprovaloftheSu-pervisoryBoard.

SupervisoryBoard

TheSupervisoryBoardmonitorsandassiststheManagementBoardinthedirectionofRaiffeisenCentrobank,inparticularwithregardstodecisionsoffundamentalimportance.

TheSupervisoryBoardhaspreparedacatalogueoftransactionsrequiringitsapprovalbeforetheycanbeconductedbyRaiffeisenCentrobankoritsGroupcompaniesandhasassignedappropriatevaluelimits.

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

12

Implementationofthe4thAnti-MoneyLaunderingDirective(GWRL)-provi-sionsrelatingtoanti-moneylaunderingandterroristfinancinghavebeenamendedintheircontentsandhavebeentightenedup(e.g.definitionofbeneficialowner,includingdomesticPoliticallyExposedPersons,etc.).

MiFIDII/MiFIR(MarketsinFinancialInstrumentsDirectiveII/MarketsinFinancialInstrumentsRegulation)basedonMiFIDIisdesignedtoamendandtightenupstandardsforequitytradingandinvestmentadvisoryservi-ces(e.g.stricterrulesforOTCtransactions,comprehensivecustomerinfor-mationrequirements,etc.).

PRIIPregulations(PackagedRetailandInsurance-basedInvestmentPro-ducts/KeyInformationDocument)extendcustomerinformationobligationsforPRIPPissuers(bymeansofstandardizedKIDs–KeyInformationDocu-ments).

ImplementingMADII/MAR(MarketAbuseDirectiveII/MarketAbuseRegulation)–extensionofMADcontents(includingadditionalequitiesandderivatives,amendmentsrelatingtopublicdisclosures,director’sdealings,etc.).

AEOI(AutomaticExchangeofInformation;="EU-FATCA")isaEU-wideinformationexchangeproject(analoguetoUSFATCA)tofighttax-evasiveEUcitizens.

Thiscodeofconductstipulateszerotoleranceforanyformofbriberyorcorruptionandalsocontainsprinciplesforinteractionwithcustomers,businesspartnersandco-workersandforhowsensitiveareasofbusinessaretobehandled.

MeasurestakentoimplementeffectivecomplianceinRaiffeisenCentro-bankincludeperiodicreviewsoftheadherencetotheExecutionPolicywhenexecutingcustomerorders,measurestopreventatitsbestconflictsofinterest,insidertradingandmarketmanipulation,seamlessmonitoringofemployeetransactionsandsupervisionoftradingactivities,directandregularcommunicationbetweentheManagementBoardandCompli-ance,aswellasinstitutionalizedreportingtotheManagementBoard,Su-pervisoryBoardandGroupCompliance.

Listedcompanies,companiesissuingexchangetradedfinancialinstrumentsaswellascreditandfinancialinstitutionsaresubjecttostrengthenedcapitalmarket-relatedcomplianceregulationsaimedatenhancingtheintegrityofthecapitalmarket.RaiffeisenCentrobankisfullyawarethatasidefromcomprehensiveregulatoryrequirementsinternalguidelinesneedtobedevelopedalongthespecificsoftheCompanyinordertoimple-mentaneffectivecomplianceorganization.

This“individualization“ofcomplianceguidelinesinvolvesanalyzingthecompany,thecompany’sinternalprocesses,itsproducts,customers,businesspartnersandemployeesandsubsequentlyresultsinimplementingcomplianceguidelinestailoredtotheCompany’sspecificproducts,businesssegmentsandprocesses,i.e.particularlyexposedproductsaresubjecttospecialcomplianceguidelines.ThecomplianceorganizationwithinRaiffeisenCentrobankidentifiesindicatedcompliancemeasuresasthecasemaybe,andimplementsthem,respectively.

RaiffeisenCentrobankisfullyawarethatforcapitalmarketparticipantswhodonotornotfullyadheretorulesandregulationstherewillbeconsiderableconsequencestoreckonwith,wherebyimposingadministrati-vepenaltieswillbeoneoftheweakestsanctions.Inadditiontoconsequencesundercriminallaw,thecompanymaybefacedwithclaimsfordamagesanddamagetoreputation.Inordertoavoidsuchconsequencesatitsbest,ithasprovedeffectiveinRaiffeisenCentrobanktosetupthecomplianceorganizationasintegralpartofriskmanagement.Accordingly,thecomplianceorganizationisinvolvedinstrategicandoperationalissuesandhasbeenvestedwithpowerstotakedecisionsandresponsibilitiestomeetthehigheststandards.

In2014,theComplianceOfficeofRaiffeisenCentrobankfocusedonfurtherimplementingFATCAregulations(registrationofRCBattheInternalRevenueService(IRS),initiatingFATCAreportingimplementationphase,etc.).

InthereportingperiodRaiffeisenCentrobank’sComplianceOfficefo-cusedonanalyzingimplicationsofregulatoryaswellascivilandtax-lawrelatedissueslistedbelowandwillconcentrateonimplementingtheseregulationsintheforthcomingyears:

GeraldDeimelDirectorLegal,Compliance&Tax

ComplianceOfficer

13

GroupManagementReportofRaiffeisenCentrobankAGasof31December2014,accordingtotheInternationalFinancialReportingStandards(IFRS)

Thedesignation“RaiffeisenCentrobankGroup”referstothegroupofcompaniesparentedbyRaiffeisenCentrobankAG.Thecompanyitselfasanindividualentity(theparentcompany)isreferredtoas“RaiffeisenCentrobank.”

Theadditionofroundednumbersusingautomatedsystems,aswasdoneforthisreport,mayresultinminordifferencesinamounts.Thechangesindicatedinpercentrefertotheactualamountsandnottheroundedamountsshowninthisreport.

Alldesignationsthatareusedtorefertopersonsinthisreportapplyequallytobothgendersunlessreferenceisbeingmadetoaspecificindividual.

14

EconomicConditionsThemacroeconomicconditionsmadeforaverychallengingbusinessenvironmentin2014.ThesituationinEuropewasdrivenbytheconflictbetweenRussiaandUkraineandtheassociatedeconomicsanctionsimposedbytheEUCommission,continuedlowinterestrates,andthestag-natingeconomy.TheEurozonesaweconomichighsandlowsin2014.Thesewerereflectedaboveallinthesentimentindicators,whichclimbedatthebeginningoftheyearbutthenlostgroundagaininthesecondhalfoftheyear.WhiletheeconomicupswingcontinuedtosteamaheadintheUSA,theEurozonefellbehindtheexpectationsasitstagnatedatonly0.8percentannualizedgrowth,withprivateconsumptionandarecoveryinexportspreventingaslideintonegativeterritory.Nevertheless,aseriesoffactorspointedtothepossiblepositivedevelopmentoftheEurozoneeco-nomyoverthemediumterm.Theseespeciallyincludetheexpansivemone-tarypolicyoftheEuropeanCentralBank,goodprospectsfortheexportindustrythankstotheweakeuro,andtheburgeoningUSandBritisheco-nomies.Thelowoilprice,whichisnotonlyboostingconsumerpurchasingpowerbutalsodecreasingcostsforcompanies,isalsogoodnews.TheAustrianeconomysteadilylostmomentumoverthecourseof2014.Thethirdquarterbroughtalowpoint,whentherealgrossdomesticproductcontractedby0.3percentinannualizedtermsbetweenJulyandSeptem-ber.Thisweakrecoverywasabovealltheresultofdecliningprivateinvest-mentactivity.TheRussia-Ukraineconflictremainedoneoftheprimaryriskfactors,especiallyforinvestmentdecisionsintheEurozone.Incontrast,theUSAenteredaself-sustainingupswingthatwilllikelylastthrough2015.Theeconomytherewasmorerobustthanithasbeensince1980withfewexceptions.

FinancialMarkets

WhiletheFederalReservedecidedtoenditsbondpurchasingprograminOctober2014,takinganimportantsteptowardsnormalizingitsmonetarypolicy,theEuropeanCentralBank(ECB)decidedtoexpanditssecuritiespurchasestoincludegovernmentbondsinresponsetothethreatofdeflati-onintheEurozone.AccordingtotheECB,thekeyinterestrateswillgonolower.Theyielddifferencebetweentwo-yearGermanandAmericangovernmentbondsremainedthekeydeterminantoftheEUR/USDex-changerate.ThisyielddifferencewidenedtothebenefitoftheUSdollarbetweenthesummerandendof2014.TheEUR/USDratewasatjustunder1.20attheendoftheyear.Littleisexpectedtochangeinthediver-gingmonetarypoliciesoftheFedandECBin2015.

Ontheequitymarkets,theUSAshowedthebestperformance.Drivenbythestrongeconomicexpansionandtheresultingcorporateearningsgrowth,theS&P500roseby15percent,showingthehighestgainsofanydevelopedmarket.TheNikkei225alsoroseby7.1percent,buoyedbythecapitalbeingpumpedintothesystembytheJapaneseNationalBank.DevelopmentsinEuropevariedwidely.WhileGermany’sDAXma-nagedtoclimbby2.7percent,theregionalEasternEuropeindexoftheViennaStockExchange(CECE)lost6percent,Britain’sFTSE2.7percent,andAustria’sATX15percent.ThenegativeperformanceoftheATXcanbeattributedtotheRussia-Ukrainecrisis,thegenerallyweakeconomicdevelopmentoftheEurozone,andprofitwarningsfromsomecompanies.Russia’sMICEXgainedgroundagainoverthecourseoftheyear.Howe-ver,thesegainsmustbeviewedinthecontextofthemassivedevaluationoftheRussianruble,whichlostmorethanhalfofitsvalueagainsttheeuro.

CommodityMarkets

StartingataclosingpricefortheyearofUSD2265/t(SingaporeExchange:TSR20),naturalrubberpricesfellsubstantiallyinJanuary,thenstabilizedtoacertainextent,androseagainstartingattheendofFebruary(USD1790/t)toreachUSD2006/t.Thesubsequentpricedec-linelasteduntiltheendofApril(USD1646/t).ThesubsequentsidewaystrendwasinterruptedbyabriefjumpattheendofJune(USD1795/t),andpricesthenfellsteadilyuntilthebeginningofOctober(USD1387/t).AfterreachingUSD1600/tattheendofOctober,theclosingpricefor2014wasUSD1522/t.ThepricefelltoaroundUSD1400/tinthemiddleofJanuary2015.Supplycontinuedtoexceeddemand,whichwasreflectedinthelowpricelevel.

TheolefinsthataretradedbyCentrotradeChemicalscorrelatewiththeoilprice.ThiswasbelowUSD110/bblforthemajorityofthefirsthalfoftheyear,androsetoaroundUSD115/bblattheendofJuneduetotheun-restinIraq.Thisclimbwasonlybrief,andwaswipedoutbyadrasticslideinthesecondhalfoftheyear(especiallystartinginSeptember).TheclosingpricefortheyearwasroughlyUSD56/bbl.

DevelopmentofBusinessandEarningsin2014Inthe2014financialyear,therealignmentofRaiffeisenCentrobankwasexaminedandthecompetentbodiesdecidedtofocusthecorebusinessareasonequitytradingandsalesandoncertificates.

Followingthisre-alignmenttheEquityCapitalMarkets(ECM),Mergers&Acquisitions(M&A)businesssegmentsincludingthesubsidiariesandthecommoditytradingsubsidiariesarestatedseparatelyinthenotes.Theyarereflectedasdiscontinuedoperationsintheincomestatementasat31De-cember2014pursuanttoIFRS5andinthebalancesheetasassetsorliabilitiesheldforsale.

Despitethecontinuedchallengingmarketenvironment,RaiffeisenCentro-bankGroupgeneratedagroupnetprofitof€8,894million,fallingshortofthe2013resultbyroughly28percentor€3,528million,thereof€0,072million(2013:€2,723million)relatetodiscontinuedoperationsand€0.468million(2013:€1,166million)totheshareofprofitduetonon-controllinginterests.

Theprofitaftertaxfromcontinuedoperationsmarginallydeclinedcompa-redtothepreviousyearperiodfrom€8,532millionto€8,354million.Totalearnings,madeupofnetinterestincomeafterprovisioning,netfeeandcommissionincome,thetradingprofitandthenetincomefromfinanci-alinvestmentsandderivativefinancialinstruments,fellbyroughly9percentor€4.348millionto€46.125million(2013:€50.473million).

Themarginalriseinnetinterestincomeby€0.492millionto€3.807milli-on(2013:€3.315million)ismainlyduetohigherdepositswithbanks.In-terestexpensesslightlyroseto€1.261million(2013:€1.193million).

Thedecreaseinnetfeeandcommissionincomeby€1.392millionto€ minus0.393million(2013:€ 0.999million)isprimarilyattributabletohigherfeeandcommissionexpensesinthecertificatesbusiness.Inthe2014financialyear,feeandcommissionexpensescameupto€16,677million,recordingarisecomparedto2013(€14,336million)by16.3percent(€2,341million).

15

Thetradingprofitcameto€44.183million,€2.043millionlessthaninthepreviousyear(2013:€46.226million).Despiteanincreaseinthecertificatebusiness,theprofitcontributionfromtradingactivitieswaslowerthaninthe2013financialyearinabsoluteterms.

Thenetincomefromfinancialinvestmentsrecordsalossof€1.490millionin2014(2013:€ minus0.083),withthemajornegativeeffectbeingattri-butabletovaluationlossofAustriangovernmentbondsandtoprovisionsforpotentiallossesinequityparticipations.

Generaladministrativeexpenseswerereducedcomparedtothecompara-tiveperiod2013anddeclinedby10.9percentor€4.542millionto€36.943million(2013:41.484million.).Staffexpensesandotheradmi-nistrativeexpensesrecordedadecreaseby€2.599millionto€20.746million,andby€1.951millionto€14.665million,respectively.Thedeclineinstaffexpensesismainlyduetoadecreaseinprovisionsforbonuspayments,whichwerepartlysetoffbyhigherprovisionsforseverancepayments.Inotheradministrativeexpenses,sundryexpensesdeclinedfollowingadecreaseinstaffexpensescharged.Legal,advisoryandconsultancyservicesdeclinedaswellwhereasexpensesforcommunicationrecordedanincrease.

Theotheroperatingresultdroppedby€2.243millionto€minus0.555million(2013:€1.689million),whichisduetothedoublingofthebanklevy(from€1,077millionin2013to€2,060millionin2014)aswellastoaspecialeffectinthe2013financialyearintheamountof€2,000mil-lionrelatingtotherepurchaseofasubordinatedbondfromRaiffeisenMal-taBankplc.,Sliemapriortomaturity.

Thus,theprofitbeforetaxescomesupto€8.628million(2013:€10.662million).

Incometaxeschangedcomparedtothepreviousyearperiodfromminus€2,129milliontominus€0.275million.Thedeclineisprimarilyattributab-letothesettlementofthegroupchargefortheyears2005to2007andaresultingtaxincomeintheamountof€1,132millionfollowingataxauditatthegroupparent.

ThenetresultfromdiscontinuedoperationsrelatestothesegmentsEquityCapitalMarkets(ECM),M&A(includingsubsidiaries)andcommoditytra-dingsubsidiariesandcomesupto€0,072million(2013:€2,723million).ThedeclineismainlyduetoloweroperatingincomeintheM&Abusiness.

Includingtheshareofprofitduetonon-controllinginterests(onlyrelatingtodiscontinuedoperations)intheamountof€0.468million(2013:€1,166million),the2014groupnetprofitcomesupto€8,894millioncomparedto€12,422millionin2013.

Thebalancesheetasof31December2014showedayear-on-yearriseintotalassetsbyroughly9percentor€220.102millionto€2,730.676million.Ontheassetsside,thegreatestchangewasseenin“Tradingas-sets“(roughly78percentofthebalancesheettotalon31December2014androughly81percenton31December2013),whichroseby€103.779millionto€2,137.495million.Thisrisecanbeattributedtoavolume-relatedincreaseintimeandsightsdepositsfortradingpurposes.Thiseffectispartlycompensatedbyadeclineinnotesofcreditinstitutions.TradablemoneymarketdepositsinthetradingbookwereassignedtoRaiffeisenBankInternationalAGandserveprimarilyashedgesfortheguaranteeproductsissuedbyRaiffeisenCentrobank.Theequities,optionsandfuturesthatarealsoreportedunder“Tradingassets”servehedgesfortheissuedcertificates,optionsandshort-salestogetherwiththebonds,orarepartoftheBank’smarketmakeractivities.

“Securitiesandfinancialinvestments”recordedanincrease.Thisiteminclu-desAustriangovernmentbondssumminguptoroughly€31million,heldtocomplywiththeliquiditycoverratiotowardsthesupervisingauthorities,whichincreasedinparticularbythisamountcomparedtothepreviousyearperiod.

“Loansandadvancestocreditinstitutions“(roughly14percentofthebalancesheettotalon31December2014androughly11percenton31December2013)postedariseby€108.250millionto€377.361million.Thisincreaseismainlyrelatedtohighermoneymarketdepositsandahigh-ergiroandclearingbusiness.

“Loansandadvancestocustomers”(roughly3percentofthebalancesheettotalon31December2014androughly4percenton31Decem-ber,2013)declinedby€15.228millionto€83.697million.Thiswaspri-marilycausedbyincreasedrepaymentsoflendingstocorporatecusto-mers.

Theincreasein“Otherassets“(roughly0.3percentofthebalancesheettotalon31December2014androughly0.2percenton31December2013)by€1.744millionto€7.583millionwasprimarilyduetheriseinloansandadvancestothetaxauthorities.

Assetsheldforsalerelatetodiscontinuedoperationsandcomeupto€64.729millionasat31December2014andto€73.782millionasat31December2013.

Ontheequityandliabilitiessideofthebalancesheet,themostnotablechangewasaswellseenin“Tradingliabilities“(roughly84percentofthebalancesheettotalon31December2014androughly84percenton31December2013),whichroseby€164,029millionto€2,283.134comparedtotheyear-end2013.Thisrisecanbeattributedtoanincreaseintradingcertificatesandcertificateswithoptioncharacter,whereasthevolumeofshort-sellingoftradingassetsdecreased.“Tradingliabilities”consistmainlyofstructuredguaranteeproductsissuedbyRaiffeisenCentro-bank,includingbluechipcertificates,warrantsandothercertificatessuchasturbocertificatesonindicesandsingleshares.Theitemalsoincludesliabilitiesfromshort-sellinginconnectionwiththeBank’smarketmakingac-tivities.Pleaseseealsothecommentsonthedevelopmentof“Tradingas-sets”andthehedgingrelationshipsbetweentheseitems.

“Liabilitiestocreditinstitutions“(roughly3percentofthebalancesheettotalon31December2014androughly4percenton31December2013)declinedby€35.319millionto€71.354millioninannualcompa-rison.Thiswastheresultofrepayingmoneymarketdepositsofdomesticcreditinstitutions.

„Liabilitiestocustomers”(rouhgly8percentofthebalancesheettotalon31December2014androughly5percenton31December2013)pos-tedanincreaseby€104.003millionto€221.241millionduetohigherdepositsfromforeigncustomers.

Liabilitiesheldforsalerelatetodiscontinuedoperationsandcomeupto€30.862millionasat31December2014and€38.548millionasat31December2013.

Includingthegroupnetprofitfor2014of€8.894millionandthedividendpaymentforthe2013financialyearintheamountof€13.755million,equitydecreasedby€4.039millionfrom€106.258millionattheendof2013to€102.219million.The“Shareofprofitduetonon-controllinginte-rests“on31December,2014amountedtominus€0.506million(31De-cember2013:minus€0.329million).

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

16

SegmentReporting

Inthe2014financialyear,itwasdecidedtorestructurethebusinessmodelofRaiffeisenCentrobankandtofocusthecoreareasofbusinessonequitytradingandsalesaswellasoncertificates.Followingthesedecisions,theEquityCapitalMarkets(ECM),Mergers&Acquisitions(M&A)businesssegmentsincludingthesubsidiariesandthecommoditytradingsubsidiarieswillbesoldorclosedorwillbetransferredtoRaffeisenBankInternationalortherespectivenetworkbanks.Furtheron,thebusinesssegmentsofRaiff-eisenCentrobankaredividedintocontinuedanddiscontinuedoperations.

ContinuedoperationsofRaiffeisenCentrobankSecurities Trading & Sales and TreasuryRaiffeisenCentrobankisthelargestplayerincertificatesandequitiestradingandholdsakeypositiononthemarketsinCentralandEasternEurope.

TradingvolumeontheViennaStockExchangerosebyanimpressive23percentinannualcomparison,butliquidityonothermarketsthatarerele-vantforRaiffeisenCentrobankcontractedfurtheringeneral(WarsawStockExchangeminus6percent,andtheexchangesinPragueandBu-dapestfellbyroughly20percenteach).Thedevelopmentoftherelevantequityindiceswasalsonotuniform.LargerwesternEuropeanindicespos-tedslightgainsinannualcomparison,whiletheATXfellsubstantially(minus15percent)andotherindicesintheregionlesssubstantially(suchastheWIG20atminus3.5percent).

Duetothemarginpressureandcontinuedlowtradingvolumesinlong-termcomparison,grossincomeincustomerbusinesswithstockscontinuedtosuffer,asdidmarketmakingandproprietarytradingingeneral.WearehappytoreportthatRaiffeisenCentrobankwasagainthelargestmarketparticipantontheAustrianequitymarketin2014withashareof9.2percentoftheViennaStockExchange’sspotmarket.RaiffeisenCentrobankalsogeneratedthegreatestsalesofanymarketmakerandspecialistontheViennaStockExchange.

Thepre-taxprofitoftheSecuritiesTrading&SalesandTreasurysegmentdecreasedcomparedtothepreviousyearfrom€ 11.324millionto€ 7.881million.Thedeclineisattributabletolowerincomefromtradingandanincreaseinthebanklevy,whichcouldnotbeoffsetbyhigherincomegeneratedinthecertificatesbusiness.

InstitutionalEquitySalesTheshareoftheAustrianequitymarketinthecustomerbusinesssegmentwasincreasedfrom8.9to10.2percent.

Themarketingactivitieswerecontinuedatthesamehighlevelaslastyear:33researchroadshows74corporateroadshows21institutionallunchesforAustrianinstitutionalinvestors5reverseroadshows27transactionroadshows

InadditiontothetraditionalinvestorconferenceinZürswithanewrecordnumberofparticipants(60companies,150investors,1,100one-on-onemeetings),asuccessfulinvestorconferencewasalsoorganizedinWar-saw(14companies,29investors,121one-on-onemeetings).

BusinesswithPolishinvestorswasincreasedsignificantlythroughthefruitfulcollaborationwithRaiffeisenPoland(plus250percent).Significantde-

mandfortheprimarymarkettransactionswecompletedintheperiod(RaiffeisenBankInternational,PORR,TelekomAustria,ElectricaS.A.)wasalsogeneratedthroughlocalbrokers.

ThesuccessfulconclusionoftheRBIorderroutingprojectagainhighligh-tedthecentralpositionthatRaiffeisenCentrobankplaysastheequityhouseoftheRBIGroup.Electronicsalestradingwasexpandedsignificant-lyandoffersconsiderablegrowthpotentialfor2015aswell.

Trading/MarketMakingRaiffeisenCentrobankagaindefendeditsmarketleadershipintheViennaStockExchange’smarketmakingsegmentin2014.Intheprimemarket,RaiffeisenCentrobankreceived37ofthe39totalmarketmakerand/orspecialistmandatesandwasthelargestmarketmakerontheViennaStockExchangewithashareof19.3percent.

WiththetransferofthederivativeinstrumentsfromtheOeTOBViennatotheEurexFrankfurt,RaiffeisenCentrobankassumedalargenumberofmar-ketmakermandatesforAustrianandEasternEuropeanbluechipsontheEurexFrankfurt.InadditiontotheEurex,RaiffeisenCentrobankexpandeditsequities,certificates,andderivativesmarketmakingactivitiesonvariousforeignexchangessuchastheWarsawStockExchangeandtheBucha-restStockExchangebywinningnewmandatesandexpandingitsmarketmakingtonewproductclasses.

StructuredProductsTheverypositivecourseofbusinessfortheStructuredProductsdepartmentfromtheprioryearscontinuedwithanotherrecordresultin2014.Certifica-tesaretakingonanincreasinglyimportantroleasafixedpartofamo-dernportfolio.RaiffeisenCentrobanksawsignificantgrowthinallofitscoremarketsandcustomergroups.TheoutstandingmarketvolumeforRaiffeisenCentrobankcertificatesroseagaintoanall-timehighof€3.1billion,evenfarsurpassingthelevelachievedin2006/2007.Thisenab-ledRaiffeisenCentrobanktoextenditsleadershiponthedomesticcertifi-catemarketandtoincreaseitsmarketshareby27percent(correspondsto15percentagepoints).Totalturnoverfor2014cameto€1.4billion,anincreaseofover10percentinannualcomparison.Withashareofover70percent,bonusandguaranteecertificateswerethemostpopularproductcategoriesbyfar.Attractiveyieldpotentialwith(partial)protectionisinhighdemandinthecurrentlow-interestenvironment.This(partial)pro-tectionmechanismsofferslowerriskthananinvestmentinequitiescom-binedwithahigherpossibleyieldthanispossiblefromaninvestmentinbonds–anidealcombinationformanyinvestorsunderthecurrentcondi-tions.AsanAustrianissuer,activityfocusednotonlyonproductsbasedonthetraditionallyimportanthomemarket,butalsoonmajorEuropeanandglobalindicessuchastheEuroStoxx50andSTOXXGlobalSelectDivi-dend100andonEasternEuropeanbluechips.

Inadditiontoreturnandsecurity,agrowingnumberofinvestorsarealsofocusingonsociallyresponsibleinvesting.RaiffeisenCentrobankaddressedthistrendwithcorrespondingnewissues.Allinall,RaiffeisenCentrobankissued3,256productsin2014,bringingthetotalofitspublic-lyofferedissuestoanewrecordofover4,300asoftheendoftheyear.InadditiontotheViennaStockExchange,allRaiffeisenCentrobankcertifi-catesarelistedontheleadingEuropeancertificateexchangesinStuttgart(EUWAX)andFrankfurt.TheEasternEuropeanexchangesinWarsaw,Prague,Budapest,andBucharestarealsobecomingmoreimportantintermsofthenumberoflistedRaiffeisenCentrobankproductsandturnoverfortheseproducts.AnotherrecordresultwasachievedonthecoremarketsinEasternEurope.Revenuehererosebynearly20percentinannualcom-parison.RaiffeisenCentrobankiscurrentlyactiveinninecountriesinCen-tralandEasternEuropeandfurtherintensifieditscollaborationwiththelo-calnetworkbanksthere.Inadditiontotherecordrevenueandhighestle-

17

velofoutstandingcertificatesever(plus26percent),moreissues(subscriptionsandprivateplacements)andeducationmeasureswerecom-pletedthaneverbefore.Aparticularhighlightduringtheyearweresuc-cessfultransactionswithslovakiaTatrabanka.Amongotherachievements,asingleBonusCertificateissueworthover€40millionwasconcludedandplacedinthelocalprivatebankingsegment.Aftercomingoutontopin2007,2010,and2012,RaiffeisenCentrobankwasnamedthebestcer-tificatehouseinCEEforthefourthtimeattheStructuredProductsEuropeAwards2014.

IncreasingvolumesofcertificatesarealsobeingsoldbytheRaiffeisenbanksinAustria.Recordsweresetintermsofrevenueandsubscriptionvo-lume.NumeroustrainingmeasuresandcustomereventsnotonlyincreasedtheBank’spresence,butalsoimprovedadvisorandcustomerknowledgeaboutcertificates.Underthecontinuedchallengingconditions,especiallywithregardstotheregulatoryframework,RaiffeisenCentrobankfeelsthatthedisseminationofknowledgeandinformationisoneofthemostimpor-tantsalesmeasuresforensuringlong-termsuccess.ThesustainabilityofRaiffeisenCentrobank’scertificatebusinessisuniqueinAustriaandCentralandEasternEurope.TheissueristheonlycompleteAustrianprovider,bothintermsofcertificatetypesandunderlyings.Inadditiontoofferingabroadproductspectrum,RaiffeisenCentrobankboastsmanyyearsofactivepre-sence,extensiveinvestorservices,andinnovativeproductideas,andhaslongplayedapioneeringroleincertificatesinCEE.Thishighlevelofex-cellencewasrecognizedbyindependentexpertsattheCertificateAwardsAustriafortheeighthtimeinarow.RaiffeisenCentrobankwasna-medthebestissuerinAustria.

TheresultsofthesecuritiesdepartmentareincludedinthereportfortheSecuritiesTrading&SalesandTreasurysegment.

Company ResearchTheCompanyResearchdepartmentpublished349companyupdatesin2014.Thisisanincreaseof32companyupdatescomparedwiththepre-viousyear.Atotalof226companyupdateswerepreparedforEasternEuropeancompanies,223companyupdatesforAustrian.Attheendoftheyear,thecoveragelistincluded138companiesintotal–37stocksfromAustrianand101stocksfromEasternEuropeancompanies.Theana-lysisuniversewasalsoexpandedduringthepastyear.Thefollowingcom-panieswereadded:PORR,BUWOG,andFACCinAustria;PKPCargo,BankHandlowy,CapitalPark,andAltusinPoland;ElectricainRomania;andRossetiandMOESKinRussia.

Thefocusinthefirsthalfof2014wasprimarymarketactivity.TransactionresearchincludingextensiveinvestoreducationforEuropeaninvestorswaspreparedforthesecondpublicofferingofBUWOGandtheIPOofthePolishcompanyAltus.CompanyResearchassistedthelocalresearchteaminBucharestinconnectionwiththeIPOoftheRomanianutilityElectricaS.A.

Theincreaseindirectcontactbetweentheanalystsandinvestorswasreflectedinveryextensiveroadshowactivity.Sectorreportsandroads-howsonthesectorsofoilandgas,ITandtechnology,telecommunica-tions,banks,Russianutilities,andPolishretailersandrealestate,andoncountrystrategiesforPoland,Russia,andtheentireCentralandEasternEuroperegionwereactivelymarketed.ThedestinationsoftheroadshowswereVienna,London,Zurich,Frankfurt,Warsaw,Prague,Helsinki,Stock-holm,andTallinn.ReverseroadshowswerealsoorganizedforinvestorsinVienna.

StrategyAustria&CEEwaspreparedtogetherwithRaiffeisenResearcheveryquarterasusual.

CompanyResearchwasalsocloselyinvolvedintheorganizationoftheinvestorconferencesinZürsandWarsaw.Separatecompanyupdatesorfactsheetswerepreparedforallparticipatingcompanies.Theanalystswerealsobookedforintensiveone-on-onemeetings.

ThecostsoftheCompanyResearchdepartmentareincludedinthere-portingforthesegments“SecuritiesTrading&SalesandTreasury,”and“OtherBankDepartments.”

DiscontinuedoperationsofRaiffeisenCentrobankEquity Capital Markets (ECM)WhilepricesinEuropetrendedupforthemostpartduringthefirsthalfof2014,geopoliticaltensionsinUkraineandRussiabroughtsubstantiallyhig-herlevelsofvolatilityinthesecondhalfoftheyear,andmostEuropeanequitymarketsclosedtheyearunchangedorupslightlycomparedwiththeendof2013.SomekeyexchangesinCEEincludingRussiaandPo-landfailedtokeeppacewiththemarketsinwesternEurope.TheViennaStockExchangefollowedtheCEEequitymarketsdownward,especiallyinthesecondhalfof2014,andclosedtheyearatalossofaround15percent.

Europesawatotalof67initialpublicofferings(IPOs)withanoffervolumeofover€200millioneachin2014.Activityonthetransactionmarketslo-wedsomewhatinthesecondhalfoftheyear.

RaiffeisenCentrobankdefendeditsstrongpositionontheViennaStockExchangeintheEquityCapitalMarketssegmentagainin2014andalsoconductedatotaloftenequitytransactionsintherelevantEuropeanmar-ketstogetherwiththeRaiffeisenBankInternationalnetworkbanks.

HighlightsincludedthecapitalincreaseofRaiffeisenBankInternationalAG,thelargeststockissueoftheyearontheViennaStockExchangewithatotalvolumeof€2.8billion.RaiffeisenCentrobankwasthejointglobalcoordinatorandjointbookrunner.ThistransactionwasthelargeststockissueontheViennaStockExchangesincethestartofthefinancialcrisisandsignificantlyincreasedthefreefloattojustunder40percent.FurtherhighlightsincludedthebookrunnerpositionsforthecapitalincreaseofPorrAG(€119million)andparticipationinthecapitalincreaseofTelekomAustriaAG(€1billion).

TheBankwasalsoinvolvedintransactionsontheRomanianandPolishequitymarkets,includingthelargestinitialpublicofferinginthehistoryoftheRomaniancapitalmarket,theIPOofElectricaS.A.ontheexchangesinBucharestandLondon.

OntheViennaStockExchange,RaiffeisenCentrobankassistedBUWOGAGwithitspublicofferingthroughaspin-offfromImmofinanzAG.Asidefromthepurestockissues,RaiffeisenCentrobankactedasleadmanagerforaconvertiblebondfromWarimpexFinanz-undBeteiligungsAG.

Russia,thelargestmarketinCEE,fellwellbehindtheperformanceofpreviousyearsandtheexpectationsduetothegeopoliticaltensions.IssueactivityinPolandwasalsolowerthaninpreviousyears.TheIPOoftheassetmanagerAltusTFIS.A.withavolumeofPLN175millionwasoneofthelargestissuesoftheyearontheWarsawStockExchangeandunderscoredtheincreaseinEquityCapitalMarkets(ECM)activityintheregion.TheRomanianequitymarketagainsawarobustleveloftransac-tions,fromwhichRaiffeisenprofitedasthemarketleaderinthecountry’stransactionbusiness.TheBankwasinvolvedintwotransactionswithatotalvolumeofroughly€450million.

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

18

InadditiontothetransactionsinAustriaandCEE,RaiffeisenCentrobankwasaconsortiummemberfortwolargecapitalmarkettransactionsinwes-ternEurope.ThesewerethecapitalincreaseofDeutscheBankAG,thelargeststockissueinEuropewithavolumeof€6.4billion,andthelargestIPOinEurope,thatofNNGroupN.V.ontheAmsterdamStockEx-change.Alongsidenumeroussuccessfullyfulfilledmandates,someplannedtransactionswerenotconcludedin2014duetothemarketconditions.

RaiffeisenCentrobankisalsooneoftheleadingpaymentofficesforAustri-ancompanies,andcurrentlyprovidestheseservicesfor19entities.

Mergers & Acquisitions (M&A)MarketconditionsinCEE’sM&AsegmentwereverychallenginginEuro-pein2014.Thetransactionvolumeintheregionfellbyaround34percentto€27.4billion,andthenumberofcompleteddealsdecreasedbyroughly37percent.

Despitethedifficultenvironment,RaiffeisenCentrobankconcluded19tran-sactionswithadealvolumeof€2.8billion,including•MandateasafinancialadvisorforOrklaforthesaleofRieberFoods PolskaS.A.(Delecta)toaninvestmentfundmanagedbyInnovaCapital.•RaiffeisenCentrobankadvisedRaiffeisenLeasinginthesaleofREE WindparkstoKELAGandEnergieAG.•RaiffeisenCentrobankwasanadvisorinthesaleofthefamouscoffee brandAmigoofPanfoodsCo.Ltd.(UK)/Cia.IguacudeCafeSoluvel (Brazil)toStraussCoffeeB.V.•RaiffeisenCentrobankadvisedOMVandE.Onregardingthesaleof sharesinCongaztoGazdeFrance.•TogetherwithitsinternationalpartnerLazard,RaiffeisenCentrobank actedasthefinancialadvisorforKKRfortheacquisitionofSerbia Broadband(SBB),thelargestcableandsatelliteproviderintheformer Yugoslavia.•TogetherwithLazardandthelocalRaiffeisennetworkbank,Raiffeisen CentrobankadvisedPanasonicCorporationintheacquisitionofa90 percentshareinViko,aTurkishmanufacturerofelectricalequipment.•TheBankalsoadvisedAgrokorGroup,thelargestfoodandretail conglomerateintheBalkanstates,inthesaleofitsfruitjuicedivision toBosnianStanicGroup.

CommodityTrading

ThesubsidiariesoftheCentrotradeGroupoperatingunderCentrotradeHoldingAG,Vienna,areactiveinrubbertradeandtradingwitholefins.

Thefullyconsolidatedoperatingcompaniesclosedtheyearpositivelyoverall,butfellwellshortofthebudget.Intherubbergroup,asolidlatexdivisionwasunabletocompensatefortheweakerresultfromthedryrubbersegment.Thepending,notyetrealizedtransactionsimprovedsubstantially,whichwasencouraginggiventhedifficultmarketconditions.

Theolefinsdivisiondevelopedsolidly,butatalowlevelbecauseoftheeconomicconditions(oil,commodities),andpostedaprofitthatwasclearlybelowthebudgettarget.

Theannualprofitfromdiscontinuedoperationsisstatedseparatelyintheconsolidatedfinancialstatementsasat31December2014.

PerformanceIndicatorsFinancialperformanceindicators

Thelowerpre-taxprofitfromcontinuedoperationsresultedinadeclineintheReturnonEquitybeforetaxfrom11.2percentto9.2percentatloweraverageownfunds.Becausetheoperatingincome(netinterestincomebeforeprovisioning,netfeeandcommissionincome,thetradingprofit,theresultfromfinancialinvestments,andtheotheroperatingresult)fellmoresubstantiallyrelativetotheadministrativeexpenses,thecost-incomeratiorosefrom79.6percentin2013to81.1percentin2014.

Non-financialperformanceindicators

RiskManagementBecauseofitsspecializationintradingequitiesandequityderivatives,itisparticularlyimportantforRaiffeisenCentrobanktomaintainamodern,profes-sional,andactiveriskmanagementsystem.

RiskManagementisresponsibleforassessingthecurrentrisksituationinac-cordancewiththeBank’srisk-bearingcapacityandthecorrespondingrisklimits,andtherebyassiststheManagementBoardwiththemanagementoftheBank’soverallrisk.

Initsinterdepartmentalandintercompanyrole,RiskManagementisalsores-ponsiblefortherefinementoftheriskidentification,measurement,andma-nagementmethodsandformaintainingandupdatingtherelevantrules.

Inadditiontoongoingmeasuresforcompliancewithregulatoryrequire-ments,RiskManagementalsomadesubstantialprogressin2014intheas-sessmentandmeasurementofmarket,credit,andoperationalrisks.Oneex-ampleistheimplementationofthescenariomatrixmethodformeasuringnon-deltarisks.

Inoperationalterms,thedepartmentfocusedonautomatingdailyroutinestoreduceoperationalrisks,assessingcross-unitprocesses,andimprovingthequalityofthedatausedtovaluederivatives.

Pleasealsoseethedetailedriskreportinthenotes.

2014 2013

Returnonequitybeforetaxes(inpercent)fromcontinuedoperations 9.2 11.2

Cost-incomeratio(inpercent)fromcontinuedoperations 81.1 79.6

Earningspershareineurosfromcontinuedoperations 13.58 18.97

Earningspershareineurosfromdiscontinuedoperations 0.82 5.93

2014 2013

Averagenumberofemployees(fromcontinuedoperations) 211 215

Averagenumberofemployees(fromdiscontinuedoperations) 110 124

Stockexchangememberships 10 10

Numberofnewlyissuedwarrantsandcertificates 3,256 3,326

19

InternalControlSystemasRelevantfortheConsolidatedAccountingProcessRaiffeisenCentrobankanditsgoverningbodiesarecommittedtoensuringbalancedandcompletefinancialreporting.Afundamentalrequirementinthisiscompliancewithallrelevantlegalregulations.Inconnectionwiththeaccountingprocess,theManagementBoardisresponsiblefordesigningandinstallinganinternalcontrolandriskmanagementsystemthatmeetstherequirementsoftheCompany.Theobjectofthisinternalcontrolsystemistosupportthemanagementbymakingcertainthateffectiveinternalcont-rolsareappliedtotheaccountingprocessandthatthesecontrolsareen-hancedwheneverappropriate.Thecontrolsystemisdesignedtoassurecompliancewithguidelinesandregulations,aswellastocreateoptimalconditionsforspecificcontrolmeasures.

Formanyyears,RaiffeisenCentrobankhasemployedaninternalcontrolsystemwithaframeworkofdirectivesandworkinginstructionsforstrategi-callyimportantissues.AspartofRZBGroup,RaiffeisenCentrobankGroupisalsosubjecttoitsparentgroup’sinstructionsandregulations.Auditsareconductedatanindividualcompanylevelandagroupleveltoensurecompliancewiththeserules.

Theconsolidatedfinancialstatementsarepreparedonthebasisoftheper-tinentAustrianlaws,abovealltheAustrianBankingAct(BWG)inconnec-tionwithEURegulationno575/2013(CapitalRequirementsRegulation,“CRR“)andtheUniformCommercialCode(UGB),whichgovernsthepreparationofconsolidatedannualfinancialstatementsforcreditinstitu-tions.TheaccountingstandardsappliedfortheconsolidatedfinancialstatementsaretheInternationalFinancialReportingStandards(IFRS)asadoptedbytheEU.

BecauseRaiffeisenCentrobankisamemberofRZBGroup,thetechnical(quantitative)preparationofitsconsolidatedfinancialstatementshasbeendelegatedtoRaiffeisenBankInternationalAGandishandledbyitsGroupFinancialReportingdepartment.Thequalitativeelementsarepreparedin-ternallybytheControllingandRegulatoryReportingdepartment.

Theconsolidatedfinancialstatementsarepreparedusingstandardizedformsforallcompaniesinthegroup.TherecognitionandmeasurementstandardsaredefinedintheGroupAccountsManualofRZBGroup,andarebindingforthecompilationoftheconsolidatedfinancialdata.Chan-gesintheinstructionsandstandardsarecommunicatedtotheaffectedunitsinspeciallyconvenedInternetconferences.

ThepreparationoftheindividualfinancialstatementsinaccordancewiththeGrouprequirementsishandledseparatelybyeachoftheGroupunits.Thestaffandmanagerswhoaretaskedwithpreparingtheaccountswithintheindividualgroupunitsareresponsibleforensuringthecompletedepic-tionandcorrectmeasurementofalltransactions.Thelocalmanagementisresponsibleineachcaseforensuringthattherequiredinternalcontrolmeasures,suchastheseparationofcertainfunctionsandthedual-controlprinciple,areimplementedcorrectly.ThefinancialdataforthereportingperiodaresubmittedtotheGroupFinancialReportingdepartmentatRaiff-eisenBankInternationalAGbywayofdirectentryintotheCognosCont-rollerconsolidationsystem.Thissystemisprotectedbyarestrictivesystemofuserpermissions.

ThefinancialdatasubmittedbytheGroupunitsofRaiffeisenCentrobankarethencheckedbyRaiffeisenCentrobank’sControllingandRegulatoryReportingdepartmentforplausibility.Followingthis,thefurtherconsolidati-onsteps,includingcapitalconsolidation,expenseandincomeconsolidati-on,anddebtconsolidationarecompletedintheCognosControllercon-solidationsystem.Then,anyintragroupprofits,whichgenerallyonlyarisefromtransactionsbetweenthecommoditytradingsubsidiaries,areelimina-tedthroughintragrouppostings.Thefinalconsolidationstepistheprepara-tionofthenotesaccordingtotheIFRS,BWG,andUGBrequirements,andiscompletedbytheControllingandRegulatoryReportingdepartmentatRaiffeisenCentrobank.Aconsolidatedmanagementreportcontainingaverbalaccountofthecourseofbusinessduringtheperiodinaccordancewiththelegalrequirementsisalsoprepared.

TheManagementBoardevaluatesandmonitorsmaterialrisksinconnec-tionwiththeconsolidatedaccountingprocess.Inthis,thefocusisplacedontherisksthataretypicallyfoundtobematerial.Theannualevaluationoftheinternalcontrolmeasuresappliedbyeachoftheresponsibleunitsisbasedonarisk-orientedapproach.Theriskoffaultyfinancialreportingisassessedonthebasisofanumberofdifferentcriteria.Forexample,com-plexrecognitionprinciplescanincreasetheriskoferrors.Differentprincip-lesforthemeasurementofassetsandcomplexorchangingbusinesscon-ditionscanalsocausesubstantialerrorsinthefinancialreporting.

Estimatesmustregularlybemadeduringthepreparationofthefinancialstatements.Inallofthesecases,thereisaninherentriskthattheactualde-velopmentsmaydeviatefromtheseestimates.Thisespeciallyappliestotheparametersinvaluationmodelsthatareusedtodeterminethefairvaluesoffinancialinstrumentsforwhichthereisnocurrentpricequotationaswellastosocialcapital,theoutcomeoflegaldisputes,thecollectibilityofclaims,andtheimpairmentofequityholdingsandsupplies.Insomecases,externalexpertsareinvolvedorpubliclyavailableinformationsourcesusedtominimizetheriskofincorrectestimates.

