* CEO says can take time to repay Austrian state aid
* Says net interest margin could be slightly higher in 2013
* Says "definitely" won't buy any more banks
(Adds quotes and background)
VIENNA, June 26 Raiffeisen Bank International
is in no rush to repay Austrian state aid despite
rival Erste Group's push to pay back the capital with
the help of a rights issue, RBI Chief Executive Karl Sevelda
said on Wednesday.
"We have always said that we have no intention of paying
back the funds we received in the near future," he told
shareholders at his first annual meeting as CEO, saying the bank
first needed to agree the issue with regulators.
"But we have the option to repay the participation capital
in parts or in full any time," he added, noting the non-voting
participation capital counted as core tier 1 capital under
international and Austrian rules until the end of 2017.
"In this context, we consider the coupon of 8 percent -
there will be an increase from 2014 onwards - reasonable," he
said, although he acknowledged this type of capital will become
increasingly unattractive over time.
The Raiffeisen group raised around 2.5 billion euros ($3.3
billion) in non-voting participation capital after the financial
crisis broke out, of which 1.75 billion came from the state and
the rest from private investors.
Erste Group Bank on Monday said it would repay 1.76 billion
euros in participation capital in the third quarter and raise
about 660 million euros via a rights issue.
Analysts estimate Raiffeisen needs to raise between 1.5
billion and 1.8 billion euros in capital to meet future
regulatory requirements. But it has shown little appetite to
sell more shares while its stock trades below what it sees as
its true value.
Sevelda, who took over this month from Herbert Stepic when
the veteran CEO stepped down over personal investments, said
RBI's net interest margin is set to be steady "or slightly
higher" in 2013, reiterating it expected net risk provisions in
line with 2012 levels.
The bank had said in May its net interest margin would
roughly match last year's levels.
Sevelda told shareholders that central and eastern Europe's
second-biggest lender would "definitely" not buy any more banks
but could acquire small portfolios from other banks that scale
back in the region.
($1 = 0.7649 euros)
(Reporting by Michael Shields; editing by Georgina Prodhan)