Half Year 2025 Raiffeisen Bank International AG Earnings Call Transcript
Key Points
- Raiffeisen Bank International AG (RAIFF) reported a consolidated profit of EUR567 million for the first half of the year, excluding Russia, translating to a return on equity of 8.1%.
- The CET1 ratio, excluding Russia, stands at a robust 15.7%, indicating strong capital adequacy.
- Loans to customers increased by EUR1.4 billion in the second quarter, driven by expansion in Central and Eastern Europe (CEE), particularly in Czech and Slovakia.
- Fee income rebounded by 8% quarter-on-quarter for the core group, driven by clearing settlement and payment services.
- Asset quality improved with the NPE ratio for the group, excluding Russia, down to 1.8%, and the coverage ratio slightly improved to 48%.
- The derecognition of a legal claim in Russia led to a write-down of EUR1.2 billion, impacting the consolidated financials.
- Operating expenses inflation is visible year-on-year, resulting in a cost-to-income ratio of 53.7% for the core group, mainly driven by staff expenses.
- The bank booked EUR167 million of provisions for litigation in Poland, with full-year guidance unchanged at around EUR300 million.
- Net interest income (NII) in Hungary was negatively affected by EUR22 million due to an adjustment in the reporting of interest rate differentials on hedging instruments.
- The geopolitical environment and potential windfall tax in Ukraine pose ongoing risks to the bank's operations and financial performance.
Good afternoon, ladies and gentlemen, and welcome to the Q2 2025 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 very much. Good afternoon, ladies and gentlemen. Thank you for taking time out of your day to join us for our Q2 update.
We can report a consolidated profit of EUR567 million for the first half of the year in the core of the group, excluding Russia. This translates to a return of equity of 8.1%. Our CET1 ratio, excluding Russia, stands at 15.7%. If we were to have to deconsolidate Russia at the end of June with zero recovery on the equity.
In the figures above, you can see the impact of the claim derecognition in Russia in the second quarter announced last week, which I will touch upon shortly. The consolidated ROE for the group here is
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