Half Year 2026 Raiffeisen Bank International AG Earnings Call Transcript
Key Points
- Raiffeisen Bank International AG (RAIFF) reported a strong second quarter with year-to-date profits of EUR708 million and a robust Q2 profit of around EUR0.5 billion.
- The bank's CET1 ratio, excluding Russia, is near recent highs at 15.5%, providing a strong capital base to support growth and upcoming acquisitions.
- Loan growth is strong, with core customer business up 5% in the first half of the year, and the bank is growing above market rates in all key markets.
- Fee income is performing well, up over 10% year-over-year in the first half, with guidance raised to nearly EUR2.2 billion for the full year 2026.
- Raiffeisen Bank International AG (RAIFF) has filed a EUR3.15 billion damages claim against Rasperia, which it expects to win within 6-12 months, potentially providing a significant cash windfall.
- The voluntary takeover offer for Addiko was successful with at least 56.18% participation, and the acquisition of Banca Comerciala Romana (BCR) in Romania is on track to close in early October.
- The bank's core profitability is currently only capable of earning a 13% ROE, which the new CEO explicitly stated is 'not enough' and a key area for improvement.
- The Russian subsidiary remains a major overhang, with the loan book down 80% and deposits down 40% since the start of the war, and a clear exit strategy remains elusive.
- The bank's full-year 2026 guidance for ROE (excluding Russia) has been lowered to 9.5%, impacted by higher operating expenses related to the Rasperia litigation.
- Operating expenses are expected to rise to EUR3.8 billion in 2026 due to one-offs from the Rasperia litigation, temporarily pushing the cost-income ratio up to 55%.
- The CET1 ratio is expected to decline to around 14.3% by year-end 2026, slightly below the medium-term target of 14.5%, due to the impact of the two acquisitions.
- The bank faces ongoing legal and regulatory risks, including the potential for Rasperia to oppose the claim in Austria and an ongoing investigation into ROBOR rate-fixing in Romania.
Good afternoon, ladies and gentlemen, and welcome to the Q2 2026 conference call of Haifisen Bank International.
Today's conference is being recorded.
At this time, I would like to turn the conference over to Mr. Michael Hollerer, Chief Executive Officer. Please go ahead, sir.
Thank you very much.
Good afternoon, ladies and gentlemen. I am very pleased to speak to you today and I look forward to meeting you personally in the coming months.
I also look forward to working closely with you in the years to come.
While this may be my first investor call, I'm not new to the bank. Prior to my appointment as CEO, I've sat on RBI supervisory board for the past four years. Before that, I was RBI CFO and I've spent most of my career within the organization.
I'm humbled by the responsibility and confident in the future that lies ahead.
Before we dive into the results and recent developments, I would like to share with you my
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