InadditiontotheManagementBoard,thegeneralcontrolframeworkalsoincludeshighermanagement(thedepartmentheads).Allcontrolmeasuresareappliedtothedailybusinessprocessestoensurethatpotentialerrorsordeviationsinthefinancialreportingarepreventedordiscoveredandcorrected.Thecontrolmeasuresthatareappliedatregularintervalsrangefromthereviewoftheperiodicresultsbythemanagementtothespecificreconciliationandcoordinationofaccountsandtheanalysisandfurtheroptimizationofaccountingprocesses.TheInternalAuditdepartmentisalsoinvolvedinthemonitoringprocess.ItsactivitiesarebasedontheAustrianFinancialMarketAuthority’sminimumstandardsforinternalauditingandinternationalbestpractices.TheInternalAuditdepartmentreportsdirectlytotheManagementBoard.RZBGroup’sgroupaccountingdepartmentalsoindependentlyverifiescompliancewiththeinternalregulationsonaregularbasis.TheconsolidatedfinancialstatementsincludingthemanagementreportarereviewedanddiscussedbytheAuditCommitteeoftheSupervisoryBoardandthensubmittedtotheSupervisoryBoardforapproval.TheconsolidatedfinancialstatementsarepublishedontheCompany’swebsiteaspartoftheannualreportaswellasinAmtsblattzurWienerZeitungandaresubmittedtothecommercialcourtwithwhichtheCompanyisregistered.Duringthefinancialyear,interimconsolidatedreportsarepreparedonthebasisofIAS34inaccordancewiththeStockExchangeAct.ConsolidatedfinancialstatementsthataretobepublishedaresubjectedtoafinalreviewbymanagerialstaffandtheManagementBoardbeforetheyaresubmittedtotheSupervisoryBoard.Analysesarealsopreparedforthemanagementinconnectionwiththeconsolidatedfinancialstatements.

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

20

HumanResourcesFollowingthere-alignmentofRaiffeisenCentrobankthenumberofemplo-yeeswasadjustedaccordingly.Asat31December2014thestaffatRaiff-eisenCentrobankfromcontinuedoperationscameto204persons(31December2013:217),whereasthenumberofemployeesfromdiscontinu-edoperationsamountedto103asat31December2014(31December2013:122).

Outlook2015ThesmolderingconflictbetweenRussiaandUkraineandtheexpansionofassetpurchasesbytheECBwillremainkeydrivingfactorsforthedevelop-mentoftheEurozoneeconomy.IntheUSA,therobustdevelopmentofthelabormarketshouldspurtheFedtobeginhikingitskeyinterestratein2015.Thiswilllikelyresultinalongerperiodofdiametricalmonetarypoli-ciesintheUSAandEurozone.Thiswillalsohaveanimpactonthecapitalmarkets.WhileUSyieldshavesomeupsidepotential,thepurchasesoftheECBcouldcausegovernmentbondyieldstofallfurther.Evenwithanincre-aseintheriskofsetbacks,equityinvestmentswillenjoyhigherdemandbe-causeofalackofalternatives.

Mostexchangesshouldseeclearlypositivedevelopmentin2015,whichmakesRaiffeisenCentrobankoptimisticaboutitscorebusinessareasofequitytradingandsalesandcertificates.Marketconditionswillremainchallengingbecauseofplannedregulatorychanges,butbusinessintheseareasisexpectedtodeveloppositivelyingeneral.TherestructuringofRaiffeisenCentrobankthatwasannouncedattheendof2014willalsohaveakeyimpactduringthecurrentfinancialyear.Thegoalwillbetodis-poseofthetraditionalprivatebankingactivitiesandthecommoditysubsi-diariesinthefirsthalfof2015.WorkisalsounderwayontheintegrationoftheMergers&AcquisitionsandEquityCapitalMarketssegmentsintotheInvestmentBankingdivisionoftheGroupparentRBI.Thelattermeasu-reisaimedatincreasingsynergiesandfurtherimprovingtheserviceprovi-dedtocustomerswithintheGroup.

Furthertothere-alignmentofRaiffeisenCentrobankandtheimplementati-onoftherelatedmeasures,theresultofbusinessyear2015isexpectedtobeslightlylowerthantheresultgeneratedin2014.

EventsaftertheBalanceSheetDateInthecourseofimplementinganexitstrategyassetoutbyRaiffeisenBankInternationalregardingtheCentrotradesubsidiaries,asharepurchaseag-reementwassignedinJanuary2015tosellthefourrubbertradingcompa-nies.Theclosingisexpectedformid-2015.

ResearchandDevelopmentRaiffeisenCentrobankengagesinnoresearchanddevelopmentactivities.

21

StatementofLegalRepresentativespursuantto§82StockExchangeActWeconfirmtothebestofourknowledgethattheconsolidatedfinancialstatementsgiveatrueandfairviewoftheassets,liabilities,financialpositi-on,andprofitorlossoftheGroupasrequiredbytheapplicableaccoun-tingstandardsandthatthegroupmanagementreportgivesatrueandfairviewofthedevelopmentandperformanceofthebusinessandthepositionoftheGroup,togetherwithadescriptionoftheprincipalrisksanduncer-taintiestheGroupfaces.

Weconfirmtothebestofourknowledgethattheannualfinancialstatementsgiveatrueandfairviewoftheassets,liabilities,financialposition,andprofitorlossoftheCompanyasrequiredbytheapplicableaccountingstandardsandthatthemanagementreportgivesatrueandfairviewofthedevelopmentandperformanceofthebusinessandthepositionoftheGroup,togetherwithadescriptionoftheprincipalrisksanduncertaintiestheGroupfaces.

Vienna,April15,2015TheManagementBoard

SupervisoryBoardReportTheannualfinancialstatementsfor2014thatwereauditedandapprovedwithoutqualificationbytheelectedfinancialauditor–KPMGAustriaGmbH,Wirtschaftsprüfungs-undSteuerberatungsgesellschaft,Porzellan-gasse51,A-1090Vienna–werepresentedtothe42ndordinaryAnnualGeneralMeetingon29April2015,andacknowledged.

KPMGAustriaGmbH,Wirtschaftsprüfungs-undSteuerberatungsgesellschaftauditedtheconsolidatedannualfinancialstatementsforthe2014financialyearinApril2015andawardeditsunqualifiedauditopinion.TheSupervi-soryBoardscrutinizedandapprovedtheconsolidatedannualfinancialstatementsforthe2014financialyearthatwereauditedbyKPMGAustriaGmbH,Wirtschaftsprüfungs-undSteuerberatungsgesellschaft.

Vienna,April2015

WilhelmCeledaChiefExecutiveOfficer

MarkusKirchmairMemberoftheManagementBoard

KlemensBreuerChairmanoftheSupervisoryBoard

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

22

ConsolidatedFinancialStatementsofRaiffeisenCentrobankAGasat31December2014inaccordancewithInternationalFinancialReportingStandards(IFRS)

Throughoutthisreport,RaiffeisenCentrobankGroupisusedtorefertotheRaiffeisenCentrobankGroup.RaiffeisenCentrobankisusedwheneverstatementsrefersolelytoRaiffeisenCentrobankAG,theparentcompany.

Theadditionofroundednumbersusingautomatedsystems,aswasdoneforthisreport,mayresultinminordifferencesinamounts.Thechangesindicatedinpercentrefertotheactualamountsandnottheroundedamountsshowninthisreport.

23

Statementofcomprehensiveincome

in€thousand Notes 1/1/-31/12/2014 1/1-31/12/2013 Change

Interestincome 5,068 4,508 12.2%

Interestexpenses (1,261) (1,193) 5.1%

Net interest income (2) 3,807 3,315 14.8%

Netallocationtoprovisioningforimpairmentlosses (3) 18 16 11.9%

Net interest income after provisioning 3,825 3,331 14.8%

Feeandcommissionincome 16,284 15,335 6.2%

Feeandcommissionexpenses (16,677) (14,336) 16.3%

Net fee and commission income (4) (393) 999 >100%

Tradingprofit (5) 44,183 46,226 (4.4%)

Valuationresultfromderivativefinancialinstruments (6) 0 0 0.0%

Netincomefromfinancialinvestments (7) (1,490) (83) >100%

Generaladministrativeexpenses (8) (36,942) (41,484) (10.9%)

Otheroperatingresult (9) (555) 1,689 >100%

Netincomefromdisposalofgroupassets 0 (16) 100%

Profitbeforetax 8,628 10,662 (19.1%)

Incometaxes [10] (275) (2,129) (87.1%)

Profit after tax from continued operations 8,354 8,532 (2.1%)

Profit after tax from discontinued operations [11] 72 2,723 (97.3%)

Profitaftertax 8,426 11,255 (25.1%)

Shareofprofitduetonon-controllinginterests 468 1,166 (59.9%)

Group net profit 8,894 12,422 (28.4%)

Incomestatement

Basedonastrategicdecision,there-alignmentofRaiffeisenCentrobankwasimplemented.ThecompetentbodiesdecidedtofocustheactivitiesofRaiffeisenCentrobankonthecoreareasofbusinessequitytradingandsalesandstructuredproducts.ThebusinesssegmentsEquityCapitalMarkets(ECM),M&Aincludingthesubsidiariesandthecommoditytradingsubsidiarieswereclassfiedasassetsheldforsaleasat31December2014andareshownintheincomestatementasdiscontinuedoperations.

Assetsandliabilitiesaswellasincomeandexpenses(includingpreviousyeardata)relatingtothesebusinesssegmentsaredepictedseparatelyinthebalancesheet,asassetsandliabilitiesheldforsaleaswellasprofitaftertaxfromdiscontinuedoperations.Thuscashflowstatementandnoteswereadjusted. M

anag

emen

tRep

ort

Not

esto

the

Con

solid

ated

Fin

anci

alS

tate

men

ts

Con

solid

ated

Fin

anci

alS

tate

men

ts

Gro

upM

anag

emen

tRep

ort

Com

pany

Indi

vidua

lFin

anci

alS

tate

men

ts

Con

tact

san

dPu

blish

er's

Det

ails

24

Total Group equity Non-controlling interests in€€thousand 1/1-31/12/2014 1/1-31/12/2013 1/1-31/12/2014 1/1-31/12/2013 1/1-31/12/2014 1/1-31/12/2013

Profit after tax from continued operations 8,354 8,532 8,354 8,532 0 0

Profit after tax from discontinued operations 72 2,723 540 3,889 (468) (1,166)

Profit after tax 8,426 11,255 8,894 12,421 (468) (1,166)

Items which are not reclassified to profit and loss (537) 334 (537) 334 0 0

Remeasurementsofdefinedbenefitplans (715) 445 (715) 445 0 0

Deferredtaxesonitemswhicharenot reclassifiedtoprofitandloss 179 (111) 179 (111) 0 0

Items that may be reclassified subsequently to profit or loss 1,711 (743) 1,417 (654) 294 (89)

Exchangedifferences 1,711 (743) 1,417 (654) 294 (89)

hereofunrealizednetgains(losses)oftheperiod 1,711 (743) 1,417 (654) 294 (89)

Other comprehensive income 1,174 (409) 880 (320) 294 (89)

Total comprehensive income 9,600 10,846 9,774 12,101 (174) (1,255)

in€€thousand 2014 2013 Veränderung

Earningspersharefromcontinuedoperations 12.75 13.03 (0.28)

Earningspersharefromdiscontinuedoperations 0.82 5.93 (5.11)

Therewerenoconversionoroptionrightsoutstanding;accordingly,therewasnodilutionofearningspershare.

in€€thousand Remeasurements reserve Exchange differences Deferred taxes

Balanceasat1/1/2013 (541) (2,867) 140

Netchangeduringthereportingyear 445 (654) (111)

Balanceasat31/12/2013 (96) (3,521) 29

Netchangeduringthereportingyear (715) 1,417 179

Balance as at 31/12/2014 (811) (2,104) 208

Retainedearnings

Thefollowingcomponentsofretainedearningsdevelopedasfollows:

Earningspershare

Other comprehensive incomeExchangedifferencesderivedespeciallyfromchangesinEuro,USdollarandRussianrouble.

Othercomprehensiveincomeandtotalcomprehensiveincome

25

Balancesheet

Assets Notes 31/12/2014 31/12/2013 Change in€€thousand

Cashreserve [14,34] 2,898 4.337 (33.2%)

Loansandadvancestocreditinstitutions [15,34,49] 377,361 269,111 40.2%

Loansandadvancestocustomers [16,34,49] 83,697 98,925 (15.4%)

Impairmentlossesonloansandadvances [17,34] (75) (93) (19.6%)

Tradingassets [18,34] 2,137,495 2,033,716 5.1%

Derivativefinancialinstruments [19,34] 186 42 >100.0%

Securitiesandfinancialinvestments [20,34] 46,847 14,923 >100.0%

Intangiblefixedassets [21,23] 115 199 (42.2%)

Tangiblefixedassets [22,23] 9,840 9,795 0.5%

Assetsheldforsale(IFRS5) [25] 64,729 73,782 (12.3%)

Otherassets [24] 7,583 5,839 29.9%

Total assets 2,730,676 2,510,575 8.8%

Equity and liabilities Notes 31/12/2014 31/12/2013 Change in€€thousand

Liabilitiestocreditinstitutions [26,34,49] 71,354 106,672 (33.1%)

Liabilitiestocustomers [27,34,49] 221,241 117,237 88.7%

Provisions [28,34] 14,596 17,059 (14.4%)

Tradingliabilities [29,34] 2,283,134 2,119,104 7.7%

Derivativefinancialinstruments [30] 398 292 36.4%

Liabilitiesheldforsale(IFRS5) [32] 30,862 38,548 (19.9%)

Otherliabilities [31,34] 6,872 5,403 27.2%

Equity [33] 102,219 106,258 (3.8%)

Consolidatedequity 93,831 94,166 (0.4%)

Groupnetprofit 8,894 12,422 (28.4%)

Non-controllinginterests (506) (329) 54.0%

Total equity and liabilities 2,730,676 2,510,575 8.8%

Basedonastrategicdecision,there-alignmentofRaiffeisenCentrobankwasimplemented.ThecompetentbodiesdecidedtofocustheactivitiesofRaiffeisenCentrobankonthecoreareasofbusinessequitytradingandsalesandstructuredproducts.ThebusinesssegmentsEquityCapitalMarkets(ECM),M&Aincludingthesubsidiariesandthecommoditytradingsubsidiarieswereclassfiedasassetsheldforsale.

Assetsandliabilitiesrelatingtothesebusinesssegmentsaredepictedseparatelyinthebalancesheetandinthenotes.Followingtheclassificationasdiscontinuedoperations,previousyeardatawerereclassifiedpursuanttoIFRS5.

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

26

Statementofchangesinequity in€€thousand Subscribed Capital Retained Group Non- Total capital reserves earnings net profit controlling for the interests period

Equity as at 1/1/2013 47,599 6,651 41,595 12,170 846 108,862

Capitalpaid-in 0 0 0 0 0 0

Transferredtoretainedearnings 0 0 (1,585) 1,585 0 0

Dividendpayments 0 0 0 (13,755) 0 (13,755)

Comprehensiveincome 0 0 (320) 12,422 (1,255) 10,846

OtherChanges 0 0 225 0 80 305

Equity as at 31/12/2013 47,599 6,651 39,915 12,422 (329) 106,258

Equity as at 1/1/2014 47,599 6,651 39,915 12,422 (329) 106,258

Capitalpaid-in 0 0 0 0 0 0

Transferredtoretainedearnings 0 0 (1,333) 1,333 0 0

Dividendpayments 0 0 0 (13,755) 0 (13,755)

Comprehensiveincome 0 0 880 8,894 (174) 9,600

Otherchanges 0 0 119 0 (3) 116

Equity as at 31/12/2014 47,599 6,651 39,581 8,894 (506) 102,219

Otherchangesinequityaretheresultofexchangedifferencesbetweentheincomestatementandthebalancesheet,andareattributabletochangesintheshareholdinginGroupunits.Detailsonotherchangesareprovidedinthenotesunderitem(33)“Equity”.

27

Cashflowstatement in€€thousand 2014 2013

Group net profit 8,426 11,255

Non-cashpositionsinprofitandtransitiontonetcashfromoperatingactivities:

Write-downs,write-upsoftangiblefixedassetsandfinancialinvestments 1,725 1,884

Netprovisionsforliabilitiesandchargesandimpairmentlosses 624 8,084

Gains/lossesfromdisposalsoftangiblefixedassetsandfinancialinvestments 846 (1,110)

Otheradjustments(net) (35,703) 108,153

Subtotal (24,082) 128,266

Changeinassetsandliabilitiesarisingfromoperatingactivitiesaftercorrectionsfornon-cashitems:

Loansandadvancestocreditinstitutionsandcustomers (91,335) (58,559)

Tradingassets/tradingliabilities(net) 91,533 4,672

Otherassets/otherliabilities(net) (31,946) 16,203

Liabilitiestocreditinstitutionsandcustomers 68,060 (62,499)

Cash flow from operating activities 12,230 28,083

Proceedsfromthesaleof:

Financialinvestmentsandequityparticipations 100 4,051

Tangibleandintangiblefixedassets 3 2

Paymentsfortheacquisitionof:

Tangibleandintangiblefixedassets (19) (1,031)

Cash flow from investing activities 84 3,022

Kapitaleinzahlungen 0 0

Inflows/outflowsofsubordinatedcapital 0 (18,516)

Dividendspaid (13,755) (13,755)

Cash flow from financing activities (13,755) (32,271)

in€€thousand 2014 2013

Cash and cash equivalents at the end of the previous period 4,375 5,541

Netcashfromoperatingactivities 12,230 28,083

Netcashfrominvestingactivities 84 3,022

Netcashfromfinancingactivities (13,755) (32,271)

Cash and cash equivalents at the end of the period 2,934 4,375

Cashandcashequivalentsfromdiscontinuedoperations (36) (38)

Cash and cash equivalents at the end of the period from continued operations 2,898 4,337

NoseparatedepictionofthecashflowpursuanttoIFRS5fromdiscontinuedoperationspursuanttoactivitiesisprovidedforreasonsofmateriality.

Cash flows for taxes, interest and dividends 2014 2013

Interestreceived 4,573 4,194

Dividendsreceived 182 1,082

Interestpaid (1,145) (1,053)

Incometaxespaid (1,045) (1,993)

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

28

Thecashflowstatementshowsthestructureandchangesincashandcashequivalentsduringthefinancialyearandisbrokendownintothreesec-tions:operatingactivities,investingactivitiesandfinancingactivities.

Netcashfromoperatingactivitiescomprisesthecashflowsarisingfromloansandadvancestocreditinstitutionsandcustomersaswellasthecashflowsarisingfromliabilitiestocreditinstitutions.Thisitemalsoincludesin-flowsandoutflowsoftradingassetsandtradingliabilities,derivativefinan-cialinstruments,otherassetsandotherliabilities.Theinterest,dividendandtaxpaymentsfromoperatingactivitiesareshownseparately.

Netcashfrominvestingactivitiesshowstheinflowsandoutflowsfromfi-nancialinvestmentsaswellastangibleandintangiblefixedassets.

Netcashflowfromfinancingactivitiescomprisestheinflowstoandout-flowsofequityandsubordinatedcapital,whicharerelatedtodividendpayments

Cashandcashequivalentscomprisethecashreserverecognizedinthebalancesheetwhichconsistsofcashinhandaswellasdepositswithcen-tralbanksthatarepayableondemand.Loansandadvancestocreditinsti-tutionsthatarepayableondemandarenotincludedunderthissection,butundercashflowfromoperatingactivities.

SegmentreportingSegmentsofRaiffeisenCentrobank

Theidentificationoftheindividualsegmentsisbasedonthemanagementapproach,i.e.reportingfollowsthesamesegmentationusedbymanage-menttomakedecisions.Theinternalmanagementincomestatementpursu-anttoAustrianBankingActandAustrianCommercialCodeusedbytheManagementBoardandtheSupervisoryBoardofRaiffeisenCentrobanktoassessperformanceandallocateresourcesisbasedonthecompany’sfunctionalorganization.Itisstructuredasamulti-stagecontributionmarginstatement,withincomeandexpensesallocatedaccordingtothecausationprinciple.Incomeitemsincludenetinterestincome,netfeeandcommissionincome,tradingprofitandotheroperatingresult.Generaladministrativeexpensescomprisebothdirectandindirectcosts.Directcosts(staffandotheradministrativeexpenses)areincurredbythebusinesssegments,whileindirectcostsareallocatedtothecash-generatingunitsaccordingtoag-reedratios.Thesameappliestotheemployeesinthesupportandcentraladministrationdepartmentsaswellasthemanagementadministrativede-partments.Theresultsoftheoperatingsegmentsarepresenteddowntoprofitbeforetax.

ProvisioningforimpairmentlossesintheCreditDepartmentincludethere-cognitionandreleaseofimpairmentlossesforcreditrisksanddirectwrite-downsaswellasincomereceivedfromwritten-downclaims.Thesecostsarecarriedbythebankasawholeandarenotmaterial;accordingly,theyarenotallocatedtotheindividualoperatingsegments,butshowninthetransitioncolumn.Thetransitioncolumnalsoincludestheeliminationofinte-rimprofitsandconsolidationentriesbetweentheindividualsegmentsaswellastransitionfromAustrianCommercialCode/AustrianBankingActtoIFRSstandards.

RaiffeisenCentrobankhasdefinedthefollowingoperatingsegments(CashGeneratingUnits):•SecuritiesTrading&SalesandTreasury•OtherDepartments

Thesegment“SecuritiesTrading&SalesandTreasury”comprisestheissueofsecurities(certificates,structuredproductsandwarrants)aswellassecuritiestradingbycustomers(brokeragetransactions).Italsoincludesmarketmaking,proprietarysecuritiestrading,assetandliabilitymanage-ment(matchingofmaturities),liquiditymanagement,moneymarketandinterestratetransactionswithon-balancesheet(e.g.moneymarketdeposits)andoff-balancesheetproducts(e.g.futuresandoptions).Inaccordancewiththerelatedsettlementcosts,50percentoftheincomerecordedbyRaiffeisenCentrobankfrominitialandsecondarypublicoffe-rings(IPO/SPO)isalsoallocatedtothissegment.Theremaining50percentaredepictedinttheresultfromdiscontinuedoperations.

Thesegment“OtherDepartments”includesthe“PrivateBanking”and“Countertrade”departmentsofRaiffeisenCentrobankandfromthebusi-nessyear2014ontheformersegment“CreditDepartment”forreasonsofmaterialityaswellasbusinesstransactionsbyRaiffeisenCentrobankthatcannotbeallocatedtooneoftheothersegments.

Thefollowingbusinesssegmentsarenolongershownasseparateseg-mentsfromthe2014financialyearon,astheyhavebeenclassifiedas“discontinuedoperations”:

Thesegment“EquityCapitalMarkets”whichcomprisedconsultingservi-cesprovidedbythecompanybefore,duringandaftercapitalmarkettran-sactions(IPO/SPO,stockbuybackprograms,delistings,relistingsandothersimilarmeasures)aswellasadvisingforthebuyer(s)orseller(s)inconnectionwithtakeoversandmergers(M&Atransactions)andprivatiza-tions.

Thesegment“CommodityTrading”,whichincludedtheresultsofthefullyconsolidatedcommoditytradingsubsidiariesoftheRaiffeisenCentrobankGroupengagedinrubberandolefintrading,wasexcludedfromthesegment“OtherDepartments”

Assessmentofsegmentresults

Thepresentationofsegmentperformanceisbasedontwosteeringbenchmarks:

Thereturn on equity before tax istheratiothatstatestheprofitbeforetaxtoaverageequityemployedandexpressesthereturnoncapitalemployed.

Thecost/income ratiorepresentsthecostefficiencyoftheindividualoperatingsegments.Thisindicatoriscalculatedasthequotientofgeneraladministrativeexpensesandtotalofnetinterestincome,netfeeandcom-missionincome,tradingprofitandotheroperatingresult(excludingresultsfromthevaluationofhedgeaccountingandotherderivativefinancialinstruments).

29

Netinterestincomeinthesegment“OtherDepartments”includesadividendpaymentrelatingtoacompanynotincludedintoconsolidationintheamountof€1.000million.

Forreasonsofcomparability,adjustmentsof“discontinuedoperations”weremadeinthe2013figures.

1.1.–31.12.2013 Wertpapier Kapital- Kredit- Sonst. Über- Gesamt Angabenin€€Tausend handel und markt- geschäft Bankab- leitung -sales und geschäft teilungen und Treasury Commodity Trading

Zinsüberschuss 1.257 45 2.381 -12 -402 3.268

Kreditrisikovorsorgen 0 0 0 16 16

ZinsüberschussnachKreditrisikovorsorgen 1.257 45 2.381 -12 -386 3.284

Provisionsüberschuss -634 14.813 93 1.004 402 15.678

Handelsergebnis 46.277 -77 0 -105 0 46.094

ErgebnisausderivativenFinanzinstrumenten 135 -135 0 0

ErgebnisausFinanzinvestitionen -83 1.003 0 0 0 920

Verwaltungsaufwendungen -31.438 -21.011 -1.601 -9.406 497 -62.960

SonstigesbetrieblichesErgebnis 2.000 59 9.183 -227 11.014

ErgebnisausEndkonsolidierungen 0 0 0 0 -16 -16

Jahresüberschuss, -fehlbetrag vor Steuern 17.514 - 5.169 737 663 269 14.014

Bemessungsgrundlage(Kredit-undMarktrisiko) 434.263 3.625 90.300 40.088 0 568.275

DurchschnittlicheAktiva 2.504.249 10.136 83.972 128.481 -99.109 2.627.729

DurchschnittlichePassiva(ohneEigenkapital) 2.442.249 3.746 3.823 171.508 -88.526 2.532.801

DurchschnittlicheMitarbeiterzahl 143 112 10 74 0 339

Cost/Income Ratio 64,4 % 132,6% 64,7 % 93,4 % - 81,8 %

1/1–31/12/2014 Securities Other Transition Total in€€thousand Trading & Departments Sales and Treasury

Netinterestincome 2,664 1,579 (436) 3,807

Provisioningforimpairmentlosses 0 0 18 18

Netinterestincomeafterprovisioning 2,664 1,579 (418) 3,825

Netfeeandcommissionincome (1,902) 1,510 (1) (393)

Tradingprofit 43,692 637 (146) 44,183

Valuationresultfromderivativefinancialinstruments 0 0 0 0

Netincomefromfinancialinvestments (1,490) 0 0 (1,490)

Generaladministrativeexpenses (33,048) (4,046) 151 (36,942)

Otheroperatingresult (2,035) 1,089 391 (555)

Netincomefromdisposalofgroupassets 0 0 0 0

Profit/loss before tax 7,881 769 (22) 8.628

Basisofassessment(creditandmarketrisk) 431,152 107,590 0 431,152

Averageassets 2,528,985 100,392 13,863 2,528,985

Averageliabilities 2,381,370 175,383 12,080 2,381,370

Averagenumberofstaff 177 26 0 177

Cost/incomeratio 80.7% 84.0% - 81.1%

Averageequity 73,621 15,323 1,583 90,526

Return on equity (ROE) before tax 10.7% 5.0% - 9.5%

1.1.–31.12.2013 Wertpapier Kapital- Kredit- Sonst. Über- Gesamt Angabenin€€Tausend handel und markt- geschäft Bankab- leitung -sales und geschäft teilungen und Treasury Commodity Trading

Zinsüberschuss 1.257 45 2.381 -12 -402 3.268

Kreditrisikovorsorgen 0 0 0 16 16

ZinsüberschussnachKreditrisikovorsorgen 1.257 45 2.381 -12 -386 3.284

Provisionsüberschuss -634 14.813 93 1.004 402 15.678

Handelsergebnis 46.277 -77 0 -105 0 46.094

ErgebnisausderivativenFinanzinstrumenten 135 -135 0 0

ErgebnisausFinanzinvestitionen -83 1.003 0 0 0 920

Verwaltungsaufwendungen -31.438 -21.011 -1.601 -9.406 497 -62.960

SonstigesbetrieblichesErgebnis 2.000 59 9.183 -227 11.014

ErgebnisausEndkonsolidierungen 0 0 0 0 -16 -16

Jahresüberschuss, -fehlbetrag vor Steuern 17.514 - 5.169 737 663 269 14.014

Bemessungsgrundlage(Kredit-undMarktrisiko) 434.263 3.625 90.300 40.088 0 568.275

DurchschnittlicheAktiva 2.504.249 10.136 83.972 128.481 -99.109 2.627.729

DurchschnittlichePassiva(ohneEigenkapital) 2.442.249 3.746 3.823 171.508 -88.526 2.532.801

DurchschnittlicheMitarbeiterzahl 143 112 10 74 0 339

Cost/Income Ratio 64,4 % 132,6% 64,7 % 93,4 % - 81,8 %

1/1–31/12/2013 Securities Other Transition Total in€thousand Trading & Departments Sales and Treasury

Netinterestincome 1,257 2,382 (324) 3,315

Provisioningforimpairmentlosses 0 0 16 16

Netinterestincomeafterprovisioning 1,257 2,382 (308) 3,331

Netfeeandcommissionincome (634) 1,635 (2) 999

Tradingprofit 46,277 (37) (13) 46,226

Valuationresultfromderivativefinancialinstruments 135 (135) 0 0

Netincomefromfinancialinvestments (83) 0 0 (83)

Generaladministrativeexpenses (36,551) (5,085) 152 (41,484)

Otheroperatingresult 923 514 252 1,689

Netincomefromdisposalofgroupassets 0 0 (16) (16)

Profit/loss before tax 11,324 (727) 65 10.662

Basisofassessment(creditandmarketrisk) 434,263 134,013 0 568,275

Averageassets 2,504,249 103,505 13,053 2,620,807

Averageliabilities 2,403,802 133,885 18,026 2,555,713

Averagenumberofstaff 183 33 0 216

Cost/incomeratio 76.6% 148.9% - 79.6%

Averageequity 69,588 19,394 1,408 90,389

Return on equity (ROE) before tax 16.3% - 4.6% 11.8%

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

30

NotesThecompany

RaiffeisenCentrobankAG,Vienna,hasbeenregisteredinthecompanyregisterattheViennaCommercialCourtunderthenumber117507fsince29March1974.TheregisteredofficesofthecompanyarelocatedinTe-getthoffstrasse1,1010Vienna,Austria.

RaiffeisenCentrobankisasubsidiaryofRaiffeisenBankInternationalAG(RBI),whichholds654,999ofthe655,000zeroparvaluesharesofsharecapitalthroughRBIKI-BeteiligungsGmbHanditssubsidiaryRBIIBBeteiligungsGmbH,Vienna.TheremainingzeroparvalueshareisheldbyLexxusServicesHoldingGmbH,Vienna.

RaiffeisenCentrobank,Vienna,isinaGrouprelationshipwithRaffeisen-Landesbanken-HoldingGmbH,Vienna(theparentcompanyoftheGroup),andbelongstothelatter’srangeoffully-consolidatedcompanies.Thisfinancialholdingcompany,throughRaiffeisenZentralbankÖsterreichAktiengesellschaft,holdsamajoritystakeinRaiffeisenBankInternationalAG.TheRaiffeisenCentrobankGroupisincludedintheconsolidatedfi-nancialstatementsofRaiffeisenZentralbankÖsterreichAktiengesellschaftandofRaiffeisenBankInternationalAG.

RaiffeisenCentrobankisaleadingAustrianinvestmentbank,whichprovi-destheentirespectrumofservicesandproductsfocusingonshares,deri-vatives,andequitycapitalmarkettransactionsincludingandexcludingthestockexchange,aswellasinrelationtothemergersandacquisitions(M&A)business.TheM&Abusinessisalsoconductedthroughownsubsi-diaries,mostofwhichareincludedinthefinancialstatementsthroughfullconsolidation.TheothercompaniescomprisingtheRaiffeisenCentrobankGroupareactiveinthefieldsofinternationalcommoditytrading,focusingonrubberandchemicals(olefins).Basedonastrategicdecision,there-alignmentofRaiffeisenCentrobankwasimplemented.Thecompetentbo-diesdecidedtofocustheactivitiesofRaiffeisenCentrobankonthecoreareasofbusinessequitytradingandsalesandstructuredproducts.

ThebusinesssegmentsEquityCapitalMarkets,Mergers&Acquisitionsincludingthesubsidiariesandthecommoditytradingsubsidiarieswereclassfiedasassetsheldforsaleasat31December2014andareshownintheincomestatementasdiscontinuedoperations.Assetsandliabilitiesaswellasincomeandexpensesrelatingtothesebusinesssegmentsaredepictedseparatelyinthebalancesheetandinthenotes.Followingtheclassificationasdiscontinuedoperations,previousyeardatawerereclassi-fiedintheincomestatementandcashflowstatementpursuanttoIFRS5.

TheconsolidatedfinancialstatementswereapprovedbytheManagementBoardon15April2015andsubsequentlysubmittedtotheSupervisoryBoardforexaminationandapproval.

Principlesunderlyingthepreparationoffinancialstatements

Principles underlying the consolidated fianancial statementsTheconsolidatedfinancialstatementsforthe2014financialyearandthecomparativeamountsforthe2013financialyearwerepreparedinac-cordancewiththeInternationalFinancialReportingStandards(IFRS)issuedbytheInternationalAccountingStandardsBoard(IASB)andtheinternatio-nalaccountingstandardsadoptedbytheEUonthebasisofIASRegulati-on(EC)1606/2002,includingtherelevantinterpretationsoftheInternati-onalFinancialReportingInterpretationsCommittee(IFRIC/SIC).Allstan-

dardspublishedbytheIASBtobeappliedtothefinancialstatements2014andadoptedbytheEUhavebeenappliedTheconsolidatedfinan-cialstatementswerepreparedinaccordancewith§245aoftheAustrianCommercialCodeinconnectionwith§59aoftheAustrianBankingActregardingexemptingconsolidatedfinancialstatementspursuanttointerna-tionalaccountingstandards.,IAS11,20,23,29,31,40and41aswellasIFRS2,4,6and11werenotappliedbecausetherewerenorelevantbusinesstransactionsintheGroup.

Theconsolidatedfinancialstatementsarebasedonthereportingpa-ckagessubmittedbyallfullyconsolidatedcompanies,whicharepreparedaccordingtoIFRSrulesanduniformGroupstandards.Theclosingdateforthefinancialstatementsofallfully-consolidatedcompaniesis31Decem-ber.Theamountsintheseconsolidatedfinancialstatementsarepresentedin€thousandandmaycontainrounding-offdifferences.

Theconsolidatedfinancialstatementswerepreparedonthebasisofthegoing-concernprinciple.Anassetisrecognizedwhenitisprobablethatthefutureeconomicbenefitswillflowtothecompany,andwhenitsacqui-sitionorproductioncostoranothervaluecanbereliablymeasured.Alia-bilityisrecognizedwhenitisprobablethatanoutflowofresourcesembo-dyingeconomicbenefitswillresultfromthesettlementoftheobligationandtheamountatwhichthesettlementwilltakeplacecanbemeasuredreliably.RevenueisrecognizediftheconditionsofIAS18aremetandifitisprobablethattheeconomicbenefitswillflowtoRaiffeisenCentrobankandtheamountofrevenuecanbemeasuredreliably.

Foreign currency translationTheconsolidatedfinancialstatementsofRaiffeisenCentrobankareprepa-redinEuro,whichisthefunctionalcurrencyofRaiffeisenCentrobankAGThefunctionalcurrencyisthecurrencyoftheprincipaleconomicenviron-mentinwhichthecompanyoperates.EachentitywithintheGroupdetermi-nesitsownfunctionalcurrencytakingallfactorslistedinIAS21intoac-count.

Thefully-consolidatedcompaniespreparedinforeigncurrenciesweretranslatedintoEurosemployingthemodifiedcurrentratemethodinac-cordancewithIAS21.Equitywastranslatedatitsrelevanthistoricalex-changerate,whileallotherassets,equityandliabilitiesandtheNotestothefinancialstatementsweretranslatedattheprevailingforeignexchangeratesasofthebalancesheetdate.Differencesarisingfromthetranslationofequity(historicalexchangerates)wereoffsetagainstretainedearningsandareshownin“Othercomprehensiveincome”.Incomestatementitemsweretranslatedattheaverageexchangeratefortheyear,whichwasdeterminedastheaverageoftheexchangeratesattheendofeachmonth.Differencesarisingbetweentheexchangerateasofthebalancesheetdateandtheaverageexchangerateappliedintheincomestatementwereoffsetagainstequity(retainedearnings)andnotrecognizedintheincomestatementandareshownasotherchangesinthestatementofchangesinequity.

Duetotheeconomicnatureoftheunderlyingbusinesstransactions,theUSdollarrepresentsthefunctionalcurrencyofCentrotradeChemicalsAG,CentrotradeMinerals&MetalsInc.andCentrotradeSingaporePteLtd.

31

Exchangeratein 2014 2013localcurrencyper€ Balance Average for Balance Average for sheet date the year sheet date the year

PolishZloty(PLN) 4.273 4.191 4.154 4.203

MalaysianRinggit(MYR) 4.247 4.348 4.522 4.208

RomanianLeu(RON) 4.483 4.441 4.471 4.417

RussianRouble(RUB) 72.337 51.424 45.325 42.444

TurkishLira(TRY) 2.832 2.899 2.961 2.551

USDollar(USD) 1.214 1.326 1.379 1.330

Thefollowingexchangerateswereusedforforeigncurrencytranslation:

Critical accounting judgments and key sources of estimation uncertainty

IfestimatesorassessmentsarenecessaryforaccountingandmeasuringunderIAS/IFRSrules,theyaremadeinaccordancewiththerespectivestandards.Theyarebasedonpastexperienceandotherfactorssuchasplanningandexpectationsorforecastsoffutureeventsthatappearlikelyfromthecurrentperspective.Theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.Alterationstoestimatesthataffectonlyoneperiodwillbetakenintoaccountonlyinthatperiod.Ifthefollowingre-portingperiodsarealsoaffected,thealterationswillbetakenintoconside-rationinthecurrentandfollowingperiods.Thecriticalaccountingjudg-mentsandkeysourcesofestimationuncertaintyareasfollows:

Risk provisions for loans and advancesAteachreportingdate,allfinancialassetsnotmeasuredatfairvaluethroughprofitorlossaresubjecttoanimpairmenttesttodeterminewhe-theranimpairmentlossistoberecognizedthroughprofitorloss.Inparti-cular,itisrequiredtodeterminewhetherthereisobjectiveevidenceofim-pairmentasaresultofalosseventoccurringafterinitialrecognitionandtoestimatetheamountandtimingoffuturecashflowswhendetermininganimpairmentloss.Riskprovisionsaredescribedindetailinnote(41)“’Riskreport”,inthesectiononcreditrisk.

Fair value of financial instruments Fairvalueisthepricereceivedforthesaleofanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasu-rementdate.Thisappliesregardlessofwhetherthepricecanbedirectlyobservedorhasbeenestimatedonthebasisofameasurementmethod.Indeterminingthefairvalueofanassetorliability,theGrouptakesintoaccountcertainfeaturesoftheassetorliability(e.g.conditionandlocationoftheassetorrestrictionsinthesaleanduseofanasset)ifmarketpartici-pantswouldalsotakeaccountofsuchfeaturesindeterminingthepricefortheacquisitionoftherespectiveassetorforthetransferoftheliabilityatthemeasurementdate.Wherethemarketforafinancialinstrumentisnotacti-ve,fairvalueisestablishedusingavaluationtechniqueorpricingmodel.Forvaluationmethodsandmodels,estimatesaregenerallyuseddepen-dingonthecomplexityoftheinstrumentandtheavailabilityofmarket-baseddata.Theinputstothesemodelsarederivedfromobservablemar-ketdatawherepossible.Undercertaincircumstances,valuationadjust-mentsarenecessaryinordertoaccountformodelrisk,liquidityriskorcre-ditrisk.Thevaluationmodelsaredescribedinthenotesinthesectiononfinancialinstruments–Recognitionandmeasurement.Inaddition,thefairvaluesoffinancialinstrumentsisshowninnote(39)“Fairvalueoffinancialinstruments”.

Deferred tax assetsDeferredtaxassetsarerecognizedonlytotheextentthatitisprobablethatsufficienttaxableprofitwillbeavailableagainstwhichthoseunusedtaxlosses,unusedtaxcreditsordeductibletemporarydifferencescanbeutilized.Thisassessmentrequiressignificantmanagementjudgmentsandassumptions.Deferredtaxesarenotreportedseparatelyintheincomestatementandbalancesheet.Detailsareprovidedinthestatementofcomprehensiveincomeandinnotes(10)”Incometaxes”,(24)“Otherassets”,and(28)“Provisions”.

Provisions for pensions and similar obligations Thecostofthedefinedbenefitpensionplanisdeterminedusinganactua-rialvaluation.Theactuarialvaluationinvolvesmakingassumptionsaboutdiscountrates,expectedratesofreturnonassets,futuresalaryincreases,mortalityratesandfuturepensionincreases.Theinterestrateusedtodis-counttheGroup’sdefinedbenefitobligationsisdeterminedonthebasisoftheyieldsobtainedinthemarketatthebalancesheetdatefortop-ratedfixed-incomecorporatebonds.Considerablediscretionhastobeexer-cisedinthisconnectioninsettingthecriteriafortheselectionofthecorpo-ratebondsrepresentingtheuniversefromwhichtheyieldcurveisderived.Themaincriteriafortheselectionofsuchcorporatebondsaretheissuan-cevolumesofthebonds,thequalityofthebondsandtheidentificationofoutliers,whicharenottakenintoaccount.Mercer’srecommendationisusedtodeterminetheinterestrate.AssumptionsandestimatesusedforthedefinedbenefitobligationcalculationsaredescribedinthesectionProvisi-onsforpensionsandsimilarobligationsfollowingtheterminationoftheemployment.Quantitativedatarelatingtolong-termprovisionsforstaffex-penesesareshowninitem(28)“Provisions”.

Impairment of non-financial assetsCertainnon-financialassets,includinggoodwill,aresubjecttoanannualimpairmentreview.Goodwillandotherintangibleassetsaretestedmorefrequentlyifeventsorchangesincircumstances,suchasanadversechangeinbusinessclimate,indicatethattheseassetsmaybeimpaired.Thedeterminationoftherecoverableamountrequiresjudgmentsandas-sumptionstobemadebymanagement.Thecarryingamountsofgoodwillwerereclassifiedtoitem(25)“Assetsheldforsale”pursuanttoIFRS5.

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

32

Notestotheincomestatement(1) Income statement according to measurement categoryThefollowingtablepresentstheincomestatementaccordingtomeasurementcategoriespursuanttothedefinitionscontainedinIAS39:

in€€thousand 2014 2013

Net gains (losses) on financial assets and liabilities held for trading 42,565 44,437

Financial assets and liabilities at fair value through profit and loss 130 104

Netinterestincome 929 167

Gains(losses)onfinancialassetsandliabilitiesatfairvaluethroughprofitandloss (800) (64)

Available-for-sale financial assets (691) 981

Netinterestincome 0 1,000

Impairmentlossesonavailableforsalefinancialassets (691) (19)

Loans and advances 4,157 3,357

Netinterestincome 4,138 3,340

Impairmentlossesonfinancialassetsnotmeasuredatfairvaluethroughprofitandloss 18 16

Financial liabilities at amortized cost (1,158) (1,018)

Interestexpenses (1,158) (1,018)

Derivatives (hedging) (103) (175)

Netinterestincome (103) (175)

Net revaluations from exchange differences 1,617 1,788

Other operating income/expenses (37,889) (38,813)

Profit before tax from continued operations 8,628 10,662

(2) Net interest income Netinterestincomeincludesinterestincomeandexpensesfromitemsofthebankingbusiness,dividendincome,andcommissionssimilartointerest.

in€€thousand 2014 2013

Total interest and interest-like income 5,068 4,508

Interest income 5,068 3,508

fromdepositswithcentralbanks 3 10

fromloansandadvancestocreditinstitutions 1,571 1,113

fromloansandadvancestocustomers 2,565 2,217

fromsecurities 929 167

Current interest-like income 0 1,000

fromsharesinaffiliatedcompanies 0 1,000

Total Interest and interest-like expenses (1,261) (1,193)

Interest expenses (1,261) (1,193)

forliabilitiestocreditinstitutions (1,051) (537)

forliabilitiestocustomers (107) (145)

forsubordinatedcapital 0 (336)

forderivativefinancialinstruments(non-trading)net (103) (175)

Net interest income 3,807 3,315

Theinterestmargininrelationtotherespectiveaveragesofthestatedbasedevelopedasfollows:

inpercent 2014 2013

Interestmargin(totalassets) 0.15 0.13

Interestmargin(riskassetsforcreditrisk) 1.95 1.69

33

(3) Provisioning for impairment lossesTheprovisionsforimpairmentlossestoon-balancesheetandoff-balancesheetitemsareasfollows:

Detailedinformationonprovisionsispresentedinnote(17)“Impairmentlossesonloansandadvances”.

in€€thousand 2014 2013

Individual loan loss provisions 18 16

Releaseofprovisionsforimpairmentlosses 18 16

Total 18 16

(4) Net fee and commission income

Feeandcommissionincometotaled€16,284thousandforthereportingyear(2013:€15,335thousand),whilefeeandcommissionexpensesamountedto€16,677thousand(2013:€14,336thousand).

Thedecreaseinnetfeeandcommissionincomeismainlyattributabletoincomefrominvestmentandpensionfundmanagementandtovolume-relatedhig-herexpensesinthesecuritiesbusiness.

(5) Trading profitThepositionnettradingincomeincludesinterestanddividendincome,refinancingcosts,commissionsandanychangesinfairvalueoftradingportfolios.

