RBI share still clearly in the red: Raiffeisen Bank International achieves record profit

Driven by profits in Russia and increases in operating income, the listed Raiffeisen Bank International (RBI) made significantly more profit in the past 2022 financial year.

All in all, the bank generated consolidated earnings of EUR 3.6 billion, after around EUR 1.4 billion in the previous year. Without the business in Russia, Belarus and without the proceeds from the sale of the Bulgarian unit, the consolidated result was EUR 982 million.

Compared to the previous year, this corresponds to a clear increase of 35 percent, the bank announced on Tuesday evening. “This result shows that RBI continues to generate high profits across the group. The profitability of the business in Austria and in the regions of Central Europe and Southeast Europe remains robust,” said CEO Johann Strobl according to the broadcast.

Operationally, the bank recorded significant gains both with and without business in Russia. Including Russia and Belarus, net interest income increased from EUR 3.3 billion to EUR 5.1 billion, and net commission income rose from almost EUR 2 billion to EUR 3.9 billion. Without the two countries, net interest income was EUR 3.4 billion (up 37 percent on the previous year) thanks to higher interest rates and volumes, and net commission income rose to EUR 1.7 billion (up 16 percent).

Customer lending grew 6 percent excluding Russia and Belarus. A total of EUR 949 million in risk costs was covered, EUR 490 million of which was in Russia and Belarus.

The shareholders should also benefit from the strong numbers. The RBI management proposes a distribution of EUR 0.80 per share. When the dividend will be decided is still open. No decision is expected to be made at the upcoming Annual General Meeting on March 30, 2023, the timing of the resolution depends on the “capital ratios and ongoing strategic considerations”.

A decision by RBI on its business in Russia is also pending. “Over the past 11 months, the RBI Group has advanced its assessment of all strategic options for the future of Raiffeisenbank in Russia, including a carefully executed exit,” said the bank boss. “When we announced this assessment, we assumed that this process would take time,” it said. According to the bank, if the Russian business had to be written off completely, the capital ratio would still be well above the minimum regulatory requirements at 14 percent.

In Vienna, the RBI share temporarily loses 1.46 percent to 16.22 euros.