Higher-than-expected earnings driven by net interest income

  • Raiffeisen Bank International reports 1Q net profit of EUR664M
  • Net interest income drives higher-than-expected profit
  • Withdraws 2024 outlook due to pressure in Russia and Belarus
  • Capital-buffer ratio stands at 17.3%
  • Customer loans in Russia decrease by 58%

Raiffeisen Bank International reported a first-quarter net profit of EUR664 million, surpassing expectations. The increase in profit was attributed to higher net interest income. However, the bank withdrew its 2024 outlook due to pressure to accelerate business reduction in Russia and Belarus. Raiffeisen’s capital-buffer ratio, CET1, stood at 17.3% at the end of March. Customer loans in Russia decreased by 58% since its peak in 2022. The bank anticipates net interest income for 2024, excluding Russia and Belarus, to be around EUR4 billion, with net fee and commission income around EUR1.8 billion and expected loan growth of 3% to 4%. The consolidated return on equity is expected to be around 10%.

Factuality Level: 8
Factuality Justification: The article provides a detailed and factual account of Raiffeisen Bank International’s first-quarter performance, including net profit, net interest income, and the impact of the European Central Bank’s requirements on its business in Russia and Belarus. The information is presented objectively without any bias or sensationalism. The only issue is the repetitive nature of the corrections at the beginning of the article, which does not add value to the main topic.
Noise Level: 2
Noise Justification: The article is focused on reporting financial results and strategic decisions of Raiffeisen Bank International. It provides relevant information about the company’s performance, changes in outlook, and actions taken in response to external pressures. The repetition of the correction at the beginning of the article slightly increases the noise level, but the rest of the content is on topic and informative.
Financial Relevance: Yes
Financial Markets Impacted: Raiffeisen Bank International
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses the financial performance and outlook of Raiffeisen Bank International. There is no mention of an extreme event.
Public Companies: Raiffeisen Bank International (N/A)
Key People: Helena Smolak (Author)

Reported publicly: www.marketwatch.com