Inadditiontorealizedandunrealizedgainsfromthetradingportfolio,tradingprofitalsoreferstointerestincomefromdebtinstruments,dividendincomefromequityinstrumentsofthetradingportfolioandrefinancingcostsfortradingassets.

in€€thousand 2014 2013

Interest-basedtransactions 1,556 (12,124)

Currency-basedtransactions (2,751) (337)

Equity/index-basedtransactions 45,378 58,686

Total 44,183 46,226

in€€thousand 2014 2013

Paymenttransfers (17) (29)

Loanadministrationandguaranteebusiness 1 (160)

Securitiesbusiness (375) 1,213

Otherbankingservices (1) (26)

Total (393) 999

(6) Valuation result from derivative financial instruments

in€€thousand 2014 2013

Valuation result from derivative hedging instruments (IAS 39, fair value hedges) 0 0

Changesinthepresentvalueofderivativefinancialinstruments (1) (135)

Changesinthepresentvalueoftheunderlyingtransaction 1 135

Total 0 0

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

34

(7) Net income from financial investmentsNetincomefromfinancialinvestmentsincludesvaluationresultsandnetproceedsfromthesaleofsecuritiesatfairvaluethroughprofitandlossandfromequityparticipations.Thisincludessharesinaffiliatedcompaniesandotherinterests.

NetincomefromsecuritiesatfairvaluethroughprofitandlossresultsmainlyfromthevaluationofAustriangovernmentbondsheldtocomplywiththeliquiditycoverratiotowardsthesupervisingauthoritiesin2014.

in€€thousand 2014 2013

Net income from equity participations (691) (19)

Netvaluationsofequityparticipations (691) (19)

Net income from securities at fair value through profit and loss (800) (64)

Netvaluationsfromthesaleofsecurities (800) (64)

Total (1,490) (83)

(8) General administrative expensesGeneraladministrativeexpensesincludestaffexpenses,otheradministrativeexpenses,aswellasdepreciationontangibleandintangiblefixedassetsasfollows:

Legal,advisoryandconsultingexpensesincludeauditfeesforRaiffeisenCentrobankanditsGroupcompanies.Ofthistotal,thefeefortheauditoftheconsolidatedfinancialstatementstotaled€281thousand(2013:€290thousand)andthefeeforotherconsultingservicesamountedto€41thousand(2013:€40thousand).

Thedecreasein“Sundryadministrativeexpenses”isprimarilyattributabletolowerprovisonsforbonuspayments.

in€€thousand 2014 2013

Staff expenses (20,746) (23,345)

Wagesandsalaries (15,312) (16,661)

Socialsecuritycostsandstaff-relatedtaxes (3,689) (3,827)

Voluntarysocialexpenses (425) (459)

Expensesfordefinedcontributionpensionplans (571) (520)

Expensesfordefinedbenefitpensionplans (3) (16)

Expensesforotherpost-employmentbenefits (475) (952)

Expensesforotherlong-termemployeebenefits 0 (6)

Deferredbonuspayments (271) (905)

Other administrative expenses (14,665) (16,616)

Officespaceexpenses (1,096) (1,128)

ITcosts (1,713) (1,845)

Communicationexpenses (4,011) (3,361)

Legal,advisoryandconsultingexpenses (905) (1,338)

Advertising,PRandpromotionalexpenses (910) (1,079)

Officesupplies (177) (162)

Carexpenses (446) (346)

Securityexpenses (26) (31)

Travellingexpenses (215) (257)

Trainingexpensesforstaff (188) (178)

Sundryadministrativeexpenses (4,977) (6,890)

Depreciation on tangible and intangible fixed assets (1,531) (1,523)

Tangiblefixedassets (1,366) (1,274)

Intangiblefixedassets (165) (249)

Total (36,942) (41,484)

35

Expenses on severance payments and retirement benefits

in€thousand 2014 2013

MembersoftheManagementBoard (273) 607

Otheremployees 2,034 734

Total 1,761 1,341

ExpensesforseverancepaymentsformembersoftheManagementBoardintheamountof€ 16thousand(2013:€ 500thousand)werepaidout.

(9) Other operating result OtheroperatingresultincludessalesrevenuesandexpensesofRaiffeisenCentrobank’scommoditytradingsubsidiariesandfromothernon-bankingactivitiesaswellasincomeandexpensesfromthedisposaloftangibleandintangiblefixedassets.

in€thousand 2014 2013

Netresultarisingfromnon-bankingactivities (4) (86)

Salesrevenuesfromnon-bankingactivities 44 129

Expensesfromnon-bankingactivities (48) (215)

Netproceedsfromdisposaloftangibleandintangiblefixedassets 3 0

Othertaxes (2,060) (1,077)

thereofspecialbanklevy (2,060) (1,077)

Netresultfromtheallocationandreleaseofotherprovisions 0 418

Netresultfromtherepurchaseofsubordinatedcapital 0 2,000

Otheroperatingincome 1,956 1,413

Otheroperatingexpenses (449) (979)

Total (555) 1,689

Thedeclinein“Otheroperatingresult”isattributabletoachangeintheamountofthestabilityfeepursuanttothelawmodifyingtaxes(Abgabenände-rungsgesetz)2014.In2013theitemrecordedapositiveresultfurthertoincomefromtherepurchaseofasubordinatedbond.

(10) Income taxesIncometaxesarecomprisedofthefollowing:

Thefollowingtabledescribestherelationbetweengroupnetprofitandtaxes:

Theitem”Otherchanges”alsoincludestaxsavingsfromtheGrouptaxationschemeinAustriaintheamountof€ 324thousand(2013:€ 791thousand).

in€€thousand 2014 2013

Currentincometaxes (249) (2,095)

Austria (249) (2,095)

Deferredtaxes (25) (34)

Total (275) (2,129)

in€€thousand 2014 2013

Profit before tax 8,628 10,662

Theoreticalincometaxexpenseinthefinancialyearbasedonthedomesticincometaxrateof25percent (2,157) (2,665)

Effectofdivergentforeigntaxrates (14) (14)

Taxdeductionsduetotax-exemptincomefromequityparticipationsandotherincome 1,799 2,204

Taxincreasesduetonon-deductibleexpenses (225) (225)

Incomefromgroupchargepreviousyear 1,136 0

Otherchanges (814) (1,429)

Effective tax burden (275) (2,129)

Tax rate in per cent 9.85% 19.97%

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

36

(11) Profit after tax from discontinued operations

in€€thousand 2014 2013 Change

Interestincome 218 127 72.1%

Interestexpenses (264) (173) 52.1%

Net interest income (46) (47) (1.9%)

Netinterestincomeafterprovisioning (46) (47) (1.9%)

Feeandcommissionincome 12,509 19,416 (35.6%)

Feeandcommissionexpenses (2,429) (4,737) (48.7%)

Net fee and commission income 10,080 14,679 (31.3%)

Tradingprofit (1,357) (131) >100.0%

Valuationresultfromderivativefinancialinstruments (2,223) 1,003 >100.0%

Generaladministrativeexpenses (16,921) (21,476) (21.2%)

Otheroperatingresult 10,839 9,325 16.2%

Profit before tax 373 3,352 (88.9%)

Incometaxes (301) (630) (52.2%)

Profit after tax from discontinued operations 72 2,723 (97.3%)

Thedeclinein“Netfeeandcommissionincome”isprimarilyduetoareductionintheEquityCapitalMarkets(ECM)/M&Abusiness.Therisein“Otheroperatingresult”from€9,325thousandto€10,839thousandismainlyattributabletothereleaseofotherprovisionsintheM&Asegment.

The“Otheroperatingresult“includesthenetincomefromnon-bankingactiviitesrelatingtothecommoditytradingsubsidiariesandbreaksdownasfollows:

Thedeclinein“Generaladministrativeexpenses”form€21,476thousandin2013to€16,921thousandismostlyduetoareductioninstaffexpenses.In2014staffexpensescameto€ 12,095thousandanddeclinedby€3,463comparedto2013(2013:€15,558thousand).“Otheradministrativeexpenses”declinedby€1,050thousandto€4,632thousandin2014comparedto€5,682thousandin2013.

(12) Earnings per share

Nooptionorconversionrightswereissued;forthisreasonthereisnodilutionofearningspershare.

in€thousand 2014 2013

Profitaftertaxfromcontinuedoperations 8,354 8,532

Profitaftertaxfromdiscontinuedoperations1 540 3,889

Averagenumberofordinarysharesoutstanding 655,000 655,000

Earnings per share in € from continued operations 12.75 13.03

Earnings per share in € from discontinued operations 0.82 5.931includesnon-controllinginterestswhichhavebeenentirelyallocatedtodiscontinuedoperations.

in€€thousand 2014 2013

Salesrevenuesfromnon-bankingactivities 257,071 311,761

Expensesfromnon-bankingactivities (247,313) (301,868)

Net income from non-banking activities 9,758 9,893

37

NotestotheBalanceSheet(13) Balance sheet according to measurement categoryThefollowingtableshowsthecarryingamountofthemeasurementcategoriesasdefinedinIAS39ofcontinuedoperations.Assetsandliabilitiesheldforsalearenetted:

Assets by measurement category 2014 2013 in€€thousand

Cash reserve 2,898 4,337

Trading assets 2,137,680 2,033,725

Positivefairvaluesofderivativefinancialinstruments 109,739 119,046

Structuredproducts 139,539 159,024

Shares 296,951 338,453

Bonds,notesandotherfixed-interestsecurities 410,661 597,643

Call/timeplacementsfortradingpurposes 1,180,790 819,559

Financial assets measured at fair value through profit and loss 41,693 9,770

Bonds,notesandotherfixed-interestsecurities 41,693 9,770

Available-for-sale financial assets (financial investments) 5,154 5,153

Sharesinotheraffiliatedcompanies 19 19

Otherinterests 5,135 5,135

Loans and advances 468,566 373,782

Loansandadvancestocreditinstitutions 377,361 269,111

Loansandadvancestocustomers 83,697 98,925

Othernon-derivativefinancialassets 7,583 5,839

Impairmentlossesonloansandadvances (75) (93)

Derivatives (hedging) 0 33

Positivefairvaluesofderivatives(hedging) 0 33

Assetsheldforsale 64,729 73,782

Other assets 9,955 9,994

Intangibleandtangiblefixedassets 9,955 9,994

Total assets 2,730,676 2,510,575

Equity and liabilities by measurement category 2014 2013 in€€thousand

Trading liabilities 2,283,532 2,119,174

Negativefairvaluesofderivativefinancialinstruments 1,165,778 995,970

Short-sellingoftradingassets 424,838 497,847

Issuedcertificates 692,916 625,357

Financial liabilities 299,467 229,312

Liabilitiestocreditinstitutions 71,354 106,672

Liabilitiestocustomers 221,241 117,237

Othernon-derivativefinancialliabilities 6,872 5,403

Derivatives (hedging) 0 222

Negativefairvaluesofderivativesinfairvaluehedge 0 222

Provisions 14,596 17,059

Liabilities held for sale 30,862 38,548

Equity 102,219 106,258

Total equity and liabilities 2,730,676 2,510,575

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

38

(14) Cash reserve

in€€thousand 2014 2013

Cashinhand 214 192

Depositswithcentralbanks 2,685 4,144

Total 2,898 4,337

(15) Loans and advances to credit institutions

Loansandadvancestocreditinstitutionsareclassifiedregionally(counterparty’sseat)asfollows:

in€€thousand 2014 2013

Giroandclearingbusiness 154,219 99,993

Moneymarketbusiness 223,141 169,118

Total 377,361 269,111

in€€thousand 2014 2013

Austria 258,931 202,629

Othercountries 118,430 66,482

Total 377,361 269,111

(17) Impairment losses on loans and advances ProvisionsforimpairmentlossesareformedinaccordancewithuniformGroupstandardsandcoverallrecognizablecreditrisks.Atablewiththedevelop-mentoftheimpairmentlossesonloansandadvancescanbefoundintheriskreportonpage54ff..Impairmentlossesonloansandadvancesarealloca-tedtothefollowingassetclasses:

in€€thousand 2014 2013

Retailcustomers–privateindividuals 75 93

Total 75 93

(16) Loans and advances to customers

Retail(private)customersreferexclusivelytowealthyprivateindividualsandself-employedpeople(highnetworthindividuals).

Loansandadvancestocustomersclassifiedregionally(counterparty’sseat)areasfollows:

in€€thousand 2014 2013

Corporatecustomers–large 49,447 61,482

Retailcustomers–privateindividuals 34,249 37,443

Total 83,697 98,925

in€€thousand 2014 2013

Austria 30,150 46,326

Othercountries 53,547 52,599

Total 83,697 98,925

39

(18) Trading assets Tradingassetscomprisethefollowingsecuritiesandderivativefinancialinstruments:

Theshareportfoliosstemmingfrommarketmakingactivitiesalongwithothersecurities,options,derivativesandpurchasedstructuredproductsrepresenthedgingitemsforcertificatesandwarrantsissuedbyRaiffeisenCentrobank.PursuanttoIAS39.11structuredproductsincludedembeddedderivatives.

“Bonds,notesandotherfixed-interestsecurities”recordsadecreasecomparedtoDecember2013.Thisisduetothefactthatcall/timeplacementsfortradingpurposesareusedtohedgeguaranteeproductsissuedbyRaiffeisenCentrobank,therebyreplacingthezerobonds.“Bondsandnotesofpublicissuers”relatestoafixed-interestbondissuedbytheFederalRepublicofGermany.

in€€thousand 2014 2013

Bonds, notes and other fixed-interest securities 410,661 597,643

Bondsandnotesissuedbycreditinstitutions 375,917 560,538

Bondsandnotesofpublicissuers 33,885 32,454

Bondsandnotesofnon-bankissuers 859 4,650

Shares and other variable-yield securities 296,951 338,453

Sharesandcomparablesecurities 270,682 319,274

Mutualfunds 26,269 19,179

Structured products 139,539 159,024

Positive fair values from derivative financial instruments 109,554 119,037

Interest-basedtransactions 0 699

Currency-basedtransactions 74 7

Equity/index-basedtransactions 109,480 118,331

Call/time placements for trading purposes 1,180,790 819,559

Total 2,137,495 2,033,716

(19) Derivative financial instruments

Thisitemshowsthepositivefairvaluesofderivativefinancialinstrumentsnotheldfortradingpurposes.AslongastheconditionsforhedgeaccountingaccordingtoIAS39arefulfilled,derivativefinancialinstrumentsaremeasuredattheirfairvalues(dirtyprices)intheirfunctionashedginginstruments.Thehedgeditemsinconnectionwithfairvaluehedgesareloansandadvancestocustomersandliabilitiestocreditinstitutionswhicharetobehedgedagainstinterestraterisks.Inaddition,IAS39providesfortheapplicationofcashflowhedgeaccountingforderivativestohedgetheriskofchangesinfuturecashflows.ThisitemalsoincludesthepositivefairvaluesofderivativefinancialinstrumentsthatareneitherheldfortradingnorconstitutefairvaluehedginginstrumentsunderIAS39.

in€€thousandd 2014 2013

Positive fair values of derivatives in fair value hedges IAS 39 0 1

Interest-basedtransactions 0 1

Positive fair values of derivatives in cash flow hedges IAS 39 0 32

Currency-basedtransactions 0 32

Positive fair values of other derivative financial instruments 186 9

Currency-basedtransactions 186 9

Total 186 42

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

40

(20) Securities and financial investmentsThisitemcomprisesfinancialassetsrecognizedatfairvaluethroughprofitandloss(securitiesandshares),andstrategicequityparticipationsheldonalong-termbasis.

in€€thousand 2014 2013

Bonds, notes and other fixed-interest securities 41,693 9,770

Bondsandnotesofpublicbodieseligibleforrefinancing 8,220 7,238

Otherbondsandnotesofpublicbodies 33,473 2,532

Equity participations 5,154 5,153

Sharesinaffiliatedcompanies 19 19

Otherinterests 5,135 5,135

Total 46,847 14,923

Theitem“Otherbondsandnotesofpublicbodies”relatestoanAustriangovernmentbondwithacountervalueofroughly€31millionheldtocomplywiththeliquiditycoverageratiotowardsthesupervisingauthorities.

DisclosuresrelatingtoassociatedcompaniespursuanttoIAS28:

Initsannualfinancialstatementsfortheyearended31December2014SyrenaImmobilienHoldingAGreportsabalancesheettotalof€32,107thousand(31/12/2013:€32,042thousand),equityof€29,614thousand(31/12/2013:€29,550thousand)andnetprofitfortheyearof€64thousand(2013:€75thousand).

(21) Intangible fixed assets

in€€thousand 2014 2013

Software 115 199

Total 115 199

(22) Tangible fixed assets

in€€thousand 2014 2013

LandandbuildingsusedbytheGroupforownpurposes 6,617 6,773

Officefurnitureandequipmentaswellasothertangiblefixedassets 3,223 3,022

Total 9,840 9,795

(23) Development of fixed assets Thefollowingtableshowsthedevelopmentofintangiblefixedassetsandtangiblefixedassetsduring2014:

Cost of acquisition Balance Change in Exchange Additions Disposals Transfers Balance as or production as at 1/1/2014 consolidation differences at 31/12/2014in€€thousand from continued range from continued operations operations

Intangible fixed assets 3,801 0 0 76 (4) 0 3,873

Goodwill 0 0 0 0 0 0 0

Softwareandmiscellaneous 3,801 0 0 76 (4) 0 3,873

Tangible fixed assets 25,806 0 0 1,365 (518) 0 26,652

LandandbuildingsusedbytheGroupforownpurposes 9,481 0 0 0 0 0 9,481

thereofvalueofdevelopedland 2,066 0 0 0 0 0 2,066

Othertangiblefixedassets 16,325 0 0 1,365 (518) 0 17,171

Total 29,606 0 0 1,441 (522) 0 30,525

41

Write-ups, amortization, depreciation and impairment Cumulative Revaluations Depr./amort. Carrying amount Carrying amountin€€thousand as at 31/12/2014 as at 31/12/2014 from continued from discontinued operations operations

Intangible fixed assets (3,758) 0 (165) 115 115

Goodwill 0 0 0 0 91

Softwareandmiscellaneous (3,758) 0 (165) 115 24

Tangible fixed assets (16,812) 0 (1,366) 9,840 301

LandandbuildingsusedbytheGroupforownpurposes (2,864) 0 (156) 6,617 0

thereofvalueofdevelopedland 0 0 0 2,066 0

Othertangiblefixedassets (13,948) 0 (1,210) 3,223 301

Total (20,570) 0 (1,531) 9,955 416

Thefollowingtableshowsthedevelopmentofintangiblefixedassetsandtangiblefixedassetsduring2013:

Cost of acquisition Balance Change in Exchange Additions Disposals Transfers Balance as or production as at 1/1/2013 consolidation differences at 31/12/2013in€€thousand range

Intangible fixed assets 4,168 0 (17) 142 0 0 4,292

Goodwill 139 0 (10) 0 0 0 128

Softwareandmiscellaneous 4,029 0 (7) 142 0 0 4,164

Tangible fixed assets 28,834 0 (74) 890 (6) 0 29,644

LandandbuildingsusedbytheGroupforownpurposes 9,137 0 0 0 0 0 9,137

thereofvalueofdevelopedland 2,006 0 0 0 0 0 2,006

Othertangiblefixedassets 19,697 0 (74) 890 (6) 0 20,507

Total 33,002 0 (91) 1,032 (6) 0 33,936

in€€thousand Write-ups, amortization, depreciation and impairment Carrying amount Carrying amount Carrying amount as of as of as of 31/12/2013 31/12/2013 31/12/2013 from continued from operations discontinued Cumulative Revaluations Depr./amort. operations

Intangible fixed assets (3,979) 0 (257) 314 199 115

Goodwill (43) 0 0 85 0 85

Softwareandmiscellaneous (3,936) 0 (257) 229 199 30

Tangible fixed assets (19,367) 0 (1,501) 10,276 9,795 482

LandandbuildingsusedbytheGroupforownpurposes (2,364) 0 (156) 6,773 6,773 0

thereofvalueofdevelopedland 0 0 0 2,006 2,006 0

Othertangiblefixedassets (17,003) 0 (1,346) 3,503 3,021 482

Total (23,346) 0 (1,758) 10,591 9,994 597

Forreasonsofmateriality,nodetailedoverviewofimplicationsofIFRS5onthedevelopmentoffixedassetsisprovidedfor2013.

Addtionstointangiblefixedassetsandtangiblefixedassetsdonotincludeanyrelevantindividualinvestments.

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

42

(24) Other assets

in€€thousand 2014 2013

Taxassets 5,619 2,625

Currenttaxassets 5,110 1,186

Deferredtaxassets 509 1,439

Loansandadvancesarisingfromnon-bankingactivities 64 1,080

Prepaymentsandotherdeferrals 1,201 1,491

Clearingclaimsfromsecuritiesandpaymenttransferbusiness 126 0

Currentassets 572 525

Anyotherbusiness 0 118

Total 7,583 5,839

Deferredtaxesbreakdownasfollows:

in€€thousand 2014 2013

Deferredtaxassets 509 1,439

Total (net) 509 1,439

DerSaldolatenterSteuernstammtausfolgendenPosten:

in€€thousand 2014 2013

Tangibleandintangiblefixedassets 0 999

Provisions 516 327

Otherliabilities 0 56

Otherbalancesheetitems 4 124

Deferred tax assets 519 1,507

Loansandadvancestocustomers 0 56

Tradingassets 11 12

Deferred tax liabilities 11 68

Net deferred taxes 509 1,439

(25) Assets held for sale

in€€thousand 2014 2013

Cashreserve 35 38

Loansandadvancestocreditinstitutions 6,245 8,069

Loansandadvancestocustomers 32 1,317

Derivativefinancialinstruments 242 0

Securitiesandfinancialinvestments 2,628 3,837

Intangiblefixedasssets 115 115

Tangiblefixedassets 302 482

Otherassets 55,130 59,925

Total 64,728 73,782

“Otherassets“includeinventoriesofthecommoditytradingsubsidiaries,whichmarginallydeclinedcomparedtothepreviousyearperiodfurthertoadeclineindemandandthegeneraleconomicsituation.

43

(26) Liabilities to credit institutions

Liabilitiestocreditinstitutionsareclassifiedregionally(counterparty’sseat)asfollows:

in€€thousand 2014 2013

Giroandclearingbusiness 23,864 13,943

Moneymarketbusiness 47,490 92,729

Total 71,354 106,672

in€€thousand 2014 2013

Austria 37,630 75,608

Othercountries 33,724 31,065

Total 71,354 106,672

(27) Liabilities to customers

in€€thousand 2014 2013

Sightdeposits 191,145 107,172

Timedeposits 30,095 10,065

Total 221,241 117,237

Liabilitiestocustomersarecomprisedofthefollowing:

in€€thousand 2014 2013

Corporatecustomers–large 32,593 34,791

Retailcustomers–privateindividuals 188,647 82,446

Total 221,241 117,237

Retail(private)customersreferexclusivelytowealthyprivateindividualsandself-employedpersons(highnetworthindividuals).

Liabilitiestocustomersareclassifiedregionally(counterparty’sseat)asfollows:

in€€thousand 2014 2013

Austria 37,513 41,394

Othercountries 183,727 75,843

Total 221,241 117,237

in€€thousandd Balance Change in Additions Reversals Use Transfers, Balance as at Balance as at as at 1/1/2014 consolidation exchange 31/12/2014 31/12/2014 from continued range differences from continued from discontinued operations operations operations

Severancepayments 3,845 0 1,183 (15) (551) 0 4,463 692

Retirementbenefits 0 0 0 0 0 0 0 487

Taxes 189 0 0 (117) (71) 0 0 301

Current 189 0 0 (117) (71) 0 0 155

Deferred 0 0 0 0 0 0 0 146

Pendinglegalissues 3,526 0 606 0 0 0 4,132 0

Overduevacation 1,327 0 38 0 0 0 1,365 341

Other 8,172 0 4,977 (1,531) (6,984) 0 4,635 1,995

Total 17,059 0 6,805 (1,662) (7,606) 0 14,596 3,815

(28) ProvisionsM

anag

emen

tRep

ort

Not

esto

the

Con

solid

ated

Fin

anci

alS

tate

men

ts

Con

solid

ated

Fin

anci

alS

tate

men

ts

Gro

upM

anag

emen

tRep

ort

Com

pany

Indi

vidua

lFin

anci

alS

tate

men

ts

Con

tact

san

dPu

blish

er's

Det

ails

44

in€thousand Balance Change in Additions Reversals Use Transfers, Balance Balance Balance as at consolidation exchange as at as at as at 1/1/2013 range differences 31/12/2013 31/12/2013 31/12/2013 from continued from discontinued operation operations

Severancepayments 5,044 0 653 0 (1,425) (4) 4,267 3,845 422

Retirementbenefits 449 0 14 0 0 0 462 0 462

Taxes 1,027 0 157 (542) (318) (71) 252 189 64

Current 995 0 157 (542) (287) (70) 252 189 64

Deferred 32 0 0 0 (31) (2) 0 0 0

Pendinglegalissues 3,247 0 279 0 0 0 3,526 3,526 0

Overduevacation 1,671 0 162 (124) (37) (3) 1,668 1,327 341

Other 11,587 0 9,647 (2,143) (7,599) (168) 11,323 8,172 3,150

Total 23,026 0 10,911 (2,810) (9,380) (247) 21,500 17,059 4,440

(29) Trading liabilities

in€€thousand 2014 2013

Negative fair values of derivative financial instruments 1,165,380 995,626

fromtradingincertificateswithoptioncharacter 1,000,862 885,881

fromOTCoptions 150,431 82,708

fromtradinginwarrants 2,525 1,819

fromtradinginOeTOBproducts 0 11,524

fromtradinginEUREXoptions 6,068 9,967

fromtradinginotheroptions 5,494 3,727

Issued certificates (guarantee bonds) 424,838 497,847

Short-selling of trading assets 692,916 625,631

Total 2,283,134 2,119,104

TradingliabilitiesincludestructuredguaranteeproductsissuedbyRaiffeisenCentrobanksuchastheBlueChipcertificates.Thisitemalsoincludeswarrantsandothercertificates,suchasturbocertificatesonindexesandshares.

Theitemalsoincludestheshort-sellingofstocks,whicharerelatedtothemarketmakingactivitiesofRaiffeisenCentrobankandprimarilyrepresentcounter-positionstostockandindexfuturesaswellascash(bank)positionsrecordedunderassets.

InthecourseoftheterminationofderivativestradingontheOeTOBinVienna,transactionsinderivativeswererelocatedtotheEuropeanderivativesex-changeEUREX.

(30) Derivative financial instruments

in€€thousand 2014 2013

Negative fair value of derivatives in fair value hedges (IAS 39) 0 222

Interest-basedtransactions 0 222

Negative fair values of other derivative financial instruments 398 70

Currency-basedtransactions 398 70

Total 398 292

Thisitemalsoincludesthenegativefairvaluesofotherderivativefinancialinstrumentswhicharenotheldfortradingpurposes.InsofarastheconditionsforhedgeaccountingaccordingtoIAS39arefulfilled,derivativefinancialinstrumentsaremeasuredatfairvalues(dirtyprices)intheirfunctionashedginginstruments.Thehedgeditemsinconnectionwiththefairvaluehedgesareloansandadvancestocustomersandliabilitiestocreditinstitutions.Thehedgedrisksareinterestraterisks.Inaddition,theitemincludesnegativefairvaluesofderivativefinancialinstrumentswhichareneitherheldfortradingpurposesnorserveasfairvaluehedgepursuanttoIAS39.

ForreasonsofimmaterialitynodetaileddescriptionoftheimplicationofIFRS5forthe2013financialyearisprovided.

45

(31) Other liabilities

in€€thousand 2014 2013

Accrualsanddeferreditems 331 194

Clearingclaimsfromsecuritiesandpaymenttransferbusiness 0 12

Anyotherbusiness 6,541 5,197

Total 6,872 5,403

(32) Liabilities held for sale

in€€thousand 2014 2013

Liabilitiestocreditinstitutions 11,072 10,573

Liabilitiestocustomers 2,108 2,626

Provisions 3,815 4,440

Derivativefinancialinstruments 0 52

Otherliabilities 13,867 20,856

Total 30,862 38,548

(33) Equity

in€€thousand 2014 2013

Consolidated equity 93,831 94,166

Subscribedcapital 47,599 47,599

Capitalreserves 6,651 6,651

Retainedearnings 39,581 39,915

Group net profit 8,894 12,422

Non-controlling interests (506) (329)

Total 102,219 106,258

ThesubscribedcapitalofRaiffeisenCentrobankAGcontinuestobedividedinto655,000zeroparvalueshares.InaccordancewiththeArticlesofAs-sociation,thetotalnominalvalueequals€47,598,850.Statementofchangesinequityisavailableonpage26.

“Non-controllinginterests”relatestosharesofthirdpartiesinOOORaiffeisenInvestment,Moscow(Russia)andRaiffeisenInvestmentPolskasp.z.o.o.,Warsaw(Poland).

TheManagementBoardwillproposetotheAnnualGeneralMeetingthatadividendof€11.00perordinarysharebedistributedfromthebalancesheetprofitintheindividualfinancialstatementsofRaiffeisenCentrobankAGasat31December2014,amountingto€10,268thousand.Thisrepre-sentsatotaldividendpaymentof€7,205thousand.Anamountof€3,000thousandwillbeallocatedtofreereservesandtheremainingamountof€63thousandwillbecarriedforwardtothenewbalancesheet.

Otherliabilitiescompriseprimarilyliabilitiestothetaxauthorities.

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

46

(34) Breakdown of the remaining terms to maturity

2014 Payable on demand or Up to 3 3 months 1 to 5 Over in€€thousand with indefinite maturity dates months to 1 year years 5 years

Cashreserve 2,898 0 0 0 0

Loansandadvancestocreditinstitutions 154,219 48,077 175,064 0 0

Loansandadvancestocustomers 55,472 7,188 955 12,080 8,002

Impairmentlossesonloansandadvances (75) 0 0 0 0

Tradingassets 296,951 200,329 350,818 1,100,882 188,515

Securitiesandfinancialinvestments 5,154 0 41,693 0 0

Available-forsalefinancialassets 7,086 57,733 0 0 0

Otherassets 8,399 7,175 2,026 33 0

Total assets 530,104 320,503 570,557 1,112,995 196,517

Liabilitiestocreditinstitutions 23,864 46,450 1,039 0 0

Liabilitiestocustomers 191,145 10,468 19,627 0 0

Tradingliabilities 424,837 100,086 323,054 1,119,629 315,527

Liabilitiesheldforsale 11,298 19,405 0 0 0

Otherliabilities 10,135 10,711 1,180 0 0

Subtotal 661,279 187,120 344,901 1,119,629 315,527

Equity 102,219 0 0 0 0

Total equity and liabilities 763,498 187,120 344,901 1,119,629 315,527

Disclosurestofinancialinstruments

2013 Payable on demand or Up to 3 3 months 1 to 5 Over in€€thousand with indefinite maturity dates months to 1 year years 5 years

Cashreserve 4,337 0 0 0 0

Loansandadvancestocreditinstitutions 100,743 153,970 14,398 0 0

Loansandadvancestocustomers 48,415 6,911 13,330 14,749 15,519

Impairmentlossesonloansandadvances (93) 0 0 0 0

Tradingassets 338,453 246,674 193,311 1,122,072 133,207

Securitiesandfinancialinvestments 5,153 0 9,770 0 0

Available-for-salefinancialassets 8,836 53,773 11,174 0 0

Otherassets 14,729 1,145 0 0 0

Total assets 520,573 462,472 241,983 1,136,821 148,726

Liabilitiestocreditinstitutions 16,977 89,050 645 0 0

Liabilitiestocustomers 107,172 1,612 8,452 0 0

Tradingliabilities 0 0 0 0 0

Liabilitiesheldforsale 497,847 157,276 234,614 950,802 278,566

Subordinatedcapital 10,905 28,137 0 0 0

Otherliabilities 19,861 2,382 1 15 0

Subtotal 652,764 278,457 243,713 950,817 278,566

Equity 106,258 0 0 0 0

Total equity and liabilities 759,022 278,457 243,713 950,817 278,566

47

(35) Foreign currency volumesContinuedoperationsconsistofthefollowingvolumesofassetsandliabilitiesdenominatedinforeigncurrency:

in€€thousand 2014 2013

Assets 642,128 474,834

Liabilities 590,608 421,291

(36) Assets pledged as collateral

TheGrouppledgesassetsascollateralmainlyforsecuritieslendingtransactionsandformarginingpurposesonderivativeliabilities.

Thesubsequentchartincludesassetsfromsecuritieslendingtransactionsacceptedascollateralforliabilities.

Thesubsequentchartdepictsassetsfromderivativesandstockexchangetransactionswithotherrestrictionsondisposalacceptedascollateralforliabilities.

Thesubsequenttableshowsliabilitiesfromderivativesandstockexchangetransactionswithotherrestrictionsondisposalacceptedascollateralforliabilities.

Thesubsequenttableshowssecuritiesandotherfinancialassetsacceptedascollateral:

TheGroupreceivedcollateralwhichcanbesoldorrepledgedifnodefaultoccursinthecourseofsecuritieslendingbusiness,derivativeorothertransactions.

Significant Restrictions regarding access to or usage of Group assets

Statutory,contractualorregulatoryrequirementsmightrestricttheabilityoftheGrouptoaccessandtransferassetsfreelytoorfromotherGroupentitiesandsettleliabilities.

ThefollowingproductsrestricttheGroupintheuseofitsassets:securitieslendingcontractsaswellasotherlendingcontractsformarginingpurposesonderivativeandstockexchangeliabilities.Thetablebelowshowsassetspledgedascollateralandotherwiserestrictedassetswithacorrespondingliability.Theseassetsarerestrictedfromusagetosecurefunding,forlegalorotherreasons.

in€€thousand 2014 2013

Loansandadvances 1,506 1,875

Total 1,506 1,875

in€€thousand 2014 2013

Loansandadvances 135,123 91,429

Tradingassets 33,405 75,783

Securitiesandfinancialinvestments 9,989 9,065

Total 178,517 176,278

in€€thousand 2014 2013

Securitiesandotherfinancialassetsacceptedascollateral 1,193 2,705

in€€thousand 2014 2013

Otherliabilities 188,645 168,267

Total 188,645 168,267

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

48

(37) Offsetting of financial assets and liabilitiesThedisclosuressetoutinthetablesbelowincludefinancialassetsandfinancialliabilitiesthatareoffsetinRaiffeisenCentrobank’sbalancesheetoraresubjecttoalegallyenforceablemasternettingarrangementorsimilaragreementthatcoverssimilarfinancialinstruments,irrespectiveofwhethertheyareoffsetinthebalancesheet.

Thesimilaragreementsincludederivativeclearingagreements,globalmasterrepurchaseagreements,andglobalmastersecuritieslendingagreements.Similarfinancialinstrumentsincludederivatives,andsecuritiesborrowingandlendingagreements.

Someoftheagreementsarenotset-offinthebalancesheet.Thisisbecausetheycreate,forthepartiestotheagreement,arightofsetoffofrecognizedamountsthatisenforceableonlyfollowinganeventofdefault,insolvencyorbankruptcyofRaiffeisenCentrobankorthecounterpartiesorfollowingotherpredeterminedevents.Inaddition,RaiffeisenCentrobankanditscounterpartiesdonotintendtosettleonanetbasisortorealizetheassetsandsettletheliabilitiessimultaneously.RaiffeisenCentrobankreceivesandgivescollateralsintheformofcashandmarketablesecurities.

In2014,assetswhichwerenotsubjecttolegallyenforceablenettingagreementsamountedto€ 2,674,757thousand(2013:€2,473,001thousand).Moreover,liabilitieswhicharenotsubjecttolegallyenforceablenettingagreementstotaled€2,484,447thousandin2014(2013:€2,328,991thousand).

2014 Gross amount Net amount Related amounts not set off in the balance sheet Net amountAssets of recognised of recognised of recognised Financial instruments Cash collateral in€ thousand assets set off liabilities set assets set off received in the balance sheet off in the balance sheet in the balance sheet

Derivatives 54,726 0 54,726 32,222 22,039 465

Reversepurchase,securitieslending&similaragreements 1,193 0 1,193 1,193 0 0

Total 55,919 0 55,919 33,415 22,039 465

2014 Gross amount Net amount Related amounts not set off in the balance sheet Net amountLiabilities of recognised of recognised of recognised Financial instruments Cash collateral in€ thousand assets set off liabilities set assets set off pledged in the balance sheet off in the balance sheet in the balance sheet

Derivatives 143,504 0 143,504 32,222 105,324 5,959

Reversepurchase,securitieslending&similaragreements 0 0 0 0 0 0

Total 143,504 0 143,504 32,222 105,324 5,959

2013 Gross amount Net amount Related amounts not set off in the balance sheet Net amountAssets of recognised of recognised of recognised Financial instruments Cash collateral in€ thousand assets set off liabilities set assets set off received in the balance sheet off in the balance sheet in the balance sheet

Derivatives 35,781 0 35,781 25,111 10,272 399

Reversepurchase,securitieslending&similaragreements 1,793 0 1,793 0 1,793 0

Total 37,574 0 37,574 25,111 12,065 399

in€ thousand 2014 2013 Otherwise Otherwise restricted with restricted with Pledged liabilities Pledged liabilities

Loansandadvances 1,506 135,123 1,875 91,429

Tradingassets 0 33,405 0 75,783

Securitiesandfinancialinvestments 0 9,989 0 9,065

Total 1,506 178,517 1,875 176,278

49

2013 Gross amount Net amount Related amounts not set off in the balance sheet Net amountLiabilities of recognised of recognised of recognised Financial instruments Cash collateral in€ thousand assets set off liabilities set assets set off pledged in the balance sheet off in the balance sheet in the balance sheet

Derivatives 74,996 0 74,996 25,111 44,471 5,415

Reversepurchase,securitieslending&similaragreements 0 0 0 0 0 0

Total 74,996 0 74,996 25,111 44,471 5,415

Thegrossamountsoffinancialassetsandfinancialliabilitiesandtheirnetamountsdisclosedintheabovetableshavebeenmeasuredateitherfairvalue(derivatives,otherfinancialinstruments)oramortizedcost(loansandadvances,depositsandotherfinancialinstruments).Allamountshavebeenreconciledtothelineiteminthebalancesheet.

(38) Derivative financial instrumentsThetotalvolumeoftheunsettledderivativefinancialinstrumentsincontinuedoperationsasat31December2014comprisesthefollowing:

2014 Nominal amount by maturity Fair values

in€ thousand < 1 year 1 to 5 years > 5 years Total Positive Negative

Total 1,836,135 2,169,822 1,404,910 5,410,866 109,739 (1,165,778)

Interest rate contracts 26,300 200 0 26,500 0 (707)

OTCproducts

Interestrateswaps 0 0 0 0 0 0

Optionsoninterest-rateinstruments 0 200 0 200 0 0

Productstradedonstockexchange

Interestratefutures 26,300 0 0 26,300 0 (707)

Foreign exchange and gold contracts 100,818 4,469 42,511 147,797 470 (14,998)

OTCproducts

Forwardexchangecontracts 84,788 0 0 84,788 186 (398)

Goldcontracts 0 2,969 0 2,969 41 0

Productstradedonstockexchange

Currencyfutures 16,030 0 0 16,030 210 0

Othercurrencycontracts/goldcontracts 0 1,500 42,511 44,011 34 (14,600)

Equity/index contracts 1,616,998 1,998,080 1,335,903 4,950,981 107,552 (1,026,044)

OTCproducts

Equity-/index-basedoptions–purchased 121,366 365,123 191,919 678,408 96,493 0

Equity-/index-basedoptions–sold 158,758 802,928 605,392 1,567,078 0 (112,701)

Otherequity-relatedcontracts 16,777 19,000 0 35,777 163 0

Productstradedonstockexchange

Equity/indexfutures 626,012 55 0 626,067 1,081 (2,082)

Equity/indexoptions 517,081 97,421 0 614,503 9,740 (13,463)

Otherequitycontracts 177,005 713,552 538,592 1,429,148 75 (897,797)

Commodities transactions 77,833 146,652 14,338 238,823 1,569 (99,388)

Precious metals transactions 14,186 20,422 12,158 46,765 148 (24,640)

Derivativefinancialinstrumentsfromcontinuedopreationsshowapositivefairvalueof€242thousandasat31December2014andrelateexclusivelytoforeignexchangecontracts.

Forhedgingpurposes,thenetsettlementamountofnegativefairvaluesforotherequityandindexcontractsisoffsetagainstacquiredshareslistedundertradingassets,whicharenotencompassedinthechartabove.

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

50

Thetotalvolumeoftheunsettledderivativefinancialinstrumentsfromcontinuedoperations,asat31December2013comprisesthefollowing:

31/12/2013 Nominal amount by maturity Fair values

in€ thousand < 1 year 1 to 5 years > 5 years Total Positive Negative

Total 1,765,862 1,542,738 706,417 4,015,017 119,079 (995,918)

Interest rate contracts 46,624 15,924 0 62,548 1,439 (296)

OTCproducts

Interestrateswaps 5,624 15,724 0 21,348 699 (232)

Optionsoninterest-rateinstruments 0 200 0 200 1 0

Productstradedonstockexchange

Interestratefutures 41,000 0 0 41,000 739 (64)

Foreign exchange and gold contracts 110,506 0 14,737 125,243 48 (25,888)

OTCproducts

Forwardexchangecontracts 70,286 0 0 70,286 41 (70)

Goldcontracts 11,835 0 0 38,391 0 0

Productstradedonstockexchange

Currencyfutures 16,566 0 0 16,566 0 (774)

Othercurrencycontracts/goldcontracts 11,819 0 14,737 26,556 7 (25,044)

Equity/index contracts 1,454,297 1,386,871 668,079 3,509,247 114,587 (846,785)

OTCproducts

Equity-/index-basedoptions–purchased 64,143 295,092 178,066 537,301 87,254 0

Equity-/index-basedoptions–sold 170,754 473,137 283,725 927,616 0 (73,230)

Otherequity/indexcontracts 0 35,762 0 35,762 549 0

Productstradedonstockexchange

Equity/indexfutures 762,250 597 0 762,847 16,567 (28,598)

Equity/indexoptions 319,036 63,351 0 382,387 9,237 (8,366)

Otherequitycontracts 138,114 518,932 206,288 863,334 980 (736,591)

Commodities transactions 107,031 127,219 11,415 245,666 2,962 (105,634)

Precious metals transactions 47,403 12,724 12,186 72,313 43 (17,315)

(39) Fair value of financial instrumentsIntheGroupfairvalueisprimarilymeasuredbasedonexternaldatasources(mainlystockexchangepricesorbrokerquotationsinhighlyliquidmarkets).FinancialinstrumentswhicharemeasuredusingquotedmarketpricesaremainlylistedsecuritiesandderivativesandalsoliquidbondswhicharetradedonOTCmarkets.ThesefinancialinstrumentsareassignedtoLevelIofthefairvaluehierarchy.

Inthecaseofamarketvaluationwherethemarketcannotbeconsideredanactivemarketbecauseofitsrestrictedliquidity,theunderlyingfinancialinstrumentisassignedtoLevelIIoftheFairValuehierarchy.Ifnomarketpricesareavailable,thesefinancialinstrumentsaremeasuredusingvaluationmodelsbasedonobservablemarketdata.Theseobservablemarketdataaremainlyreproducibleyieldcurves,creditspreadsandvolatilities.RaiffeisenCentrobankgenerallyusesvaluationmodelswhicharesubjecttoaninternalauditbytheMarketRiskCommitteeinordertoensureappropriatemeasurementparameters.

Iffairvaluecannotbemeasuredusingeitherinsufficientlyregularlyquotedmarketprices(LevelI)orusingvaluationmodelswhichareentirelybasedonobservablemarketprices(LevelII),thenindividualinputparameterswhicharenotobservableonthemarketareestimatedusingappropriateassumptions.Ifparameterswhicharenotobservableonthemarkethaveasignificantimpactonthemeasurementoftheunderlyingfinancialinstrument,itisassignedtoLevelIIIofthefairvaluehierarchy.Thesemeasurementparameterswhicharenotregularlyobservablearemainlycreditspreadsderivedfrominternalestimates.

Assigningcertainfinancialinstrumentstothelevelcategoriesrequiresregularassessment,especiallyifmeasurementisbasedonbothobservableparametersandalsoparameterswhicharenotobservableonthemarket.Theclassificationofaninstrumentcanalsochangeovertimebecauseofchangesinmarketliquidityandthuspricetransparency.

Derivativefinancialinstrumentsformdiscontinuedoperationsshowanegativefairvalueof€52thousandasat31December2013andrelateexclusi-velytoforeignexchangecontracts.

51

Fair value of financial instruments reported at fair value Bondsandtradablemoneymarketdepositsareprimarilymeasuredusingpricesthatcanberealizedinthemarket.Ifnoquotationsareavailable,thesecuriti-esaremeasuredusingthediscountedcashflowmodel.Themeasurementparametersusedherearetheyieldcurveandanadequatecreditspread.Thecre-ditspreadiscalculatedusingcomparablefinancialinstrumentswhichareavailableonthemarket.Forasmallpartoftheportfolio,aconservativeapproachwasselectedandcreditdefaultspreadswereusedformeasurement.Externalmeasurementsbythirdpartiesarealsotakenintoaccount,allofwhichareindi-cativeinnature.Itemsareassignedtolevelsattheendofthereportingperiod.

InRaiffeisenCentrobank,well-knownvaluationtechniquesareusedtomeasureOTCderivatives.Forexample,interestrateswaps,crosscurrencyswapsorforwardrateagreementsaremeasuredusingthecustomarydiscountedcashflowmodelfortheseproducts.OTCoptions,suchasequityforeignexchangeoptionsorcapsandfloors,arebasedonvaluationmodelswhichareinlinewithmarketstandards.Forplainvanillaoptions(AmericanandEuropeanexer-cise)theBlackScholesmodelandbinominalmodelpursuanttoCox,RossandRubinsteinareapplied.AsianoptionsarecalculatedwiththeCurranapproxi-mation,barrieroptionswiththeHeynen-KatmodelandspreadoptionswiththeKirkmodel.

