In This Article:
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Group Consolidated Profit: EUR1,157 million.
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Return on Equity (excluding OCI recycling in Belarus): 9.4%.
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Core Group Consolidated Profit (excluding Russia and Belarus): EUR975 million.
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Net Interest Income: EUR4,155 million.
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Fee Income: EUR1,804 million, up 5% year-on-year.
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Operating Expenses (OpEx): Approximately EUR3.3 billion.
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Cost Income Ratio: 52.5%.
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Loans to Customers: Increased by 3% in 2024.
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Dividend Proposal: EUR1.1 per share.
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Provision for Russian Legal Proceedings: EUR840 million.
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Core Group CET1 Ratio (excluding Russia): 15.1%.
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Core Group NPE Ratio: 2.1% with a coverage ratio of 50.4%.
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Provisioning Ratio for Core Group: 27 basis points.
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Expected Loan Growth for 2025: 6% to 7%.
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Expected CET1 Ratio for 2025: 15.2%.
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Expected Profitability for 2025: Around 10%.
Release Date: February 04, 2025
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 (RAIFY) reported consolidated profits of EUR 975 million for the core group, excluding Russia and Belarus, which remained broadly stable year-on-year.
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The core group's return on equity, excluding Russia and Belarus, was between 13% and 15%, indicating a solid foundation for future growth.
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Fee income improved by 5% to EUR 1,804 million, reflecting strong performance across main product lines and key markets.
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The bank proposed a EUR 1.1 per share dividend, allowing shareholders to benefit from the core group's good performance.
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The CET1 ratio for the core group was stable at 15.1%, with expectations to maintain this level by the end of 2025.
Negative Points
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Consolidated profit dropped significantly year-on-year due to major effects, including a court decision in Russia and the sale of Belarus, impacting profits by minus EUR 824 million.
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Litigation provisions in Poland continued to significantly impact core group profitability.
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The Russian court case resulted in a provision of EUR 840 million, reflecting potential damages, which could affect future financial stability.
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The sale of Belarus resulted in a negative deconsolidation effect of EUR 824 million, impacting equity.
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The bank faces ongoing challenges in reducing its Russian business, with legal proceedings and geopolitical tensions complicating the process.
Q & A Highlights
Q: Can you provide an update on the Bloomberg article that caused an 8% drop in stock price and any progress on exiting Russia? A: Hannes Moesenbacher, Chief Risk Officer, confirmed there was no breach of sanctions at Raiffeisen Bank Russia. Johann Strobl, CEO, mentioned that the court case involving Rasperia and Strabag limits their options for exiting Russia, but discussions with interested parties continue.