The Raiffeisen Bank International (RBI) has yours in the first quarter of 2024 Group result increased by one percent to 664 million euros. Without contributions Russia and Belarus The consolidated result is 333 million euros, the RBI announced on Thursday. Risk costs fell by more than 90 percent compared to the same period last year. “The earnings development corresponds to our expectations,” said RBI boss Johann Strobl. “The decline in risk costs is very encouraging.”
Higher interest income in Central and Southeastern Europe led to an increase in net interest income by EUR 70 million to EUR 1.45 billion. Slovakia recorded the largest increase of EUR 25 million, mainly due to higher interest rate-related higher income from customer loans and deposits at the National Bank.
Russia recorded the largest decline
Net commission income fell by EUR 297 million to EUR 669 million. Russia recorded the largest decline with 287 million euros; the remaining countries in the group showed stable development.
Impairment losses on financial assets in the first quarter amounted to EUR 25 million, which was significantly below the comparable period’s value of EUR 301 million, which was mainly booked in Eastern Europe. Net impairment losses of EUR 92 million were recognized for defaulted loans (Stage 3) (previous year’s period: EUR 63 million net). The largest positions were EUR 66 million for non-financial companies and EUR 31 million for households. Loans that have already defaulted or are considered likely to default are classified as “Stage 3”.
Net interest income is expected to be EUR 4.0 billion in 2024
At the country level, the impairment losses in Stage 3 were most heavily allocated in Russia (43 million euros). In Stage 1 (no increased risk of default) and Stage 2 (credit risk significantly increased, but no default yet), net releases of EUR 66 million were reported in the reporting period, primarily in Hungary, Russia and Ukraine (previous year’s period: impairments in Amount of 238 million euros, of which 223 million euros in Russia).
In its outlook for the full year, the RBI expects Russia and Belarus to be excluded because the ECB has asked the Austrian bank to accelerate its withdrawal from Russia. Net interest income is expected to be around EUR 4.0 billion in 2024 and net commission income is expected to be around EUR 1.8 billion. Customer receivables are expected to grow by 3 to 4 percent. Administrative expenses are expected to be 3.3 billion euros, which should lead to a cost/income ratio of around 52 percent. The group return on equity is expected to be around 10 percent in 2024. At the end of the year, RBI expects a common equity Tier 1 capital ratio of around 14.6 percent, assuming that the Russian unit will be deconsolidated at a price-to-book ratio of zero. The dividend decision will also depend on the group’s capital position excluding Russia, according to the statement.