Todeterminethefairvalueacreditvalueadjustment(CVA)isalsonecessarytoreflectthecounterpartyriskassociatedwithOTCderivativetransactions,espe-ciallyofthosecontractualpartnerswithwhomhedgingviacreditsupportannexeshasnotyetbeenconducted.Thisamountrepresentstherespectiveestima-tedmarketvalueofasecuritywhichcouldbeusedtohedgeagainstthecreditriskofthecounterpartiestotheGroup'sOTCderivativeportfolios.

ForOTCderivatives,creditvalueadjustments(CVA)areusedtocoverexpectedlossesfromlendingbusiness.TheCVAwilldependontheexpectedfutureexposure(expectedpositiveexposure)andtheprobabilityofdefaultofthecontractualpartner.AfurtherelementoftheCVAinvolvesdeterminingaprobabili-tyofdefaultforeachcounterparty.Wheredirectcreditdefaultswap(CDS)quotationsareavailable,RaiffeisenCentrobankcalculatesthemarket-basedpro-babilityofdefaultand,implicitly,theloss-given-default(LGD)fortherespectivecounterparty.Theprobabilityofdefaultforcounterpartieswhicharenotactivelytradedonthemarketiscalculatedbyassigningacounterparty'sinternalratingtoasectorandrating-specificCDScurve.Thevaluationresultduetochangedcreditriskofthecounterpartyisdisclosedundernote(5)Nettradingincome,interest-basedtransactions.

Inthefollowingtables,thefinancialinstrumentsforcontinuedoperationsreportedatfairvalueinthebalancesheetaregroupedaccordingtoitemsintheba-lancesheetandclassifiedaccordingtomeasurementcategory.Adistinctionismadeastowhetherthemeasurementisbasedonquotedmarketprices(LevelI),orwhetherthevaluationmodelsarebasedonobservablemarketdata(LevelII)oronparameterswhicharenotobservableonthemarket(LevelIII).Itemsareassignedtolevelsattheendofthereportingperiod.

in€thousand 31/12/2014 31/12/2013 Quoted Measurement Measurement Quoted Measurement Measurement market prices techniques techniques market prices techniques techniques (Level I) based on not based on (Level I) based on not based on market market market market data data data data (Level II) (Level III) (Level II) (Level III)

Trading assets 428, 814 1,708,682 0 470,983 1,562,742 0

Positivefairvaluesofderivativefinancialinstruments1 60,890 48,664 0 59,472 59,574 0

Structuredproducts 0 139,539 0 159,024 0

Sharesandothervariable-yieldsecurities 296,571 380 0 337,431 1,022 0

Bond,notesandotherfixed-interestsecurities 71,353 339,309 0 74,080 523,563 0

Call/timeplacementsfortradingpurposes 0 1,180,790 0 0 819,559 0

Financial assets at fair value through profit and loss 41,693 0 0 9,770 0 0

Sharesandothervariable-yieldsecurities 0 0 0 0 0 0

Bonds,notesandotherfixed-interestsecurities 41,693 0 0 9,770 0 0

Derivatives (hedging) 0 0 187 1 32 0

Positivefairvaluesofderivativesinfairvaluehedges(IAS39) 0 0 187 1 32 0

1Includingotherderivatives

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

52

in€thousand 31/12/2014 31/12/2013 Quoted Measurement Measurement Quoted Measurement Measurement market prices techniques techniques market prices techniques techniques (Level I) based on not based on (Level I) based on not based on market market market market data data data data (Level II) (Level III) (Level II) (Level III)

Trading liabilities 557,300 1,699,480 26,752 594,400 1,494,258 30,568

Negativefairvaluesofotherderivativefinancialinstruments1 132,914 1,014,008 18,856 96,607 875,827 23,314

Shortsellingoftradingassets 424,386 453 497,793 54

Issuedcertificates(guaranteebonds) 0 685,020 7,896 0 618,377 7,254

Derivatives (hedging) 0 0 0 222 0 0

Negativefairvaluesofderivativesinfairvaluehedges(IAS39) 0 0 0 222 0 0

1Includingotherderivatives

Movements between Level I and Level II

Foreachfinancialinstrument,acheckismadewhetherquotedmarketpricesareavailableonanactivemarket(LevelI).Forfinancialinstrumentswheretherearenoquotedmarketprices,observablemarketdatasuchasyieldcurvesareusedtocalculatefairvalue(LevelII).Reclassificationtakesplaceifthisestimatechanges.

IfinstrumentsarereclassifiedfromLevelItoLevelII,thismeansthatmarketquotationswerepreviouslyavailablefortheseinstrumentsbutarenolongerso.Thesesecuritiesarenowmeasuredusingthediscountedcashflowmodel,usingtherespectivevalidyieldcurveandtheappropriatecreditspread.

IfinstrumentsarereclassifiedfromLevelIItoLevelI,thismeansthatthemeasurementresultswerepreviouslycalculatedusingthediscountedcashflowmodelbutthatmarketquotationsarenowavailableandcanbeusedformeasurement.

In2014,mainlyderivativefinancialinstrumentsontheequityandliabilitiessideweretransferredbetweenLevelIandLevelIIdrivenbyareducedmarketliquidityofindividualproducts.

Movements to and from Level III

Inthereportingyear,therewerenomovementstoandfromLevelIII.

Movement in Level III fair value of financial instruments reported at fair value

Thesubsequentchartdescribesthefairvalueoffinancialinstruments.Thevaluationmethodsofwhicharebasedonnon-observableparameters.

in€ thousand As at Changes in Exchange Purchases Sales Income Other Transfer to Transfer from As at 1/1/2014 consolidation differences redemptions statement comprehensive Level III Level III 31/12/2014 range income

Derivatives(hedging) 0 0 0 187 0 0 0 0 0 187

in€ thousand As at Changes in Exchange Purchases Sales Income Other Transfer to Transfer from As at 1/1/2014 consolidation differences redemptions statement comprehensive Level III Level III 31/12/2014 range income

Tradingliabilities 30.568 0 0 0 0 (3.816) 0 0 0 26.752

in€ thousand As at Changes in Exchange Purchases Sales Income Other Transfer to Transfer from As at 1/1/2013 consolidation differences redemptions statement comprehensive Level III Level III 31/12/2013 range income

Tradingliabilities 33.634 0 0 0 0 (3.065) 0 0 0 30.568

Inassetsheldforsalereportedatfairvaluederivativefinancialinstruments(31December2014:€242thousand,31December2013:€0thousand)areclassifiedaslevelII.Item“Securitiesandfinancialinvestments”(31December2014:€2,682thousand,31December2013:€3,837thousand)includeexclusivelysecuritiesofLevelIII.

Inliabilitiesheldforsalereportedatfairvalueincludederivativefinancialinstruments(31December2014:€0thousand,31December2013:€52thousand)classifiedasLevelII.

53

GainsandlossesresultingfromfinancialinstrumentsofthelevelIIIhierarchyamountedin2014tominus€ 3,816thousand(2013:minus€ 3,065thousand).

Financial assets Type Fair value Valuation Significant Range of in€€thousand techniques unobservable unobservable inputs inputs

Positivefairvalueofbankingbook derivativeswithouthedgeaccounting Forwardforeignexchangecontract 187 Discountedcashflowmethod Interestrate 10-30%

Total 187

Financial liabilities Type Fair value Valuation Significant Range of in€€thousand techniques unobservable unobservable inputs inputs

Closingperiod 2-16%

Currencyrisk 0-5%

Volatility 0-3%

Negativefairvalueofderivativefinancialinstruments OTC-options 18,856 Optionmodel Index-category 0-5%

Closingperiod 0-3%

Bid/askspread 0-3%

Volatility 0-3%

Structuredproducts(guaranteebonds) Certificates 7,896 Optionmodel Index-category 0-2.5%

Total 26,752

Qualitative information for the measurement of level III financial instruments

Fair value of financial instruments not reported at fair value Fairvalueswhicharedifferentfromthecarryingamountarecalculatedforfixed-interestloansandadvancestoanddepositsfrombanksorcustomers,iftheremainingmaturityismorethanoneyear.Variable-interestloansandadvancesanddepositsaretakenintoaccountiftheyhaveaninterestrolloverperiodofmorethanoneyear.Thefairvalueofloansandadvancesiscalculatedbydiscountingfuturecashflowsandusinginterestratesatwhichsimilarloansandadvanceswiththesamematuritiescouldhavebeengrantedtocustomerswithsimilarcreditworthiness.Moreover,thespecificcreditriskandcollateralsareconsideredforthecalculationoffairvaluesforloansandadvances.Thesubsequenttablesrelateexclusivelytocontinuedoperations:

31/12/2014 Level I Level II Level III Fair Value Carrying Difference in€ thousand amount

Assets

Cashreserve 0 2,898 0 2,898 2,898 0

Loansandadvancestocreditinstitutions 0 377,361 0 377,361 377,361 0

Loansandadvancestocustomers 0 55,498 28,224 83,697 83,697 0

Equityparticipations 0 0 5,154 5,154 5,154 0

Liabilities

Liabilitiestocreditinstitutions 0 71,354 0 71,354 71,354 0

Liabilitiestocustomers 0 221,241 0 221,241 221,241 0

31/12/2013 Level I Level II Level III Fair Value Carrying Difference in€ thousand amount

Assets

Cashreserve 0 4,337 0 4,337 4,337 0

Loansandadvancestocreditinstitutions 0 269,111 0 269,111 269,111 0

Loansandadvancestocustomers 0 48,415 50,510 98,925 98,925 0

Equityparticipations 0 0 5,153 5,153 5,153 0

Liabilities

Liabilitiestocreditinstitutions 0 106,672 0 106,672 106,672 0

Liabilitiestocustomers 0 117,237 0 117,237 117,237 0

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

54

(40) Contingent liabilities and other off-balance sheet obligations

in€€thousand 2014 2013

Contingent liabilities 447 447

Otherguarantees 447 447

Credit risks 0 1,053

Irrevocablecreditlines/standbyfacilities 0 1,053

Upto1year 0 1,053

Thesubsequenttabledescribesrevocablecreditlinesnotassociatedwithacreditrisk:

in€€thousand 2014 2013

Revocable credit lines/standby facilities 2,368 5,098

Upto1year 2,368 5,098

(41) Risk report

Principles

In2014,RaiffeisenCentrobankagainpursuedaprudentriskstrategy.Businessopportunitiesandearningspotentialarerealizedbasedonactiveriskmanagementbytakingriskinatargetedandcontrolledmanner.TheBankhasasystemofriskinstrumentsinplaceformeasuringandmonito-ringrisksInallrelevantareasofriskefficientmonitoringandcontollinginstrumentsareavailableenablingthecompetentbodiestoreacttomarketopportunitiesandspecificbankingbusinessrisks.

AsasubsidiaryofRaiffeisenBankInternational,RaiffeisenCentrobankisintegratedintotheriskmanagementprocessoftheRZBCreditInstitutionGroup,safeguardingthatallmajorrisksareidentified,measuredandcontrolledonGroup-levelandensuringthattransactionsareconcludedexclusivelyifparticularrisk/rewardrelationsarecompliedwith.

Riskgovernance

TheManagementBoardofRaiffeisenCentrobankisresponsibleforallrisksoftheBankaswellasforimplementingariskstrategy.TheManage-mentBoardissupportedinimplementingthesetasksbyanindependentriskmanagementunit,whichisclearlyseparatedfromthefrontoffices.

RiskmanagementatRaiffeisenCentrobankissplitintothreecategories:

•CreditRisk&ICAAP(counterpartyandcountryrisk,overallbank management)•Marketrisk(marketandliquidityrisk)•Operationalrisk

ThecentralriskmanagementunitsareresponsiblefortheadequateandappropriateimplementationoftheBank’sriskmanagementproves.TheseunitsaretheRiskManagementCommittee(RMK),theInternalLimitCom-mittee(ILC),theOperationalRiskManagementCommittee(ORMK)andtheAssetandLiabilityCommittee(ALCO).

TheRMK,whichmeetsweekly,addressesallissuesandregulationsintheareaofriskmanagementoftheBankandthecommoditytradingsubsidia-riesfocusinginparticularoncreditriskmarketriskandoperationalrisk.OverdraftsoverdueloansandadvancesandnecessaryvalueadjustmentsarereportedinduecourseandrecommendationsfortheManagementBoardaredeveloped.

TheILC,whichmeetseverysecondweek,decideswithinitscompetency(dependingontypeandamountofthelimit)oncounterparty,countryandmarketrisklimits.LargeexposuresrequiretheapprovaloftheSupervisoryBoard.Onceayear,theaggregateoflargeexposuresisreportedtotheSupervisoryBoard.

TheORMK,whichmeetsonceaquarter,establishesanappropriateframeworkforoperationalriskmanagementanddefinesandapprovesanadequateriskstrategy.Moreover,riskassessments,scenarioanalysesandriskindicatorsarediscussedandapprovedandmaterialeventsofdefaultandresultingmeasurestobetakenareanalyzed.

TheALCO,whichmeetsonceamonth,continuouslyevaluatesthemacroe-conomicenvironmentandcontrolsandassessesinterestraterisk,liquidityriskandbalancesheetstructuralrisk.

InNovember2014,theRiskCommitteepursuantto§39dAustrianBankingActmet.TheriskmanagementreportedonthemajorrisksandtherisksituationofRaiffeisenCentrobank.

Thesubsequenttablesrelateexclusivelytocontinuedoperations:

55

RiskmanagementsystematRaiffeisenCentrobankRaiffeisenCentrobankemploysacomprehensiveriskmanagementsystemtakingintoaccountalllegal,businessandregulatoryrequirements.Theappliedprocessesandmodelsaresubjecttoongoingreviewandfurtherdevelopment.ThekeycomponentsoftheriskmanagementsystemsarecompliancewithregulatorycapitalrequirementspursuanttoBaselIII,limitingspecificbankingrisksandprovidinganadequateriskcoveragesumsaswellaspermanentsupervisionandcontroloflitigationriskswithinacomprehensiveInternalControlSystem.

1. Capital requirements to limit market risk, credit risk and operational risk Tosecurecapitaladequacyforcreditrisk,marketriskandoperationalriskpursuanttoBaselIII,RaiffeisenCentrobankappliesthestandardap-proach.Tocalculateoption-relatednon-linearrisksthescenariomatrixme-thodisemployed.

Detailsoncapitalrequirementsperriskcategoryaredepictedinitem(47).

2. Identifying and limiting specific banking business risks (ICAAP)WithinICAAP(InternalCapitalAdequacyAssessmentProcess)RaiffeisenCentrobankhasimplementedaprocesstodeterminetheoverallbankingriskpotentialandrisk-bearingcapacity.Therisk-bearingcapacityisanaly-zedquarterlyforboththegoingconcern(VaRwithaconfidencelevelof95percentandthreemonthsretentionperiod)andliquidationscenario(VaRwithaconfidencelevelof99.9percent,threemonthsretentionperi-od)undsupportstheManagementBoardinmanagingtheoverallban-kingrisk.AsasubordinatecompanyofRaiffeisenZentralbank,RaiffeisenCentrobankisintegratedintotheICAAPofRaiffeisenZentralbankandRaiffeisenBankInternationalonaconsolidatedbasis.

3. Internal Control SystemRaiffeisenCentrobankhasimplementedaGroup-widemodernInternalControlSystemthatmeetstherequirementsoftheCompany.Allbankingprocessesandimmanentrisksaredocumentedandrespectivecontrolsaresetupandreviewed.Processdescriptions,risksandmonitoringarereview-edsemi-annuallyandarecontinuouslyoptimized.

TheInternalAuditatRaiffeisenCentrobankregularlyreviewstheefficiencyandcorrectnessoftheoverallriskmanagementincludingtheInternalCon-trolSystem.TheresultsarereportedinwritingtotheManagementBoardandtheChairmanoftheSupervisoryBoard.Moreover,quarterlymeetingsareheldwiththeManagementBoardandtheseniormanagementtodis-cusscurrentreviewreportsandthestatusofappliedactions.

Majorrisks

Market riskTheCompanydefinesmarketriskastheriskofpossiblelossesarisingfromchangesinmarketprices(equityandcommodityprices,changesininterestratesandexchangerates).AsthemainfocusofthebusinessactivitiesofRaiffeisenCentrobankisinsecuritiestradingandtheissueofequity-indexbasedderivativesandstructuredproducts(certificatesandguaranteebonds),thetoppriorityofRaiffeisenCentrobankistocounteractmarketrisk.RaiffeisenCentrobankmeasures,monitorsandmanagesallmarketrisksbysettingavarietyoflimitssetupbytheManagementBoardinac-cordancewiththeGroup-wideMarketRiskCommittee.Themulti-leveldif-ferentiatedlimitsystemincludesvolume,positionandsensitivitylimits(delta,

gamma,vegaandbasispointvalue)aswellasstop-losslimits,dependingonthetypeoftransaction.

Inmarketriskmanagement,theVaRisemployed,whichfurnishesforecastsonpotentiallossesundernormalmarketconditionsandiscontrastedagainstaparticularlimit.Onthebasisofthevariance-covariancemodelwhichiscalculateddailytheVaRforinterestraterisk,currencyriskandpri-ceriskiscalculatedwithaconfidenceintervalof99percentandareten-tionperiodofoneday.

0,00

1,00

2,00

01.20

14

02.20

14

03.20

14

04.20

14

05.20

14

06.20

14

07.20

14

08.20

14

09.20

14

10.20

14

11.20

14

12.20

14

in E

UR m

n

VAR PL_HYP

-1,00

-2,00

TheabovechartdepictstheperformanceofVaR(VAR)andtheoreticalP&L(PL_HYP-profitandlossthatwouldhaveoccuredinaconstantportfolioandactuallyrecordedmarketmovements)in2014.

InadditiontoVaR,RaiffeisenCentrobankusesbackteststoevaluatemarketrisk.Backtestssimulatetheperformaneoftheportfoliounderabnormalmarketsituationsandatypicalpricemovements.

Credit riskThecreditriskrepresentsdefaultriskthatarisesfromtheinabilityofacusto-mertofulfilcontractuallyagreedfinancialobligations,whenserviceshavebeenrendered(e.g.liquidity,securities,advisoryservices)orwhenunrea-lisedprofitsfrompendingbusinesstransactionscannolongerbereco-vered(counterpartycreditrisk).

ThemajorcreditrisksofRaiffeisenCentrobankresultfrompositionsofpurchaseddebtinstruments,tradablemoneymarketdepositsandOTCoptionsservingprimarilytohedgeissuedcertificatesandstructuredpro-ductsaswellasfrommarginpositionsrelatingtoOTCandstockexchangetransactions.ThisaffectsprimarilymembersoftheRZBCreditInstitutionGroupandtoalimitedextentotherfinancialinstitutions.ThetraditionalcreditandloanbusinessisofimmaterialsignificanceforRaiffeisenCentro-bankduetothelimitedbusinessvolumeandthecompany’sstrategicorientation(financing(commoditytrading)subsidiaries,lombardloans,otherloanstoprivateandcorporatecustomers).

Creditriskmanagementisbasedoncounterparty-relatednominallimitswhicharecomprehensivelymonitoredbytheInternalControlSystemforcreditrisks.Thelimitsareapproved-dependingontypeandsize-bytherespectivehierarchicalcompetenceauthorityscheme.Creditdecisionsaretakendependingontheassessmentofthecounterpartycreditrisktakingintoaccounttheratingandapplicablecreditriskmitigatingmeasureslikefinancialcollaterals(e.g.cashorequity).IntheGroup-widedefaultandandratingdatabasecustomersareregisteredandevaluatedandeventsofdefaultaredocumented.ThewholelendingdecisioncorrespondstoregulatoryrequirementsandRZBGroupDirectives.

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

56

in€€thousand Balance as at Changes in Allocation Release Use Transfer. Balance as 1/1/2014 consolidation exchange 31/12/2014 range differences

Individual loan loss provisions 93 0 0 - 18 0 0 75

Loansandadvancestocustomers 93 0 0 -18 0 0 75

thereofAustria 93 0 0 -18 0 0 75

Total 93 0 0 - 18 0 0 75

in€€thousand Balance as at Changes in Allocation Release Use Transfer. Balance as 1/1/2013 consolidation exchange 31/12/2013 range differences

Individual loan loss provisions 110 0 0 - 16 0 0 93

Loansandadvancestocustomers 110 0 0 -16 0 0 93

thereofAustria 110 0 0 -16 0 0 93

Total 110 0 0 - 16 0 0 93

Loansandadvancesaswellasloanlossprovisionsbasedonthestructureaccordingtoassetclassesareshowninthefollowingtable:

2014 Carrying amount Individual Net carrying Impaired Fair value in€thousand loan loss amount assets provisions

Creditinstitutions 377,361 0 377,361 0 377,361

Corporatecustomers–large 49,428 0 49,428 0 49,428

Retailcustomers–privateindividuals 34,269 75 34,194 75 34,194

Total 461,058 75 460,983 75 460,983

2013 Carrying amount Individual Net carrying Impaired Fair value in€thousand loan loss amount assets provisions

Creditinstitutions 269,111 0 269,111 0 269,111

Corporatecustomers–large 60,952 0 60,952 0 60,952

Retailcustomers–privateindividuals 37,973 93 37,880 93 37,880

Total 368,036 93 367,943 93 367,943

Thefollowingtableshowsthedevelopmentofindividualloanlossprovisionsaccordingtobalancesheetitems:

57

Impaired financial instrumentsThefollowingtableshowsthecarryingamountofloansandadvancesreducedthroughindividualloanlossprovisionsaswellastherelatedindividualloanlossprovisionsandthecorrespondingnetvalueofavailablecollateral:

Overdue financial instrumentsThedefinitionofdefaultandtheassessmentoftheexpectedrecoveryvalueareheavilyinfluencedbythenumberofdayspaymentsarelate.Noloansandadvancestocreditinstitutions,corporatecustomersandretailcustomerswereoverdueneitherasat31December2014noron31December2013.

31.12.2013 Maximum credit exposure Fair value of collaterals

Net Commitments/ Reselling/ in€ thousand exposure guarantees issued repledging allowed

Creditinstitutions 269,111 275 275

Corporatecustomers–large 60,952 5,311 30,089

Retailcustomers–privateindividuals 37,880 1,012 29,806

Total 367,943 6,599 60,171

Thefollowingtableshowsthemaximumcreditriskexposureandthefairvalueofcollaterals:

2014 Maximum credit exposure Fair value of collaterals

Net Commitments/ Reselling/ in€ thousand exposure guarantees issued repledging allowed

Creditinstitutions 377,361 275 275

Corporatecustomers–large 49,428 717 25,987

Retailcustomers–privateindividuals 34,194 1,823 30,166

Total 460,983 2,815 56,428

Collateralreadytobesoldorrepledgedintheabsenceofdefaultofthedebtoramountedto€56,428thousand(2013:€60,171thousand).

31/12/2014 Individually Individual Individually Collaterals for Interest on Impairments and collateral impaired loan loss Impaired assets after individually individually in€€thousand assets provisions deduction of individual impaired impaired loan loss provisions assets assets

Retailcustomers–privateindividuals 75 75 0 0 0

Total 75 75 0 0 0

31/12/2013 Individually Individual Individually Collaterals for Interest on Impairments and collateral impaired loan loss Impaired assets after individually individually in€€thousand assets provisions deduction of individual impaired impaired loan loss provisions assets assets

Retailcustomers–privateindividuals 93 93 0 0 0

Total 93 93 0 0 0

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

58

Operational riskOperationalriskisdefinedastheriskofunexpectedlossesresultingfrominadequateorfailedinternalprocesses,peopleandsystemsorfromexternaleventsincludinglegalrisk.Thisriskcategoryisanalyzedandmanagedonthebasisoftheresultsofregularself-assessments,standardizedkeyriskindicators,scenarioanalysesandinternalhistoricaldata.

EventsofdefaultinoperationalriskareregisteredintheGroup-widedatabasisORCA(OperationalRiskControllingApplication)andarerecognizedseparatelybybusinesssegmentandtypeofevent.Measurestakenarealsodocumentedandlinkedwiththeeventofdefault.

Liquidity riskLiquidityriskiscalculatedbasedonaliquiditymodeldevelopedincooperationwithRaiffeisenBankInternational.DailybalancesheetitemsofRaiffeisenCentrobankareseparatedbymaturitybandsandcurrencies,theirinflowsandoutflowsaremodelledbasedonpre-definedfactors.Theliquidityrequire-mentindifferentmaturitybandsislimitedbymeansofregulatorylimitsaswellasbylimitsdeterminedbyRaiffeisenBankInternational.

2013 Carrying Contractual < 3 months 3-12 months 1-5 years > 5 years in€ thousand amount cash flows

Non-derivative liabilities 1,352,738 1,418,745 661,710 220,994 477,823 58,218

Liabilitiestocreditinstitutions 106,672 110,300 2,199 108,101 0 0

Liabilitiestocustomers 117,237 120,767 110,662 10,105 0 0

Otherliabilities 1,128,829 1,187,678 548,849 102,788 477,823 58,218

Derivative liabilities 995,918 1,031,037 169,412 108,801 498,787 254,037

Derivativesinthetradingbook 995,626 1,030,745 169,342 108,579 498,787 254,037

Hedgingderivatives 222 222 0 222 0 0

Otherderivatives 70 70 70 0 0 0

Credit risks 1,053 1,053 0 1,053 0 0

Irrevocablecreditcommitments/standbyfacilities 1,053 1,053 0 1,053 0 0

2014 Carrying Contractual < 3 months 3-12 months 1-5 years > 5 years in€ thousand amount cash flows

Non-derivative liabilities 1,417,221 1,417,221 672,780 295,753 349,933 98,755

Liabilitiestocreditinstitutions 71,354 71,354 259 71,095 0 0

Liabilitiestocustomers 221,241 221,241 191,146 30,095 0 0

Otherliabilities 1,124,626 1,124,626 481,375 194,563 349,933 98,755

Derivative liabilities 1,165, 778 1,165,778 36,267 143,091 782,993 203,426

Derivativesinthetradingbook 1,165,380 1,165,380 36,267 142,693 782,993 203,426

Otherderivatives 398 398 0 398 0 0

Credit risks 0 0 0 0 0 0

Irrevocablecreditcommitments/standbyfacilities 0 0 0 0 0 0

Moreover,regularliquiditystresstestsarecarriedoutandthetime-to-allinthestressscenarioismonitoredindifferentcurrencies.Inflowsneedtosurpassoutflowsforaperiodofatleast30daysinacrisisscenario(marketcrisis,namecrisisandscenarioofboth).Caclulationsconfirmanadequateliquiditysurplusforthe2014financialyear.

InaccordancewithGroup-internaldirectives,theminimumliquiditycoverageratio(LCR)wascalculatedonamonthlybasisforinternalcontrollingpurpo-sesandreportedtotheAustrianNationalBank.Inthefinancialyear2014theLCRconstantlyexceeded60percent.

TheNetStableFundingRatioandLeverageRatiowerecalculatedandincludedintothemonitoringinthe2014financialyear.

59

Overallbankmanagement

ForRaiffeisenCentrobankactiveriskmanagementmeanstheidentification,measurement,monitoringandmanagementofspecificbankingrisksaswellastheprovisionofadequatecapitalresources.Inthecourseofmonitoringtheoverallbankrisk(ICAAP),RaiffeisenCentrobankhasimplementedaprocesstoidentifytheoverallbankriskpotentialandtheriskbearing-capacity.Thisriskbearingcapacityanalysisisatoppriorityinriskmanagement.

Theriskappetite(overallbankVaRlimit)comesupto80percentoftheriskcoveragesum.Thequarterlyrisk-bearingcapacityanalysisfocusesonthegoingconcern(VaRwithaconfidenceintervalof95percentand3monthsretentionperiod)andliquidationperspective(VaRwithaconfidenceintervalof99.9percent,3monthsretentionperiod).

Riskmeasurementusesthesubsequentapproaches:Marketrisk:calculationoftheVaRbasedonahistoricalMonteCarlosimulationwithatimeframeof3monthsCreditriskandequityparticipationrisk:determinationofaVaRconsistentriskvaluebasedonamodifiedIRBapproach.Theequityparticipationriskincludesnotonlycarryingamountsinthebankingbookof(unlisted)equityparticipationsbutalsoloanstoparticipationsOperationalrisk:calculationofaVaRbasedonregulatorycapitalrequirementscoupledwithamodelingthroughgeneralizedParetodistribution.Otherrisks(suchase.g.businessrisk,repuationrisk,balancesheetrisk).Coverageiseffectedbyvariousriskbuffers.

Thesubsequenttableshowsthedistributionofriskrelatingtotheeconomiccapital(VaR)attherespectivebalancesheetdate:

Going-concern-perspective 31/12/2014 31/12/2013

1.Marketrisk 33.8percent 34.7percent

2.Creditrisk 13.7percent 16.4percent

3.Operationalrisk 12.7percent 12.2percent

4.Businessrisk 2.9percent 4.1percent

5.Equityparticipationrisk 25.2percent 20.3percent

6.Otherrisks 11.6percent 12.3percent

Liquidationperspective 31/12/2014 31/12/2013

1.Marketrisk 10.3percent 11.1percent

2.Creditrisk 19.3percent 19.5percent

3.Operationalrisk 33.6percent 33.5percent

4.Businessrisk 0.9percent 1.3percent

5.Equityparticipationrisk 12.1percent 10.6percent

6.Otherrisks 23.8percent 23.9percent

Asasubordinatecompany,RaiffeisenCentrobankisintegratedintotheICAAPofRZBonaconsolidatedbasis.RaiffeisenCentrobankisprovidedwithmonthlyICAAPreports.Theseanalysesincludeagoingconcernperspectivewithaconfidenceintervalof95percentandatargetratingperspectivewithaconfidenceintervalof99.95percent.

(42) Foreign assets/liabilities AssetsandliabilitieswithcounterpartiesfromcontinuedoperationsoutsideAustriaareasfollows:

in€€thousand 2014 2013

Assets 676,651 660,604

Liabilities 388,009 215,203

(43) Fiduciary businessFiduciarybusinessfromcontinuedoperationsnotrecognizedinthebalancesheetwasconcludedwiththefollowingvolumesasatthebalancesheetdate:

in€€thousand 2014 2013

Securitiesandfinancialinvestments 7,091 7,091

Fiduciary assets 7,091 7,091

Otherfiduciaryliabilities 7,091 7,091

Fiduciary liabilities 7,091 7,091

OtherDisclosures

Fiduciarybusinessfromdiscontinuedopeationsamountedto€0thousandasat31December2014(€2,000thousandasat31December2013).

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

60

(44) Operating leaseFuturerentalandleasepaymentsfromcontinuedoperationsareasfollows:

in€€thousand 2014 2013

Upto1year 589 588

1to5years 2,358 2,354

Total 2,947 2,942

(45) Securities admitted for trading on a stock exchange pursuant to § 64 of the Austrian Banking Act

in€€thousand 2014 2014 2013 2013 Listed Unlisted Listed Unlisted

Bondsandnotesissuedbypublicbodies 64,912 0 32,454 0

Bonds,notesandotherfixed-interestsecurities 239,352 0 340,119 0

Sharesandothervariable-yieldsecurities 301,406 137,472 356,441 145,312

(46) Volume of the securities trading book

in€€thousand 2014 2013

Securities 3,280,409 3,153,900

Otherfinancialinstruments 5,325,406 3,933,572

Total 8,605,815 7,087,472

DisclosuresbasedonAustrianregulations

(47) Capital management and own funds pursuant to CRR/CRD IV and Austrian Banking Act Capitalwasandisanintegralpartofbankmanagement.RegulatoryvaluesaredefinedforRaiffeisenCentrobankonanindividualbasisbytheAustrianBankingAct(BWG)basedonadequateguidelinesoftheEUandontheapplicableregulationoftheEuropeanParliament(CRR).RaiffeisenCentrobankusestargetvaluesforinternalregulation,whichcompriseallrisktypes(includingtradingbook,currencyriskandoperationalrisk).Thecurrentplanning/budgetingisshapedbythedevelopmentsinBaselandBrusselsregardingtheadvancementandharmonizingofownfundsregulations.

Themainfocusinthecontrolisonthecommonequitytier1andtotalequityratio.Additionally,ariskcapacitybasedontheVaRratioiscalculatedbothforagoing-concernscenario,usingaggregateriskcoverdefinedonthebasisoftheriskstrategy,andforaliquidationscenario.Forfurtherinformationpleaseseetheriskreport.

Current regulatory developments and passed capital measuresBaselIIIwasimplementedintheEuropeanUnionviaaregulation(CRR)andadirective(CRDIV).Bothregulationswerepublishedon27June2013intheEUOfficialJournalandarethereforeeffective.

Asof1January2014,theCRRisdirectlyapplicablelawforallEUmemberstates.TheCRDIVbecameeffectiveon17July2013andhadtobetransferredintolocallawuntil31December2013.Asofbeginningof2014,thenewregulations–CRRandCRDIV–havetobethereforeappliedunderconsiderationofseveraltransitionalperiods.

Moreover,theEuropeanCentralBank(ECB)tookoversupervisionoflargebanksintheEurozone,whosetotalassetsexceed€ 30billionor20percentofthecountry’seconomicperformanceinNovember2014.AspartoftheRZBCreditInstitutionGroupt,RaiffeisenCentrobankpartlyfallsunderECBsupervisi-on.

Afterphase-outofthetransitionalperiodBaselIIIandCRRI/CRDIVrespectivelyprovidesharderspecificationsfortheregulatorycapitalwithaminimumofcorecapital(commonequitytier1)of4.5percent,corecapital(tier1)of6percentandtotalcapitalof8percent.Moreover,allbanksareobligedtoholdaso-called“capitalconservationbuffer”of2.5percentcomprisingcommonequitytier1inadditiontothenewminimumrequirements.Thisbringstherequire-mentfortotalcommonequitytier1to7percent,forcorecapital(tier1)to8.5percentandfortotalcapitalto10.5percent.Aviolationofthecapitalcon-servationbufferinducesconstraintsofe.g.dividenddistributionandcouponpaymentsforcertaincapitalinstruments.

61

Anadditionalbuffer,thesocalled“countercyclicalbuffer“,canbeimplementedbythememberstatesinordertostemexcesslendinggrowth.Moreover,nationalsupervisorscandeterminesystemicriskbuffers(1to5percent)aswellasadditionalcapitaladd-onsforsystemicbanks(0to3.5percent).Incasesystemicriskbuffersaswellasadd-onsforsystemicbanksaredeterminedforabankinginstitute,onlythehigherofthetwovaluesisapplicable.

TheimpactsofregulatoryrequirementsaredisplayedandanalyzedinscenariocalculationsbyRaiffeisenCentrobankonanongoingbasis.Possibleeffectsareincludedinplanningandsteering,ifnecessary.

Calculationofeligibletier1wasbasedonPart2andcalculationoftotalownfundsrequirementwasbasedonarticle92CRR.TheownfundsofRaiffeisenCentrobankbreakdownasfollows:

in€€thousandandpercent 2014

Paid-incapital 47,599

Earnedcapital 44,721

Core capital (Tier 1 capital) 92,320

Deductionsintangiblefixedassets (115)

DeductionsfromTier1capital(prudentvaluation) (4,464)

Eligible Tier 1 capital (after deductions) 87,740

Total own funds 87,740

Total own funds requirement 54,639

TotalTier1ratio 12.8%

Ownfundsratioin% 12.8%

Angabenin€€Tausend 2014

Risikogewichtete Aktiva (RWA gesamt) 682.985

EigenmittelerfordernisfürdasKreditrisiko 22.333

Standardansatz 20.860

CVARisiko 1.473

EigenmittelerfordernisfürdasPositionsrisikoinSchuldtiteln,Substanzwerten,WarenundFremdwährungen 20.766

EigenmittelerfordernisfürdasoperationelleRisiko 11.539

Gesamtes Eigenmittelerfordernis 54.639

in€€thousand 2014

Risk-weighted assets (total RWA) 682,985

Totalownfundsrequirementforcreditrisk 22,333

Standardizedapproach 20,860

CVArisk 1,473

Totalownfundsrequirementforpositionsinbonds,equities,commoditiesandopencurrencypositions 20,766

Totalownfundsrequirementforoperationalrisk 11,539

Total own funds requirement 54,639

Angabenin€€Tausend 2014

Risikogewichtete Aktiva (RWA gesamt) 682.985

EigenmittelerfordernisfürdasKreditrisiko 22.333

Standardansatz 20.860

CVARisiko 1.473

EigenmittelerfordernisfürdasPositionsrisikoinSchuldtiteln,Substanzwerten,WarenundFremdwährungen 20.766

EigenmittelerfordernisfürdasoperationelleRisiko 11.539

Gesamtes Eigenmittelerfordernis 54.639

in€€thousand 2014

Risk-weighted assets according to standardized approach 260,754

Centralgovernmentsandcentralbanks 556

Publicbodies 68

Institutions 112,167

Corporates 109,830

Equityparticipations 15,803

Positionswithparticularlyhighrisk 3,582

Otherpositions 18,747

CVA risk 18,409

Total 279,163

Riskweightedassetsforthecreditriskaccordingtoassetclassesbreakdownasfollows:

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

62

Theownfunds(calculatedaccordingtoAustrianBankingAct(BWG)1993/Amendment2006–BaselII)asofyear-end2013breakdownasfollows:

in€€thousand 2013

Paid-incapital 47,599

Earnedcapital 41,721

Intangiblefixedassets (205)

Core capital (tier- 1 capital) 89,115

Deductionsfromcorecapital 0

Eligible core capital (after dedcutions) 89,115

Long-termsupplementarycapital 0

Additional own funds (tier- 2 capital) 0

Deductionitems 0

Eligibleadditionalownfunds(afterdedcutions) 0

Total own funds 89,115

Total own fund requirement 57,436

Excesssownfunds 31,679

Excesscoverratio 155.2%

Coretier1ratio,creditrisk 47.0%

Coretier1ratio,total 12.4%

Ownfundsratio 12.4%

Thetotalownfundsrequirementiscomposedasfollows:

in€€thousand 2013

Risk-weighted assets according to section 22 Austrian Banking Act 189,788

thereof8percentownfundsforthecreditriskaccordingtosections22ato22hAustrianBankingAct 15,183

Ownfundsrequirementforpositionriskinbonds,equitiesandcommodities 29,937

Ownfundsrequirementforopencurrencypositions 342

Ownfundsrequirementforoperationalrisk 11,974

Total own funds requirement 57,436

(48) Average number of staffTheaveragenumberofstaffemployedduringthefinancialyear(full-timeequivalents)fromcontinuedoperationsbreaksdownasfollows:

Average 2014 2013

Salariedemployees 202 205

Wageemployees 9 10

Total 211 215

Reportingdate 2014 2013

Salariedemployees 195 207

Wageemployees 9 10

Total 204 217

Employeesfromdiscontinuedopeationscomeuponaverageto110personsasat31December2014(31December2013:124)

Employeesfromdiscontinuedoperationscomeupasofreportingdateto103personsasat31December2014(31December2013:122).

63

(49) Related parties Companiescancarryoutbusinesswithrelatedpartiesthatmayaffecttheentity’sasset,financialandearningsposition.TherelatedpartiesoftheRaiffeisenCentrobankaredividedintothefollowingcategories:

•TheparentcompaniesareRaiffeisenZentralbankÖsterreichAktiengesellschaft,RaiffeisenBankInternationalAG,RZBKIBeteiligungsGmbHandLexxus ServicesHoldingGmbH.•AffiliatedcompaniesencompassthoseaffiliatedcompaniesofRaiffeisenZentralbankÖsterreichAktiengesellschaftwhicharenotincludedinthe consolidatedfinancialstatementsofRaiffeisenCentrobankAG.•CompaniesvaluedatequityarecompanieswhichareclassifiedbyRaiffeisenZentralbankÖsterreichAktiengesellschaftascompaniesvaluedatequity.•Otherinterests.

InformationonthebusinesstiesoftheRaiffeisenCentrobankwiththekeymanagement(ManagementBoard)isprovidedinsection(50).

Asat31December2014transactionsfromcontinuedoperationswithrelatedpartieswereasfollows:

in€€thousand Parent Affiliated Companies Other company companies valued at equity interests

Loansandadvancestocreditinstitutions 230,536 3,289 2,737 0

Loansandadvancestocustomers 0 0 514 0

Tradingassets 1,544,445 104,703 0 0

Securitiesandfinancialinvestments 0 16 5,135 0

Otherassets(incl.derivatives) 0 208 15 0

Liabilitiestocreditinstitutions 1 9,602 16 0

Liabilitiestocustomers 0 85 8 0

Provisions 671 0 0 0

Tradingliabilities 21,168 3,084 12,801 0

Otherliabilities(incl.derivatives) 7,174 997 2 0

in€€thousand Parent Affiliated Companies Other company companies valued at equity interests

Loansandadvancestocreditinstitutions 171,949 4,178 3,094 0

Loansandadvancestocustomers 0 0 514 0

Tradingassets 1,371,389 119,792 796 0

Securitiesandequityparticipations 0 234 5,135 0

Otherassets(incl.derivatives) 21 64 9 0

Liabilitiestocreditinstitutions 77,265 2,512 1,962 0

Liabilitiestocustomers 0 740 1 0

Provisions 1,825 0 0 0

Tradingliabilities 23,741 2,644 0 288

Otherliabilities(incl.derivatives) 3,191 2,789 21 0

Asat31December2013transactionsfromcontinuedoperationswithrelatedpartieswereasfollows:

31/12/2014 Parent Affiliated Companies Other in€€thousand company companies valued at equity interests

Interestincome 1,381 46 15 0

Interestexpenses (115) (1) (1) 0

Feeandcommissionincome 10,933 1,327 270 0

Feeandcommissionexpenses (230) (4,902) (117) 0

Profit/lossduetonon-inclusionofnon-financial 0 1 0 0

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

64

(50) Relations to key management

in€€thousand 2014 20131

Currentremuneration 2,416 2,697

TherearenocontractualobligationsregardingremunerationtopreviousmembersoftheManagementBoard.

TherelationsofmembersoftheManagementBoardofRaiffeisenCentrobankAGtotheRaiffeisenCentrobankGroupareasfollows:

in€€thousand 2014 2013

Sightdeposits 1,365 1,348

ThefollowingtableshowstherelationsofclosefamilymembersoftheManagementBoardtotheRaiffeisenCentrobankGroup:

in€€thousand 2014 2013

Sightdeposits 65 105

TherearenootherrelationsbetweentheGroupandkeymanagement.

Remuneration of the Management BoardThefollowingtableshowstotalremunerationofthemembersoftheManagementBoardaccordingtoIAS24.17.TheexpensesaccordingtoIAS24wererecognizedonanaccrualbasisandaccordingtotherulesoftheunderlyingstandards(IAS19andIFRS2):

31/12/2013 Parent Affiliated Companies Other in€€thousand company companies valued at equity interests

Interestincome 978 59 12 0

Interestexpenses (194) (336) (1) 0

Feeandcommissionincome 5,372 76 3,376 0

Feeandcommissionexpenses (269) (2,933) (179) 0

1Adjustmentofpreviousyeardata

in€€thousand 2014 2013

RemunerationSupervisoryBoard 95 110

Remuneration of the Supervisory Board

ThemembersoftheSupervisoryBoardreceivedattendancefeestotaling€95thousandfortheperiod2014(2013:€110thousand).

Moreover,nocontractssubjecttoapprovalinthemeaningofSection95(5)item12AustrianJointStockCompanyAct(AktG)wereconcludedwithmembersoftheSupervisoryBoardinthefinancialyear2014.

65

(51) Members of the Management Board, the Supervisory Board and State Commissioners

Management Board EvaMarchart (ChiefExecutiveOfficeruntil31December2014) AlfredMichaelSpiss (DeputyChiefExecutiveOfficeruntil31December2014) GerhardGrund (MemberoftheManagementBoarduntil31December2014) WilhelmCeleda ChiefExecutiveOfficerasof1January2015 (MemberoftheManagementBoarduntil31December2014) MarkusKirchmair MemberoftheManagementBoardasof1January2015 Supervisory Board KlemensBreuer Chairman MemberoftheManagementBoard, RaiffeisenBankInternationalAG,Vienna WalterRothensteiner 1stDeputyChairman(until31December2014) ChiefExecutiveOfficer, RaiffeisenZentralbankÖsterreichAG,Vienna

KarlSevelda 1stDeputyChairman(since1January2015) ChiefExecutiveOfficer, 2ndDeputyChairman(until31December2014) RaiffeisenBankInternationalAG,Vienna

JohannStrobl Member(until29April2014)) DeputyChiefExecutiveOfficer, RaiffeisenBankInternationalAG,Vienna, HannesMösenbacher Member(since29April2014) DivisionHead, RaiffeisenBankInternationalAG,Vienna

WernerKaltenbrunner Member DivisionHead, RaiffeisenBankInternationalAG,Vienna

State Commissioners AlfredHacker,TamaraEls

Vienna,15April2015TheManagementBoard

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

WilhelmCeledaChiefExecutiveOfficer

MarkusKirchmairMemberoftheManagementBoard

66

(52) Significant Events after the Balance Sheet DateInrealizingtheexitstrategyasdefinedbyRBIwithregardtotheCentrotradesubsidiaries,aSharePurchaseAgreementwassignedinJanuary2015relatingtothesaleofthefourrubbertradingsubsidiaries.Theclosingisexpectedtotakeplaceinmid-2015.

