Raiffeisen (VIE: RBI) Shares Bounce Back From Difficult Start To Week

Raiffeisen Bank International shares (VIE: RBI) are up 2.59% today, bouncing back from an 8.74% drop in Monday's session. This comes in the wake of an earnings report that highlighted challenges for the bank, particularly in its operations outside of Russia and Belarus.

Raiffeisen Bank reported a net loss of €926 million. Despite this significant loss, the areas excluding Russia and Belarus showed a strong performance. The bank posted a net profit of €128 million from these operations, although this was 5% below the expected consensus.

The bank's revenues, excluding Russian and Belarusian contributions, increased by 2% year-over-year to €2,205 million, exceeding expectations by 2%. This growth reflects Raiffeisen's robustness in its core markets.

Raiffeisen demonstrated financial stability with its pre-provision profit being approximately 12% above consensus for the core group. Net interest income improved year-over-year, and the fourth-quarter net interest margin increased to 3.13% from 2.87% in the previous quarter. Net fee income also surpassed expectations by 4% and grew 8% year-over-year.

The cost of risk was managed better than anticipated, amounting to €13 million. As for capital adequacy, the common equity tier 1 (CET1) ratio stood at 17.1%, which was 70 basis points lower quarter-over-quarter but still above estimates. Excluding the Russian segment, this ratio was 15.1%, slightly topping the consensus of 14.9%.

Since the beginning of 2025, the bank's stock price remains firmly green, with a 7.59% gain an outperformance on 2024.