Raiffeisen - Consensus beat on strong ruble, guidance raised
- RBI reported consolidated profit of EUR 1,270 mln, a stellar EUR 416 mln beat to consensus, and a EUR 3.8 EPS (ex. BG sale) for 22H1. Surprise came from EE segment as Russia recorded exceptional EUR 534 mln net profit for the quarter, boosted by EURRUB appreciation, peak rates and strong FX business. The Bank also raised its FY22 guidance, expecting ROE at 15% (vs. previous 8-10%) and CIR at 45% (vs. previous 55%), rest of the guidance kept in place from Q1.
- Key positives: (1) strong Russian results (NII up roughly 40% q-o-q on constant currency basis, significantly lower risk costing), (2) roughly EUR 1 dividend accrued for FY22, (3) CET1 well above 13% target at 13.4% inc. dividend, (4) EUR 665 mln of overlay (o/w EUR 243 mln macro, EUR 92 mln from Covid), (5) NPE decreased further, at all-time low 1.56%, (6) attractive loan growth at 7% y-t-d, even with RU lending virtually stopped.
- Key negatives: (1) RWA increased further on EURRUB, Russian rerating, up 5% q-o-q inc. net negative M&A effect, consequently relatively low capital buffer of 178 bps, (2) risk costing slightly above 100bps run rate, (3) uncertainty around RU profits’ sustainability and use.
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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