Raiffeisen Bank International (RBI) Q2 2024 earnings summary

Executive summary

• Consolidated H1 2024 profit reached €1.3 billion (EUR 1,324 million), up 7% year-over-year; €604 million excluding Russia and Belarus.

• Group return on equity at 15% (17.8% consolidated), and 9-10% excluding Russia and Belarus.

• Loans to customers grew 3% year-to-date to €101.9 billion; excluding Russia/Belarus, loans rose 5% year-over-year.

• Core revenues increased 3% year-to-date; net interest income up 6% and net fee & commission income up 4% year-over-year.

• Significant de-risking in Russia, with customer loans down nearly 60% since Q2 2022 and further restrictions on payments and deposits.

Financial highlights

• Net interest income for H1 2024 was €2,895 million, up from €2,749 million year-over-year; Q2 2024 NII was €1,440 million (+6% y-o-y, -1% q-o-q).

• Net fee and commission income for H1 2024 was €1,391 million, down from €1,698 million year-over-year; Q2 2024 NFCI was €722 million (+8% q-o-q, -1% y-o-y).

• Operating expenses up 5% H1 2024 vs H1 2023; cost/income ratio improved to 42.7%.

• Loans to customers increased to €101,920 million as of June 30, 2024; deposits from customers rose to €125,333 million.

• Group NII guidance for FY 2024 raised to €4.1 billion; fee income guidance at €1.8 billion.

Outlook and guidance

• 2024 guidance (excluding Russia and Belarus): net interest income around €4.1 billion, net fee and commission income around €1.8 billion.

• Loan growth expected between 4% and 5% for 2024; general administrative expenses around €3.3 billion.

• Cost/income ratio projected at around 52%; provisioning ratio around 35 bps.

• Profitability target at around 10% ROE (excluding Russia and Belarus); CET1 ratio expected at 14.7%.

• Guidance including Russia and Belarus suspended due to accelerated business reduction in Russia.