Latest news with #CRR3
Yahoo
07-05-2025
- Business
- Yahoo
Piraeus Financial Holdings SA (BPIRF) Q1 2025 Earnings Call Highlights: Strong Profit Growth ...
Release Date: May 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Piraeus Financial Holdings SA (BPIRF) reported a strong net profit of EUR 284 million for Q1 2025, marking a 22% increase year-on-year. The company achieved a return on average tangible book value of 14.7%, surpassing the 2025 target of approximately 4%. Asset quality remains solid with a non-performing exposure (NPE) ratio at 2.6% and a historic low cost of risk at 35 basis points. The loan book expanded by EUR 1.1 billion in Q1 2025, continuing the strong momentum from 2024. Piraeus Financial Holdings SA (BPIRF) increased its assets under management to EUR 12.5 billion, already exceeding the 2025 target. Negative Points Net interest income declined by 7% annually due to a material drop in interest rates. The company faces potential capital volatility from its securities book, which was not booked in amortized cost. There is uncertainty regarding the impact of Basel 4 and other regulatory changes on capital ratios. The mortgage market growth is expected to be moderate, with some initiatives progressing slower than anticipated. Further reductions in net interest income are expected in the coming quarters due to the normalization of base rates. Q & A Highlights Q: What is the rationale behind the choice of not booking the increase in the securities book in amortized cost, and how are you managing potential capital volatility from these positions? Also, could you clarify the capital impact from the acquisition of ethnic insurance? A: The decision was to book the new additions under the OCI book with corresponding hedging instruments to avoid volatility. The capital impact from the ethnic insurance acquisition is expected to be between 150 and 160 basis points, with potential application of Article 49 of CRR3, though not currently in the primary plan. Q: How should we think about credit expansion seasonality across the year, and can you provide any insights into the current lending pipeline or changes in customer behavior? A: The first quarter was particularly strong with significant transactions setting the tone for the year. We are not upgrading our full-year guidance yet but remain vigilant. The retail consumer market is positive, and we expect moderate growth in the mortgage market by year-end. Q: How does the business outlook change if rates go below certain levels, and what are the drivers behind the increased NII sensitivity this quarter? A: The increased sensitivity is due to the unfreezing of mortgages, which are now sensitive to rate cuts. The assumed pass-through of rate cuts into time deposit costs is at 60%, currently at 52%. We expect the NII guidance to hold even with rate cuts, as growth is expected to mitigate any potential drop.
Yahoo
07-05-2025
- Business
- Yahoo
Raiffeisen Bank International AG (RAIFY) Q1 2025 Earnings Call Highlights: Navigating ...
Consolidated Profit: EUR 260 million in Q1, excluding Russia. 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.
