Raiffeisen - Decent results on lower risk costs
RBI reported net profit of EUR 216 mln, EUR 28 mln above estimates and
growth of 7% QoQ. Profits boosted by non-core revenues and OPEX, fees
income weaker than expected.
Key positives: OPEX was lower than expected at EUR 692 mln vs EUR 733 mln
consensus on seasonality and cost-efficiency starting this year. Cost-income
ratio slightly higher YoY, but mostly due to lower income basis. Risk costs
significantly lower than consensus, as we have seen for most banks this
quarter, resulting in EUR 79 mln provisions (0.33% CoR), almost halving both
QoQ and YoY, writebacks in CZ, UA and AL. Head office op.income up EUR
29 mln YoY on bond trading.
Key negatives: F&C income was significantly lower, mostly from sharp drop in
RU (-EUR 36 mln vs last quarter) coming from RUB weakness. NIM continuing
to decrease, although only by a slight 5 bps QoQ. Lending flows are still weak
with loan growth at 1.3%, LTD ratio flattish (down 70bps QoQ). Currency
weakness in EE putting pressure on profits, bottom line down EUR 10 mln
QoQ.
Raiffeisen Bank International is a universal bank focusing on corporate and retail customers in Central and Eastern Europe (CEE) and on corporate customers in Austria. In CEE, Co. consists of a network of banks, leasing companies and financial service providers. In Austria, Co. is involved in corporate finance and export and trade finance banks. Co. provides services to customers in 2,800 branch offices. In the retail banking business, Co.'s product and service portfolio comprises inter alia credit services (mortgages, credit cards and personal loans), as well as payment transaction and current account package services. As of Dec 31 2014, Co.'s total assets amounted to Euro121.6 million
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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