In the first quarter of 2024, Raiffeisen Bank International (RBI) reported a one percent increase in its Group result, reaching 664 million euros. However, without contributions from Russia and Belarus, the consolidated result was 333 million euros, the RBI announced on Thursday. Risk costs decreased by more than 90 percent compared to the same period last year, which was seen as a positive development by RBI boss Johann Strobl.
Higher interest income in Central and Southeastern Europe contributed to a growth in net interest income by 70 million euros, reaching 1.45 billion euros. Slovakia saw the largest increase of 25 million euros, mainly due to higher interest rate-related income from customer loans and deposits at the National Bank. On the other hand, net commission income fell by 297 million euros to 669 million euros, with Russia experiencing the largest decline of 287 million euros.
Impairment losses on financial assets in the first quarter amounted to 25 million euros, significantly lower than the previous year’s value of 301 million euros, mainly booked in Eastern Europe. The majority of net impairment losses of 92 million euros were recognized for defaulted loans (Stage 3), with the largest positions attributed to non-financial companies and households.
Looking ahead to the full year, RBI expects Russia and Belarus to be excluded from its operations due to requests from the ECB. The bank anticipates net interest income to reach around 4.0 billion euros in 2024 and net commission income around 1.8 billion euros. Customer receivables are expected to grow by 3 to 4 percent, with administrative expenses forecasted at 3.3 billion euros, leading to a cost/income ratio of around 52 percent. The group return on equity is expected to be around 10 percent, while the common equity Tier 1 capital ratio at the end of the year is estimated to be around 14.6 percent, assuming the deconsolidation of the Russian unit at a price-to-book ratio of zero. The final dividend decision will depend on the group’s capital position, excluding Russia.