(53) Group composition

Consolidation rangeNumberoffullyconsolidatedassociatedcompanieschangedasfolllows:

Numberofunits 2014 2013

Asatbeginningofperiod 12 13

Excludedinthefinancialperiod 0 (1)

As at end of period 12 12

Hereofdiscontinuedoperations 11 11

Company,registeredheadquarters(country) Subscribed capital in local Share of which Type2

in currency in % indirectly1

CentrotradeChemicalsAG,Zug(CH) 5,000,000 CHF 100.0% SU

CentrotradeCommoditiesMalaysiaSdnBhd,KualaLumpur,(MY) 1,400,000 MYR 100.0% SU

CentrotradeDeutschlandGmbH,Eschborn(DE) 410,000 EUR 100.0% SU

CentrotradeHoldingAG,Vienna(AT) 3,000,000 EUR 100.0% SU

CentrotradeMinerals&MetalsInc.,Chesapeake(US) 2,000 USD 100.0% SU

CentrotradeSingaporePte.Ltd.,Singapore(SG) 500,000 SGD 100.0% SU

RaiffeisenInvestmentAdvisoryGmbH,Vienna(AT) 730,000 EUR 100.0% FI

RaiffeisenInvestmentLtd.,Moscow(RU) 47,904,192 RUB 50.1% FI

RaiffeisenInvestmentPolskasp.z.o.o.,Warsaw(PL) 3,024,000 PLN 50.0% FI

RaiffeisenInvestmentRomaniaLLC,Bucharest(RO) 159,130 RON 100.0% FI

RaiffeisenInvestmentFinancialAdvisoryServicesLtd.Co. 70,000 TRL 99.0% FI

RaiffeisenCentrobankAG,Vienna(AT) 47,599,000 EUR 100.0% KI

List of fully-consolidated companies

Company,registeredheadquarters(country) Subscribed capital in local Share of which Type2

in Währung in % indirectly1

CentroAssetManagementLimited,St.Helier(JE) 10,000 GBP 100.0% FI

MENARAIHoldingGmbH,Vienna(AT) 35,000 EUR 100.0% SU

RaiffeisenInvestment(Bulgaria)EOOD,Sofia(BG) 60,050 BGN 100.0% FI

RaiffeisenInvestments.r.o.,Prague(CZ) 200,000 CZK 100.0% FI

TOVRaiffeisenInvestmentUkraine,Kiev(UA) 3,733,213 UAH 100.0% FI

RIInvestments,Warsaw(PL) 500,000 PLN 100.0% FI

SORANISRaiffeisenPortfolioManagementGmbH,Vienna(AT) 35,000 EUR 100.0% SU

Other companies not included in consolidation

67

Company,registeredheadquarters(country) Subscribed capital in local Share of which Type2

currency in % indirectly1

AlpenbankAktiengesellschaft,Innsbruck(AT) 10,220,000 EUR 0.0% KI

ACGBorGlasworks,BorCity(RU) 418,956,270 RUB 7.4% 7.4% SU

CellmedResearchGmbH,Krems(AT) 1,718,907.47 EUR 5.8% SU

ÖsterreichischeRaiffeisen-Einlagensicherungreg.Gen.m.b.H.,Vienna(AT) 3,100 EUR 3.2% SU

ScanviwoodCo.Ltd.,HoChiMinhCity(VN) 2,500,000 USD 6.0% SU

SocietyforWorldwideInterbankFinancialTelecommunications.c.,LaHulpe(BE) 13,923,125 EUR 0.0% SU

SyrenaImmobilienHoldingAG,SpittalanderDrau(AT) 22,600,370 EUR 21.0% SU

RSCRaiffeisenServiceCenter,Vienna(AT) 2,000,000 EUR 0.1% SU

Other interests

1Sharesheldbycompaniesthatarenotincludedintheconsolidatedfinancialstatements(pro-ratashare)2Companytype KI=Creditinstitution FI Financialinstitution SU Othercompanies

Structured units

Thefollowingtableshows,bytypeofstructuredentity,thecarryingamountsofGroup’sinterestrecognizedinthebalancesheet(exclusivelyfunds)aswellasthemaximumexposuretolossresultingfromtheseinterests.Thecarryingamountspresentedbelowdonotreflectthetruevariabilityofreturnsbecausetheydonottakeintoaccounttheseeffectsofcollateralorhedges.

Nature,purposeandextentoftheRaiffeisenCentrobank’sinterestsinnon-consolidatedstructuredentities:

TheGroupengagesinvariousbusinessactivitieswithstructuredentitieswhicharedesignedtoachieveaspecificbusinesspurpose.Astructuredentityisonethathasbeensetupsothatanyvotingrightsorsimilarrightsarenotthedominantfactorindecidingwhocontrolstheentity.Anexampleiswhenvotingrightsrelateonlytoadministrativetasksandtherelevantactivitiesaredirectedbycontractualarrangements.

Astructuredentityoftenhassomeorallofthefollowingfeaturesorattributes:

•Restrictedactivities;•€Anarrowandwelldefinedobjective;•€Insufficientequitytopermitthestructuredentitytofinanceitsactivitieswithoutsubordinatedfinancialsupport;•€Financingintheformofmultiplecontractuallylinkedinstrumentstoinvestorsthatcreateconcentrationsofcreditorotherrisks(tranches).

Theprincipalusesofstructuredentitiesaretoprovideclientswithaccesstospecificportfoliosofassetsandtoprovidemarketliquidityforclientsthroughsecu-ritizingfinancialassets.Structuredentitiesmaybeestablishedascorporations,trustsorpartnerships.Structuredentitiesgenerallyfinancethepurchaseofassetsbyissuingdebtandequitysecuritiesthatarecollateralizedbyand/orindexedtotheassetsheldbythestructuredentities.StructuredentitiesareconsolidatedwhenthesubstanceoftherelationshipbetweentheGroupandthestructuredentitiesindicatethatthestructuredentitiesarecontrolledbytheGroup.

BelowisadescriptionoftheGroup’sinvolvementsinnon-consolidatedstructuredentitiesbytype:

FundsTheGroupestablishesstructuredentitiestoaccommodateclientrequirementstoholdinvestmentsinspecificassets.TheGroupalsoinvestsinfundsthataresponsoredbythirdparties.Agroupentitymayactasfundmanager,custodianorsomeothercapacityandprovidefundingandliquidityfacilitiestobothgroupsponsoredandthirdpartyfunds.Thefundingprovidediscollateralizedbytheunderlyingassetsheldbythefund.

FinancialsupportTheGroupdidnotprovidenon-contractualsupportduringtheyeartonon-consolidatedstructuredentities.

2014 Loans and advances Equities Debt instruments Derivatives in€€thousand

Funds 0 26,269 0 0

Total 0 26,269 0 0

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

68

Accountingpolicies

Financial instruments: recognition and measurement (IAS 39)IAS39requiresallassetsandliabilities,includingderivativefinancialinstruments,toberecordedinthebalancesheet.Afinancialinstrumentisdefinedasanycontractthatgivesrisetoafinancialassetofoneentityandafinancialliabilityorequityofanotherentity.Oninitialrecognition,financialinstrumentsaretobemeasuredatfairvalue,whichgenerallycorrespondstothetransactionpriceatthetimeofacquisitionorissue.AccordingtoIFRS13,thefairvalueisdefinedastheexitprice.Thisisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Forsubsequentmeasurement,financialinstrumentsarerecognizedinthestatementoffinancialpositionaccordingtotherespectivemeasurementcategorypursuanttoIAS39,eitherat(amortized)costoratfairvalue.

Categorization of financial assets and financial liabilities and their measurement

ThemeasurementcategoriesforfinancialinstrumentspursuanttoIAS39donotequatetotheprincipallineitemsinthestatementoffinancialposition.Relati-onshipsbetweentheprincipallineitemsinthestatementoffinancialpositionandthemeasurementstandardappliedaredescribedinthetable"CategoriesoffinancialinstrumentsaccordingtoIFRS7"andinthenotesunder(1)Incomestatementaccordingtomeasurementcategoriesand(13)Statementoffinanci-alpositionaccordingtomeasurementcategories.

1. Financial assets and financial liabilities at fair value through profit and loss

Oninitialrecognition,RaiffeisenCentrobankcategorizescertainfinancialassetsandliabilitiesasheld-for-tradingormeasuredatfairvalue.Thesefinancialassetsandliabilitiesarerecognizedatfairvalueandshownasfinancialassetsandliabilitiesatfairvalue.

a. Trading assets and trading liabilitiesTradingassetsandtradingliabilitiesareacquiredorincurredprincipallyforthepurposeofgeneratingprofitfromshort-termfluctuationsinmarketprices.Secu-rities(includingshortsellingofsecurities)andderivativefinancialinstrumentsheldfortradingpurposesarerecognizedattheirfairvalues.Ifproductsarelisted,thefairvalueisbasedontherelevantstockexchangeprices.Wheresuchpricesarenotavailable,internalpricesbasedonpresentvaluecalculationsforpri-maryfinancialproductsandfuturesoroptionpricingmodelsforoptionsareapplied.Presentvaluecalculationsarebasedontheinterestratecurvewhichismadeupofmoneymarket,futuresandswapratesanddoesnotcontainanyratingmarkups.Appropriatemodelsareusedasoptionpriceformula,depen-dingonthetypeofoption.Forplainvanillaoptions(AmericanandEuropeanstyle)theBlack-ScholesmodelandthebinomialpricingmodelaccordingtoCox,RossundRubinsteinareapplied.TheCurranapproximationisappliedtoAsianoptionswhereasbarrieroptionsuseHeinen-KatandspreadoptionsrelyontheKirkmodel.

Derivativesheldfortradingpurposesareshownunder“Tradingassets”and“Tradingliabilities”.Positivefairvaluesincludingaccruedinterest(dirtyprice)areshownunder“Tradingassets”.Negativefairvaluesarerecordedunder“Tradingliabilities”.Positiveandnegativefairvaluesarenotnetted.Changesindirtypricesarerecognizedintheincomestatementunder“Tradingprofit”.Derivativesnotheldfortradingpurposesareshownunder“Derivativefinancialinstru-ments”.Tradingliabilitiesalsoincludeanyobligationsresultingfromtheshort-sellingofsecurities.

b. Designated financial instruments at fair valueThiscategorycomprisesmainlyallthosefinancialassetswhichareirrevocablydesignatedasfinancialinstrumentatfairvalue(so-calledfairvalueoption)uponinitialrecognitioninthebalancesheet,independentoftheintentiontotrade.Thefairvalueoptiondesignationmayonlybeusedifsuchdesignationre-sultsinmorerelevantinformationforthereader.Thisisthecaseforallfinancialassetsthatarepartofaportfolioforwhichthemanagementandevaluationofassetperformancearecarriedoutonafairvaluebasis.

Theseinstrumentsarebonds,notesandotherfixed-interestsecuritiesaswellassharesandothervariable-yieldsecurities.Thesefinancialinstrumentsarevalu-edatfairvalueunderIAS39.Theyarerecognizedinthebalancesheetunder“Securitiesandfinancialinvestments”.Currentincomeispresentedin“Netinte-restincome”,whilenetvaluationsandnetproceedsfromsalesarerecordedunder“Netincomefromfinancialinvestments”.

Thefinancialliabilitiesaremostlystructuredbonds.Thefairvalueofthesefinancialliabilitiesiscalculatedbydiscountingthecontractualcashflowswithacre-dit-risk-adjustedyieldcurve,whichreflectsthelevelatwhichtheGroupcouldissuesimilarfinancialinstrumentsatthereportingdate.Themarketriskparame-tersareevaluatedaccordingtosimilarfinancialinstrumentsthatareheldasfinancialassets.

2. Financial assets held-to-maturity

RaiffeisenCentrobankdidnotholdanyfinancialassetsheld-to-maturity.

3. Loans and advancesNon-derivativefinancialassetswithfixedordeterminablepaymentforwhichthereisnoactivemarketareallocatedtothiscategory.Thesefinancialinstru-mentsaremainlyrecordedunderitem“Loansandadvancestocreditinstitutions”and“Loansandadvancestocustomers”.

Theyaremeasuredatamortizedcost.Ifimpairmentoccursitistakenaccountofwhendeterminingtheamortizedcost.Impairmentprovisionsandprovisionsforlossesthathaveoccurredbuthavenotyetbeenidentifiedarereportedintheincomestatementunderitem“Impairmentlossesonloansandadvances”.Profitsfromthesaleofimpairedloansarerecognizedintheincomestatementunderitem“Provisioningforimpairmentlosses”.

69

4. Available-for-sale financial assets (AfS)Thiscategorycontainsthosefinancialinstruments(primarilyequityparticipations,forwhichthereisnoactivemarket)thatdidnotqualifytobeincludedinanyoftheotherthreecategories.Theyarestatedatfairvalue,ifafairvaluecanbereliablydetermined.Valuationdifferencesareshowndirectlyinothercompre-hensiveincome,andareonlyrecognizedin“Netincomefromfinancialinvestments”ifthereisanobjectiveindicationofimpairmentoriftheavailable-for-salefinancialassetissold.

Forunquotedequityinstruments,forwhichreliablefairvaluescannotbeassessedregularlyandarethereforevaluedatcostlessimpairmentlosses,itisnotpossibletoshowanappreciationinvalue.Thistypeoffinancialinstrumentisreportedunder“Securitiesandfinancialinvestments”.

Interestanddividendincomefromavailable-for-salefinancialassetsarerecordedintheitem“Netinterestincome”.

5. Financial liabilities Liabilitiesarepredominantlyrecognizedatamortizedcost.Discounteddebtsecuritiesandsimilarobligationsaremeasuredattheirpresentvalue.Financialliabilitiesarereportedinthestatementoffinancialpositionundertheitem“depositsfrombanks”,“depositsfromcustomers”or“otherliabilities“.Interestex-pensesarestatedundernetinterestincome.

Derecognition of financial assets and liabilities

a. Derecognition of financial assetsAfinancialassetisderecognizedwhenthecontractualrightstothecashflowsarisingfromafinancialassethaveexpired,whentheGrouphastransferredtherightstothecashflows,oriftheGrouphastheobligation,incasethatcertaincriteriaoccur,totransferthecashflowstooneormorereceivers.Atransferredassetisalsoderecognizedifallmaterialrisksandrewardsofownershipoftheassetsaretransferred.

b. Derecognition of financial liabilitiesTheGroupderecognizesafinancialliabilityiftheobligationsoftheGrouphavebeenpaid,expiredorrevoked.

ReclassificationInaccordancewithIAS39.50,non-derivativefinancialinstrumentsclassifiedastradingassetsoravailable-for-saleassetscanbereclassifiedtofinancialassetsheld-to-maturity.Thecompanyneitherutilizedthisoptionin2014norin2013.

Offsetting of financial instrumentsInthecaseofidentityofborrowerandlender,offsettingofloansandliabilitieswithmatchingmaturitiesandcurrenciesoccursonlyifalegalright,bycontractorotherwise,existsandoffsettingisinlinewiththeactuallyexpectedcourseofthebusiness.Informationonoffsettingoffinancialinstrumentisprovidedinitem(37)“Offsettingfinancialassetsandliabilities”.

Derivative financial instrumentsWithintheoperatingactivity,RaiffeisenCentrobankcarriesoutdifferenttransactionswithderivativefinancialinstrumentsfortradingandhedgingpurposes.RaiffeisenCentrobankusesderivativesincludingswaps,standardizedforwardcontracts,futures,creditderivatives,optionsandsimilarcontracts.RaiffeisenCentrobankappliesderivativesinordertomeettherequirementsoftheclientsconcerningtheirriskmanagement,tomanageandsecurerisksandtogenerateprofitinproprietarytrading.Derivativesareinitiallyrecognizedatthetimeofthetransactionatfairvalueandsubsequentlyrevaluedtofairvalue.Theresultingvaluationgainorlossisrecognizedimmediatelyintradingprofitorinvaluationresultfromderivativefinancialinstruments,unlessthederivativeisdesignatedasahedginginstrumentforhedgeaccountingpurposesandthehedgeiseffective.Herethetimingoftherecognitionwilldependonthetypeofhedgingre-lationship.

Derivatives,whichareusedforhedgingagainstmarketrisk(excludingtradingassets/liabilities)foranon-homogeneousportfolio,donotmeettheconditionsforIAS39hedgeaccounting.Thesearerecognizedasfollows:thedirtypriceisbookedunder"Derivativefinancialinstruments"(positivefairvaluesontheassetsideandnegativefairvaluesontheliabilityside).Thechangeinvalueofthesederivatives,onthebasisofthecleanprice,isshownin“Tradingprofit”.

Additionalinformationonderivativesisprovidedinthenotes(38)“Derivativefinancialinstruments”.

Hedge accountingIfderivativesareheldforthepurposeofriskmanagementandiftherespectivetransactionsmeetspecificcriteria,RaiffeisenCentrobankuseshedgeaccoun-ting.RaiffeisenCentrobankdesignatescertainhedginginstrumentsasfairvaluehedgesorcashflowhedges.Atthebeginningofthehedgingrelationship,therelationshipbetweenunderlyingandhedginginstrument,includingtheriskmanagementobjectives,isdocumented.Furthermore,itisnecessarytoregularlydocumentfromthebeginningandduringthehedgingrelationshipthatthefairvalueorcashflowhedgeiseffectivetoalargedegree

a. Fair value hedgeHedgeaccountingaccordingtoIAS39appliesforthosederivativeswhichareusedtohedgethefairvaluesoffinancialassetsandliabilities.Inparticular,thecreditbusinessissubjecttosuchfairvalueriskswithregardtofixed-interestloans.Interestrateswapsthatsatisfytheprerequisitesforhedgeaccountingarecontractedtohedgeagainsttheinterestraterisksarisingfromloans.Hedgesareformallydocumented,continuouslyassessedandratedtobehighlyeffecti-ve.Inotherwords,throughoutthetermofahedge,onecanassumethatchangesinthefairvalueofthehedgeditemwillbenearlycompletelyoffsetbyachangeinthefairvalueofthehedginginstrumentandthattheactualoutcomewillliewithinarangeof80to125percent.

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

70

Derivativeinstrumentsheldtohedgethefairvaluesofindividualbalancesheetitems(excepttradingassets/liabilities)arerecognizedattheirfairvalues(dirtyprices)under“Derivativefinancialinstruments”(positivedirtypricesunderassets,andnegativedirtypricesunderliabilities).Changesinthecarryingamountsofhedgeditems(assetsorliabilities)areallocateddirectlytothecorrespondingbalancesheetitemsandreportedseparatelyinthenotes.Boththeeffectofchangesinthecarryingamountsofpositionsrequiringhedgingandtheeffectsofchangesinthecleanpricesofthederivativefinancialinst-rumentsarerecordedunder“Valuationresultfromderivativefinancialinstruments”.

b. Cash flow hedgeCashflowhedgeaccountingaccordingtoIAS39appliesforthosederivativesthatareusedtohedgeagainsttheriskoffluctuatingfuturecashflows.Variab-le-interestliabilities,aswellasexpectedtransactionssuchasexpectedborrowingorinvestment,areespeciallysubjecttosuchcashflowrisks.Interestrateswapsusedtohedgeagainsttheriskoffluctuatingcashflowsarisingfromspecificvariableinterest-rateitems,arerecognizedasfollows:Thehedginginstru-mentisrecognizedatfairvalue,changesinitscleanpricearerecordedasaseparateitemin“Othercomprehensiveincome”.Theineffectiveportionisrecog-nizedinprofitorlossontheotherhand,intheposition“Valuationresultfromderivativefinancialinstruments”.

Fair valueThefairvalueisthepricethatwouldbereceivedforthesaleofanassetorpaidforthetransferofaliability,inanorderlybusinesstransactionbetweenmar-ketparticipantsonthemeasurementreferencedate.Thisappliesirrespectiveofwhetherthepriceisdirectlyobservableorhasbeenestimatedusingavaluati-onmethod.InaccordancewithIFRS13,thefollowinghierarchyisusedtodetermineandreportthefairvalueforfinancialinstruments.

Quoted prices in an active market (level I)Fairvalueisbestexpressedasamarketvalueifapublishedpricequotationisavailableonanactivemarket.Thisappliesparticularlytoequityinstrumentsandderivativestradedonstockexchangesaswellasdebtinstrumentstradedintheinterbankmarket.Thevaluationismainlybasedonexternaldatasources(stockexchangepricesorbrokerquotesinliquidmarketsegments).Inanactivemarket,transactionsoffinancialassetsandliabilitiesaretradedinsufficientfrequencyandvolumes,sothatpriceinformationiscurrentlyavailable.Indicatorsforactivemarketsarethenumber,thefrequencyofupdateorthequalityofquotations(e.g.banksorstockexchanges).Moreover,alsonarrowbid/askspreadsandquotationsofmarketparticipantswithinacertaincorridorareindi-catorsforanactiveliquidmarket.

Measurement method using observable parameters (level II)Whencurrentbidandaskingpricesforfinancialinstrumentsareunavailable,thepriceofsimilarfinancialinstrumentsprovideevidenceofthecurrentfairvalueoraredeterminedbyacceptedmeasurementmethodsenclosingobservablepricesorparameters(inparticularpresentvaluecalculationoroptionpricemo-del).ThesemethodsconcernthemajorityoftheOTC-derivativesandnon-quoteddebtinstruments.

Measurement methods based on non-observable parameters (level III)Ifnoobservablepublishedquotationsorpricesareavailable,fairvalueiscalculatedusingmeasurementmodelsappropriatetotherespectivefinancialinstru-ment.Theuseofthesemodelsnecessitatesassumptionsandestimatesbymanagement,thescopeofwhichisdeterminedbythepricetransparencyoftherelevantfinancialinstrument,bythemarketandbythecomplexityoftheinstrument.

FurtherinformationtomeasurementmethodsandquantitativeinformationfordeterminationoffairvalueisshownunderNotes(39)Fairvalueoffinancialinstruments.

Amortized costTheeffectiveinterestratemethodisamethodofcalculatingtheamortizedcostofafinancialinstrumentandallocatinginterestincometotherelevantperiods.Theeffectiveinterestrateistheinterestrateusedtodiscounttheforecastfuturecashinflows(includingallfeeswhichformpartoftheeffectiveinterestrate,tran-sactioncostsandotherpremiumsanddiscounts)overtheexpectedtermofthefinancialinstrumentorashorterperiod,whereapplicable,toarriveatthecar-ryingamount.

Classes of financial instruments as defined by IFRS 7Becausethenatureoffinancialinstrumentsisalreadyexpressedappropriatelythroughtheclassificationofthebalancesheetitems,classificationaddressesthoseitemsinthebalancesheetwhichconstitutefinancialinstruments.Classesoffinancialinstrumentsontheassetsideofthebalancesheetare,firstandfore-most,cashreserves,loansandadvancestocreditinstitutions,loansandadvancestocustomers,tradingassets,derivativefinancialinstruments,derivativesfromhedgingtransactionsandsecuritiesandfinancialinvestments(separatelyincludingfinancialassetsnottradedonanactivemarket,whicharemeasuredatcost).Classesoffinancialinstrumentsontheequityandliabilitiessideofthebalancesheetare,inparticular,tradingliabilities,derivativefinancialinstruments,derivativesfromhedgingtransactions,liabilitiestocreditinstitutions,liabilitiestocustomersandsubordinatedliabilities.

71

Impairment losses on loans and advancesAteachreportingdateanassessmentismadeastowhetherthereisanyobjectiveevidencethatafinancialassetorgroupoffinancialassetsisimpaired.Afinancialassetoragroupoffinancialassetsisimpairedandimpairmentlossesareincurred,when:

•thereisobjectiveevidenceofimpairmentasaresultofalosseventthatoccurredaftertheinitialrecognitionoftheassetuntilthereportingdate (a"lossevent");•thatlosseventhasanimpactontheestimatedfuturecashflowsofthefinancialassetorgroupoffinancialassets,and•theamountcanbereliablyestimated.

Objectiveevidenceforanimpairmentmayexistwhentheissuerorthecounterpartyfaceconsiderablefinancialdifficulties,abreachofcontractoccurs(forexample,defaultordelayininterestorredemptionpayments)oritcanbeassumedwithhighprobabilitythatinsolvencyorotherrestructuringprocee-dingswillbeinstitutedagainsttheborrower.

Creditrisksareaccountedforbymakingindividualimpairmentprovisionsandportfolio-basedimpairmentprovisions.Individualandportfolio-basedim-pairmentprovisionsarenotnettedagainstcorrespondingreceivables,butarestatedseparatelyinthebalancesheet.Portfolio-basedprovisionswerenotformedduetoimmateriality.

Forcreditriskrelatedtoloansandadvancestocreditinstitutionsandcustomers,provisionsaremadeintheamountofexpectedlossaccordingtounifiedGroup-widestandards.Objectiveindicationsofavalueadjustmentaredeemedtoexistifthediscountedprojectedrepaymentamountsandinterestpay-mentsarebelowthecarryingamountoftheloans,takingtheexistingcollateralintoaccount.

Theentireamountoftheprovisionforimpairmentlossesarisingfromon-balance-sheetloans(individualloanslossprovisionsonly)isshownasaseparateitemontheassetsideofthebalancesheet.Theprovisionforimpairmentlossesarisingfromoff-balancesheettransactionsisrecordedasprovisions.

Classification Primary measurement criterion IAS 39 category Fair Value Amortised Cost Other

Asset classes

Cashreserve Nominalvalue n/a

Tradingassets X Tradingassets

Derivativefinancialinstruments X Tradingassets

Loansandadvancestocreditinstitutions X Loansandadvances

Loansandadvancestocustomers X Loansandadvances

Securitiesandfinancialinvestments X Financialassetsat fairvalue throughprofitandloss

Securitiesandfinancialinvestments X Available-for-sale financialassets

thereoffinancialassets AtCost Available-for-sale nottradedon financialassets anaktivemarket

Positivefairvaluesofderivatives X n/a forhedgeaccounting(IAS39)

Liability classes

Tradingliabilities X Tradingliabilities

Derivativefinancialinstruments X Tradingliabilities

Liabilitiestocreditinstitutions X Financialliabilities

Liabilitiestocustomers X Financialliabilities

Debtsecuritiesissued X Financialliabilities

Debtsecuritiesissued X Financialassetsat fairvalue throughprofitandloss

Negativefairvaluesofderivatives X n/a forhedgeaccounting(IAS39)

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

72

Securities lendingRaiffeisenCentrobankconcludessecuritieslendingtransactionswithbanksorcustomersinordertomeetdeliveryobligationsortoconductsecuritysaleandrepurchaseagreements.Securitieslendingtransactionsareshowninthesamewayasgenuinesaleandrepurchaseagreements.ThismeansloanedsecuritiescontinuetoremaininthesecuritiesportfolioandarevaluedaccordingtoIAS39.Borrowedsecuritiesarenotrecognizedandnotvalued.CashcollateralprovidedbyRaiffeisenCentrobankforsecuritieslendingtransactionsareshownasaclaimunder"Loansandadvancestocreditinstitutions"or"Loansandadvancestocustomers"whilecollateralreceivedisshownas“Liabilitiestocreditinstitutionsor“Liabilitiestocustomers”inthebalancesheet.

Operating leaseAnoperatingleaseexistsifthelessorbearsallrisksandenjoystherewardsofownership.Theleasedassetsarereportedbythelessorunder“Tangiblefixedassets”anddepreciatedinaccordancewiththeprinciplesapplicabletothetypeoffixedassetsinvolved.TheleaseinstallmentspaidbytheRaiffeisenCentro-bankGroupfortheuseofleasedobjectsarerecognizedintheincomestatementas“Otheradministrativeexpenses”.

Consolidation principles

SubsidiariesAllmaterialsubsidiariesinwhichRaiffeisenCentrobankdirectlyorindirectlyhascontrolarefullyconsolidated.TheGrouphascontroloveranentitywhenitisexposed,orhasrights,tovariablereturnsfromitsinvolvementwiththeinvesteeandhastheabilitytoaffectthosereturnsthroughitspowerovertheinvestee.

Inordertodeterminewhenanentityhastobeconsolidated,aseriesofcontrolfactorshavetobechecked.Theseincludeanexaminationof

•thepurposeandtheconstitutionoftheentity,•therelevantactivitiesandhowtheyaredetermined,•iftheGrouphastheabilitytodeterminetherelevantactivitythroughitsrights,•iftheGroupisexposedtorisksoforhasrightstovariablereturns•iftheGrouphastheabilitytouseitspowerovertheinvesteeinordertoaffecttheamountofvariablereturns.

Ifvotingrightsarerelevant,theGrouphascontroloveranentity,inwhichitdirectlyorindirectlyholdsmorethan50percentofthevotingrights;exceptwhenthereareindicatorsthatanotherinvesteehastheabilitytodetermineunilaterallytherelevantactivitiesoftheentity.Oneormoreofthefollowingpointsmaybesuchanindicator:

•AnotherinvestorhascontrolovermorethanhalfofthevotingrightsduetoanagreementwiththeGroup•Anotherinvestorhastheabilitytocontrolfinancialpolicyandoperationalactivitiesoftheparticipationduetolegallaworanagreement.•AnotherinvestorhascontrolovertheparticipationduetoitspossibilitytoappointandwithdrawthemajorityofmembersoftheBoardormembersof anequivalentgoverningbody.•AnotherinvestorhascontrolovertheentityduetoitspossibilitytodisposeofthemajorityofthedeliveredvotingrightsinameetingofmembersoftheBoard orofmembersanequivalentgoverningbody

Whenjudgingcontrol,alsopotentialvotingrightsareconsideredasfarastheyarematerial.

TheGroupassessesevidenceofcontrolincasesinwhichitdoesnotholdthemajorityofvotingrightsbuthastheabilitytounilaterallygoverntherelevantactivitiesoftheentity.ThisabilitymayoccurincasesinwhichtheGrouphastheabilitytocontroltherelevantactivitiesduetoitssizeanddistributionofvotingrightsoftheinvestees.

Inprinciple,subsidiariesarefirstlyintegratedintheconsolidatedgrouponthedatewhentheGroupobtainscontrolofthecompanyandareexcludedfromthedateonwhenitnolongerhascontrolofthecompany.Theresultsfromsubsidiariesacquiredordisposedofduringtheyeararerecordedintheconsolida-tedincomestatement,eitherfromtheactualdateofacquisitionoruptotheactualdateofdisposal.TheGroupreviewstheadequacyofpreviousdecisionsonwhichcompaniestoconsolidateatleasteveryquarter.Accordingly,anyorganizationalchangesareimmediatelytakenintoaccount.Apartfromchangesinownership,thesealsoincludetheGroup’sexistingornewcontractualarrangementswithaunit.

Non-controllinginterestsareshownintheconsolidatedstatementoffinancialpositionaspartofequity,butseparatelyfromRaiffeisenCentrobank'sequity.Theprofitattributabletonon-controllinginterestsisshownseparatelyintheconsolidatedincomestatement.

Indebtconsolidation,intra-grouploansandliabilitiesareeliminated.Remainingtemporarydifferencesarerecognizedin"otherassets/otherliabilities"intheconsolidatedstatementoffinancialposition.

Intra-groupincomeandexpensesarealsoeliminatedandtemporarydifferencesresultingfrombankbusinesstransactionsareincludedpartlyinnetinterestincomeandpartlyinnettradingincome.Otherdifferencesareshownin"othernetoperatingincome."

Intra-groupresultsareeliminatedinsofarastheyhaveamaterialeffectontheincomestatementitems.BankbusinesstransactionsbetweenGroupmembersareusuallyexecutedonanarm'slengthbasis.

73

Changes in the Group’s participation quota of existing subsidiaries If,inthecaseofexistingcontrol,furthersharesareacquiredorsoldwithoutlossofcontrolinsubsequentconsolidation,suchtransactionsarerecognizeddi-rectlyinequity.ThecarryingamountofthesharesholdbytheGroupandthenon-controllinginterestsareadjustedinthewaythattheyreflectthechangesoftheparticipationquotaoftheexistingsubsidiaries.Anydifferencebetweentheamountwhichisadjustedforthenon-controllinginterestsandthefairvalueoftheconsiderationpaidorreceivedisrecognizeddirectlyinequityandisassignedtotheshareholdersoftheparentcompany.

Ifthecompanylosescontroloverasubsidiary,theincome/lossfromdisposalofgroupassetsisshownintheincomestatement.Thisiscalculatedasdifferencebetween

•thetotalamountoffairvalueofthereceivedconsiderationandfairvalueofthesharesretainedand•thecarryingamountofassets(includinggoodwill),liabilitiesofthesubsidiaryandallnon-controllinginterests

Allamountsrelatedtothesesubsidiariesandshowninothercomprehensiveincomearerecognizedasthiswouldbedoneincaseofsaleofgroupassets.Thismeanstheamountsarereclassifiedtoincomestatementordirectlytransferredtoretainedearnings.

Associated companiesAnassociatedcompanyisanentityoverwhichtheGrouphassignificantinfluence.Significantinfluenceisthepowertoparticipateinthefinancialandopera-tingpolicydecisionsofanentityinwhichsharesareheld.Thereexistsnocontrolorjointmanagementofdecisionmakingprocesses.Asarule,significantinfluenceisassumed,iftheGroupholds20to50percentofthevotingrights.Whenjudging,iftheGrouphastheabilitytoexertasignificantinfluenceonanotherentity,theexistenceandtheeffectofpotentialvotingrightswhichareactuallyusableorconvertiblearetakenintoaccount.Furtherparametersforjudgingsignificantinfluenceare,forexample,therepresentationinexecutivecommitteesandsupervisoryboards(SupervisoryBoardinAustrianJointStockcompanies)oftheentityandmaterialbusinesscaseswiththeentity.Sharesinassociatedcompaniesarevaluedatequityandshowninthestatementoffinancialpositonunder“Investmentsinassociates”.

Sharesinsubsidiariesnotincludedintheconsolidatedfinancialstatementsbecauseoftheirminorsignificanceandsharesincompaniesthathavenotbeenvaluedatequityareincludedin“financialinvestments”andaremeasuredatacquisitioncost.

Ateachreportingdate,theGroupreviewstowhatextentthereisobjectiveevidenceforimpairmentofaparticipationinanassociatedcompany.Ifthereisobjectiveevidenceofimpairment,animpairmenttestiscarriedouttodeterminetherecoverablevalueoftheparticipation-thisishigheroftheusablevalueandthefairvalueexcludingsellingcosts-andthecarryingamount.Animpairmentmadeinpreviousperiodsisreversedonlyiftheassumptionsunderlyingthedeterminationoftherecoverablevaluehavebeenchangedsincerecognitionofthelastimpairment.Inthiscasethecarryingamountiswrittenuptothehigherrecoverablevalue.

Business combinationsTheacquisitionofbusinessoperationsisrecognizedaccordingtotheacquisitionmethod.Theconsiderationtransferredinabusinesscombinationismeasuredatfairvalue.Thisiscalculatedastheaggregateoftheacquisition-datefairvalueofallassetstransferred,liabilitiesassumedfromformerownersoftheacquiredbusinesscombinationandequityinstrumentsissuedbytheGroupinexchangetocontrolofthebusinesscombination.Transactioncostsrelatedtobusinesscombinationsarerecognizedintheincomestatementwhenincurred.

Goodwillismeasuredastheexcessoftheaggregateofthevalueoftheconsiderationtransferred,theamountofanynon-controllinginterestandtheacquisition-datefairvalueoftheacquirer’spreviously-heldequityinterestintheacquiree(ifany),andthenetoftheacquisition-dateamountsoftheidentifiableassetsacquiredandtheliabilitiesassumed.Incasethatthedifferenceisnegativeafterfurtherreview,theresultinggainisrecognizedimmediatelyinincomestatement.

Cash reserveThecashreserveincludescashinhandandbalanceswithOesterreichischeNationalbank(theAustrianNationalBank)thatarepayableondemand.Theyareshownattheirnominalvalue.

Equity participationsShareholdinginsubsidiariesnotincludedintheconsolidatedfinancialstatementsbecauseoftheirimmaterialsignificance,andshareholdingsinassociatedcompaniesthatarenotvaluedatequityareshownunder“Securitiesandfinancialinvestments”.Theyaremeasuredatamortizedcostifnosharepricesareavailable.Impairmentisshownin“Netincomefromfinancialinvestments”.

Intangible fixed assetsPurchasedsoftwareandgoodwillarereportedunderthisitem.

Acquiredintangiblefixedassetswithparticularusefullives(software)arecapitalizedatacquisitioncostandamortizedovertheirestimatedusefullives.Theusefullifeforsoftwareamountstobetweenthreeandsevenyears.

Asatthebalancesheetdateandimpairmenttestforgoodwilliscarriedout.Incaseoftriggereventssuchimpairmenttestiscarriedoutinthecourseoftheyear.Incasethereisanindicationofimpairmentofanasset,suchimpairmentistoberecognizedpursuanttoIAS36.

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

74

Tangible fixed assets Tangiblefixedassetsarecarriedatcostlessdepreciationandimpairmentlosses.Theyareshownunder“Generaladministrativeexpenses”.Depreciationiscalculatedonastraightlinebasiswiththefollowingusefullivesapplieduniformlyinthecompany:

Landisnotsubjecttoscheduleddepreciation.

Expectedusefullives,residualvaluesanddepreciationmethodsarereviewedannually;allfuturechangeofestimatesistakenintoaccount.Ifapermanentimpairmentistobeexpected,extraordinarywrite-downsarecarriedout.Intheeventthatthereasonforthewrite-downnolongerapplies,awrite-upwilltakeplaceuptotheamountoftheamortizedcostoftheasset.

Theresultinggainorlossfromthesaleofatangiblefixedassetisdeterminedasthedifferencebetweentheproceedsonsaleandthecarryingamountoftheasset,andisrecognizedin“Otheroperatingresult”.Ifatangiblefixedassetisretired,theremainingcarryingamountisalsorecognizedunderthisitem.

InventoriesInventoriesaremeasuredatthelowerofcostornetrealizablevalue.Write-downsarecarriedoutiftheacquisitioncostisabovethenetrealizablevalueasofthebalancesheetdateorlimitedusageorlongerperiodsorstoragehaveimpairedthevalueoftheinventory.

Non-current assets held for sale and discontinued operationsNon-currentassetsanddiscontinuedoperationsareclassifiedasheldforsalewhentherelatedcarryingamountwillberecoveredprincipallythroughasaletransactionratherthanthroughcontinuinguse.Thisconditionisonlyconsideredmetifthesaleishighlyprobableandtheasset(ordiscontinuedoperation)isimmediatelyavailableforsaleandfurthermorethattheanagementhascommitteditselftoasale.Moreover,thesaletransactionmustbeduetobecompletedwithin12months.

Non-currentassetsanddiscontinuedoperationsclassifiedasheldforsalearevaluedattheloweramountoftheiroriginalcarryingvalueorfairvaluelesscoststosellandarereportedunderotherassets.Incomefromnon-currentassetsheldforsaleanddiscontinuedoperationsarereportedunderotheropera-tingincome.

IntheeventthattheGrouphascommittedtoasaleinvolvingthelossofcontroloverasubsidiary,allassetsandliabilitiesofthesubsidiaryconcernedareclassifiedasheldforsaleprovidedtheaforementionedconditionsforthisaremet.ThisappliesirrespectiveofwhethertheGroupretainsanon-controllinginte-restintheformersubsidiaryafterthesaleornot.Resultsfromdiscontinuedbusinessoperationsarereportedseparatelyintheincomestatementasresultfromdiscontinuedbusinessoperations.

Other provision ProvisionsarecreatedwhentheRaiffeisenCentrobankGrouphasacurrentobligationarisingfromapasteventanditisprobablethattheGroupwillbere-quiredtosettlethisobligation;andwhentheamountoftheobligationcanbemeasuredwithsufficientreliability.Theamountoftheprovisionrepresentsthebestpossibleestimateoftheresourcesrequiredtomeettheobligationasofthebalancesheetdate,takingintoaccounttherelatedrisksanduncertainties.Theseprovisionswerenotdiscountedbecausetheresultinginteresteffectwouldhavebeenimmaterial.Thesetypesofprovisionarereportedinthebalancesheetunderitem"Provisions".Allocationtothevarioustypesofprovisionisperformedbymeansofvari-ousitemsintheincomestatement.Restructuringprovisioning,provisioningforlegalrisksandotheremployeebenefitsarerecordedin“Generaladministrativeexpenses”.Provisionallocationsthatarenotassignedtoacorrespondinggeneraladministrativeexpenseareasamatterofprinciplebookedagainstotheroperatingincome.

Provisions for pensions and similar obligations Allprovisionsrelatedtoso-calledsocialcapital(provisionsforretirementbenefitsandseverancepayments)aremeasuredusingtheProjectedUnitCreditMe-thodinaccordancewithIAS19–EmployeeBenefits.

Pensioncommitmentsexisttowardsanemployeewhohasleftthecompany.Therearenopensioncommitmentstopeoplewhoarealreadyretired.Theactua-rialcalculationofthecompany’sprovisionsforretirementbenefitsisbasedonthefollowingassumptions:

Usefullife Years

Buildings 10–40

Officefurnitureandequipment 3–10

Hardware 3–5

inpercent 2014 2013

Discountrate 2.0 3.5

Expectedincreaseinretirementbenefits 0.0 2.0

75

Calculationsarebasedonatheoreticalretirementageof65years.

Theactuarialcalculationofseverancepaymentobligationsisbasedonthefollowingassumptions:

ThebiometricalbasisforthecalculationofallprovisionsforsocialcapitalisprovidedbyAVÖ2008-P-RechnungsgrundlagenfürdiePensionsversicherung(ComputationalFrameworkforPensionInsurance)-Pagler&Pagler,usingthevariantforsalariedemployeestakingintoaccountalongevityfactor.

Furtherdetailson“Provisionsforpensionsandsimilarobligations”areprovidedinthenotesunderitem(28).

Defined contribution pension schemesUnderdefinedcontributionplans,thecompanypaysfixedcontributionsintoapensionfund.Thesepaymentsarerecordedunder“Staffexpenses”intheincomestatement.

Employee compensation plansInRaiffeisenCentrobankvariablecompensationisbasedonabonuspoolthathasfixedminimumandmaximumlevelsandthusdefinesmaximumpayoutvalues.

Asofthefiscalyear2011,thegeneralandspecificprinciplesfortheallocation,theclaimandthepaymentofvariableremuneration(includingthepaymentofthedeferredportionofthebonus)foridentifiedstaff("riskpersonnel")areapplied:

•60percentoftheannualbonuswillbepaid•40percentoftheannualbonuswillbedeferredoveraperiodoffiveyears(deferralperiod).

RaiffeisenCentrobankdoesnotfulfilltheobligationarisingfromClause11oftheAnnextoSection39boftheAustrianBankingAct(BWG)whichstipulatesthatatleast50percentofthevariableremunerationofriskpersonnelmustbepaidoutintheformofsharesorsimilarnon-cashinstruments.

ForManagementBoardMembersofRaiffeisenCentrobankAG,thestipulationspursuanttoRZBGroupDirectiveTotalRewardsManagementareapplied,whichprovideforallocation,claimandpaymentofvariableremuneration(includingpaymentofthedeferredportionofthebonus)foridentifiedstaff(“riskpersonnel”).

•60percentoftheannualbonuswillbepaidoutonaproportionalbasisas50percentcashimmediately(up-front),and50percentthroughaphantom shareplan(seedetailsbelow),whichwillpayoutafteraholdingperiod(retentionperiod)ofoneyear.•40percentoftheannualbonuswillbedeferredoveraperiodoffiveyears(deferralperiod)andwillbepaidoutonaproportionatebasisas50percent incashand50percentthroughaphantomshareplan.

Theallocation,theclaimandthepaymentofthevariableremuneration(includingthepaymentofaportionofthedeferredbonus)dependonthefollowingcriteria:

•earninganetprofit,•theachievementofthelegallyrequiredcoretier1ratioofRaiffeisenCentrobankandoftheRaiffeisenBankInternationalGroup•theperformanceofthebusinessareaandtheaffectedperson.

Net interest incomeInterestandinterest-likeincomeiscomprisedprimarilyofinterestincomeonloansandadvancestocreditinstitutionsandcustomersaswellasinterestonfixed-interestsecurities.Interestandsimilarexpensesmainlyincludesinterestpaidonliabilitiestocreditinstitutionsandcustomersaswellasinterestonsubordinatedcapital.Interestincomeandexpensesareaccruedinthereportingperiod.Moreover,currentinterestincomefromsharesandothervariable-yieldsecurities(dividends)-ifnotallocabletotradingprofit-aswellasincomefromequityparticipationsandexpensessimilartointerestarereportedasnetinterestincome.

Net fee and commission income Netfeeandcommissionincomemainlyincludesincomeandexpensesarisingfrompaymenttransfers,securitiestransactionsnotclassifiedastradingprofitincludingincomefromprovidingservicesinconnectionwithcapitalmarkettransactions(IPOsandSPOs),currencyandcredittransactionsaswellasconsul-tingincomefromMergers&Acquisitions.Commissionincomeandexpensesareaccruedinthereportingperiod.

Trading profit Tradingprofitcomprisesthetradermarginsresultingfromforeigncurrencytransactionsandtheresultsofforeignexchangetranslation,andallrealizedandunrealizedgainsandlossesonfinancialassetsandfinancialliabilitiesatfairvalue.Inaddition,itincludesallinterestanddividendincomeattributabletotra-dingactivitiesandrelatedrefinancingcosts.

inpercent 2014 2013

Discountrate 2.0 3.5

Averageincreaseinsalary 3.0 3.0

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

76

General administrative expensesGeneraladministrativeexpensesincludestaffandotheradministrativeexpensesaswellasamortization/depreciationandimpairmentlossesfortangibleandintangiblefixedassets.

