Raiffeisen Bank International AG (RAIFY) Q3 2025 Earnings Call Transcript

Raiffeisen Bank International (RBI) reported a consolidated profit of EUR 1.027 billion for the first nine months of 2025, excluding Russia, achieving a 10% Return on Equity. The bank highlighted a 13.5% ROE when also excluding Poland, affirming its ambition to maintain around 13% ROE on this adjusted basis for 2025 and beyond. RBI also noted a stable CET1 ratio of 15.7% and 3% loan growth for the period, indicating solid financial performance and a positive outlook despite regional complexities.

Analysis

Raiffeisen Bank International (RBI) reported a consolidated profit of EUR 1.027 billion for the first nine months of 2025, excluding Russia, achieving a 10% Return on Equity (ROE) in line with its 2025 guidance. Crucially, the bank highlighted a 13.5% ROE when also excluding Poland, affirming its ambition to maintain approximately 13% ROE on this adjusted basis for 2025 and beyond. This indicates strong profitability in its core, de-risked operations.

The bank demonstrated robust balance sheet stability, with its Common Equity Tier 1 (CET1) ratio remaining stable at 15.7%. Furthermore, RBI achieved 3% loan growth during the first nine months of the year, reflecting positive momentum across its operational regions. These metrics underscore sound capital management and continued business expansion.

The positive results and optimistic outlook, particularly when isolating operations from Russia and Poland, signal a successful strategic pivot and de-risking effort. The confirmed 13% ROE ambition for its adjusted operations suggests management confidence in sustainable profitability despite ongoing geopolitical challenges. This strategic clarity provides a strong foundation for future performance.

Key Decisions for Investors

• Investors should closely evaluate RBI's confirmed 13% ROE ambition for its core operations, excluding Russia and Poland, as this signals a clear, de-risked strategic focus and strong profitability outlook.
• The stable 15.7% CET1 ratio and 3% loan growth demonstrate solid capital management and positive operational momentum, supporting the bank's fundamental strength.
• Monitor the bank's progress in achieving its long-term ROE target and its ability to sustain loan growth in its adjusted operational footprint, particularly given ongoing regional complexities.