RBI achieves a consolidated result of EUR 260 million in the core Group in Q1

Raiffeisen Bank International (RBI) reported a consolidated profit of EUR 260 million in its core Group (excluding Russia) in the first quarter of 2025. Net interest income was stable year-on-year despite interest rate cuts in most of RBI's markets, whereas net fee and commission income increased by 8.3 per cent.

The decline in consolidated profit in the core Group year-on-year (minus EUR 43 million) was mainly due to an increase in general administrative expenses.

Loans to customers in the core Group increased by 0.7 per cent to around EUR 96 billion compared to the end of 2024.
RBI's CET1 ratio excluding Russia was around 15.9 per cent at the end of the first quarter of 2025. When calculating this ratio, RBI assumes a worst-case scenario in which Raiffeisenbank Russia would be deconsolidated with a full loss of the equity.

“The result once again underscores RBI's earnings strength. We were able to maintain our net interest income despite falling interest rates, and our net commission income continues to develop well,” said RBI CEO Johann Strobl. “We have further strengthened the CET1 ratio in the core Group and are thus prepared for any scenario in Russia,” Strobl added.

RBI’s outlook for the 2025 financial year remains unchanged.

In the first quarter of 2025, the core Group experienced no significant loan defaults. Risk costs amounted to EUR 46 million, largely coming from the build-up of additional risk overlays due to the highly uncertain macroeconomic environment. At the end of the first quarter of 2025, the stock of risk overlays amounted to around EUR 450 million, excluding Russia. The risk overlays are available to RBI as a buffer in the event of an unexpected deterioration in loan quality. The NPE ratio improved to 1.9 per cent due to write-offs and restructuring at head office. 

“The quality of our loan portfolio is very good. Considering the very high geopolitical and economic uncertainty, we maintain our risk cost guidance unchanged and will monitor further developments very closely,” said RBI Chief Risk Officer Hannes Mösenbacher. RBI created provisions for its foreign currency portfolio in Poland in the first quarter of 2025 in the amount of EUR 67 million. This was significantly less than the amount required to be set aside in the fourth quarter of 2024.

“The majority of the provisioning requirements for the foreign currency portfolio have been booked. The burdens will be lower in the coming years," said Mösenbacher.

Further business reduction in Russia

RBI continued to reduce its loan portfolio in Russia in the first quarter, ahead of the schedule agreed with the ECB. Deposit volumes also continued to decline. Due to the significant appreciation of the ruble in the first quarter, this reduction progress is currently only visible in the local currency.

Despite its ongoing business reduction, Raiffeisenbank Russia continued to generate high interest income because in line with the ECB’s request, all excess liquidity is placed at the Russian Central Bank, where it earns an interest rate of 21 per cent. At the same time, Raiffeisenbank Russia does not pay any interest on deposits from customers in order to reduce customer deposits. The combination of high interest income on deposits with the Russian central bank and a zero interest rate policy for its customers accounts for 70 per cent of Raiffeisenbank Russia's net interest income.

“We continue to reduce our business in Russia regardless of geopolitical developments,” said Strobl. ”In parallel to the business reduction, we keep working on a sale of our Russian subsidiary and are talking to several interested parties. It remains to be seen whether geopolitical developments will facilitate the exit from Russia,” Strobl said.

No additional burdens due to Rasperia judgement

The confirmation of the first-instance judgement in the Rasperia case by a Russian appeals court on 25 April will have no further impact on RBI Group's income statement. Raiffeisenbank Russia has filed an appeal in the next instance. Furthermore, RBI Group is finalizing legal action against Rasperia in Austria.

The judgement has been partially enforced against Raiffeisenbank Russia with the ruble equivalent of around EUR 1.87 billion withdrawn by the Russian Central Bank and transferred to Rasperia. This amount is equal to the damages awarded by the Arbitration Court, excluding accrued interest of around EUR 174 million. Rasperia may also request enforcement for the interest at any time. The transfer ban on Raiffeisenbank Russia shares, which was imposed as a measure to secure payment of damages, is expected to be lifted once Rasperia has received damages and accrued interest. 

S&P raises outlook for RBI

Significant progress in winding down operations in Russia, the successful exit from Belarus, and RBI's robust compliance organization were the main reasons why Standard & Poor's upgraded RBI's rating from A-negative to A-stable at the end of March.

Macropolitical uncertainty

The first quarter of 2025 was marked by significant political events that have the potential to influence the global economic development. First and foremost are the Trump administration's tariff policy, the desired increase in defense spending in Europe, and the new German government's planned infrastructure package. Economists from Raiffeisen Research assume that the additional government spending in Europe will not lead to an additional boost in economic growth until next year. The negative effects of the aggressive US tariff policy, however, will be felt much earlier. Due to direct and indirect economic ties between the CEE region and the US, Raiffeisen Research has revised its GDP forecasts for some CEE countries downward.

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