Raiffeisen Bank International (RBI) Q3 2024 earnings summary

Executive summary

• Consolidated profit for 1-9/2024 reached EUR 2,083 million, with adjusted profit excluding Russia and Belarus at EUR 856 million, down 17% year-over-year.

• CET1 ratio at 17.8% (transitional, incl. results), with ex-Russia CET1 at 15.3%.

• Loans to customers were flat overall, with growth in Romania and muted activity elsewhere; total loans at EUR 100,105 million, up 1% year-to-date.

• Accelerated de-risking in Russia, with loans to customers down 23% quarter-over-quarter and 67% since Q2/2022.

• Group liquidity remains strong, with LCR at 204% as of 25 October 2024.

Financial highlights

• Net interest income for 1-9/2024 was EUR 4,355 million, up from EUR 4,190 million year-over-year; Q3/2024 NII at EUR 1,461 million (+1% q-o-q, +1% y-o-y).

• Net fee and commission income for 1-9/2024 was EUR 2,077 million, down from EUR 2,364 million year-over-year; Q3/2024 fee income at EUR 686 million.

• Q3/2024 consolidated profit was EUR 758 million (+15% q-o-q, -14% y-o-y); ROE at 17.7%.

• Cost/income ratio for Q3/2024 at 42.6%, slightly improved from Q2/2024; OPEX up 6% year-over-year.

• Household deposits increased 4% in the quarter, while corporate deposits declined, mainly in head office, Ukraine, and Hungary.

Outlook and guidance

• 2024 guidance: net interest income around EUR 4.1 billion, net fee and commission income around EUR 1.8 billion, OPEX at EUR 3.3 billion, cost/income ratio around 52%.

• Loans to customers projected to grow 4–5% in 2024.

• Risk costs expected up to 35 basis points for 2024, with ROE revised down to 7.5% due to higher provisions in Poland and a windfall tax in Ukraine.

• CET1 ratio guidance at around 14.7% for 2024; group CET1 expected to drop to 17.3% by year-end.

• For 2025, risk costs are expected to rise to 40–50 basis points, with NII expected below EUR 4 billion.