Preliminary Q4 2024 Raiffeisen Bank International AG Earnings Call Transcript
Key Points
- 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.
Good afternoon, ladies and gentlemen, and welcome to the preliminary results 2024 conference call of Raiffeisen Bank International. Today's conference is being recorded.
At this time, I would like to turn the conference over to Mr. Johann Strobl, Chief Executive Officer. Please go ahead, sir.
Thank you. Good afternoon, ladies and gentlemen, welcome to our full year 2024 results call. I hope that you have had a good start to the year, and I thank you for joining us today.
Let me begin with a few overview slides before we dig into the quarterly trends. We start with slide four where we can report group consolidated profits of EUR1,157 million and a 9.4% return on equity excluding the OCI recycling in Belarus.
This is, of course, a substantial drop in consolidated profit year-on-year and it includes two major effects in the fourth quarter. The first is deprivation in Russia related to the recent court decision what we have from
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