Q1 2025 Raiffeisen Bank International AG Earnings Call Transcript
Key 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.
- 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.
Good afternoon ladies and gentlemen, and welcome to the Q1 Results 2025 conference call of the Bank International. First of all, apologies for the delay. We experienced some technical issues. Today's conference is being recorded at this time. I would like to turn the conference over to Mr. Johan, Chief Executive Officer. Please, sir, go ahead.
Good afternoon ladies and gentlemen, sorry for the delay.
Thank you for taking the time out of your day to join us for our Q1 update.
We can report consolidated profit of EUR260 million in the quarter in the core of the group excluding Russia for a return on equity of 7.3%. As is the case every year, we have booked a large portion, but not all of expected governmental measures.
And other contributions in the 1st quarter.
Oh, I see the one ratio also excluding Russia comes in at 15.9% with the implementation of the CRR3, some relief on operational risk and very modest loan
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