Income taxesProvisionsforincometaxesarecalculatedonthebasisoftaxableincomefortheyear.Taxableincomediffersfromthegroupnetprofitinthestatementofcomprehensiveincomeduetoincomeandexpenseswhichwillbecometaxableortaxdeductibleinlateryearsoratnopointintimeasthecasemaybe.ProvisionsforincometaxesoftheGrouparecalculatedonthebasisofprevailingor,withregardtothebalancesheetdate,shortlybecomingapplicabletaxrates.

DeferredtaxesarerecognizedandcalculatedinaccordancewithIAS12applyingtheliabilitymethod.Deferredtaxesarebasedonalltemporarydifferen-cesthatresultfromcomparingthecarryingamountofassetsandliabilitiesintheIFRSaccountswiththetaxbasesofassetsandliabilitieswhichwillberever-sedinthefuture.Thecalculationsarebasedonthetaxrateapplicabletothespecificcountry.Adeferredtaxassetshouldalsoberecognizedontaxlosscar-ry-forwardsifitisprobablethatsufficienttaxableprofitwillbeavailableagainstwhichthetaxlosscarry-forwardscanbeutilizedwithinthesameentity.Thecarryingamountofdeferredtaxassetsisauditedeachyearatthebalancesheetdateandimpairedifitisnolongerprobablethatsufficienttaxableincomeisavailableinordertorealizetheassetsinfullorinpart.Deferredtaxassetsanddeferredtaxliabilitieswithinthesameentityarenetted.

RaiffeisenCentrobankAG,Vienna,andRaiffeisenInvestmentAdvisoryGmbH,havebeenmembersofthecorporategroupofRaiffeisenZentralbankÖster-reichAktiengesellschaftpursuantto§9oftheAustrianCorporateIncomeTaxActsince2008.Inaddition,since2006RaiffeisenCentrobankAGhasalsobeenamemberofanequitygrouppursuantto§9AustrianCorporateIncomeTaxAct,inregardtoacompanyinwhichithasaminorityshareholding.Loansandadvancesandliabilitiesarisingfromapositiveornegativetaxcontributionarereportedrespectivelyunder(24)“Otherassets”or(31)“Otherliabilities”.

Currenttaxesandmovementsofdeferredtaxesarerecognizedintheincomestatement.Incasethattheyarelinkedtoitemswhicharerecognizedinothercomprehensiveincome,currentanddeferredtaxesarealsodirectlyrecognizedinothercomprehensiveincome.

TaxassetsandtaxliabilitiesofotherGroupcompaniesarecomprisedinitem(24)“Otherassets”oritem(28)“Provisions”respectively.

Other comprehensive incomeOthercomprehensiveincomecomprisesallincomeandexpensesdirectlyrecognizedinequityaccordingtoIFRSstandards.Incomeandexpensesrecog-nizeddirectlyinequitythatarereclassifiedintheincomestatementarereportedseparatelyfromincomeandexpensesrecognizeddirectlyinequitythatarenotreclassifiedintheincomestatement.Inparticular,thisincludesdifferencesresultingfromthetranslationofequityheldinforeigncurrencyand-whereappli-cable-changesresultingfromthevaluationofavailable-for-salefinancialassets(Afs)andtherelateddeferredtaxes.Revaluationsofdefinedbenefitplansarereportedinincomeandexpensesrecognizeddirectlyinequitythatarenotreclassifiedintheincomestatement

Fiduciary businessTransactionsarisingfromtheholdingandplacementofassetsonbehalfofthirdpartiesarenotshownonthebalancesheet.Commissionfeesarisingfromthesetransactionsarereportedunder“Netfeeandcommissionincome”.

Contingent liabilities and other off-balance sheet obligations Thisitemmainlyincludescontingentliabilitiesarisingfromsureties,guaranteecreditsandlettersofcreditaswellasloancommitmentsattheirnominalvalue.Suretiesrepresentcircumstancesunderwhichthereportingcompanyactsasaguarantortothecreditorofathirdpartyand,inthisfunction,isresponsibleforthefulfillmentofanobligationofthisthirdparty.Irrevocableloancommitmentsrepresentobligationsthatcanleadtoacreditrisk.Thesecommitmentsincludeobligationstograntloans,topurchasesecuritiesortoprovideguaranteesandbillsofacceptance.Loanlossprovisionsforcontingentliabilitiesandirrevo-cableloancommitmentsarereportedunderprovisionsforliabilitiesandcharges.

Disclosures regarding the cash flow statement ThecashflowstatementreportsthechangeincashandcashequivalentsfortheGroupresultingfromtheinflowsandoutflowsofpaymentsfromoperating,investingandfinancingactivities.Cashflowfromactivitiesiscomprisedaboveallofproceedsfromthesaleofandpaymentsfortheacquisitionoffinancialinvestmentsandtangiblefixedassets.Financingactivitiescompriseallcashflowsfromequitycapitalorsubordinatedcapital.Allothercashflowsareassig-nedtocashflowsfromoperatingactivitiesaccordingtointernationalpracticesforfinancialinstitutions.Disclosures on segment reporting InformationontheoperatingsegmentsofRaiffeisenCentrobankisprovidedunderSegmentReportingonpage28ff.

Disclosures regarding the nature and scope of risks InadditiontotheinformationpertainingtorisksarisingfromfinancialinstrumentsdisclosuresintheNotes,inparticularsection(41)“RiskReport”providesde-tailedexplanationsonthetopicsofmarketrisks,creditrisks,operationalrisksandliquidityrisks.

Capital managementDisclosuresoncapitalmanagement,ownfundsandrisk-weightedassetsarepresentedinthenotesundersection(47)“CapitalmanagementandownfundspursuanttoCRR/CRDIVandtheAustrianBankingAct”.

77

Application of new and revised standards

IAS 32 (Offsetting financial assets and liabilities; entry into force on January 1, 2014) TheamendmentsofIAS32clarifyexistingapplicationissuesrelatingtotheoffsettingoffinancialassetsandfinancialliabilities.Specifically,theamendmentsclarifythemeaningof“currentlyhasalegallyenforceablerighttosetoff”and“simultaneousrealizationandsettlement”.TheapplicationoftherevisedversionofIAS32hasnomaterialimpactontheconsolidatedfinancialstatementsofRaiffeisenCentrobank.

IAS 27 (Separate financial statements; entry into force on January 1, 2014) TherevisedIAS27willonlyberelevantforseparatefinancialstatements.TheapplicationoftherevisedversionofIAS27hasnoimpactontheconsolidatedfinancialstatementsofRaiffeisenCentrobank.

IAS 28 (Investments in associates and joint ventures; entry into force on January 1, 2014) JointventuresareaddedtothescopeoftherevisedIAS28,since,underIFRS11,jointventuresmayonlybeincludedintheconsolidatedfinancialstatementsaccordingtotheequitymethod.TheapplicationoftherevisedversionofIAS28hasnoimpactontheconsolidatedfinancialstatementsofRaiffeisenCentrobank.

IFRS 10 (Consolidated financial statements; entry into force on January 1, 2014)IFRS10replacesthepartsofIAS27(ConsolidatedandSeparateFinancialStatements)thatdealwithconsolidatedfinancialstatements.SIC-12(Consolidati-on–SpecialPurposeEntities)isreplacedbyIFRS10.InIFRS10,thereisonlyonebasisforconsolidation,namelycontrol.UnderIFRS10,controlexistsifaninvestorhasallthreeofthefollowingelements:(a)controllinginfluenceoveraninvestee,(b)exposure,orrights,tovariablereturnsfromitsinvolvementwiththeinvestee,and(c)theabilitytouseitspowerovertheinvesteetoaffecttheamountoftheinvestor'sreturn.Extensiveguidancehasbeenaddedinthestandardtodealwithcomplexscenarios.TheapplicationoftherevisedversionofIFRS10hasnoimpactontheconsolidatedfinancialstatementsofRaiffeisenCentrobank.

IFRS 11 (Joint arrangements; entry into force on January 1, 2014) IFRS11replacesIAS31(InterestsinJointVentures)andSIC-13(JointlyControlledEntities–Non-MonetaryContributionsbyVentures).IFRS11dealswithhowajointarrangementshouldbeclassified.Jointarrangementsareclassifiedasacontractualagreementinwhichtwoormorepartiespracticejointma-nagement.Jointmanagementcanextendtoajointventureorajointoperation.IncontrasttoIAS31,accountingforjointlycontrolledassetsisnolongeraddressedseparatelyinIFRS11;therulesforjointventuresareapplied.Theclassificationofajointarrangementasjointoperationorjointventuredependsontherightsandobligationsofthepartiestotheagreement.Inaddition,jointventuresunderIFRS11mustbeaccountedforusingtheequitymethod,whereasjointlycontrolledentitiesunderIAS31canbeaccountedforusingproportionateconsolidationortheequitymethod.TheapplicationofIFRS11hasnoim-pactontheconsolidatedfinancialstatementsofRaiffeisenCentrobank.

IFRS 12 (Disclosures of interests in other entities; entry into force on January 1, 2014)IFRS12isadisclosurestandardregardingstatementsinthenotesandisapplicabletoentitiesthathaveinterestsinsubsidiaries,jointarrangements(jointven-turesorjointoperations),associatesand/orunconsolidatedstructuredentities.Ingeneral,thedisclosurerequirementsinIFRS12arefarmoreextensivethanthoseinthecurrentstandards.

Amendments to IFRS 10, IFRS 11 and IAS 27 (Investment entities; entry into force on January 1, 2014)TheseamendmentsprovideanexceptiontotheconsolidationrequirementsofsubsidiariesinIFRS10(ConsolidatedFinancialStatements).Thisappliesiftheparentcompanymeetsthedefinitionofan“investmentcompany“(forexample,certainmutualfunds).Theseentitiesmeasuretheirinvestmentsinparticularsub-sidiariesatfairvaluethroughprofitorlossinaccordancewithIFRS9(FinancialInstruments)orIAS39(FinancialInstruments:RecognitionandMeasurement).TheseamendmentshavenoimpactontheconsolidatedfinancialstatementsofRaiffeisenCentrobank.

Amendments to IFRS 10, IFRS 11 and IFRS 12 (Transition guidance; entry into force on January 1, 2014)Asaresultoftheseamendments,thetransitionguidanceinIFRS10,IFRS11andIFRS12isclarifiedandadditionalreliefprovidedinallthreestandards.Ad-justedcomparativeinformationisonlyrequiredfortheprecedingcomparativeperiod.Inaddition,inconnectionwiththedisclosuresinthenotesonnon-conso-lidatedstructuredentitiesthereisnoobligationtoprovidecomparativeinformationforperiodsthatprecedethefirst-timeapplicationofIFRS12.

Amendments to IAS 36 (Recoverable amount disclosures for non-financial assets; entry into force January 1, 2014)ThechangesrepresentacorrectionofthedisclosurerulesthatwerechangedmoreextensivelythanintendedinconnectionwithIFRS13.Theserelatetoim-pairedassetsforwhichtherecoverableamountisequivalenttofairvaluelesscostsofdisposal.Atpresent,therecoverableamountmustbedisclosedregard-lessofimpairment.Thecorrectionnowrestrictsthedisclosuretoactualimpairments,butextendsthedisclosurestobemadeinsuchcases.

Amendments to IAS 39 (Novation of OTC derivatives and continuation of hedging relationship; entry into force January 1, 2014)Asaresultoftheamendments,derivativesremaindesignatedashedginginstrumentsinexistinghedgingrelationshipsdespitenovation.Novationreferstoca-sesinwhichtheoriginalpartiestoaderivativescontractagreethatacentralcounterpartyshallreplacetheiroriginalcounterpartytobecomethecounterpartytoeachoftheoriginalparties.Thefundamentalrequirementisthattheuseofacentralcounterpartyisrequiredbylaworregulation.Moreover,changestocontractualarrangementsmustbelimitedtothosethatarenecessaryfornovation.Theobjectiveoftheamendmentsistoavoidanyimpactonhedgeaccoun-tingasaconsequenceofthewrite-offofthederivativeontheconversionofthecontracttoacentralcounterparty.ThesechangeshavenomaterialimpactontheconsolidatedfinancialstatementsofRaiffeisenCentrobank.

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

78

IFRIC 21 (Levies; entry into force on January 1, 2014)IFRIC21containsguidanceastowhenaliabilityistoberecognizedforalevyimposedbyagovernment(e.g.banklevies).Theobligatingeventforthere-cognitionofaliabilityisidentifiedastheactivitythattriggerspaymentaccordingtotherelevantlegislation.Leviesdonothavetoberecognizeduntiltheobli-gatingeventhasoccurred.Theobligatingeventmayalsooccurgraduallyoveraperiodoftimeandtheliabilityisthereforerecognizedprogressively.

Standards and interpretations that are not yet applicable (already endorsed by the EU)Thefollowingneworamendedstandardsandinterpretations,whichhavebeenadopted,butarenotyetmandatory,havenotbeenappliedearly.

IAS 19 (Employee contributions; entry into force July 1, 2014)Theamendmentswillclarifytheprovisionsthatrelatetotheallocationofemployeeorthird-partycontributionslinkedtoservicetoperiodsofservice.Inadditi-on,asolutionthatsimplifiesaccountingpracticeispermittediftheamountofthecontributionsisindependentonthenumberofyearsofserviceperformed.TheseamendmentshavenomaterialimpactontheconsolidatedfinancialstatementsofRaiffeisenCentrobank.

Annual Improvements to IFRS – 2010–2012 cycle (entry into force July 1, 2014)TheAnnualImprovementstoIFRS–2010–2012cycleincludenumerousamendmentstovariousIFRS.Theamendmentsareeffectiveforannualperiodsbe-ginningonorafterJanuary1,2014.TheseamendmentshavenomaterialimpactontheconsolidatedfinancialstatementsofRaiffeisenCentrobank.

Annual Improvements to IFRS – 2011–2013 cycle (entry into force July 1, 2014)TheAnnualImprovementstoIFRS2011–2013cycleincludenumerousamendmentstovariousIFRS.Theamendmentsareeffectiveforannualperiodsbegin-ningonorafterJanuary1,2014.TheseamendmentshavenomaterialimpactontheconsolidatedfinancialstatementsofRaiffeisenCentrobank.

Standards and interpretations not yet applicable (not yet endorsed by the EU)

IFRS 9 (Financial Instruments; entry into force January 1, 2018)IFRS9(financialinstruments),issuedinNovember2009,introducednewrequirementsfortheclassificationandmeasurementoffinancialassets.IFRS9wasamendedinOctober2010toincluderequirementsfortheclassificationandmeasurementoffinancialliabilitiesandforderecognition.KeyrequirementsofIFRS9are:

AccordingtoIFRS9,allrecognizedfinancialassetsmustbesubsequentlymeasuredatamortizedcostorfairvalue.Specifically,debtinvestmentsthatareheldwithinabusinessmodelwhoseobjectiveistocollectthecontractualcashflows,andthathavecontractualcashflowsthataresolelypaymentsofprinci-palandinterestontheprincipaloutstandingaremeasuredatamortizedcostattheendofsubsequentaccountingperiods.Allotherinstrumentsmustbemea-suredatfairvalue.

IFRS9alsoincludesanirrevocableoptiontorecognizesubsequentchangesinthefairvalueofanequityinstrument(notheldfortradingpurposes)inothercomprehensiveincomeandtorecognizeonlydividendincomeintheprofitandlossstatement.Withregardtothemeasurementoffinancialliabilities(desig-natedasmeasuredatfairvaluethroughprofitorloss),IFRS9requiresthatchangesinfairvaluearisingoutofchangesinthedefaultriskofthereportingentityaretoberecognizedinothercomprehensiveincome.However,thisdoesnotapplyifrecognitionofsuchchangesinothercomprehensiveincomewastocreateorincreaseanaccountinginconsistencyinorcomparedtotheprofitandlossstatement.Changesinfairvalueattributabletoareportingentity’sowncreditriskmaynotbesubsequentlyreclassifiedtoprofitorloss.RCBanticipatesthattheapplicationofIFRS9inthefuturemayhaveasignificantimpactonamountsreportedinrespectoftheGroup'sfinancialassetsandfinancialliabilities.However,itisnotpracticabletoprovideareasonableestimateoftheim-pactofIFRS9untiladetailedreviewhasbeencompleted.

ThepublishedversionofIFRS9nolongerincludesaneffectivedate,asthecompletionoftheoutstandingprojectphasesisstillpending.InFebruary2014,theIASBdecidedthatthemandatorydateoftheinitialapplicationofIFRS9willbeJanuary1,2018.

IFRS 15 (Revenue from contracts with customers; entry into force January 1, 2017)Thestandardregulatesthedeterminationwhentorecognizerevenueandhowmuchrevenuetorecognize.IFRS15replacesIAS18'Revenue',IAS11'Con-structioncontracts'andaseriesofrevenue-relatedinterpretations.TheapplicationofIFRS15isobligatoryforallIFRSusersandisvalidforalmostallcontractswithcustomers–thematerialexemptionsareleasingcontracts,financialinstrumentsandinsurancecontracts.

IFRS 14 (Regulatory deferral accounts; entry into force January 1, 2016)JustentitiesfirstlyapplyingIFRSandwhorecognizeregulatorydeferralsaccordingtothepreviousaccountingstandardsareallowedtocontinuewithregula-torydeferralsaftertransitionintoIFRS.Thestandardisintendedtobeashort-terminterimsolutiontilltheIASBconcludesthelong-termfundamentalprojecttoprice-regulatedbusinesstransactions.

Amendments to IFRS 11 (Joint arrangements; entry into force January 1, 2016)TheamendmentstoIFRS11(Recognitionofacquiredsharesofajointarrangement)modifiesIFRS11,sothattheacquirerofsharesofajointarrangementrepresentingabusinessoperationasdefinedinIFRS3,hastoapplyallprinciplesregardingtherecognitionofbusinesscombinationsaccordingtoIFRS3andotherIFRS,asfarastheydonotcontradictotherrulesofIFRS11.

79

Amendments to IAS 16/IAS 38 (Clarification of acceptable methods of depreciation; entry into force January 1, 2016)Theseamendmentsprovideguidelinesformethodsofdepreciationontangibleandintangiblefixedassetstobeused;especiallyrelatedtorevenue-basedmethodsofdepreciation.

Amendments to IAS 27 (Equity-method in separate financial statements; entry into force January 1, 2016)Theseamendmentsallowinvestorsinseparatefinancialstatementstousetheoptionofrecognizingsharesinsubsidiaries,jointventuresorassociatedentitiesatequity.

Amendments to IFRS 10/IAS 28 (Disposal or contribution of financial assets between an investor and an associated entity or joint venture; entry into force January 1, 2016)Theamendmentsclarifythatrevenuerecognitionoftransactionswithanassociatedentityorjointventureisdependentonthefactthatthedisposedorcontri-butedfinancialassetsrepresentabusinessoperation.

Annual Improvements to IFRS – 2012–2014 cycle (entry into force January 1, 2016)AmendmentsandclarificationstoseveralIFRS.

Vienna,15April2015TheManagementBoard

WilhelmCeledaChiefExecutiveOfficer

MarkusKirchmairMemberoftheManagementBoard

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

80

Auditor’sreport

ReportontheConsolidatedFinancialStatementsWehaveauditedtheaccompanyingconsolidatedfinancialstatementsofRaiffeisenCentrobankAG,Vienna,fortheyearfrom1January2014to31December2014.Theseconsolidatedfinancialstatementscomprisetheconsolidatedbalancesheetasof31December2014,theconsoli-datedstatementofcomprehensiveincome,theconsolidatedcashflowstatementandtheconsolidatedstatementofchangesinequityfortheyearended31December2014andasummaryofsignificantaccountingpoliciesandotherexplanatorynotes.

Management'sResponsibilityfortheConsolida-tedFinancialStatementsandfortheAccountingSystemTheCompany’smanagementisresponsiblefortheGroupaccountingsystemandforthepreparationandfairpresentationoftheseconsolida-tedfinancialstatementsinaccordancewithInternationalFinancialRepor-tingStandards(IFRSs)asadoptedbytheEU.Thisresponsibilityincludes:designing,implementingandmaintaininginternalcontrolrelevanttothepreparationandfairpresentationoftheconsolidatedfinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror;selectingandapplyingappropriateaccountingpolicies;andmakingaccountingestimatesthatarereasonableinthecircumstances.

Auditor'sResponsibilityandDescriptionofTypeandScopeoftheStatutoryAuditOurresponsibilityistoexpressanopinionontheseconsolidatedfinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithlawsandregulationsapplicableinAustriaandinaccordancewithInternationalStandardsonAuditing,issuedbytheInternationalAuditingandAssuranceStandardsBoard(IAASB)oftheInternationalFederationofAccountants(IFAC).Thosestandardsrequirethatwecomplywithprofessi-onalguidelinesandthatweplanandperformtheaudittoobtainreasona-bleassuranceaboutwhethertheconsolidatedfinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresintheconsolidatedfinancialstatements.Theproceduresselecteddependontheauditor'sjudgment,includingtheas-sessmentoftherisksofmaterialmisstatementoftheconsolidatedfinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheGroup’spreparationandfairpresentationoftheconsolidatedfinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances.butnotforthepurposeofexpressinganopinionontheeffectivenessoftheGroup’sinternalcontrol.Anauditalsoincludesevaluatingtheappropria-tenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebymanagement.aswellasevaluatingtheoverallpresen-tationoftheconsolidatedfinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

OpinionOurauditdidnotgiverisetoanyobjections.Inouropinion,whichisbasedontheresultsofouraudit,theconsolidatedfinancialstatementscomplywithlegalrequirementsandgiveatrueandfairviewofthefinan-cialpositionoftheGroupasof31December2014andofitsfinancialperformanceanditscashflowsfortheyearfrom1Januaryto31Decem-ber2014inaccordancewithInternationalFinancialReportingStandards(IFRSs)asadoptedbytheEU.

ReportontheManagementReportfortheGroupPursuanttostatutoryprovisions.themanagementreportfortheGroupistobeauditedastowhetheritisconsistentwiththeconsolidatedfinancialstatementsandastowhethertheotherdisclosuresarenotmisleadingwithrespecttotheCompany’sposition.Theauditor’sreportalsohastocontainastatementastowhetherthemanagementreportfortheGroupisconsistentwiththeconsolidatedfinancialstatementsandwhetherthedisclosurespursuanttoSection243aUGB(AustrianCommercialCode)areappropriate.

Inouropinion,themanagementreportfortheGroupisconsistentwiththeconsolidatedfinancialstatements.ThedisclosurespursuanttoSection243aUGB(AustrianCommercialCode)areappropriate.

WilhelmKovsca(AustrianCharteredAccountant)

JosefKirchknopf(AustrianCharteredAccountant)

Vienna,April15,2015KPMGAustriaGmbHWirtschaftsprüfungs-undSteuerberatungsgesellschaft

81

ManagementReportofRaiffeisenCentrobankAGforthe2014financialyear

Theadditionofroundednumbersusingautomatedsystems,aswasdoneforthisreport,mayresultinminordifferencesinamounts.Thechangesindicatedinpercentrefertotheactualamountsandnottheroundedamountsshowninthisreport.

Alldesignationsthatareusedtorefertopersonsinthisreportapplyequallytobothgendersunlessreferenceisbeingmadetoaspecificindividual.

82

EconomicConditionsThemacroeconomicconditionsmadeforaverychallengingbusinessenvironmentin2014.ThesituationinEuropewasdrivenbytheconflictbetweenRussiaandUkraineandtheassociatedeconomicsanctionsim-posedbytheEUCommission,continuedlowinterestrates,andthestagna-tingeconomy.TheEurozonesaweconomichighsandlowsin2014.The-sewerereflectedaboveallinthesentimentindicators,whichclimbedatthebeginningoftheyearbutthenlostgroundagaininthesecondhalfoftheyear.WhiletheeconomicupswingcontinuedtosteamaheadintheUSA,theEurozonefellbehindtheexpectationsasitstagnatedatonly0.8percentannualizedgrowth,withprivateconsumptionandarecoveryinexportspreventingaslideintonegativeterritory.Nevertheless,aseriesoffactorspointedtothepossiblepositivedevelopmentoftheEurozoneeconomyoverthemediumterm.TheseespeciallyincludetheexpansivemonetarypolicyoftheEuropeanCentralBank,goodprospectsfortheexportindustrythankstotheweakeuro,andtheburgeoningUSandBritisheconomies.Thelowoilprice,whichisnotonlyboostingconsumerpurchasingpowerbutalsodecreasingcostsforcompanies,isalsogoodnews.TheAustrianeconomysteadilylostmomentumoverthecourseof2014.Thethirdquarterbroughtalowpoint,whentherealgrossdomesticproductcontractedby0.3percentinannualizedtermsbetweenJulyandSeptember.Thisweakrecoverywasabovealltheresultofdecliningpriva-teinvestmentactivity.TheRussia-Ukraineconflictremainedoneoftheprimaryriskfactors,especiallyforinvestmentdecisionsintheEurozone.Incontrast,theUSAenteredaself-sustainingupswingthatwilllikelylastthrough2015.Theeconomytherewasmorerobustthanithasbeensince1980withfewexceptions.

FinancialMarkets

WhiletheFederalReservedecidedtoenditsbondpurchasingprograminOctober2014,takinganimportantsteptowardsnormalizingitsmonetarypolicy,theEuropeanCentralBank(ECB)decidedtoexpanditssecuritiespurchasestoincludegovernmentbondsinresponsetothethreatofdeflati-onintheEurozone.AccordingtotheECB,thekeyinterestrateswillgonolower.Theyielddifferencebetweentwo-yearGermanandAmericangovernmentbondsremainedthekeydeterminantoftheEUR/USDex-changerate.ThisyielddifferencewidenedtothebenefitoftheUSdollarbetweenthesummerandendof2014.TheEUR/USDratewasatjustun-der1.20attheendoftheyear.Littleisexpectedtochangeinthediver-gingmonetarypoliciesoftheFedandECBin2015.

Ontheequitymarkets,theUSAshowedthebestperformance.Drivenbythestrongeconomicexpansionandtheresultingcorporateearningsgrowth,theS&P500roseby15percent,showingthehighestgainsofanydevelopedmarket.TheNikkei225alsoroseby7.1percent,buoyedbythecapitalbeingpumpedintothesystembytheJapaneseNationalBank.DevelopmentsinEuropevariedwidely.WhileGermany’sDAXma-nagedtoclimbby2.7percent,theregionalEasternEuropeindexoftheViennaStockExchange(CECE)lost6percent,Britain’sFTSE2.7percent,andAustria’sATX15percent.ThenegativeperformanceoftheATXcanbeattributedtotheRussia-Ukrainecrisis,thegenerallyweakeconomicdevelopmentoftheEurozone,andprofitwarningsfromsomecompanies.Russia’sMICEXgainedgroundagainoverthecourseoftheyear.Howe-ver,thesegainsmustbeviewedinthecontextofthemassivedevaluationoftheRussianruble,whichlostonethirdagainsttheeuro.

CommodityMarkets

StartingataclosingpricefortheyearofUSD2265/t(SingaporeEx-change:TSR20),naturalrubberpricesfellsubstantiallyinJanuary,thenstabilizedtoacertainextent,androseagainstartingattheendofFebrua-ry(USD1790/t)toreachUSD2006/t.ThesubsequentpricedeclinelasteduntiltheendofApril(USD1646/t).ThesubsequentsidewaystrendwasinterruptedbyabriefjumpattheendofJune(USD1795/t),andpri-cesthenfellsteadilyuntilthebeginningofOctober(USD1387/t).AfterreachingUSD1600/tattheendofOctober,theclosingpricefor2014wasUSD1522/t.ThepricefelltoaroundUSD1400/tinthemiddleofJanuary2015.Supplycontinuedtoexceeddemand,whichwasreflectedinthelowpricelevel.

TheolefinsthataretradedbyCentrotradeChemicalscorrelatewiththeoilprice.ThiswasbelowUSD110/bblforthemajorityofthefirsthalfoftheyear,androsetoaroundUSD115/bblattheendofJuneduetotheunrestinIraq.Thisclimbwasonlybrief,andwaswipedoutbyadrasticslideinthesecondhalfoftheyear(especiallystartinginSeptember).TheclosingpricefortheyearwasroughlyUSD56/bbl.

DevelopmentofBusinessandEarnings2014DevelopmentofEarnings

Withanoperatingincomeof€61.856millionandoperatingexpensesof€46.193million,anoperatingresultof€15.663millionwasgeneratedinthe2014financialyear.Underconsiderationofnetvaluationsandnetpro-ceedsintheamountofminus€3.300million,theresultonordinaryactivi-tiescameto€12.364million.Thepreviousyearresultonordinaryactivi-tieswhichamountedto€21.657millionwasundercutby€9.293or42.9percent.

Duetothechallengingmarketenvironment,theoperatingincome2014fellby11.7percentor€8.206millionto€61.856million.Thedeclineinoperatingincomeisattributabletoanegativenetinterestincome,lowernetfeeandcommissionincomeandadeclineinincomefromshares,sharerightsandvariable-yieldsecurities.Thisdeclinecouldnotbeoffsetbyariseinnetprofitonfinancialtradingactivities.

Thenegativenetinterestincomeisprimarilyduetohigherinterestexpensesrelatedtotheissueofstructuredproductswhichcontraststoapositivevalu-ationresultfromtradablemoneymarketdepositsinthetradingprofit.

ThedeclineinnetfeeandcommissionincomeresultsfromanegativenetfeeandcommissionincomeinthesecuritiesbusinessrelatedtohighercommissionstoforeignpartnersandlowercommissionincomeformtheM&Abusiness,whichcouldonlypartlybeoffsetbyhigherincomefromequitycapitalmarkettransactions.

83

Balancesheetdevelopment

ComparedtoDecember2103,thebalancesheettotalrosebyroughly9percentfromroughly€2,499milliontoroughly€2,713million.

Ontheassetside,themostsignificantchangecomparedto2013wasintheitem“Loansandadvancestocreditinstitutions“(roughly62percentofthebalancesheettotalon31December2014androughly53percenton31December2013).Theitemincreasedbyroughly€371milliontoroughly€1,691million,andcontainsmainlytradablemoneymarketdepo-sits(roughly€1,181million),unlistedbonds(roughly€133million.)andcollateralforsecuritiestransactionsandsecuritieslendings(roughly€97million).Interbankdepositswhichrosebyroughly€55milliontoroughly€223millioncomparedtothepreviousyearexclusivelycomprisedepo-sitsatRaiffeisenBankInternational(previousyear:€167million).Compa-redtothepreviousyear,collateralincreasedbyroughly€8million,unlis-tedbondsdroppedby€97million,whereastradablemoneymarketde-positsrosebyroughly€361million.

“Bonds,notesandotherfixed-interestsecurities“(roughly9percentofthebalancesheettotalon31December2014androughly14percenton31December2013)declinedbyroughly€101milliontoroughly€239milli-oncomparedtothepreviousyear.Thedeclineismainlyduetoadropinlistedbondssubstitutedbytradablemoneymarketdeposits.

Theitem“Sharesandothervariable-yieldsecurities(roughly16percentofthebalancesheettotalon31December2014androughly20percenton31December2013)fellmyroughly€63milliontoroughly€439million,mainlyasaresultofthedeclineinforeignsharesbyroughly€50million.

Theshares,purchasedoptionsandzerobondsreportedunderotheritemsserveashedgesfortheissuedcertificatesandwarrants,orarepartoftheBank’smarketmakeractivities.

Theitem“Otherassets“(roughly4percentofthebalancesheettotalon31December2014androughly5percenton31December2013)declined,mainlyinlistedoptions,byroughly€11milliontoroughly€117million.

Theitem“Loansandadvancestocustomers“(roughly5percentofthebalancesheettotalon31December2014androughly6percenton31December2013)recordedadecreasebyroughly€15milliontoroughly€126million.Thisdeclineismainlyattributabletoalowerloanvolumeinthecorporatecustomersegment.

in€million€ 2014 2013 Change

Operating income 61.856 70.062 (11.7%)

Staffexpenses (27.327) (28.684) (4.7%)

Otheradministrativeexpenses (15.007) (16.617) (9.7%)

Depreciation (1.710) (1.754) (2.5%)

Otheroperatingexpenses (2.148) (0.728) >100.0%

Operating expenses (46.193) (47.784) (3.3%)

Operating result 15.663 22.278 (29.7%)

Valueadjustments,netproceeds (3.300) (0.621) >100.0%

Result on ordinary activities 12.364 21.657 (42.9%)

Taxes (3.766) (5.147) (26.8%)

Net profit for the year 8.598 16.510 (47.9%)

Netprofitonfinancialtradingactivitiesimprovedcomparedtothepreviousyearperiod,which,intermsofvolume,isprimarilyduetotheexpansionofthecertificatesandsalesbusiness.Incontrastthereto,thereisanegativevaluationresultfurthertomarket-relatedadjustmentsintradablemoneymarketdeposits.

Operatingexpensescameupto€46.193millionandwereby3.3percentor€1.591millionbelowthepreviousyearresultof€47.784million.Staffexpensesamountingto€27,327millionandotheradministrativeex-pensessummingupto€15,007millionbothundercutthepreviousyearvaluesby€1.357millionand€1.611million,respectively.Thisismainlyattributabletolowerprovisionsforbonuspayments,whichwerepartlycompensatedbyhigherprovisionsforseverancepayments.Inotheradmi-nistrativeexpenses,legal,advisoryandconsultancyservicesdeclined,sundryadministrativeexpensesdecreasedinparticularduetolowerstaffexpensescharged,whereasexpensesforcommunicationrecordedanin-crease.

Thecost/incomeratio,whichhadcomeupto68.2percentin2013,roseto74.7percentfurthertothedeclineinoperatingincome.

Thechangeinvaluationresultsandnetproceedsresultsmainlyfromane-gativevaluationresultintheamountof€2.070million(2013:€0.002million)insecuritiesclassifiedascurrentassetsandfromhigherprovisionsforpotentiallossesinaffiliatedcompaniesintheamountof€0.950million.

Theresultonordinaryactivities2014amountedto€12.364millioncom-paredto€21.657millioninthepreviousyear.

Inthe2014financialyear,incometaxescameto€0.253million(2013:€1.964million).Thedeclineisprimarilyattributabletotaxincomefromthesettlementofthegroupchargefortheyears2005to2007(€1.136million).

Othertaxesamountedto€3.512millioninthe2014financialyear(2013:€3.183million).Theyincludevalue-addedtaxesandbanklevieswhichroseby€1.077millionto€2.060millioncomparedtothepreviousyearperiodfurthertoalegalchangeinthecalculationmethod).

Thenetincomefortheyearamountsot€8.598million(2013:€16.510million).

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

84

in€€million 2014 2013

ROE before tax 13.2% 23.7%

Cost/income ratio 74.7% 68.2%

Corecapital(tier1)afterdeductions 87,740 89,115

Eligible own funds 87,740 89,115

Ownfundsrequirement 54,638 57,436

Surplus of own funds 33,101 31,679

Own funds ratio* 12.8% 12.4%

Core capital ratio** 12.8% 12.4%2014:*) Calculation:eligibleownfunds/assessementbasistodetermineownfundsrequirementpursuanttoCRR**)Calculation:corecapital(tier1)/assessmentbasistodetermineownfundsrequirementpursuanttoCRR

2013:*) Calculation:eligibleownfunds/assessementbasistodetermineownfundsrequirementpursuanttoAustrianBankingAct**)Calculation:corecapital(tier1)/assessmentbasistodetermineownfundsrequirementpursuanttoAustrianBankingAct

Keydata

Thesubsequentchartdepictsthekeydata:

Theitem“Bondsandnotesissuedbypublicbodies“(roughly2percentofthebalancesheettotalon31December2014androughly1percenton31December2013)containsAustrianorGermangovernmentbonds.

Zerobonds,structurednotesandtradabledepositspurchasedbyRBIinrelationtotheissuingactivitiesinthecertificatesbusinessareincludedin“Loansandadvancestocreditinstitutions“,“Sharesandothervariable-yieldsecurities”andin“Bonds,notesandotherfixed-interestsecurities”andcomeuptoatotalofroughly€1,500million(December2013:roughly.€1,315million).Inaddition“Otherassets“includeOTCoptionspurchasedfromRBIintheamountofroughly€ 45million.

Ontheequityandliabilitiesside“Otherliabilities“(roughly56percentofthebalancesheettotalon31December2014androughly58percenton31December2013)recordedarisebyroughly€63million.Theitem“Liabilitiestocreditinstitutions”(roughly3percentofthebalancesheettotalon31December2014androughly4percenton31December2013)declinedbyroughly€37millionto€75millionismainlyduetolowermoneymarketdepositsofAustrianbanks.Thegrowthinitem“Otherliabilities”byroughly€63milliontoroughly€1,515millionisprimarilyattributabletoanincreasedvolumeofcertificatesbyroughly€87million,whileshort-sellingsoftradingassetsfellbyroughly€67million.Short-sel-lingswereeffectedinconnectionwiththemarketmakingactivitiesofRaiff-eisenCentrobankinrelationtopensionplansandrepresentoffsettingitemstoequityandequityindexfuturesaswellastocashpositionsontheassetsideofthebalancesheet.Theriseinitem„Liabilitiestocustomers“(roughly8percentofthebalance

sheettotalon31December2014androughly5percenton31Decem-ber2013)byroughly€99milliontoroughly.€230millionisprimarilyattributabletohigherliabilitiesofforeigncustomers.

“Securitizedliabilities“(roughly28percentofthebalancesheettotalon31December2014androughly27percenton31December2013)in-creasedbyroughly€95milliontoroughly€772million,primarilyasaresultofissuingnewbonds.

“Provisions”(roughly1percentofthebalancesheettotalon31Decem-ber2014androughly1percenton31December2013)declinedinthecomparativeperiodfromroughly€20.1millionon31December2013toroughly€18.6millionon31December2014.Thisisprimarilyduetoareductioninprovisionsforbonuspayments(2014:roughly€1.8million,2013:€4.4milllion).Provisionsforseverancepaymentsrecordedanincre-aseinparticularfurthertohigherprovisionsforrestructuringmeasures.

Thedeclinein“Netprofitfortheyear”(roughly0percentofthebalancesheettotalon31December2014androughly1percenton31Decem-ber2013)byroughly€8.1milliontoroughly€10.3millionrepresentsthebalanceofdividendpaymentsforthe2013financialyearcominguptoroughly€13.8millionandthenetincomeforthe2014financialyearintheamountofroughly€8.6million.Inaddition,€3.0millionwerealloca-tedtoretainedearnings.

85

SegmentReportingInthe2014financialyear,itwasdecidedtorestructurethebusinessmodelofRaiffeisenCentrobankandtofocusthecoreareasofbusinessonequitytradingandsalesaswellasoncertificates.Followingthesedecisions,theEquityCapitalMarkets(ECM),Mergers&Acquisitions(M&A)businesssegmentsincludingthesubsidiariesandthecommoditytradingsubsidiarieswillbesoldorclosedorwillbetransferredtoRaffeisenBankInternationalortherespectivenetworkbanks.

SegmentsofRaiffeisenCentrobankAG

Securities Trading & Sales and TreasuryRaiffeisenCentrobankisthelargestplayerincertificatesandequitiestradingandholdsakeypositiononthemarketsinCentralandEasternEurope.

TradingvolumeontheViennaStockExchangerosebyanimpressive23percentinannualcomparison,butliquidityonothermarketsthatarerelevantforRaiffeisenCentrobankcontractedfurtheringeneral(WarsawStockExchangeminus6percent,andtheexchangesinPragueandBu-dapestfellbyroughly20percenteach).Thedevelopmentoftherelevantequityindiceswasalsonotuniform.LargerwesternEuropeanindicespos-tedslightgainsinannualcomparison,whiletheATXfellsubstantially(minus15percent)andotherindicesintheregionlesssubstantially(suchastheWIG20atminus3.5percent).

Duetothemarginpressureandcontinuedlowtradingvolumesinlong-termcomparison,grossincomeincustomerbusinesswithstockscontinuedtosuffer,asdidmarketmakingandproprietarytradingingeneral.WearehappytoreportthatRaiffeisenCentrobankwasagainthelargestmarketparticipantontheAustrianequitymarketin2014withashareof9.2percentoftheViennaStockExchange’sspotmarket.RaiffeisenCentrobankalsogeneratedthegreatestsalesofanymarketmakerandspecialistontheViennaStockExchange.

InstitutionalEquitySalesTheshareoftheAustrianequitymarketinthecustomerbusinesssegmentwasincreasedfrom8.9to10.2percent.

Themarketingactivitieswerecontinuedatthesamehighlevelaslastyear:33researchroadshows74corporateroadshows21institutionallunchesforAustrianinstitutionalinvestors5reverseroadshows27transactionroadshows

InadditiontothetraditionalinvestorconferenceinZürswithanewrecordnumberofparticipants(60companies,150investors,1,100one-on-onemeetings),asuccessfulinvestorconferencewasalsoorganizedinWar-saw(14companies,29investors,121one-on-onemeetings).BusinesswithPolishinvestorswasincreasedsignificantlythroughthefruitfulcollaborationwithRaiffeisenPoland(plus250percent).Significantdemandforthepri-marymarkettransactionswecompletedintheperiod(RaiffeisenBankIn-ternational,PORR,TelekomAustria,ElectricaS.A.)wasalsogeneratedthroughlocalbrokers.

ThesuccessfulconclusionoftheRaiffeisenbankInternationalorderroutingprojectagainhighlightedthecentralpositionthatRaiffeisenCentrobankplaysastheequityhouseoftheRaiffeisenbankInternationalGroup.Elect-ronicsalestradingwasexpandedsignificantlyandoffersconsiderablegrowthpotentialfor2015aswell.

Trading/MarketMakingRaiffeisenCentrobankagaindefendeditsmarketleadershipintheViennaStockExchange’smarketmakingsegmentin2014.Intheprimemarket,RaiffeisenCentrobankreceived37ofthe39totalmarketmakerand/orspecialistmandatesandwasthelargestmarketmakerontheViennaStockExchangewithashareof19.3percent.

WiththetransferofthederivativeinstrumentsfromtheOeTOBViennatotheEurexFrankfurt,RaiffeisenCentrobankassumedalargenumberofmar-ketmakermandatesforAustrianandEasternEuropeanbluechipsontheEurexFrankfurt.InadditiontotheEurex,RaiffeisenCentrobankexpandeditsequities,certificates,andderivativesmarketmakingactivitiesonvariousforeignexchangessuchastheWarsawStockExchangeandtheBucha-restStockExchangebywinningnewmandatesandexpandingitsmarketmakingtonewproductclasses.

StructuredProductsTheverypositivecourseofbusinessfortheStructuredProductsdepartmentfromtheprioryearscontinuedwithanotherrecordresultin2014.Certifica-tesaretakingonanincreasinglyimportantroleasafixedpartofamo-dernportfolio.RaiffeisenCentrobanksawsignificantgrowthinallofitscoremarketsandcustomergroups.TheoutstandingmarketvolumeforRaiffeisenCentrobankcertificatesroseagaintoanall-timehighof€3.1billion,evenfarsurpassingthelevelachievedin2006/2007.Thisenab-ledRaiffeisenCentrobanktoextenditsleadershiponthedomesticcertifi-catemarketandtoincreaseitsmarketshareby27percent(correspondsto15percentagepoints).Totalturnoverfor2014cameto€1.4billion,anincreaseofover10percentinannualcomparison.Withashareofover70percent,bonusandguaranteecertificateswerethemostpopularproductcategoriesbyfar.Attractiveyieldpotentialwith(partial)protectionisinhighdemandinthecurrentlow-interestenvironment.This(partial)pro-tectionmechanismsofferslowerriskthananinvestmentinequitiescom-binedwithahigherpossibleyieldthanispossiblefromaninvestmentinbonds–anidealcombinationformanyinvestorsunderthecurrentcondi-tions.AsanAustrianissuer,activityfocusednotonlyonproductsbasedonthetraditionallyimportanthomemarket,butalsoonmajorEuropeanandglobalindicessuchastheEuroStoxx50andSTOXXGlobalSelectDivi-dend100andonEasternEuropeanbluechips.

Inadditiontoreturnandsecurity,agrowingnumberofinvestorsarealsofocusingonsociallyresponsibleinvesting.RaiffeisenCentrobankaddressedthistrendwithcorrespondingnewissues.Allinall,RaiffeisenCentrobankissued3,256productsin2014,bringingthetotalofitspublic-lyofferedissuestoanewrecordofover4,300asoftheendoftheyear.InadditiontotheViennaStockExchange,allRaiffeisenCentrobankcertifi-catesarelistedontheleadingEuropeancertificateexchangesinStuttgart(EUWAX)andFrankfurt.TheEasternEuropeanexchangesinWarsaw,Prague,Budapest,andBucharestarealsobecomingmoreimportantintermsofthenumberoflistedRaiffeisenCentrobankproductsandturnoverfortheseproducts.AnotherrecordresultwasachievedonthecoremarketsinEasternEurope.Revenuehererosebynearly20percentinannualcom-parison.RaiffeisenCentrobankiscurrentlyactiveinninecountriesinCen-tralandEasternEuropeandfurtherintensifieditscollaborationwiththelo-calnetworkbanksthere.Inadditiontotherecordrevenueandhighestle-velofoutstandingcertificatesever(plus26percent),moreissues(subscriptionsandprivateplacements)andeducationmeasureswerecom-pletedthaneverbefore.Aparticularhighlightduringtheyearweresuc-cessfultransactionswithslovakiaTatrabanka.Amongotherachievements,asingleBonusCertificateissueworthover€40millionwasconcludedandplacedinthelocalprivatebankingsegment.Aftercomingoutontopin2007,2010,and2012,RaiffeisenCentrobankwasnamedthebestcer-tificatehouseinCEEforthefourthtimeattheStructuredProductsEuropeAwards2014.

