Latest news with #JohannStrobl
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 They have been withdrawn from the accounts following a second instance ruling.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.
Reuters
06-05-2025
- Business
- Reuters
Austria's RBI reports lower Q1 earnings on higher costs, risk overlays
VIENNA, May 6 (Reuters) - Raiffeisen Bank International's (RBI) ( opens new tab profit after tax fell 10.7% to 318 million euros ($360 million) in the first quarter, the Austrian lender said on Tuesday, citing higher provisions for loan defaults and higher administrative costs. The quarterly figure, which did not include its business in Russia and Belarus, came in above average analysts' expectations of 305 million euros. RBI is the biggest Western bank still operating in Russia. It is planning to sell its business there but has struggled to obtain regulatory clearance from Moscow. "We keep working on a sale of our Russian subsidiary and are talking to several interested parties. It remains to be seen whether geopolitical developments will facilitate the exit from Russia," RBI CEO Johann Strobl said. Strobl said the bank had managed to further strengthen its equity buffer, preparing it "for any scenario in Russia". The bank confirmed its full-year outlook. ($1 = 0.8839 euros)
Reuters
12-03-2025
- Business
- Reuters
Russian court to hear Raiffeisen appeal over 2 billion euro penalty on April 24
March 12 (Reuters) - Raiffeisen's appeal against a 2 billion euro ($2.18 billion) order to pay damages to Russian firm Rasperia over a collapsed business deal will be heard by a Russian court next month, court filings show. The January damages ruling underscored the perils of doing business in Russia for Raiffeisen Bank International ( opens new tab, the largest Western bank still operating there. The Kremlin warned that unfriendly actions against Russia must have consequences. The hearing is scheduled for April 24 at an arbitration appeals court in St Petersburg. RBI confirmed the court date. The case was centred on a claim by investment company Rasperia against builder Strabag, its Austrian shareholders and the Russian arm of Raiffeisen. Raiffeisen has around 6 billion euros in Russia, earned from international payments and on billions of euros in Russian deposits, a person with knowledge of the matter has told Reuters. Its dispute with Rasperia followed the failure of a deal that Raiffeisen hoped would allow it to unlock some of those frozen billions. Since the January ruling, Raiffeisen CEO Johann Strobl has said the bank is "very, very confident" it will win an Austrian case to claim Rasperia's roughly 1.2 billion euros ($1.24 billion) in assets in Austria if the Russian damages ruling is confirmed. RBI said its Russian unit had made a provision of 840 million euros related to the Russian court ruling. That sum reflects the amount of Russian damages minus what it could recover in Austria, Strobl said in February. ($1 = 0.9190 euros) Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.
Yahoo
05-02-2025
- Business
- Yahoo
Raiffeisen Bank International AG (RAIFY) Q4 2024 Earnings Call Highlights: Navigating ...
Group Consolidated Profit: EUR1,157 million. Return on Equity (excluding OCI recycling in Belarus): 9.4%. Core Group Consolidated Profit (excluding Russia and Belarus): EUR975 million. Net Interest Income: EUR4,155 million. Fee Income: EUR1,804 million, up 5% year-on-year. Operating Expenses (OpEx): Approximately EUR3.3 billion. Cost Income Ratio: 52.5%. Loans to Customers: Increased by 3% in 2024. Dividend Proposal: EUR1.1 per share. Provision for Russian Legal Proceedings: EUR840 million. Core Group CET1 Ratio (excluding Russia): 15.1%. Core Group NPE Ratio: 2.1% with a coverage ratio of 50.4%. Provisioning Ratio for Core Group: 27 basis points. Expected Loan Growth for 2025: 6% to 7%. Expected CET1 Ratio for 2025: 15.2%. Expected Profitability for 2025: Around 10%. Warning! GuruFocus has detected 6 Warning Signs with RAIFY. Release Date: February 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. 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. The core group's return on equity, excluding Russia and Belarus, was between 13% and 15%, indicating a solid foundation for future growth. Fee income improved by 5% to EUR 1,804 million, reflecting strong performance across main product lines and key markets. The bank proposed a EUR 1.1 per share dividend, allowing shareholders to benefit from the core group's good performance. The CET1 ratio for the core group was stable at 15.1%, with expectations to maintain this level by the end of 2025. 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. Litigation provisions in Poland continued to significantly impact core group profitability. The Russian court case resulted in a provision of EUR 840 million, reflecting potential damages, which could affect future financial stability. The sale of Belarus resulted in a negative deconsolidation effect of EUR 824 million, impacting equity. The bank faces ongoing challenges in reducing its Russian business, with legal proceedings and geopolitical tensions complicating the process. 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. Q: Why is the net interest income (NII) guidance for 2025 higher than previously expected? A: Johann Strobl, CEO, explained that the improved NII guidance is due to a lower interest rate cycle, better loan growth assumptions in some countries, and less intense deposit price competition. Q: What are the expectations for Polish FX charges in 2025 and beyond? A: Hannes Moesenbacher, Chief Risk Officer, stated that the active Swiss franc portfolio is sufficiently covered, and they expect lower provisioning needs for foreign currency mortgages in Poland. They anticipate the Polish FX charges to decrease significantly by 2026. Q: Given the equity buffer in Russia, would you consider extracting dividends from Russian operations? A: Johann Strobl, CEO, acknowledged the equity buffer but expressed skepticism about successfully extracting dividends due to the current situation. Q: What is the outlook for the Czech net interest income (NII) in 2025? A: Johann Strobl, CEO, expects a slight increase in Czech NII due to loan growth and positive FX impacts, despite some seasonal effects in the fourth quarter. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
