Interim report for the first half of 2024

Raiffeisen Bank International (RBI) generated a consolidated profit of € 1.324 billion in the first half of 2024 (plus 7 per cent, first half of 2023: € 1.235 billion). Risk costs fell by around 82 per cent compared to the same period of the previous year. Excluding Russia and Belarus, consolidated profit would have amounted to € 604 million. This corresponds to an increase of around 21 per cent compared to the first half of 2023.

"We can be satisfied with the development of the consolidated profit. In line with the ECB's requirements, we accelerate the reduction of the business volume in Russia. At the same time, we continue to work on the sale of Raiffeisenbank Russia," said RBI CEO Johann Strobl.

Core revenues (net interest income and net fee and commission income) were down € 161 million, or 4 per cent, to € 4.285 billion. The decline in net fee and commission income by € 307 million or 18 per cent was primarily due to the active restriction of activities in Russia (down € 331 million).

Net interest income increased € 146 million or 5 per cent to € 2.895 billion, above all as a result of growth in Southeastern Europe.

Sharp decline in risk costs

At € 48 million, impairment losses on financial assets were significantly lower in the reporting period than the figure of € 259 million in the comparable period, which was mainly reported in Eastern Europe. For defaulted loans (Stage 3), impairments of € 170 million net were recognized in the reporting period (previous-year period: € 53 million net). € 87 million related to non-financial corporations (thereof real estate financing: € 62 million) and € 57 million to households. 

Common equity tier 1 ratio (transitional) of 17.8 per cent

At the end of the first half of the year, RBI's common equity tier 1 ratio, including the result for the period, amounted to 17.8 per cent. In the event of deconsolidation of the Russian subsidiary bank at a price-to-book ratio of zero, it would have amounted to 14.7 per cent and would therefore have been well above the regulatory requirements. 

Outlook

The following guidance refers to RBI excluding Russia and Belarus. The 2024 guidance for RBI including Russia and Belarus has been suspended in light of the ECB’s requirement to accelerate business reduction in Russia.

• In 2024, net interest income is expected around € 4.1 billion and net fee and commission income around € 1.8 billion.
• We expect loans to customers to grow by 4 to 5 per cent.
• We expect general administrative expenses around € 3.3 billion, resulting in a cost/income ratio of around 52 per cent.
• The provisioning ratio – before use of overlays – is expected to be around 35 basis points.• The consolidated return on equity is expected to be around 10 per cent in 2024.
  
• At year-end 2024 we expect a CET1 ratio of around 14.7 per cent*.
• Any decision on dividends will be based on the capital position of the Group excluding Russia. 

* In a P/B Zero Russia deconsolidation scenario.

You can access the RBI financial reports here.