June 5, 2024

RBI Reports Strong Start in 2024 with €664 Million Profit

Raiffeisen Bank International (RBI) has announced impressive financial results for Q1 2024, showing a consolidated profit of €664 million, slightly up from €657 million in Q1 2023. CEO Johann Strobl attributed the performance to a significant drop in risk costs, down by over 90% year-on-year. Key highlights include a €70 million rise in net interest income driven by Central and Southeastern Europe, and a sharp decline in net fee and commission income, mainly due to a decrease in Russia. RBI’s CET1 ratio stands at a robust 17.3%, with positive outlooks for 2024, excluding contributions from Russia and Belarus.

In Detail:

Raiffeisen Bank International (RBI) has reported a consolidated profit of €664 million for the first quarter of 2024, marking a slight increase from €657 million in the same period of the previous year. The significant reduction in risk costs, down by more than 90%, played a crucial role in this performance.

CEO Johann Strobl commented on the results, noting the alignment with expectations and the positive impact of lower risk costs. The bank's net interest income saw a notable rise of €70 million, reaching €1,455 million, primarily driven by higher interest income in Central and Southeastern Europe. Slovakia contributed the most with a €25 million increase, largely due to higher income from customer loans and deposits at the national bank.

Conversely, net fee and commission income decreased by €297 million to €669 million, with Russia experiencing the most significant decline at €287 million. Despite this, the group maintained stable performance in other countries.

Impairment losses on financial assets were significantly lower at €25 million, compared to €301 million in the previous year. Stage 3 impairment losses were primarily seen in Russia (€43 million), while net releases were recognized in Hungary, Russia, and Ukraine for Stages 1 and 2.

RBI’s Common Equity Tier 1 (CET1) ratio, including first-quarter results, stood at 17.3%. Excluding the Russian subsidiary, this ratio would be 14.6%, still well above regulatory requirements.

Outlook for 2024:

  • Net interest income is expected to be around €4.0 billion.
  • Net fee and commission income is anticipated to be around €1.8 billion.
  • Customer loan growth is projected to increase by 3 to 4%.
  • General administrative expenses are estimated at approximately €3.3 billion, resulting in a cost/income ratio of about 52%.
  • The provisioning ratio is expected to be around 50 basis points.
  • The consolidated return on equity is forecasted to be around 10%.
  • RBI expects a CET1 ratio of around 14.6% by year-end 2024.
  • Decisions on dividends will be based on the capital position excluding Russia.

Petr Thiel
Petr Thiel

CEO, STH Consulting

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