In This Article:
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Consolidated Profits (Excluding Russia and Belarus): EUR856 million for the first nine months of 2024.
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Return on Equity (ROE): 8.6% for the first nine months of 2024.
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CET1 Ratio: 15.3% under worst-case scenario in Russia; guidance for full year remains at 14.7%.
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Operating Expenses: Up 6% versus the first nine months of 2023.
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Cost Income Ratio: Just under 51% for the period.
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Net Interest Income (Excluding Russia and Belarus): Down 1% in the quarter.
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Full Year Guidance for Net Interest Income: Confirmed at EUR4.1 billion.
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Fee Income: Broadly stable; full year guidance confirmed at EUR1.8 billion.
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Loan Growth: Muted overall; Romania showed growth with corporate book up 5% and retail book up 3%.
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Deposits from Households: Up 4% in the quarter in euro terms.
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Liquidity Coverage Ratios: Stable at comfortable levels across the group.
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Fully Consolidated Group CET1 Ratio: Stable at 17.8%.
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Expected Year-End CET1 Ratio: Around 17.3% due to recalculation of operational RWAs.
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Risk Costs: Around 30 basis points year to date; guidance for full year up to 35 basis points.
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Return on Equity (Revised): Down to 7.5% due to provisions in Poland and windfall tax in Ukraine.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Raiffeisen Bank International AG (RAIFF) reported consolidated profits excluding Russia and Belarus of EUR856 million for the first nine months of 2024, with an ROE of 8.6%.
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The CET1 ratio for the group under a worst-case scenario in Russia improved to 15.3%, with guidance for the full year remaining at 14.7%.
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Operating expenses increased by 6% compared to the first nine months of 2023, with a cost-income ratio just under 51%.
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The bank's liquidity coverage ratios remained stable and at comfortable levels across the group.
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The bank's CET1 ratio is stable at 17.8% for the fully consolidated group, with expectations to be around 17.3% by year-end.
Negative Points
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Net interest income excluding Russia and Belarus decreased by 1%, with a clear downward trend.
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Operating expenses increased by 6% compared to the first nine months of 2023.
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The return on equity was revised down to 7.5% due to the risk of further provisions in Poland and an unexpected windfall tax in Ukraine in Q4.
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The bank faces significant challenges in exiting its Russian operations, with court proceedings delaying the timeline.
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Risk costs are expected to increase to 35 basis points for the full year of 2024, with further provisions anticipated in Poland.