RBI: Interim report first quarter 2024

Consolidated profit of € 664 million

• Common equity tier 1 ratio of 17.3 per cent   
• Consolidated profit excluding contributions from Russia and Belarus amounts to € 333 million, including provisions for CHF loans in Poland totaling € 109 million
  

Raiffeisen Bank International (RBI) generated a consolidated profit of € 664 million in the first quarter of 2024 (Q1/2023: € 657 million). Risk costs fell by more than 90 per cent compared to the same period of the previous year. "RBI made a good start into the 2024 financial year. The earnings trend is in line with our expectations. The decline in risk costs is very pleasing," said RBI-CEO Johann Strobl. Higher interest income in Central and Southeastern Europe resulted in a € 70 million increase in net interest income to € 1,455 million. At € 25 million, Slovakia reported the largest increase, mainly due to interest-rate driven higher income from customer loans and from deposits at the national bank. Net fee and commission income sank by € 297 million to € 669 million. Russia recorded the sharpest decline at € 287 million, while the group's other countries showed stable development.

Sharp decline in risk costs

At € 25 million, impairment losses on financial assets were significantly lower in the reporting period than the € 301 million reported in the comparable period, which had mainly been booked in Eastern Europe. For defaulted loans (Stage 3), net impairments of
€ 92 million were recognized in the reporting period (previous-year period: € 63 million net), the largest items were € 66 million for non-financial companies and € 31 million for households. At country level, Stage 3 impairment losses were primarily incurred in Russia (€ 43 million). In Stage 1 and Stage 2, net releases of € 66 million were recognized in the reporting period, most notably in Hungary, in Russia and in Ukraine (previous-year period: impairment losses of € 238 million, thereof € 223 million in Russia).

CET1 ratio (transitional) at 17.3 per cent

RBI’s CET1 ratio including the first quarter results amounted to 17.3 per cent at the end of the first quarter. If the Russian subsidiary bank had been deconsolidated without taking its equity into account, the ratio would have amounted to 14.6 per cent, which would have been well above the regulatory requirements.

Outlook

The following guidance refers to RBI excluding Russia and Belarus. The 2024 guidance for the group including Russia and Belarus has been suspended in light of the ECB’s requirement to accelerate business reduction in Russia.

• In 2024, net interest income is expected to be around € 4.0 billion and net fee and commission income around € 1.8 billion.
• RBI expects customer loan growth to increase by 3 to 4 per cent.
• RBI expects general administrative expenses around € 3.3 billion, resulting in a cost/income ratio of around 52 per cent.
• The provisioning ratio – before use of overlays – is expected to be around 50 basis points.
• The consolidated return on equity is expected to be around 10 per cent in 2024.
• At year-end 2024, RBI expects a CET1 ratio of around 14.6 per cent*.Any decision on dividends will be based on the capital position of the group excluding Russia.

*In a ‘P/B Zero‘ Russia deconsolidation scenario

You can access RBI’s financial reports here.