Raiffeisen Bank International AG (RAIFY) Q1 2025 Earnings Call Highlights: Navigating ...
Return on Equity: 7.3% in the core group, excluding Russia.
Net Interest Income: Stable in the quarter.
Fee Income: Up 8% compared to Q1 last year.
Cost-Income Ratio: Increased compared to Q1 last year.
Loan Book Reduction: Decreased by 4% in Russia in Q1.
Deposit Reduction in Russia: 9% drop in Q1.
Capital Ratios: Group capital ratio including Russia improved to almost 19%.
CT1 Ratio Excluding Russia: 15.9% in the worst-case scenario.
Non-Performing Loan Ratio: Below 2% for the group excluding Russia.
Stock of Overlays: EUR 451 million, excluding Russia.
CRR3 Implementation: Provided around EUR 6 billion of relief to credit risk RWAs, excluding Russia.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Raiffeisen Bank International AG (RAIFY) reported a consolidated profit of EUR 260 million in Q1 2025, excluding Russia, with a return on equity of 7.3%.
The bank's net interest income remained stable despite recent rate cuts and slow loan growth, benefiting from hedges and high deposit volumes.
The cost-income ratio target for 2025 remains unchanged, demonstrating a commitment to cost discipline.
Capital ratios, including Russia, improved to almost 19%, driven by the implementation of CRR3 and a 23% ruble appreciation.
The bank's liquidity ratios remain prudent, with a conservative asset and liability matching strategy in place.
Negative Points
The cost-income ratio increased compared to Q1 last year due to pressure on operating expenses and revenue effects.
Trading income was lower due to the tightening of the bank's own credit spreads, although this partially reversed in April.
The Rosperia court case resulted in a EUR 1.9 billion withdrawal from the bank's Russian subsidiary account, impacting financials.
Loan growth was muted, particularly in corporate demand, which remained sluggish.
The geopolitical situation and legal proceedings in Russia present ongoing challenges and uncertainties for the bank.
Q & A Highlights
Q: Are the forfeited funds in the Rosberia case in a blocked account or gone? A: Johann Strobl, CEO: The funds are gone. They have been withdrawn from the accounts following a second instance ruling. This affects the sales process as we prepare a claim for damages, and the interest on the withdrawn amount has not yet been taken. We are awaiting the unblocking of shares, which we assume will happen after the interest is withdrawn.
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