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

86

IncreasingvolumesofcertificatesarealsobeingsoldbytheRaiffeisenbanksinAustria.Recordsweresetintermsofrevenueandsubscriptionvo-lume.NumeroustrainingmeasuresandcustomereventsnotonlyincreasedtheBank’spresence,butalsoimprovedadvisorandcustomerknowledgeaboutcertificates.Underthecontinuedchallengingconditions,especiallywithregardstotheregulatoryframework,RaiffeisenCentrobankfeelsthatthedisseminationofknowledgeandinformationisoneofthemostimpor-tantsalesmeasuresforensuringlong-termsuccess.ThesustainabilityofRaiffeisenCentrobank’scertificatebusinessisuniqueinAustriaandCentralandEasternEurope.TheissueristheonlycompleteAustrianprovider,bothintermsofcertificatetypesandunderlyings.Inadditiontoofferingabroadproductspectrum,RaiffeisenCentrobankboastsmanyyearsofactivepre-sence,extensiveinvestorservices,andinnovativeproductideas,andhaslongplayedapioneeringroleincertificatesinCEE.Thishighlevelofex-cellencewasrecognizedbyindependentexpertsattheCertificateAwardsAustriafortheeighthtimeinarow.RaiffeisenCentrobankwasna-medthebestissuerinAustria.

Equity Capital Markets (ECM)WhilepricesinEuropetrendedupforthemostpartduringthefirsthalfof2014,geopoliticaltensionsinUkraineandRussiabroughtsubstantiallyhig-herlevelsofvolatilityinthesecondhalfoftheyear,andmostEuropeanequitymarketsclosedtheyearunchangedorupslightlycomparedwiththeendof2013.SomekeyexchangesinCEEincludingRussiaandPo-landfailedtokeeppacewiththemarketsinwesternEurope.TheViennaStockExchangefollowedtheCEEequitymarketsdownward,especiallyinthesecondhalfof2014,andclosedtheyearatalossofaround15percent.

Europesawatotalof67initialpublicofferings(IPOs)withanoffervolumeofover€200millioneachin2014.Activityonthetransactionmarketslo-wedsomewhatinthesecondhalfoftheyear.

RaiffeisenCentrobankdefendeditsstrongpositionontheViennaStockExchangeintheEquityCapitalMarketssegmentagainin2014andalsoconductedatotaloftenequitytransactionsintherelevantEuropeanmar-ketstogetherwiththeRaiffeisenBankInternationalnetworkbanks.

HighlightsincludedthecapitalincreaseofRaiffeisenBankInternationalAG,thelargeststockissueoftheyearontheViennaStockExchangewithatotalvolumeof€2.8billion.RaiffeisenCentrobankwasthejointglobalcoordinatorandjointbookrunner.ThistransactionwasthelargeststockissueontheViennaStockExchangesincethestartofthefinancialcrisisandsignificantlyincreasedthefreefloattojustunder40percent.FurtherhighlightsincludedthebookrunnerpositionsforthecapitalincreaseofPorrAG(€119million)andparticipationinthecapitalincreaseofTelekomAustriaAG(€1billion).

TheBankwasalsoinvolvedintransactionsontheRomanianandPolishequitymarkets,includingthelargestinitialpublicofferinginthehistoryoftheRomaniancapitalmarket,theIPOofElectricaS.A.ontheexchangesinBucharestandLondon.

OntheViennaStockExchange,RaiffeisenCentrobankassistedBUWOGAGwithitspublicofferingthroughaspin-offfromImmofinanzAG.Asidefromthepurestockissues,RaiffeisenCentrobankactedasleadmanagerforaconvertiblebondfromWarimpexFinanz-undBeteiligungsAG.

Russia,thelargestmarketinCEE,fellwellbehindtheperformanceofprevi-ousyearsandtheexpectationsduetothegeopoliticaltensions.Issueacti-vityinPolandwasalsolowerthaninpreviousyears.TheIPOoftheassetmanagerAltusTFIS.A.withavolumeofPLN175millionwasoneofthelargestissuesoftheyearontheWarsawStockExchangeandunderscoredtheincreaseinEquityCapitalMarkets(ECM)activityintheregion.TheRomanianequitymarketagainsawarobustleveloftransac-tions,fromwhichRaiffeisenprofitedasthemarketleaderinthecountry’stransactionbusiness.TheBankwasinvolvedintwotransactionswithatotalvolumeofroughly€450million.

InadditiontothetransactionsinAustriaandCEE,RaiffeisenCentrobankwasaconsortiummemberfortwolargecapitalmarkettransactionsinwes-ternEurope.ThesewerethecapitalincreaseofDeutscheBankAG,thelargeststockissueinEuropewithavolumeof€6.4billion,andthelargestIPOinEurope,thatofNNGroupN.V.ontheAmsterdamStockEx-change.Alongsidenumeroussuccessfullyfulfilledmandates,someplannedtransactionswerenotconcludedin2014duetothemarketconditions.

RaiffeisenCentrobankisalsooneoftheleadingpaymentofficesforAustri-ancompanies,andcurrentlyprovidestheseservicesfor19entities.

Mergers & Acquisitions (M&A)MarketconditionsinCEE’sM&AsegmentwereverychallenginginEuro-pein2014.Thetransactionvolumeintheregionfellbyaround34percentto€27.4billion,andthenumberofcompleteddealsdecreasedbyroughly37percent.

Despitethedifficultenvironment,RaiffeisenCentrobankconcluded19tran-sactionswithadealvolumeof€2.8billion,including:•MandateasafinancialadvisorforOrklaforthesaleofRieberFoods PolskaS.A.(Delecta)toaninvestmentfundmanagedbyInnovaCapital.•RaiffeisenCentrobankadvisedRaiffeisenLeasinginthesaleofREE WindparkstoKELAGandEnergieAG.•RaiffeisenCentrobankwasanadvisorinthesaleofthefamouscoffee brandAmigoofPanfoodsCo.Ltd.(UK)/Cia.IguacudeCafeSoluvel (Brazil)toStraussCoffeeB.V.•RaiffeisenCentrobankadvisedOMVandE.Onregardingthesaleof sharesinCongaztoGazdeFrance.•TogetherwithitsinternationalpartnerLazard,RaiffeisenCentrobank actedasthefinancialadvisorforKKRfortheacquisitionofSerbia Broadband(SBB),thelargestcableandsatelliteproviderintheformer Yugoslavia.•TogetherwithLazardandthelocalRaiffeisennetworkbank,Raiffeisen CentrobankadvisedPanasonicCorporationintheacquisitionofa90 percentshareinViko,aTurkishmanufacturerofelectricalequipment.•TheBankalsoadvisedAgrokorGroup,thelargestfoodandretailcon glomerateintheBalkanstates,inthesaleofitsfruitjuicedivisionto BosnianStanicGroup.

Company ResearchTheCompanyResearchdepartmentpublished349companyupdatesin2014.Thisisanincreaseof32companyupdatescomparedwiththepre-viousyear.Atotalof226companyupdateswerepreparedforEasternEuropeancompanies,223companyupdatesforAustrian.Attheendoftheyear,thecoveragelistincluded138companiesintotal–37stocksfromAustrianand101stocksfromEasternEuropeancompanies.Theana-lysisuniversewasalsoexpandedduringthepastyear.Thefollowingcom-panieswereadded:PORR,BUWOG,andFACCinAustria;PKPCargo,BankHandlowy,CapitalPark,andAltusinPoland;ElectricainRomania;andRossetiandMOESKinRussia.

87

2014 2013

Return-on-Equitybeforetax(inpercent) 13.2 23.7

Return-on-Equityaftertax(inpercent) 9.1 18.1

Cost-incomeratio(inpercent) 74.7 68.2

2014 2013

Employeesatyear-end 233 259

Averagenumberofemployees 247 259

Stockexchangememberships 10 10

Numberofnewlyissuedwarrantsandcertificates 3,256 3,326

FinancialandNon-FinancialPerformanceIndicatorsFinancialPerformanceIndicators

ThelowerprofitbeforetaxcausedtheReturnonEquitybeforetaxtofallby23.7percentto13.2percent.Accordingly,theReturnonEquityaftertaxdeclinedfrom18.1percentto9.1percentcomparedtothepreviousyear.

Asinannualcomparisonoperatingincomerecordedadecrease,thecost-incomeratiorosefrom68.2percentin2013to74.7percent.

Non-FinancialPerformanceIndicators

ComparedtoDecember2013,thenumberofemployeeswasreducedto233asat31December2014.Duringthereportingyear,thenumberofemployeesfellonaverageby12personsto247employees.Thestockexchangemembershipscameupto10andremainedun-changedtothepreviousyear.Despitethechallengingmarketenvironment,thenumberofwarrantsandcertificatesissuedbytheBankin2014roseto3,256representingadeclineby2percent.

RiskManagementPrinciples

In2014,RaiffeisenCentrobankagainpursuedaprudentriskstrategy.Businessopportunitiesandearningspotentialarerealizedbasedonactiveriskmanagementbytakingriskinatargetedandcontrolledmanner.TheBankhasasystemofriskinstrumentsinplaceformeasuringandmonito-ringrisksInallrelevantareasofriskefficientmonitoringandcontollinginstrumentsareavailableenablingthecompetentbodiestoreacttomarketopportunitiesandspecificbankingbusinessrisks.

AsasubsidiaryofRaiffeisenBankInternational,RaiffeisenCentrobankisintegratedintotheriskmanagementprocessoftheRZBCreditInstitutionGroup,safeguardingthatallmajorrisksareidentified,measuredandcontrolledonGroup-levelandensuringthattransactionsareconcludedexclusivelyifparticularrisk/rewardrelationsarecompliedwith.

Thefocusinthefirsthalfof2014wasprimarymarketactivity.TransactionresearchincludingextensiveinvestoreducationforEuropeaninvestorswaspreparedforthesecondpublicofferingofBUWOGandtheIPOofthePolishcompanyAltus.CompanyResearchassistedthelocalresearchteaminBucharestinconnectionwiththeIPOoftheRomanianutilityElectricaS.A.

Theincreaseindirectcontactbetweentheanalystsandinvestorswasre-flectedinveryextensiveroadshowactivity.Sectorreportsandroadshowsonthesectorsofoilandgas,ITandtechnology,telecommunications,banks,Russianutilities,andPolishretailersandrealestate,andoncountrystrategiesforPoland,Russia,andtheentireCentralandEasternEuroperegionwereactivelymarketed.ThedestinationsoftheroadshowswereVienna,London,Zurich,Frankfurt,Warsaw,Prague,Helsinki,Stockholm,andTallinn.ReverseroadshowswerealsoorganizedforinvestorsinVien-na.

StrategyAustria&CEEwaspreparedtogetherwithRaiffeisenResearcheveryquarterasusual.

CompanyResearchwasalsocloselyinvolvedintheorganizationoftheinvestorconferencesinZürsandWarsaw.Separatecompanyupdatesorfactsheetswerepreparedforallparticipatingcompanies.Theanalystswerealsobookedforintensiveone-on-onemeetings.

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

88

Riskgovernance

TheManagementBoardofRaiffeisenCentrobankisresponsibleforallrisksoftheBankaswellasforimplementinganddevelopingariskstrate-gy.TheManagementBoardissupportedinimplementingthesetasksbyanindependentriskmanagementunit,whichisclearlyseparatedfromthefrontoffices.

RiskmanagementatRaiffeisenCentrobankissplitintothreecategories:•CreditRisk&ICAAP(counterpartyandcountryrisk,overallbank management)•Marketrisk(marketandliquidityrisk)•Operationalrisk

Thecentralriskmanagementunitsareresponsibleforlimitation,manage-mentandcontroloftheBank’srisks.aretheRiskManagementCommittee(RMK),theInternalLimitCommittee(ILC),theOperationalRiskManage-mentCommittee(ORMK)andtheAssetandLiabilityCommittee(ALCO).

TheRMK,whichmeetsweekly,addressesallissuesandregulationsintheareaofriskmanagementoftheBankandthecommoditytradingsubsidia-riesfocusinginparticularoncreditriskmarketriskandoperationalrisk.OverdraftsoverdueloansandadvancesandnecessaryvalueadjustmentsarereportedinduecourseandappropriatemeasuresarepresentedtotheManagementBoard.

TheILC,whichmeetseverysecondweek,decideswithinitscompetency(dependingontypeandamountofthelimit)oncounterparty,countryandmarketrisklimits.LargeexposuresrequiretheapprovaloftheSupervisoryBoard.Onceayear,theaggregateoflargeexposuresisreportedtotheSupervisoryBoard.

TheORMK,whichmeetsonceaquarter,establishesanappropriateframeworkforoperationalriskmanagementanddefinesandapprovesanadequateriskstrategy.Moreover,riskassessments,scenarioanalysesandriskindicatorsarediscussedandapprovedandmaterialeventsofdefaultandresultingmeasurestobetakenareanalyzed.

TheALCO,whichmeetsonceamonth,continuouslyevaluatesthemacroe-conomicenvironmentandcontrolsandassessesinterestraterisk,liquidityriskandbalancesheetstructuralrisk.

InNovember2014,theRiskCommitteepursuantto§39dAustrianBan-kingActmetforthefirsttime.TheriskmanagementreportedindetailonthemajorrisksandtherisksituationofRaiffeisenCentrobank.

RiskmanagementsystematRaiffeisenCentrobank

RaiffeisenCentrobankemploysacomprehensiveriskmanagementsystemtakingintoaccountalllegal,businessandregulatoryrequirements.Theappliedprocessesandmodelsaresubjecttoongoingreviewandfurtherdevelopment.ThekeycomponentsoftheriskmanagementsystemsarecompliancewithregulatorycapitalrequirementspursuanttoBaselIII,limi-tingspecificbankingrisksandprovidinganadequateriskcoveragesumsaswellaspermanentsupervisionandcontroloflitigationriskswithinacomprehensiveInternalControlSystem.

1. Capital requirements to limit market risk, credit risk and operational risk Tosecurecapitaladequacyforcreditrisk,marketriskandoperationalriskpursuanttoBaselIII,RaiffeisenCentrobankappliesthestandardapproach.Tocalculateoption-relatednon-linearrisksthescenariomatrixmethodisemployed.

2. Identifying and limiting specific banking business risks (ICAAP)WithinICAAP(InternalCapitalAdequacyAssessmentProcess)RaiffeisenCentrobankhasimplementedaprocesstodeterminetheoverallbankingriskpotentialandrisk-bearingcapacity.Therisk-bearingcapacityisanaly-zedquarterlyforboththegoingconcern(VaRwithaconfidencelevelof95percentandthreemonthsretentionperiod)andliquidationscenario(VaRwithaconfidencelevelof99.9percent,threemonthsretentionperi-od)undsupportstheManagementBoardinmanagingtheoverallban-kingrisk.AsasubordinatecompanyofRaiffeisenZentralbank,RaiffeisenCentrobankisintegratedintotheICAAPofRaiffeisenBankInternationalonaconsolidatedbasis.

3. Internal Control SystemRaiffeisenCentrobankhasimplementedaGroup-widemodernInternalControlSystemthatmeetstherequirementsoftheCompany.Allbankingprocessesandimmanentrisksaredocumentedandrespectivecontrolpro-ceduresaresetupandreviewed.Processdescriptions,risksandmonitoringarereviewedsemi-annuallyandareoptimizedonanongoingbasis.

TheInternalAuditatRaiffeisenCentrobankregularlyreviewstheefficiencyandcorrectnessoftheoverallriskmanagementincludingtheInternalCon-trolSystem.TheresultsarereportedinwritingtotheManagementBoardandtheChairmanoftheSupervisoryBoard.Moreover,quarterlymeetingsareheldwiththeManagementBoardandtheseniormanagementtodis-cusscurrentreviewreportsandthestatusofappliedactions.

Majorrisks

Market riskTheCompanydefinesmarketriskastheriskofpossiblelossesarisingfromchangesinmarketprices(equityandcommodityprices,changesininterestratesandexchangerates).AsthemainfocusofthebusinessactivitiesofRaiffeisenCentrobankisinsecuritiestradingandtheissueofequity-indexbasedderivativesandstructuredproducts(certificatesandguaranteebonds),thetoppriorityofRaiffeisenCentrobankistocounteractmarketrisk.RaiffeisenCentrobankmeasures,monitorsandmanagesallmarketrisksbysettingavarietyoflimitssetupbytheManagementBoardinac-cordancewiththeGroup-wideMarketRiskCommittee.Themulti-leveldif-ferentiatedlimitsystemincludesvolume,positionandsensitivitylimits(delta,gamma,vegaandbasispointvalue)aswellasstop-losslimits,dependingonthetypeoftransaction.

Inmarketriskmanagement,theVaRisemployed,whichfurnishesforecastsonpotentiallossesundernormalmarketconditionsandiscontrastedagainstaparticularlimit.Onthebasisofthevariance-covariancemodelwhichiscalculateddailytheVaRforinterestraterisk,currencyriskandpri-ceriskiscalculatedwithaconfidenceintervalof99percentandareten-tionperiodofoneday.

89

0,00

1,00

2,00

01.20

14

02.20

14

03.20

14

04.20

14

05.20

14

06.20

14

07.20

14

08.20

14

09.20

14

10.20

14

11.20

14

12.20

14

in E

UR m

n

VAR PL_HYP

-1,00

-2,00

TheabovechartdepictstheperformanceofVaRandtheoreticalP&L(profitandlossthatwouldhaveoccuredinaconstantportfolioandactuallyrecordedmarketmovements)in2014.

InadditiontoVaR,RaiffeisenCentrobankusesbackteststoevaluatemarketrisk.Backtestssimulatetheperformaneoftheportfoliounderabnormalmarketsituationsandatypicalpricemovements.

Credit riskThecreditriskrepresentsdefaultriskthatarisesfromtheinabilityofacusto-mertofulfilcontractuallyagreedfinancialobligations,whenserviceshavebeenrendered(e.g.liquidity,securities,advisoryservices)orwhenunrea-lisedprofitsfrompendingbusinesstransactionscannolongerbereco-vered(counterpartycreditrisk).

ThemajorcreditrisksofRaiffeisenCentrobankresultfrompositionsofpurchaseddebtinstruments,tradablemoneymarketdepositsandOTCop-tionsservingprimarilytohedgeissuedcertificatesandstructuredproductsaswellasfrommarginpositionsrelatingtoOTCandstockexchangetran-sactions.ThisaffectsprimarilymembersoftheRZBCreditInstitutionGroupandtoalimitedextentotherfinancialinstitutions.ThetraditionalcreditandloanbusinessisofimmaterialsignificanceforRaiffeisenCentrobankduetothelimitedbusinessvolumeandthecompany’sstrategicorientation.

Creditriskmanagementisbasedoncounterparty-relatednominallimitswhicharecomprehensivelymonitoredbytheInternalControlSystemforcreditrisks.Thelimitsareapproved-dependingontypeandsize-bytherespectivehierarchicalcompetenceauthorityscheme.Creditdecisionsaretakendependingontheassessmentofthecounterpartycreditrisktakingintoaccounttheratingandapplicablecreditriskmitigatingmeasureslikefinancialcollaterals(e.g.cashorequity).IntheGroup-widedefaultandandratingdatabasecustomersareregisteredandevaluatedandeventsofdefaultaredocumented.ThewholelendingdecisioncorrespondstoregulatoryrequirementsandRZBGroupDirectives.

IntheindividualfinancialstatementspursuanttotheAustrianBankingAct/AustrianCommercialCode,RaiffeisenCentrobankreportsinterest-bearingassetsandanoff-balancesheetvolumeof€2,121,976thousandbeforedeductionsofvalueadjustments(2013:€1,834,485thousand).

Operational riskOperationalriskisdefinedastheriskofunexpectedlossesresultingfrominadequateorfailedinternalprocesses,peopleandsystemsorfromexter-naleventsincludinglegalrisk.Thisriskcategoryisanalyzedandmana-gedonthebasisoftheresultsofregularself-assessments,standardizedkeyriskindicators,scenarioanalysesandinternalhistoricaldata.

EventsofdefaultinoperationalriskareregisteredintheGroup-widedatabasisORCA(OperationalRiskControllingApplication)andarerecog-nizedseparatelybybusinesssegmentandtypeofevent.Measurestakenarealsodocumentedandlinkedwiththeeventofdefault.

Liquidity riskLiquidityriskiscalculatedbasedonaliquiditymodeldevelopedincooperationwithRaiffeisenBankInternational.DailybalancesheetitemsofRaiffeisenCentrobankareseparatedbymaturitybandsandcurrencies,theirinflowsandoutflowsaremodelledbasedonpre-definedfactors.Theliquidityrequirementindifferentmaturitybandsislimitedbymeansofregu-latorylimitsaswellasbylimitsdeterminedbyRaiffeisenBankInternational.

Moreover,regularliquiditystresstestsarecarriedoutandthetime-to-wallinthestressscenarioismonitoredindifferentcurrencies.Inflowsneedtosurpassoutflowsforaperiodofatleast30daysinacrisisscenario(marketcrisis,namecrisisandscenarioofboth).Calculationsconfirmanadequateliquiditysurplusforthe2014financialyear.

InaccordancewithGroup-internaldirectives,theminimumliquiditycoverageratio(LCR)wascalculatedonamonthlybasisforinternalcontrollingpurposesandreportedtotheAustrianNationalBank.Inthefinancialyear2014theLCRconstantlyexceeded60percent.

TheNetStableFundingRatioandandtheLeverageRatiowerecalculatedinthepastbusinessyearandwereincludedintothecurrentreporting.

Asset volume 31/12/2014 31/12/2013 in€thousand

Bondsandnotesissued bypublicbodies 64,912 32,454

Loansandadvances tocreditinstitutions 1,691,112 1,320,342

Loansandadvances tocustormers 126,560 141,382

Bonds 239,352 340,119

2,121,936 1,834,297

Product-weightedoff-balance sheettransactions 40 188

2,121,976 100,0% 1,834,485 100,0%

Irrecoverable 75 0.01% 93 0.01%

Impaired 1,107 0.06% 1,249 0.07%

Requiringattention 31,576 1.49% 33,903 1.85%

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

90

Overallbankmanagement

ForRaiffeisenCentrobankactiveriskmanagementmeanstheidentification,measurement,monitoringandmanagementofspecificbankingrisksaswellastheprovisionofadequatecapitalresources.Inthecourseofmoni-toringtheoverallbankrisk(ICAAP),RaiffeisenCentrobankhasimplemen-tedaprocesstoidentifytheoverallbankriskpotentialandtheriskbea-ring-capacity.Thisriskbearingcapacityanalysisisatoppriorityinriskma-nagement.

Theriskappetite(overallbankVaRlimit)comesupto80percentoftheriskcoveragesum.Thequarterlyrisk-bearingcapacityanalysisfocusesonthegoingconcern(VaRwithaconfidenceintervalof95percentand3monthsretentionperiod)andliquidationperspective(VaRwithaconfi-denceintervalof99.9percent,3monthsretentionperiod).

Risk measurement uses the subsequent approaches: •Marketrisk:calculationoftheVaRbasedonahistoricalMonteCarlo simulationwithatimeframeof3months•Creditriskandequityparticipationrisk:determinationofaVaRconsistent riskvaluebasedonamodifiedIRBapproach.Theequityparticipation riskincludesnotonlycarryingamountsinthebankingbookof(unlisted) equityparticipationsbutalsoloanstoparticipations•Operationalrisk:calculationofaVaRbasedonregulatorycapital requirementscoupledwithamodelingthroughgeneralizedPareto distribution.•Otherrisks(suchase.g.businessrisk,repuationrisk,balancesheetrisk). Coverageiseffectedbyvariousriskbuffers.

Thesubsequentchartsshowsthedistributionofriskinrelationtotheecono-miccapital(VaR)attherespectivebalancesheetdate:

Asasubordinatecompany,RaiffeisenCentrobankisintegratedintotheICAAPofRZBonaconsolidatedbasis.RaiffeisenCentrobankisprovidedwithmonthlyICAAPreports.Theseanlaysesincludeagoingconcernperspectivewithaconfidenceintervalof95percentandatargetratingperspectivewithaconfidenceintervalof99.95percent.

InternalControlSystemasRelevantfortheAccountingSystemRaiffeisenCentrobankanditsgoverningbodiesarecommittedtoensuringbalancedandcompletefinancialreporting.Afundamentalrequirementinthisiscompliancewithallrelevantlegalregulations.Inconnectionwiththeaccountingprocess,theManagementBoardisresponsiblefordesigningandinstallinganinternalcontrolandriskmanagementsystemthatmeetstherequirementsoftheCompany.Theobjectofthisinternalcontrolsystemistosupportthemanagementbymakingcertainthateffectiveinternalcont-rolsareappliedtotheaccountingprocessandthatthesecontrolsareen-hancedwheneverappropriate.Thecontrolsystemisdesignedtoassurecompliancewithguidelinesandregulations,aswellastocreateoptimalconditionsforspecificcontrolmeasures.

ThefinancialstatementsarepreparedonthebasisofthepertinentAustrianlaws,abovealltheAustrianBankingAct(BWG)inconnectionwiththeEURegulationno575/2013(CapitalRequirementsRegulation“CRR”)aswellastheAustrianCommercialCode(UGB).

TheaccountingdepartmentisresponsiblefortheBank’saccountingsystem.AccountingandfinancialreportingaredirectlysubordinatedtotheManagementBoard.Thedepartmentisresponsiblefordealingwithallaccountingissuesandhastheauthoritytoprovideforsafeguardingtheapplicationofuniformstandards.Organisationalinstructionsandguideli-nes,whicharecomprisedinamanual,havebeensetupforsupport.

AccountingaccordingtotheAustrianBankingActandAustrianCommer-cialCodeiseffectedviaacentralITsystemapplyingthePAGORO/400system,whichisprotectedbytherestrictedassignmentofaccessauthorisa-tions.ThetableofaccountsistailoredtotheBank’sindividualrequire-ments.Transactionsareregisteredbothautomaticallyandmanually.Accountingvouchersarethenfiledsystematicallyandchronologically.

MonthlybalancesheetsarecreatedandpassedontotheManagementBoardandtheseniormanagementbymeansofastandardisedfinancialreportingsystem.AtleastonceperquartertheSupervisoryBoardisinfor-medinthecourseoftheSupervisoryBoardmeetingsofthecurrentcourseofbusinessincludingthebank’soperativeplanningandmedium-termstrat-egy.

TheManagementBoardevaluatesandmonitorsmaterialrisksinconnec-tionwiththeaccountingprocess.Inthis,thefocusisplacedontherisksthataretypicallyfoundtobematerial.Theannualevaluationoftheinternalcontrolmeasuresappliedbyeachoftheresponsibleunitsisbasedonariskorientedapproach.Theriskoffaultyfinancialreportingisassessedonthebasisofanumberofdifferentcriteria.Forexample,complexaccoun-tingprinciplescanincreasetheriskoferrors.Differentprinciplesforthemeasurementofassetsandcomplexorchangingbusinessconditionscanalsocausesubstantialerrorsinthefinancialreporting.

Estimatesmustregularlybemadeduringthepreparationofthefinancialstatements.Inallofthesecases,thereisaninherentriskthattheactualde-velopmentsmaydeviatefromtheseestimates.Thisespeciallyappliestotheparametersinvaluationmodelsthatareusedtodeterminethefairvaluesoffinancialinstrumentsforwhichthereisnocurrentpricequotationaswellastosocialcapital,theoutcomeoflegaldisputes,thecollectabilityoflo-ansandadvances,andtheimpairmentofequityparticipationsandinven-tories.Insomecases,externalexpertsareinvolvedorpubliclyavailableinformationsourcesusedtominimisetheriskofincorrectestimates.

Going-concern-perspective 31/12/2014 31/12/2013

1.Marketrisk 33.8percent 34.7percent

2.Creditrisk 13.7percent 16.4percent

3.Operationalrisk 12.7percent 12.2percent

4.Businessrisk 2.9percent 4.1percent

5.Equityparticipationrisk 25.2percent 20.3percent

6.Otherrisks 11.6percent 12.3percent

Liquidationperspective 31/12/2014 31/12/2013

1.Marketrisk 10.3percent 11.1percent

2.Creditrisk 19.3percent 19.5percent

3.Operationalrisk 33.6percent 33.5percent

4.Businessrisk 0.9percent 1.3percent

5.Equityparticipationrisk 12.1percent 10.6percent

6.Otherrisks 23.8percent 23.9percent

91

WilhelmCeledaChiefExecutiveOfficer

MarkusKirchmairMemberoftheManagementBoard

InadditiontotheManagementBoard,thegeneralcontrolframeworkalsoincludesseniormanagement(thedepartmentheads).Allcontrolmeasuresareappliedtothedailybusinessprocessestoensurethatpotentialerrorsordeviationsinthefinancialreportingarepreventedordiscoveredandcorrected.Thecontrolmeasuresthatareappliedatregularintervalsrangefromthereviewoftheperiodicresultsbythemanagementtothespecificreconciliationandcoordinationofaccountsandtheanalysisandfurtheroptimisationofaccountingprocesses.TheInternalAuditdepartmentisalsoinvolvedinthemonitoringprocess.ItsactivitiesarebasedontheAustrianFinancialMarketAuthority’sminimumstandardsforinternalauditingandinternationalbestpractices.TheInternalAuditdepartmentreportsdirectlytotheManagementBoard.

TheControlling&RegulatoryReportingDepartmentisresponsiblefordraf-tingthenotestotheannualfinancialstatementssetupaccordingtotheAustrianBankingActandtheAustrianCommercialCode.Inaddition,amanagementreportisdrawnupwhichexplainstheresultsinlinewithstatu-toryrequirements.TheannualfinancialstatementsandthemanagementreportareforwardedtoandreviewedbytheAuditCommitteeoftheSu-pervisoryBoardandarethenpresentedtotheSupervisoryBoardforitsacceptance.Theannualfinancialstatementsarepublishedonthecompany’swebsite,theOfficialGazettetotheWienerZeitung,andarealsofiledwiththeAustrianCompanyRegister.KeyemployeesandtheManagementBoardreviewtheannualfinancialstatementspriortotheirdistributiontotheSupervisoryBoard.Moreover,analysesoftheannualfinancialstatementsarepreparedespeciallyfortheseniormanagement.

HumanResourcesRaiffeisenCentrobankAGhad233employeeson31December2014(31December2013:259).Thereductioninthenumberofemployeesisattributabletoadjustingstaffresourcestothecourseofbusiness.

Outlook2015ThesmolderingconflictbetweenRussiaandUkraineandtheexpansionofassetpurchasesbytheECBwillremainkeydrivingfactorsforthedevelop-mentoftheEurozoneeconomy.IntheUSA,therobustdevelopmentofthelabormarketshouldspurtheFedtobeginhikingitskeyinterestratein2015.ThiswilllikelyresultinalongerperiodofdiametricalmonetarypoliciesintheUSAandEurozone.Thiswillalsohaveanimpactonthecapitalmarkets.WhileUSyieldshavesomeupsidepotential,thepurchasesoftheECBcouldcausegovernmentbondyieldstofallfurther.Evenwithanincreaseintheriskofsetbacks,equityinvestmentswillenjoyhigherdemandbecauseofalackofalternatives.

Mostexchangesshouldseeclearlypositivedevelopmentin2015,whichmakesRaiffeisenCentrobankoptimisticaboutitscorebusinessareasofequitytradingandsalesandcertificates.Marketconditionswillremainchallengingbecauseofplannedregulatorychanges,butbusinessintheseareasisexpectedtodeveloppositivelyingeneral.TherestructuringofRaiffeisenCentrobankthatwasannouncedattheendof2014willalsohaveakeyimpactduringthecurrentfinancialyear.Thegoalwillbetodisposeofthetraditionalprivatebankingactivitiesandthecommoditysubsidiariesinthefirsthalfof2015.WorkisalsounderwayontheintegrationoftheMergers&AcquisitionsandEquityCapitalMarkets

segmentsintotheInvestmentBankingdivisionofthegroupparentRaiffei-senbankInternational.Thelattermeasureisaimedatincreasingsynergiesandfurtherimprovingtheserviceprovidedtocustomerswithinthegroup.

Furthertoimplementingthemeasuresrelatingtothere-alignmentofRaiffei-senCentrobank,theprofitfortheyear2015isexpectedtobedownonthe2014result.

SignificantEventsaftertheBalanceSheetDateInthecourseofimplementinganexitstrategyassetoutbyRaiffeisenbankInternationalregardingtheCentrotradesubsidiaries,asharepurchaseagreementwassignedinJanuary2015tosellthefourrubbertradingcompanies.Theclosingisexpectedformid-2015.

ResearchandDevelopmentRaiffeisenCentrobankdoesnotengageinresearchanddevelopment.

Vienna,15April2015TheManagementBoard

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

92

DistributionoftheProfit2014The2014financialyearclosedwithanetincomefortheyearof€8,598,087.95.Includingtheprofitcarriedforwardof€1,670,146.76thenetprofitfortheyearamountedto€10,268,234.71.

TheManagementBoardofRaiffeisenCentrobankrecommendstotheSu-pervisoryBoardthatadividendof€11.00persharebedistributedfromthenetprofitasat31December2014.Thiscorrespondstoatotaldivi-dendamountingto€7,205,000.00for655,000shares.TheManage-mentBoardfurtherrecommendstocarryforwardtheremainingprofitof€63,234.71andtoallocateanamountof€3,000,000.00tootherreser-ves.Otherreserveswillchangefrom€23,500,000.00to€26,500,000.00.

Vienna,15April2015TheManagementBoard

StatementofLegalRepresentativespursuantto§82StockExchangeActWeconfirmtothebestofourknowledgethattheannualfinancialstate-mentsgiveatrueandfairviewoftheassets,liabilities,financialposition,andprofitorlossoftheCompanyasrequiredbytheapplicableaccoun-tingstandardsandthatthemanagementreportgivesatrueandfairviewofthedevelopmentandperformanceofthebusinessandthepositionoftheCompany,togetherwithadescriptionoftheprincipalrisksanduncer-taintiestheCompanyfaces.

Vienna,15April2015TheManagementBoard

WilhelmCeledaChiefExecutiveOfficer

MarkusKirchmairMemberoftheManagementBoard

WilhelmCeledaChiefExecutiveOfficer

MarkusKirchmairMemberoftheManagementBoard

93

IndividualFinancialStatementsofRaiffeisenCentrobankAGasat31December2014accordingtotheAustrianBankingAct

Theadditionofroundednumbersusingautomatedsystems,aswasdoneforthisreport,mayresultinminordifferencesinamounts.

Thechangesindicatedinpercentrefertotheactualamountsandnottheroundedamountsshowninthisreport.

94

BalancesheetasatDecember31,2014

Assets 31/12/2014 31/12/2014 31/12/2013 31/12/2013 € € in € thousand in € thousand

1. Cashinhandanddepositswithcentralbanks 2,898,413.09 4,337

2. Bondsandnotesissuedbypublicbodieseligibleforrefinancingwithcentralbanks bondsandnotesissuedbypublicbodiesandsimilarsecurities 64,911,575.34 32,454

3. Loansandadvancestocreditinstitutions

a)payableondemand 154,436,109.96 102,261

b)otherloansandadvances 1,536,676,262.95 1,691,112,372.91 1,218,081 1,320,342

4. Loansandadvancestocustomers 126,484,703.31 141,289

5. Bonds,notesandotherfixed-interestsecurities

a)issuedbypublicbodies 10,666,953.25 9,769

b)issuedbyotherborrowers 228,685,537.71 239,352,490.96 330,349 340,118

6. Sharesandothervariable-yieldsecurities 438,878,163.88 501,754

7. Equityparticipations 5,137,370.67 5,137

8. Sharesinaffiliatedcompanies 10,665,295.23 8,911

9. Intangiblefixedassets 115,397.00 205

10.Tangiblefixedassets 15,157,245.64 15,336

threreoflandandbuildingsusedbythecreditinstitution forownpurposes:€11,925,676.92 previousyear:€12,219thousand

11.Otherassets 117,092,790.59 127,826

12.Prepaymentsandotherdeferrals 1,566,741.62 1,714

Total assets 2,713,372,560.24 2,499,443

Off-balance sheet items

1. Foreignassets 710,827,883.33 706,717

95

Equity and liabilities 31/12/2014 31/12/2014 31/12/2013 31/12/2013

€ € in € thousand in € thousand

1. Liabilitiestocreditinstitutions

a)repayableondemand 23,637,354.18 13,753

b)withagreedmaturitydatesorperiodsofnotice 51,256,190.52 74,893,544.70 97,911 111,664

2. Liabilitiestocustomers

a)repayableondemand 200,367,599.15 121,410

b)withagreedmaturitydatesorperiodsofnotice 30,095,314.63 230,462,913.78 10,065 131,475

3. Securitisedliabilities(othersecuritisedliabilities) 771,677,077.37 676,674

4. Otherliabilities 1,514,807,343.56 1,451,614

5. Accrualsanddeferreditems 331,057.30 194

6. Provisions

a)forseverancepayments 6,078,528.18 4,238

b)forretirementbenefits 486,571.77 463

c)otherprovisions 12,047,221.33 18,612,321.28 15,376 20,077

7. Subscribedcapital 47,598,850.00 47,599

8. Capitalreserves(committed) 6,651,420.71 6,651

9. Retainedearnings

a)legalreserve 1,030,936.83 1,031

b)otherreserves 23,500,000.00 24,530,936.83 20,500 21,531

10.LiabilityreservepursuanttoArticle23para6AustrianBankingAct1 13,538,860.00 13,539

11.Netprofitfortheyear 10,268,234.71 18,425

Total equity and liabilities 2,713,372,560.24 2,499,443

Off-balance sheet items

1. Contingentliabilities arisingfromguaranteesandassetspledged ascollateralsecurity 446,661.93 696

2. Creditrisks 9,896,078.65 33,089

3. Commitmentsarisingfromfiduciarybusinesstransactions 7,091,124.47 7,079

4. EligibleownfundspursuanttoPart2ofRegulation(EU)No575/20132 87,740,413.17 -

5. CapitalrequirementspursuanttoArticle92ofRegulation(EU) 682,984,714.72 - No575/2013(Totalrisk-weightedassets)2 hereof:capitalrequirementspursuanttoArticle92(1)(a)to(c) ofRegulation(EU)No575/2013 hereof:capitalrequirementspursuanttoArticle92(a) 12.85% - hereof:capitalrequirementspursuanttoArticle92(b) 12.85% - hereof:capitalrequirementspursuanttoArticle92(c) 12.85% -

6. Foreignequityandliabilities 391,928,410.74 225,6661 December31,2013:LiabilityreservepursuanttoArticle23para6AustrianBankingAct(prevailingversionofBWGatthattime) 2 DetailsandpreviousyearfiguresintheprevailingversionofBWGatthattimecanbefoundinthenotesunderchapterownfunds.

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

96

Incomestatementforthe2014financialyear 2014 2014 2013 2013 € € in € thousand in € thousand

1. Interestandinterest-likeincome 11,135,001.28 12,485

thereoffixed-interestsecurities 3,180,824.01 4,425

2. Interestandinterest-likeexpenses (18,437,396.77) (16,954)

I. Net interest income (7,302,396.77) (4,469)

3. Incomefromsecuritiesandfinancialinvestments

a)Incomefromshares,sharerightsandother variable-yieldsecurities 10,874,381.92 14,312

b)Incomefromsharesinaffiliatedcompanies 1,292,975.10 12,167,357.02 5,404 19,716

4. Feeandcommissionincome 26,875,420.80 30,5167

5. Feeandcommissionexpenses (19,387,978.48) (19,704)

6. Netprofitonfinancialtradingactivities 45,689,943.18 40,405

7. Otheroperatingincome 3,813,588.39 3,598

II. Operating income 70,061,813.00 70,489

8. Generaladministrativeexpenses (42,333,751.54) (45,302)

a)staffexpenses

aa)wagesandsalaries 19,200,535.24 21,985

bb)expensesforstatutorysocialcontributions andcompulsorycontributionsrelated towagesandsalaries 4,515,527.07 4,855

cc) othersocialexpenses 481,545.33 519

dd)expensesforpensionsand assistance 710,980.41 675

ee)provisionsforretirementbenefits 25,448.33 3

ff)expensesforseverancepayments andcontributionsto severancefunds 2,392,774.33 647

27,326,810.71 28,684

b)otheradministrativeexpenses 15,006,940.83 16,617

9. Valueadjustments onassetitems9and10 (1,170,485.85) (1,754)

10.Otheroperatingexpenses (2,148,398.40) (728)

III. Operating expenses (46,192,635.79) (47,784)

IV. Operating result 15,663,299.63 22,278

97

2014 2014 2013 2013 € € in € thousand in € thousand

IV. Operating result (= amount carried forward) 15,663,299.63 22,278

11.Loanslossprovisionsandexpendituresarisingfromthevaluation ofloansandadvancesanddisposalofsecuritiesheldasother currentassets (2,071,942.73) (341)

12.Incomearisingfromthevaluationofloansandadvances anddisposalofsecuritiesheldasothercurrentassets 19,940.31 18

13.Expendituresarisingfromthevaluationofinterestsand sharesinaffiliatedcompaniesheldasfinancialinvestments (1,247,595.00) (298)

V. Result on ordinary activities 12,363,702.21 21,657

14.Incometaxes 253,080.65 (1,964) (thereofpassedonfromparentcompany: € 324,377.69(previousyear:€ 767thousand)

15.Othertaxesunlessincludedinitem14 (3,512,533.61) (3,183)

VI. Net income for the year 8,598,087.95 16,510

16.Allocationtoretainedearnings 0.00 (11,000)

VII. Profit for the year 8,598,087.95 5,510

17.Profitcarriedforward 1,670,146.76 12,915

VIII.Net profit for the year 10,268,234.71 18,425

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

98

DevelopmentofFixedAssetsinthe2014FinancialYear Amounts in € Cost of acquisition Cost of acquisition Cost of acquisition Cost of acquisition Accumulated Carrying amount Carrying amount Depreciation Balance as at 1/1/2014 Additions Disposals Balance as at 31/12/2014 depreciation 31/12/2014 31/12/2013 in the financial year 2014

I. Intangible fixed assets

Software licenses 3,801,212.85 75,995.51 4,144.61 3,873,063.75 3,757,666.75 115,397.00 204,600.00 165,150.51

II. Tangible fixed assets

1.Landandbuildingsusedbythecreditinstitution forownpurposes thereofvalueofproperty:€ 3,066,200.92; previousyear:€3,066thousand 14,789,785.11 0.00 0.00 14,789,785.11 2,864,108.19 11,925,676.92 12,218,767.92 293,091.00

2.Officefurnitureandequipment 18,193,485.43 1,382,551.34 535,993.88 19,040,042.89 15,808,474.17 3,231,567.72 3,137,483.72 1,252,244.34

32,983,270.54 1,382,551.34 535,993.88 32,829,828.00 18,672,582.36 15,157,245.64 15,356,251.64 1,545,335.34

III. Financial investments

1.Sharesinaffiliatedcompanies thereofincreditinstitutions:€0.00 9,450,702.79 1,753,778.44 0.00 11,204,481.23 539,186.00 10,665,295.23 8,911,516.79 0.00

2.Equityparticipations thereofcreditinstitutions:€0.00 5,156,700.61 0.00 0.00 5,156,700.61 19,329.94 5,137,370.67 5,137,370.67 0.00

14,607,403.40 1,753,778.44 0.00 16,361,181.84 558,515.94 15,802,665.90 14,048,887.46 0.00

Total 51,391,886.79 3,212,325.29 540,138.49 54,064,073.59 22,988,765.05 31,075,308.54 29,609,739.10 1,710,485.85

99

DevelopmentofFixedAssetsinthe2014FinancialYear Amounts in € Cost of acquisition Cost of acquisition Cost of acquisition Cost of acquisition Accumulated Carrying amount Carrying amount Depreciation Balance as at 1/1/2014 Additions Disposals Balance as at 31/12/2014 depreciation 31/12/2014 31/12/2013 in the financial year 2014

I. Intangible fixed assets

Software licenses 3,801,212.85 75,995.51 4,144.61 3,873,063.75 3,757,666.75 115,397.00 204,600.00 165,150.51

II. Tangible fixed assets

1.Landandbuildingsusedbythecreditinstitution forownpurposes thereofvalueofproperty:€ 3,066,200.92; previousyear:€3,066thousand 14,789,785.11 0.00 0.00 14,789,785.11 2,864,108.19 11,925,676.92 12,218,767.92 293,091.00

2.Officefurnitureandequipment 18,193,485.43 1,382,551.34 535,993.88 19,040,042.89 15,808,474.17 3,231,567.72 3,137,483.72 1,252,244.34

32,983,270.54 1,382,551.34 535,993.88 32,829,828.00 18,672,582.36 15,157,245.64 15,356,251.64 1,545,335.34

III. Financial investments

1.Sharesinaffiliatedcompanies thereofincreditinstitutions:€0.00 9,450,702.79 1,753,778.44 0.00 11,204,481.23 539,186.00 10,665,295.23 8,911,516.79 0.00

2.Equityparticipations thereofcreditinstitutions:€0.00 5,156,700.61 0.00 0.00 5,156,700.61 19,329.94 5,137,370.67 5,137,370.67 0.00

14,607,403.40 1,753,778.44 0.00 16,361,181.84 558,515.94 15,802,665.90 14,048,887.46 0.00

Total 51,391,886.79 3,212,325.29 540,138.49 54,064,073.59 22,988,765.05 31,075,308.54 29,609,739.10 1,710,485.85

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

100

A.AccountingPolicies

General principlesThefinancialstatementsofRaiffeisenCentrobankforthe2014financialyearhavebeenpreparedinaccordancewiththegeneralaccountingprin-ciplesstipulatedintheAustrianCommercialCodeandthespecificsecto-ralregulationsasspecifiedbytheAustrianBankingAct.ThebalancesheetandtheincomestatementhavebeenstructuredaccordingtoAppendix2oftheformscontainedinArticle43AustrianBankingAct.PursuanttoanamendmentoftheAustrianBankingActtoreflectEUregulationsCRR/CRDIV,thebalancesheetstructurewaspartlyadjusted.Inthereportingyear,theBankimplementedtheseadjustmentsaccordingly.

