Raiffeisen Bk Intl Ag Ord (RAIFF) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon, ladies and gentlemen. Sorry for the delay. Thank you for taking the time out of your day to join us for our Q1 update. We can report consolidated profit of Euro 260 million in the quarter in the core of the group, excluding Russia, for a return on equity of 7.3%. As is the case every year, we have booked a large portion, but not all, of expected governmental measures and other contributions in the first quarter. Now I see the one ratio also excluding Russia comes in at 15.9% with the implementation of the CRR3, some relief on operational risk and very modest loan growth. I will cover all of these in just a minute. Looking at the main revenues, net interest income was stable in the quarter whereas fees were modestly weaker As we usually see it in the first quarter, compared to quarter one of last year, fees are up 8%. The cost-income ratio has increased compared to Q1 last year in part due to pressure on OPEX, but also due to some effects on the revenue side. Income from associates was lower, although this effect is offset by release of impairments in other results, and therefore neutral in the bottom line. and therefore neutral trading income was lowered due to tightening of our own credit spreads in the first quarter. But this has already partially reversed in April. Nevertheless, we remain committed to cost discipline, especially in head office, and we have kept our cost income ratio target unchanged for 2025. Let's now move to our Russia de-risking slide on page six. In the first quarter, we have shrunk the loan book by a further 4%. We remain ahead of the schedule agreed with ECB and generally fully compliant with the requirements. The different measures taken to reduce deposits are starting to show now results and we can report a 9% drop in the q...