Preliminary business figures 2024

In 2024, Raiffeisen Bank International (RBI) generated a consolidated profit of 975 million euros in its core group, i.e. excluding Russia and Belarus. This included provisions for foreign currency loans in Poland in the amount of 649 million euros. Consolidated profit including Russia and Belarus amounted to around 1.2 billion euros.

"RBI achieved a satisfactory result in 2024 despite massive extraordinary charges. The sale of Priorbank in Belarus enabled us to reduce RBI’s political risk. The business reduction in Russia is making good progress," said Johann Strobl, CEO of RBI.

Sharp decline in risk costs

Risk costs also declined in the 2024 financial year. At 125 million euros, they were significantly lower than in the previous year (391 million euros). While the previous year had been mainly characterized by provisions at head office, in Russia, and in Ukraine, there were net releases in Russia in the reporting year due to repayments and releases of overlays. The situation at the group’s head office developed in the opposite direction, with additional provisions for real estate financing and corporate clients.

Accelerated reduction of business in Russia

RBI continued to reduce its Russian business significantly in the 2024 financial year. The loan volume in Russia was reduced by 30 per cent. At the end of 2024, it amounted to just 4.2 billion euros. Deposits from customers decreased by 35 per cent. The foreign currency payments business from Russia was further restricted.Common Equity Tier 1 ratio (transitional) of 17.1 per cent
RBI's CET 1 ratio amounted to 17.1 per cent at the end of 2024. In the event of deconsolidation of the Russian business at this point in time without consideration, i.e. at a price-to-book ratio of 0, the CET 1 ratio would still have been 15.1 per cent. 

"Due to our good capitalization, we would like to propose to our shareholders a dividend of 1.10 euros per share for 2024," said Strobl.

Outlook 

The following guidance refers to RBI excluding Russia. 

• In 2025, net interest income is expected around 4.15 billion euros and net fee and commission income around 1.95 billion euros
• RBI expects loans to customers to grow by 6 to 7 per cent.
• RBI expects general administrative expenses around 3.45 billion euros, resulting in a cost/income ratio of around 52.5 per cent.
• The provisioning ratio – before use of overlays – is expected to be up to 50 basis points.
• The consolidated return on equity is expected to be around 10 per cent in 2025.
• At year-end 2025, RBI expects a CET1 ratio of around 15.2 per cent*.
• In the medium term, RBI aims to achieve a consolidated return on equity of at least 13 per cent excluding Russia and excluding provisions and legal cost for foreign currency loans in Poland.
• Any decision on dividends will be based on the capital position of the group excluding Russia.
  
  * assuming a ‘P/B Zero‘ Russia deconsolidation scenario