Nochangesintheaccountingandvaluationmethodshavebeenmadecomparedtothe2013financialstatements.

Foreign currency translationAssetsandliabilitiesdenominatedinforeigncurrenciesarereportedatthemiddleratesofexchangesfixedbytheEuropeanCentralBankontheba-lancesheetdate.AmountsdenominatedincurrenciesforwhichtheEuro-peanCentralBankpublishednoratesareconvertedatthemiddleratesofexchangepublishedbyRaiffeisenBankInternationalAGonthebalancesheetdate.

Currencyfuturesandoptionstransactionsinforeigncurrenciesarecapita-lizedattheforwardexchangerates.Anydifferencesinratesresultingfromcurrencyconversionarereportedasaprofitorlossintheincomestate-ment.

Trading portfolio – valuation of securities, futures and options Adailymarketpricesystemisappliedforthevaluationofsecuritiesheldfortradingpurposesorasothercurrentassets.

Intermsofsecuritiesheldfortradingpurposesorasothercurrentassets,thecompany’sportfolioofsharesinpublicly-listedcompaniesaswellasfixed-interestsecuritiesisreportedatthesharepriceprevailingontheba-lancesheetdate.Ifnoquotesorsharepricesareavailablethevalueisdeterminedbymeansofvaluationmodels.

Certificatesacquiredbasedonanequity-basedorindex-basedperfor-mancearevaluedwiththesharepricesprevailingonthebalancesheetdate,andifnosharepricesareavailable,withtheassistanceofvaluationmodelstoillustratestochasticdevelopmentprocesses.

BondsissuedbyborrowersfromEasternEuropeanmarketsaswellassha-resissuedbyEasternEuropeancompaniesheldbythecompanyfortra-dingpurposesarevaluedatthemarketratesannouncedbyothercreditinstitutionsandbrokers,orasquotedbyReuters,orvaluationmodels,provi-dedthatsharepricesforthesesecuritiesarenotavailableordonotprovi-desufficientinformation.Ifnosuchmarketratesareavailable,pricesforprimaryfinancialinstrumentsarecalculatedonthebasisofthenetpresentvaluemethod.Thismethodisbasedonaninterestratecurvewhichcom-prisesmoneymarket,futuresandswaprateswithoutspreads.Inorderto

determinethevalueofunlistedbankbondsdepreciationorparameterad-justmentsareconsideredtoreflectmarketliquidityriskswithintheseevalua-tionmethods.

Optionsonsecuritiesofpublicly-listedcompaniesandoptionsonsecurityindices(i.e.purchasedandsoldcallsandputs,primarilyEUREXoptions)aswellasfuturesheldfortradingpurposesarevaluedaccordingtothemarketpricesprevailingonthebalancesheetdate.Valueadjustmentsweremadetotaketemporaldifferencesintoaccount.

VariousmodelsareusedforthevaluationofOTCoptions,dependingonthetypeofoption.Forplain-vanillaoptions(AmericanandEuropeanstyle),theBlack-ScholesmodelandthebinomialpricingmodelaccordingtoCox-Ross-Rubinsteinareapplied.TheCurranapproximationisappliedtoAsianoptions,whereasbarrieroptionsuseHeynen-Katandspreadop-tionsrelyontheKirkmodel.

Loans and advances to credit institutions and customersLoansandadvancestocreditinstitutionsandcustomersareshownattheirnominalvalue.Individualloanlossprovisionsaremadeinthecaseofanidentifiablerecognizableriskofdefaultonthepartofborrowers.

Equity participations and shares in affiliated companiesEquityparticipationsandsharesinaffiliatedcompaniesareprincipallycapi-talizedaccordingtotheprincipleof“goingconcern”(theabilitytocontinuefunctioningasabusinessentity)attheircostofacquisition.Depreciationiscarriedoutwhen,inallprobability,permanentimpairmenthastakenplace.

Intangible and tangible fixed assetsThevaluationofintangibleandtangiblefixedassets(i.e.landandbuil-dings,officefurnitureandequipmentaswellasothertangiblefixedassets)iscarriedoutatthecostofacquisitionlesstheirscheduled,lineardepre-ciation.

Depreciationratesappliedare33.3percentand14.3percentp.a.forintangiblefixedassets,2.5percentand10.0percentp.a.forimmovablefixedassets,and10percent–33percentformovablefixedassets.Afullyear’sdepreciationistakeninthecaseofadditionsmadeduringthefirsthalfofthefinancialyear,whereashalf-yeardepreciationappliestoaddi-tionsinthesecondhalfofthefinancialyear.Lowvalueassets(costofac-quisitionperitemlessthan€0.4thousand)arefullydepreciatedintheyearofacquisition.

Liabilities to credit institutions and customersLiabilitiestocreditinstitutionsandcustomersarereportedattheamountofrepayment,takingintoconsiderationtheprincipleoffinancialprudence.

Securitized liabilitiesSecuritizedliabilities(themajorityofwhicharestructuredcapitalguaran-teedbonds,whoserateofinterestdependsonthesharepriceorsharepriceindexperformance)arevaluatedaccordingtothepresentvalueme-thod,oraccordingtocommonoptionvaluemethodsfortheoptioncom-ponent.

Provisions for severance paymentsTheprovisionsforseverancepaymentsaredesignedtofulfilllegalde-mands,aswellasthosearisingfromindividualorcollectivecontractualag-reements.Provisionsarecalculatedinaccordancewiththeguidelinesspe-cifiedbyIAS19,applyingtheProjectedUnitCreditMethodandassumingacalculatoryinterestrateof2.0percent(previousyear:3.5percent),aswellasanunchangedannualsalaryincreaseamountingto3percent.

FinancialStatementsasat31December2014

Notes

101

TheAVÖ(Austrianactuaries’association)2008-P-basisforcalculatingreti-rementpensioninsurances–Pagler&Paglerforsalariedemployeeswastakenasbiometricbasisforcalculation.Theunderlyingpresumptionisadecreasingfluctuationrateinconnectionwiththeearliestpossibleretire-mentdate,attheageof60forwomenand65formen,takingintoac-countthechangestoAustria’sGeneralSocialSecurityLawinaccordancetotheBudgetaryAmendment2003.Thepremiumreserveamountsto93.12percentofthestatisticalterminationbenefitobligationsonthebalan-cesheetdate.

Provisions for retirement benefitsProvisionsforretirementbenefitsarecalculatedinaccordancewiththegui-delinesspecifiedbyIAS19,applyingtheProjectedUnitCreditMethodandassumingacalculatoryinterestrateof2.0percent(previousyear:3.5percent),anunchanged2.0percentincreaseintheprobableprofitsha-ringrate,andaretirementageof65years.TheAVÖ(Austrianactuaries’association)2008-P-basisforcalculatingretirementpensioninsurances–Pagler&Paglerforsalariedemployeeswastakenasbiometricbasisforcalculation.

Thepremiumreserveforofthepensionplanreinsuranceconcludedforfuturebeneficiariesisreportedas“Otherassets”.

Other provisionsOtherprovisionshavebeenmadeaccordingtoexpecteddemands.Theycompriseidentifiablerisksandliabilities,theextentofwhichhasnotyetbeendetermined.

B.NotestotheFinancialStatements

I. Cash in hand and deposits with central banksThebalancesheetitemA1,whichencompassescashinhandanddepositswiththeAustrianNationalBank,isreportedas€2,898thousand(31/12/2013:€4,337thousand).Prevailingregulationspertainingtoliquidityandminimumreserveswereobserved.

II.1. Classification of loans and advances other than those payable on demand according to their term to maturity

II. Loans and advances

31/12/2014 0-3 3-12 1-5 >5 Total in€€thousand months months years years

Bondsandnotesissuedbypublicbodies 480 31,026 0 33,405 64,912

Loansandadvancestocreditinstitutions 333,444 179,454 927,418 97,361 1,536,676

Loansandadvancestocustomers 6,920 955 27,226 8,202 43,303

Bonds,notesandotherfixed-interestsecurities 47,104 134,277 51,041 6,931 23,352

Sharesandothervariable-yieldsecuritiehs 0 76,632 62,907 0 139,539

387,948 422,344 1,068,593 145,898 2,023,783

31/12/2013 0-3 3-12 1-5 >5 Total in€€thousand months months years years

Bondsandnotesissuedbypublicbodies 471 0 0 31,984 32,454

Loansandadvancestocreditinstitutions 310,866 95,551 741,252 70,411 1,218,081

Loansandadvancestocustomers 7,724 13,805 18,920 15,519 55,968

Bonds,notesandotherfixed-interestsecurities 24,997 96,853 211,932 6,336 340,119

Sharesandothervariable-yieldsecurities 3.523 17,924 138,235 0 159,681

347,581 224,133 1,110,339 124,250 1,806,303

Comparative figures as at 31/12/2013

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

102

II.2. Loans and advances to affiliated companies and equity participations

as at 31/12/2014 Loans and advances to Loans and advances to equity in€€thousand affiliated companies participations in which Raiffeisen (direct/indirect > 50 %) Centrobank has a direct shareholding (< 50%)

Loansandadvancestocreditinstitutions 1,528,357 0

Loansandadvancestocustomers 27,497 514

Bonds,notesandotherfixed-interestsecurities 186,574 0

Sharesandothervariable-yieldsecurities 123,539 0

Otherassets 44,722 9

1,910,689 523

Comparative figures as at 31/12/2013

as at 31/12/2013 Loans and advances to Loans and advances to equity in€€thousand affiliated companies participations in which Raiffeisen (direct/indirect > 50 %) Centrobank has a direct shareholding (< 50%)

Loansandadvancestocreditinstitutions 1,192,617 0

Loansandadvancestocustomers 37,498 514

Bonds,notesandotherfixed-interestsecurities 277,999 0

Sharesandothervariable-yieldsecurities 140,401 0

Otherassets 56,858 9

1,705,373 523

III. Securities

Figures supplied pursuant to Article 64 para 1 no 10 and 11 Austrian Banking Act

as at 31/12/2014 Unlisted Listed Total Valued at in€€thousand market price

Bondsandnotesissuedbypublicbodies,A2 0 64,912 64,912 64,912

Bonds,notesandotherfixed-interestsecurities,A5 12,304 227,048 239,352 239,352

Sharesandothervariable-yieldsecurities,A6 137,472 301,406 438,878 438,878

Equityparticipations,A7 5,137 0 5,137 x

Sharesinaffiliatedcompanies,A8 10,665 0 10,665 x

Comparative figures as at 31/12/2013

as at 31/12/2013 Unlisted Listed Total Valued at in€€thousand market price

Bondsandnotesissuedbypublicbodies,A2 0 32,454 32,454 32,454

Bonds,notesandotherfixed-interestsecurities,A5 0 340,119 340,119 340,119

Sharesandothervariable-yieldsecurities,A6 145,312 356,441 501,754 501,754

Equityparticipations,A7 5,137 0 5,137 x

Sharesinaffiliatedcompanies,A8 8,912 0 8,912 x

103

Thefairvalueofsecuritiesheldasothercurrentassetsexceededtheacquisitioncostsby€ 44thousandasat31December2014(31/12/2013:€ 46thousand).

Asat31December2014balancesheetitemsA2andA5includefixed-interestsecuritiesamountingto€ 304,264thousand(31/12/2013balancesheetitemA2andA5:€ 372,573thousand)ofwhich€ 212,019thousand(31/12/2013:€ 121,541thousand)willfalldueintheforthcomingyear.

BalancesheetitemsA7andA8werevaluedaccordingtothemoderatelowerofcostormarketprinciple.

IV. Equity participations and shares in affiliated companiesThefollowinglistcontainsinformationoncompaniesinwhichtheBankdirectlyheldaminimumof20percentshareholdingonthebalancesheetdate.

Figures as at 31/12/2014

in€€thousand Name Shareholding in % Equity Annual results Domicile 2014

1CentrotradeHoldingAG 100 4,422 1,213 Vienna

2CentrotradeChemicalsAG 100 7,332 125 Zug

3RaiffeisenInvestmentAdvisoryGmbH 100 764*) (2,131)*) Vienna

4CentroAssetManagementLtd. 100 405*) 242*) Jersey

5SyrenaImmobilienHoldingAG 21 29,614 64 Spittal/Drau*)unauditedfigures

Comparative figures as at 31/12/2013

in€€thousand Name Shareholding in % Equity Annual results Domicile 2013

1CentrotradeHoldingAG 100 5,709*) 2,572*) Vienna

2CentrotradeChemicalsAG 100 6,839 (123) Zug

3RaiffeisenInvestmentAdvisoryGmbH 100 2,009*) 1,390*) Vienna

4CentroAssetManagementLtd. 100 163*) 152*) Jersey

5SyrenaImmobilienHoldingAG 21 29,550 75 Spittal/Drau

V. Fixed assetsThecompositionanddevelopmentoffixedassetsiscontainedinthetableoutliningthedevelopmentoffixedassets.

VI. Other assetsBalancesheetitemA11“Otherassets“amountingto€ 117,472thousand(31/12/2013:€ 127,826thousand)primarilyreferstopurchasecontractsfromtradinginderivativefinancialinstrumentsreportedatfairvalueasat31/12/2014intheamountof€ 109,100thousand(31/12/2013:€ 118,380thousand)aswellasloansandadvancesontaxauthoritiesof€ 1,992thousand(31/12/2013:€ 1,355thousand).

*)unauditedfigures

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

104

Comparative figures as at 31/12/2013

31/12/2013 0-3 3-12 1-5 > 5 years Total in€€thousand months months years

Liabilitiestocreditinstitutions 97,911 0 0 0 97,911

Liabilitiestocustomers 1,612 8,452 0 0 10,065

Securitizedliabilities 38,987 95,938 482,102 59,647 676,674

138,510 104,390 482,102 59,647 784,650

VII.2. Liabilities to affiliated companies and equity participations

31/12/2014 Liabilities to affiliated Liabilities to equity in€€thousand companies (direct/indirect >50 %) participations in which Raiffeisen Centrobank has a direct shareholding (< 50%)

Liabilitiestocreditinstitutions 10,691 0

Liabilitiestocustomers 7,197 0

Otherliabilities 25,165 0

43,053 0

VII. Liabilities

VII.1. Classification of liabilities other than those repayable on demand according to their term to maturity

31/12/2014 0-3 3-12 1-5 > 5 years Total in€€thousand months months years

Liabilitiestocreditinstitutions 51,256 0 0 0 51,256

Liabilitiestocustomers 10,468 19,627 0 0 30,095

Securitizedliabilities 63,819 180,361 428,742 98,755 771,677

125,543 199,989 428,742 98,755 853,029

VII.3. Securitized liabilitiesThebalancesheetitemP3containsownissuestotaling€ 244,180thousand(31/12/2013:€ 134,925thousand),whichwillfalldueinthecourseof2015.

VII.4. Other liabilitiesThebalancesheetitemP4“Otherliabilities“amountingto€ 1,514,807thousand(31/12/2013:€ 1,451,614thousand)primarilyreferstoliabilitiesre-portedatfairvalueaswellaspremiumsreceivedfromtradinginsecuritiesandderivativefinancialinstrumentsof€ 1,511,457thousand(31/12/2013:€ 1,442,430thousand).

Comparative figures as at 31/12/2013

31/12/2013 Liabilities to affiliated Liabilities to equity in€€thousand companies (direct/indirect >50 %) participations in which Raiffeisen Centrobank has a direct shareholding (< 50%)

Liabilitiestocreditinstitutions 79,426 0

Liabilitiestocustomers 11,667 0

Otherliabilities 29,344 0

120,437 0

105

VIII. Share capitalThesharecapitaliscomprisedof655,000no-par-valueshares.

ThesharesinRaiffeisenCentrobankareownedbythefollowingcompanies:

% Shares

RBIIBBeteiligungsGmbH,Vienna 100.00 654.999

LexxusServicesHoldingGmbH,Vienna 0.00 1

100.00 655,000

IX. ProvisionsProvisionsbreakdownasfollows:

in€€thousand 31/12/2014 31/12/2013

Provisionsforseverancepayments 6,079 4,328

Provisionsforretirementbenefits 486 462

Otherprovisions 12,047 15,377

Provisionsforbonuspayments 1,774 4,412

Provisionsforlitigationrisks 4,132 3,526

Provisionsforoverduevacation 1,640 1,556

Legal,auditingandconsultingexpenses 333 452

Provisionsforpotentiallossesinaffiliatedcompanies 705 968

ProvisionsfortheSecuritiesTrading&SalesDepartment 486 238

ProvisionsfortheM&Abusiness 703 812

Provisionsforoutstandinginvoices 1,185 758

ProvisionsforchargedcostsforManagementBoardmembers 936 2,451

Provisionsformanagementfees 58 94

Sundry 95 110

Total 18,612 20,077

XI. Supplementary data

Assets and liabilities in foreign currenciesThefollowingamountsarecontainedinthebalancesheetinforeigncurrencies:

Currentvaluein€€thousand 31/12/2014 31/12/2013

Assets 668,503 507,128

Liabilities 595,861 430,487

X. Obligations arising from the use of tangible fixed assets not recognized in the balance sheetTherentalandleasingexpensesduringtheperiodunderreviewamountedto€ 1,084thousand(31/12/2013:€ 994thousand),thereof€ 299thousand(31/12/2013:€ 257thousand)toaffiliatedcompanies.Forthe2015financialyear,rentalcostsareexpectedtototal€ 760thousandand€ 3,039thousandforthe2015-2019financialyears,ofwhichtherentalcoststoaffiliatedcompanieswilltotal€255thousandand€ 1,277thousand,respectively.

Provisionsforseverancepaymentsincludearestructuringprovisionintheamountof€954thousand.

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

106

Unsettled futures and options contracts according to the VERA scheme1

Atthebalancesheetdate,thefollowingfuturesandoptionstransactions(bankingandtradingbook)hadnotyetbeensettled:

in€€thousand 31/12/2014 31/12/2013

Purchase contracts

Interestratefutures 0 5,000

Currencyandinterestrateswapsinasinglecurrency 0 10,673

Optionsoninterest-rateinstruments 200 200

Forwardexchangecontracts/goldcontracts 68,286 61,404

Futuresinassetvalues 1,962 1,618

Indexfuturecontracts 526,641 600,857

Optionsonassetvaluesandequityindexoptions 858,585 674,804

Preciousmetalsandcommodityfuturecontracts 22,915 17,863

Commodityoptions 39,436 48,071

Otherforwardtransactions,futurecontracts,optionsandsimilartransactions 35,777 35,762

Volume of the securities trading book Asatthebalancesheetdatethesecuritiestradingbookwasmadeupasfollows:

Volumen 31/12/2014 31/12/2013

Securities 3,280,409 3,153,900

Otherfinancialinstruments 5,325,416 3,933,572

Total 8,605,825 7,087,472

in€€thousand 31/12/2014 31/12/2013

Sales contracts

Interestratefutures 26,300 36,000

Currencyandinterestrateswapsinasinglecurrency 0 10,673

Forwardexchangecontracts/goldcontracts 93,419 83,083

Futuresinassetvalues 2,628 375

Indexfuturecontracts 94,374 159,997

Optionsonassetvaluesandequityindexoptions 3,430,553 2,035,835

Preciousmetalsandcommodityfuturecontracts 0 0

Commodityoptions 223,236 252,045

Securities trading bookAsecuritiestradingbookismaintained.Onthebalancesheetdatethetradingvolumeatfairvalues(derivativesonshares,commodities,preciousmetalsandgoldwithdeltavalues)valuedpursuanttointernalriskcalculationamountsto

in€thousand 31/12/2014 31/12/2013

Shares/mutualfunds (134,717) (168,743)

Listedoptions (3,732) (21,485)

Futures 429,560 433,542

Warrants/certificates (924,915) (516,744)

OTCoptions (53,776) 307,027

Purchasedbonds 1,751,265 1,530,651

Issuedguaranteebonds (771,265) (676,501)

Total 292,420 887,747

1ThechartisinlinewiththereportingguidelinesVERAoftheAustrianNationalBank(PartA1aunconsolidatedstatementofassets).

107

Data on transactions with derivative financial instrumentsStockmarkettradinginderivativefinancialinstrumentsfocusesonequitiesandequity/indexfuturesandoptions.ThefinancialinstrumentsissuedbyRaiffei-senCentrobankcanbeclassifiedaswarrants,certificatesmainlyonequitiesandequityindices(Turbo,Discount,BonusandOpen-EndCertificates),andguaranteebondswithapaymentstructurerelatedtoequityorequityindices.

Listedderivativesarereportedinthebalancesheetatthelistedmarketprice.Unlistedderivativesarereportedinthebalancesheetwithsyntheticmarketprices.Inbothcases,adjustmentsinvaluearerecognizedthroughprofitorlossintheincomestatement.Thesyntheticmarketpricesaredeterminedaccor-dingtothebank’sownevaluationmethods,whichareexaminedandapprovedbytheriskmanagementteamsandwhicharebasedonrecognizedopti-on-theoreticalmodels.

Forplainvanillaoptions(AmericanandEuropeanstyle),theBlack-ScholesmodelandthebinomialpricingmodelaccordingtoCox-Ross-Rubinsteinareapplied.TheCurranapproximationisappliedtoAsianoptions,whereasbarrieroptionsuseHeynen-KatandspreadoptionsrelyontheKirkmodel.

ThevolumeofderivativefinancialinstrumentsinthebankingbookrelatestoanOTCproducttohedgeinterestraterisksandtoFXforwardstohedgecur-rencyrisks.FXforwardtransactionsareprimarilyconcludedtohedgecurrencyrisksofthecommoditytradingsubsidiaries.Thetransactionsarevaluedatfairvalueapplyingobservablemarketparameter.Currencyderivativesasat31December2014comeuptoafairvalueof€201thousand(31/12/2013:€118thousand).

VolumesofderivativefinancialtransactionsaccordingtotheVERAscheme1for2014areasfollows:

in€thousandNominal amount Positive fair value Negative fair value as at 31/12/2014 Banking book Trading book Banking book Trading book Banking book Trading book

1. Interest rate contracts 200 26,300 0 0 0 40,994

1.1. OTC products 200 0 0 0 0 0

Interestrateswaps 0 0 0 0 0 0

Optionsoninterest-rateinstruments 200 0 0 0 0 0

1.2. Products traded on stock exchange 0 26,300 0 0 0 40,994

Interestratefutures 0 26,300 0 0 0 40,994

2. Foreign exchange contracts 98,690 63,010 201 16,105 (201) 14,600

2.1. OTC products 96,690 2,969 201 41 (201) 0

Forwardexchangecontracts 96,690 0 201 0 (201) 0

Goldcontracts 0 2,969 0 41 0 0

2.2. Products traded on stock exchange 0 60,041 0 16,064 0 14,600

Forwardexchangecontracts 0 16,068 0 16,064 0 0

Currencyfutures/Goldcontracts 0 43,973 0 0 0 14,600

3. Equity contracts 0 5,236,113 0 648,396 0 1,249,206

3.1. OTC products 0 2,281,264 0 96,656 0 112,701

Equity/index-basedoptions-purchased 0 678,408 0 96,493 0 0

Equity/index-basedoptions-sold 0 1,567,078 0 0 0 112,701

Otherequity-basedcontracts 0 35,777 0 163 0 0

3.2. Products traded on stock exchange 0 2,954,849 0 551,739 0 1,136,505

Shareandotherequity/indexoptionsandfuturecontracts 0 2,585,847 0 538,879 0 933,498

Commodities/preciousmetals 0 285,588 0 12,861 0 124,028

Certificates(ReverseConvertibles) 0 83,414 0 0 0 78,979

Total OTC products 98,890 2,284,232 201 96,697 (201) 112,701

Total listed products 0 3,041,190 0 567,803 0 1,192,099

Total 98,890 5,325,422 201 664,500 (201) 1,304,7991ThechartisinlinewiththereportingguidelinesVERAoftheAustrianNationalBank(PartA1aunconsolidatedstatementofassets).

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

108

VolumesofderivativefinancialtransactionsaccordingtotheVERAscheme1for2013areasfollows:

in€€thousandNominal amount Positive fair value Negative fair value 31/12/2013 Banking book Trading book Banking book Trading book Banking book Trading book

1. Interest rate contracts 9,343 53,204 (221) 6,265 222 50,058

1.1. OTC products 9,343 12,204 (221) 43 222 (43)

Interestrateswaps 9,143 12,204 (222) 43 222 (43)

Optionsoninterest-rateinstruments 200 0 1 0 0 0

1.2. Products traded on stock exchange 0 41,000 0 6,222 0 51,101

Interestratefutures 0 41,000 0 6,222 0 51,101

2. Foreign exchange contracts 89,534 54,957 118 16,573 (118) 25,044

2.1. OTC products 89,534 11,835 118 0 (118) 2,660

Forwardexchangecontracts 89,534 0 118 0 (118) 0

Goldcontracts 0 11,835 0 0 0 2,660

2.2. Products traded on stock exchange 0 43,122 0 16,573 0 22,384

Forwardexchangecontracts 0 16,566 0 16,566 0 0

Currencyfutures/Goldcontracts 0 26,556 0 7 0 22,384

3. Equity contracts 0 3,827,222 0 721,339 0 1,101,183

3.1. OTC products 0 1,500,679 0 87,803 0 73,230

Equity/index-basedoptions-purchased 0 537,301 0 87,254 0 0

Equity/index-basedoptions-sold 0 927,616 0 0 0 73,230

Otherequity-basedcontracts 0 35,762 0 549 0 0

3.2. Products traded on stock exchange 0 2,326,543 0 633,536 0 1,027,954

Shareandotherequity/indexoptionsandfuturecontracts 0 1,960,395 0 612,691 0 854,592

Commodities/preciousmetals 0 317,979 0 20,845 0 122,624

Certificates(ReverseConvertibles) 0 48,170 0 0 0 50,738

Total OTC products 98,877 1,524,718 (103) 87,846 104 75,847

Total listed products 0 2,410,665 0 656,331 0 1,100,439

Total 98,877 3,935,383 (103) 744,177 104 1,176,2861ThechartisinlinewiththereportingguidelinesVERAoftheAustrianNationalBank(PartA1aunconsolidatedstatementofassets).

C.NotestotheIncomeStatement

I. Interest and similar income

in€€thousand 2014 2013

forliabilitiestocreditinstitutions 1,578 1,128

forliabilitiestocustomers 3,516 3,573

forsecuritizedliabilities 6,041 7,784

11,135 12,485

II. Interest and similar expenses

in€€thousand 2014 2013

forliabilitiestocreditinstitutions (2,223) (1,998)

forliabilitiestocustomers (108) (147)

forsecuritizedliabilities (16,106) (14,809)

(18,437) (16,954)

109

III. Fee and commission income

in€€thousand 2014 2013

fromsecuritiesbusiness 12,052 13,043

fromM&Atransactions 5,377 11,931

fromECMtransactions 7,806 4,059

fromcreditbusiness 119 83

frompaymenttransactions 185 227

fromotherbankingservices 1,337 1,174

26,875 30,516

IV. Fee and commission expenses

in€€thousand 2014 2013

fromsecuritiesbusiness (15,664) (13,714)

fromM&Atransactions (1,924) (4,333)

fromECMtransactions 0 (543)

frompaymenttransactions (147) (218)

fromotherbankingservices (985) (896)

(19,388) (19,705)

Interestandsimilarexpensesaremainlyrelatedtocouponpaymentsforstructuredproducts.Theincreasecomparedtothepreviousyearisattributabletoanaverageriseintheissueofstructuredproductswithcouponpayments.Theliquidityderivedfromissuesisprimarilyinvestedintotradablemoneymarketdepositswithoutcurrentcouponswhichareincludedinthetradingbook.Theresultfromtradablemoneymarketdepositsincludedinthetradingbookisshowninnetprofitonfinancialtradingactivities.

Interestandsimilarexpensesforcouponpaymentsforstructuredproductstowhichthenegativenetinterestincomeisprimarilyattributabletoareoffsetbyapositivevaluationresultfromtradablemoneymarketdepositsinthenetprofitonfinancialtradingactivities.

V. Net profit on financial trading activities

in€€thousand 2014 2013

fromthevaluationandsaleofcertificatesandshares 91,700 (8,806)

fromthevaluationandsaleofotheroptionsandfutures (42,768) 49.497

fromthevaluationofspotandfuturespositions (3,241) (286)

45,690 40,405

VI. Other operating incomeTheitemincludesmainlyincomefromthereleaseofnon-interestbearingprovisionsintheamountof€1,350thousand,andincomefromthereleaseofM&Avalueadjustmentsintheamountof€880thousand.In2013,theitemcontained€ 2,000thousandfromtherepurchaseofasubordinatedbondofRaiffeisenBankMaltaplc,Sliema.

Inthereportingyear,thenetprofitonfinancialtradingactivitieswaspositivefurthertoariseinvolumeinthecertificatesbusinessandanincreaseinthetransactionvolumeinthesalesbusiness.Contrary,therewerenegativevaluationeffectsinthetradingbusinesswhichareattributabletomarket-relatedadjustmentsinforeigntradablemoneymarketdeposits.

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

110

VIII. Other operating expenses“Otheroperatingexpenses“amountingto€ 2,148thousand(31/12/2013:€ 728thousand)primarilyrelatestoM&Avalueadjustmentsintheamountof€ 1,290(2013:€ 68thousand)andtoexpenseschargedfornon-bankingtransactionsintheamountof€ 801thousand.

X. Deferred taxesThebankdidnotexerciseitsrighttocapitalizedeferredtax.Thecapitalizableamountofabout€ 421thousand(2013:€ 317thousand)wascalculatedonthebasisofnon-deductibleexpensesforthe2014financialyearandpreviousyears.

XI. Expenses for auditing the financial statementsExpensesforauditingthefinancialstatementssplitintoexpensesforauditingandfortaxconsultancyservicesarecontainedintheconsolidatedfinancialstatements.

IX. Income taxesIncometaxesarecomprisedofthefollowing:

in€€thousand 2014 2013

Grouptaxation 324 768

Taxesforformerperiods 0 33

Taxesforformerperiods(settlementofGroupcharge) (1,136) 0

Notrecognizedasforeignwithholdingtax 1,065 1,163

253 1,964

VII. General administrative expenses

in€€thousand 2014 2013

Officespaceexpenses(maintenance,operation,administration,insurance) (1,377) (1,396)

Officesupplies,printedmatter,literature (292) (393)

ITcosts (2,073) (2,239)

Communicationcosts (1,069) (1,001)

Informationservices (3,522) (3,011)

Carexpensesandtravellingexpenses (949) (1,085)

Advertisingandpromotionalexpenses (1,019) (1,218)

Legal,advisoryandconsultancyservices (1,127) (1,277)

Contributionstoassociations (734) (436)

Sundry (2,845) (4,561)

(15,007) (16,617)

Thedecreasein“Generaladministrativeexpenses”isattributabletothereleaseofprovisionsforbonuspayments.

D.OtherDisclosures

Contingent liabilitiesThebreakdownofcontingentliabilitiesarisingfromguaranteesandsuretiestotaling€ 447thousand(31/12/2013:€ 696thousand)consistsofthefollowing:

in€€thousand 31/12/2014 31/12/2013

Lettersofcredit 0 248

Guarantees 447 448

447 696

thereofforaffiliatedcompanies 0 248

111

InaccordancewithArticle93AustrianBankingAct,theBankislegallyobligedtoprovideforproportionatedepositinsuranceaspartofitsmembershipinaprofessionalassociation.RaiffeisenCentrobankAGisamemberoftheFachverbandderRaiffeisenbanken(professionalassociationoftheRaiffeisenBankingGroup).ThisalsoentailsanaffiliationwithÖsterreichischenRaiffeisenEinlagensicherungreg,GenmbH.,Vienna(thedepositinsurancearmoftheRaiffeisenBankingGroup,registeredasalimitedliabilitycompany).Inthefinancialyearthetheoreticalclaimonthisinsuranceislimitedtoarateof1.5percentoftheassessmentbasisinaccordancewithArticle22para2AustrianBankingActatthebalancesheetdate,plustheweighteditemsofthesecuritiestradingbook,alsoinaccordancewithpart3CRR.Thesecontingentliabilitiesarereportedatamarketvalueof€0.07.

Commitments shown under the balance sheetCommitmentsshownunderthebalancesheetamountingto€9,896thousand(31/12/2013:€33,090thousand)refertoirrevocableandrevocablecreditlinesandstandbyfacilities.

Other contractual bank guarantee obligationsThefollowingassetswerepledgedassecurityforobligationsasofDecember31,2014:

ItemA2Loansandadvancestocreditinstitutions€145,265thousand (31/12/2013:€115,912thousand) Collateraldepositedwithbanksandstockexchangesforthesecuritiesandoptionsbusiness

ItemA5Bonds,notesandotherfixed-interestsecurities€ 54,431thousand (31/12/2013:€84,156thousand) Collateraldepositedwithbanksandstockexchangesforthesecuritiesandoptionsbusiness

ItemA6Sharesandothervariable-yieldsecurities€ 0thousand (31/12/2012:€10,989thousand Collateraldepositedwithbanksandstockexchangesforthesecuritiesandoptionsbusiness

Letters of comfortAsatthebalancesheetdateanon-bindingletterofcomforttowardsanassociatedcompanywasinexistence.Nocircumstanceswereknownwhichwouldhaveinvolvedaprovisionforcontingentlosses.

Trustee transactions Trusteetransactionsnotincludedinthebalancesheetrefertooneequityparticipationheldintrust.

Own funds Theownfundspursuanttopart2CRRarecomprisedofthefollowing:

in€thousand 31/12/2014

Capitalpaid-in 47,599

Earnedcapital 44,721

Core capital (tier 1 capital) before deductions 92,320

Intangiblefixedassets (115)

Prudentvaluation (4,464)

Core capital (tier 1 capital) after deductions 87,740

Supplementaryownfunds 0

Core capital 87,740

Supplementarycapital 0

Supplementary own funds (after deductions) 0

Total own funds 87,740

Total risk-weighted assets 682,985

Coretier1ratio,creditrisk 31.4%

Coretier1ratio,total 12.8%

Ownfundsratio 12.8%

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

112

Inthereportingyear,anamountof€3,000wasallocatedtootherreservespursuanttothedecisionoftheAnnualGeneralAssemblyof29April2014.

Risk-weightedassetsforthecreditriskaccordingtoassetclassesbreakdownasfollows:

in€€thousand 2014

Risk-weighted assets according to standardized approach 260,754

Centralgovernmentsandcentralbanks 556

Publicbodies 68

Institutions 112,167

Corporates 109,830

Equityparticipations 15,803

Positionswithparticularlyhighrisk 3,582

Otherpositions 18,747

CVA risk 18,409

Total 279,163

in€€thousand 2014

Total risk-weighted assets 682,985

Totalownfundsrequirementforcreditrisk 22,333

Standardapproach 20,860

CVArisk 1,473

Totalownfundsrequirementforpositionriskinbonds,equities,commoditiesandopencurrencypositions 20,766

Totalownfundsrequirementforoperationalrisk 11,539

Total own funds requirement 54,639

Eligibleownfundspursuantto§23para14AustrianBankingoldversionamountedto€89,115thousandin2013,includingownfundspursuantto§23para14item7AustrianBankingActoldversionintheamountof€0thousand.

Totalownfundsrequirementpursuantto§22para1austrianBankingActoldversioncameupto€57,435thousandincludingtotalownfundsrequire-mentpursuantto§22para1item1and4AustrianBankingActoldversionintheamountof€ 27,203thousand.

Number of staff

31/12/2014 Annual 31/12/2013 Annual average average

Salariedemployees(includingManagementBoard) 224 238 249 249

thereofpart-time 27 27 26 27

Wageemployees 9 9 10 10

thereofpart-time 2 3 5 5

Total 233 247 259 259

113

Advances and loans to members of the Management Board and Supervisory Board AtthebalancesheetdatenoadvancesandloanshadbeengrantedtomembersoftheManagementBoard.Noadvances,loansorguaranteesweregrantedtomembersoftheSupervisoryBoard.

Expenses for severance payments and retirement benefits Expensesforseverancepaymentsandretirementbenefits(includingcontributionstopensionfundsandstaffretirementbenefitplans,aswellasprovisionsforseverancepayments)breakdownasfollows:

Expensesforseverancepayments2014includerestructuringprovisionsintheamountof€954thousand.

Paymenttoemployeepensionfundscameupto€225thousand(2013:€216thousand).

RemunerationsandexpensesonseverancepaymentsandretirementbenefitsformembersoftheManagementBoardwerebornebyRaiffeisenBankInternationalAG(anaffiliatedcompany)andareincludedasrefundin“Otheradministrativeexpenses”.

SeverancepaymentstomembersortheManagementBoardcameupto€16thousand(2013:€500thousand).

Remuneration for members of the Management Board and Supervisory BoardInthe2014financialyearremunerationforfourManagementBoardmemberstotaled€2,689thousand(2013:€2,090thousand).Astotheremunerati-onoftheManagementBoard€2,647thousand(2013:€1,785thousand)werechargedbyRaiffeisenBankInternationalAG(anaffiliatedcompany)andareincludedin“Otheradministrativeexpenses”.

In2014attendingfeesintheamountof€95thousandwerepaidtomembersoftheSupervisoryBoard(2013:€110thousand).

Group relations ThecompanyisanaffiliatedcompanyofRaiffeisen-Landesbanken-HoldingGmbH,Vienna,andisintegratedinitsconsolidatedfinancialstatements,aswellasintheconsolidatedfinancialstatementsofRaiffeisenBankInternationalAG,Viennawhichprovidestheconsolidatedfinancialstatementsfortheleastnumberofcompaniesrequired.

RaiffeisenCentrobankitselfisconsideredtobeaparentcompanypursuanttoArticle30para1AustrianBankingAct.Provisionspertainingtotheexempt-ingconsolidatedfinancialstatementspursuanttoArticle245para5AustrianCommercialCodearenotapplicable,duetothefactthatsecuritiesissuedbythecompanyaretradedonanorganizedstockexchangeasstipulatedinArticle4para1(92)ofEUDirective575/2013.Forthisreason,thecompa-nydrawsupitsownconsolidatedfinancialstatementsforitssubgroupinaccordancewithInternationalFinancialReportingStandards.Theseconsolida-tedfinancialstatementsareavailableattherelevantparentcompanyaswellasattheCommercialCourtofVienna.

SinceDecember17,2008,thecompanyhasbeenamemberofthecorporategroupRaiffeisenZentralbankÖsterreichAktiengesellschaft(RZB)pursuanttoArticle9AustrianCorporationTaxAct.TheapplicationsubmittedbythecompanytobecomeagroupmemberofthecorporategroupRZBasofthebusinessyear2008pursuanttoArticle9AustrianCorporationTaxActwasnotifiedtothefinancialauthoritiesonDecember19,2008andwasappro-vedbynoticeonApril22,2009.

Thetaxableresultsofthemembersofthegroupareattributedtotheparentcompany.Anytaxadjustmentsbetweentheparentcompanyandtheindividualmembersofthecorporategroupareregulatedintheformofataxallocationagreement.

Retirement benefits Severance payments 2014 2013 2014 2013

ManagementBoardmembersandseniormanagement (313) 442 40 165

Employees 512 689 2.618 647

Total 199 1.131 2.658 812

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

114

Members of the Management Board, the Supervisory Board and State Commissioners

Management Board EvaMarchart (ChiefExecutiveOfficeruntil31December2014) AlfredMichaelSpiss (DeputyChiefExecutiveOfficeruntil31December2014) GerhardGrund (MemberoftheManagementBoarduntil31December2014) WilhelmCeleda ChiefExecutiveOfficerasof1January2015 (MemberoftheManagementBoarduntil31December2014) MarkusKirchmair MemberoftheManagementBoardasof1January2015 Supervisory Board KlemensBreuer Chairman MemberoftheManagementBoard, RaiffeisenBankInternationalAG,Vienna WalterRothensteiner 1stDeputyChairman(until31December2014) ChiefExecutiveOfficer, RaiffeisenZentralbankÖsterreichAG,Vienna

KarlSevelda 1stDeputyChairman(since1January2015) ChiefExecutiveOfficer, 2ndDeputyChairman(until31December2014) RaiffeisenBankInternationalAG,Vienna

JohannStrobl Member(until29April2014)) DeputyChiefExecutiveOfficer, RaiffeisenBankInternationalAG,Vienna, HannesMösenbacher Member(since29April2014) DivisionHead, RaiffeisenBankInternationalAG,Vienna

WernerKaltenbrunner Member DivisionHead, RaiffeisenBankInternationalAG,Vienna

State Commissioners AlfredHacker,TamaraEls

Vienna,15April2015TheManagementBoard

WilhelmCeledaChiefExecutiveOfficer

MarkusKirchmairMemberoftheManagementBoard

115

Auditor'sreport

ReportontheFinancialStatementsWehaveauditedtheaccompanyingfinancialstatements,includingtheaccountingsystem,ofRaiffeisenCentrobankAG,Vienna,forthefiscalyearfrom1January2014to31December2014.Thesefinancialstate-mentscomprisethebalancesheetasof31December2014,theincomestatementforthefiscalyearended31December2014,andthenotes.

Management'sResponsibilityfortheFinancialStatementsandfortheAccountingSystemTheCompany’smanagementisresponsiblefortheaccountingsystemandforthepreparationandfairpresentationofthesefinancialstatementsinaccordancewithAustrianGenerallyAcceptedAccountingPrinciples.Thisresponsibilityincludes:designing,implementingandmaintaininginter-nalcontrolrelevanttothepreparationandfairpresentationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror;selectingandapplyingappropriateaccountingpolicies;andma-kingaccountingestimatesthatarereasonableinthecircumstances.

Auditor'sResponsibilityandDescriptionofTypeandScopeoftheStatutoryAuditOurresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithlawsandregulationsapplicableinAustriaandAustrianStandardsonAuditing.Thosestandardsrequirethatwecomplywithprofessionalguidelinesandthatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor'sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheCompany’spreparationandfairpresentati-onofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheCompany’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

OpinionOurauditdidnotgiverisetoanyobjections.Inouropinion,whichisba-sedontheresultsofouraudit,thefinancialstatementscomplywithlegalrequirementsandgiveatrueandfairviewofthefinancialpositionoftheCompanyasof31December2014andofitsfinancialperformancefortheyearfrom1Januaryto31December2014inaccordancewithAus-trianGenerallyAcceptedAccountingPrinciples.

ReportontheManagementReportPursuanttostatutoryprovisions,themanagementreportistobeaudi-tedastowhetheritisconsistentwiththefinancialstatementsandastowhethertheotherdisclosuresarenotmisleadingwithrespecttotheCompany’sposition.Theauditor’sreportalsohastocontainastatementastowhetherthemanagementreportisconsistentwiththefinancialstate-mentsandwhetherthedisclosurespursuanttoSection243aUGB(Austri-anCommercialCode)areappropriate.

Inouropinion,themanagementreportisconsistentwiththefinancialstate-ments.ThedisclosurespursuanttoSection243aUGB(AustrianCommer-cialCode)areappropriate.

WilhelmKovsca(AustrianCharteredAccountant)

JosefKirchknopf(AustrianCharteredAccountant)

Vienna,15April2015KPMGAustriaGmbHWirtschaftsprüfungs-undSteuerberatungsgesellschaft

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

116

ContactsandPublisher'sDetails

117

JohannesHämmerleEquities&Derivativeshaemmerle@rcb.atPhone:+43(1)51520-439

HeikeArbterStructuredProductsarbter@rcb.atPhone:+43(1)51520-407

KlausdellaTorreEquitySalesdellatorre@rcb.atPhone:+43(1)51520-472

KlausImhofMergers&Acquisitionsimhof@rcb.atPhone:+43(1)51520-760

HelgaFrohnerOperationsfrohner@rcb.atPhone:+43(1)51520-421

SiegfriedNeumüllerEquityCapitalMarketsneumueller@rcb.atPhone:+43(1)51520-652

StefanMaxianCompanyResearchmaxian@rcb.atPhone:+43(1)51520-710

GeraldDeimelLegal,Compliance&Taxdeimel@rcb.atPhone:+43(1)51520-216

ChristianSlavik,MBAControlling&RegulatoryReportingslavik@rcb.atPhone:+43(1)51520-349

GünterVölkerIT&Organisationvoelker@rcb.atPhone:+43(1)51520-280

EleonoreLederHR&Recruitingleder@rcb.atPhone:+43(1)51520-206

AndreaPelinka-KinzCommunications&Marketingpelinka-kinz@rcb.atPhone:+43(1)51520-614

ContactsandPublishers'sDetailsofRaiffeisenCentrobank

Publisher's details

OwnerandPublisherConcept,Layout,ProductionandEditorialRaiffeisenCentrobankAGA-1015Vienna,Tegetthoffstrasse1Phone+43-1-51520-0Fax:+43-1-5134396

Man

agem

entR

epor

tN

otes

toth

eC

onso

lidat

edF

inan

cial

Sta

tem

ents

C

onso

lidat

edF

inan

cial

Sta

tem

ents

G

roup

Man

agem

entR

epor

tC

ompa

nyIn

divid

ualF

inan

cial

Sta

tem

ents

C

onta

cts

and

Publ

isher

'sD

etai

ls

118

www.rcb.at