Q3 earnings well above exp. with strong ex-RU
- RBI’s reported net income came to EUR 879 mln, 40% ahead of the consensus and 3% above our estimates. The quarter was marked by lower contribution from Russia partially due to the special tax introduced and very strong Core operation despite another round (EUR 166 mln) of CHF litigation costs.
- NII went up by 6% q-o-q and 4% y-o-y as a result of EUR rates feeding through interest income while deposit repricing stabilized in CZ, RO. NIM as a result also increased to 2.8% or 19 bps q-o-q. Weaker net F&C was a result of Russian business reduction as q-o-q fees at Core increased by 2%. In the first 9M, risk cost was very low, Q3 again ended up with releases.
- Net trading was higher substantially thanks to head office increase, but other net operating income was well below the EUR 51 mln in Q2 due to the sale of debt instruments.
- Operating result improvement was also attributed to lower OPEX, apart from FX tailwinds in RU, higher staff and consulting expenses in the second quarter also caused a quarterly drop. Overall, operating result was 19% higher q-o-q.
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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