Raiffeisen Bank International reports robust Q2 results

RBI's net interest income dropped 2% year on year in Q2 to EUR 804 million, while its net fee and commission income leaped by 27% to EUR 499 mn. The group's net trading income rose 7% in annual terms to EUR 27 million.

The consensus forecast of analysts for RBI's consolidated profit was EUR 248 million, which the bank beat by nearly 60%. The EUR 396 mn profit is more than double of the EUR 192 mn reported in Q2 2020.

Loan provisions came in at EUR 31 mn, versus the market's call for EUR 99 mn, while general administrative expenses edged up 2% to EUR 735 mn.

Outlook

• New lending accelerated in the second quarter and RBI now expects mid- to high single digit percentage loan growth for 2021 (excluding Equa bank).
• Barring renewed lockdowns, the provisioning ratio for 2021 is expected to be around 50 basis points.
• The bank remains committed to a cost/income ratio of around 55% – possibly as soon as 2022 depending on the speed of the recovery.
• RBI expects the consolidated return on equity (ROE) to improve in 2021, targeting 11% in themedium term.
• RBI confirmed its CET1 ratio target of around 13% for the medium term. Based on this target the bank intends to distribute between 20 and 50% of consolidated profit.
• By the end of 2021, GDP could return to pre-crisis levels in many countries, but the economies continue to be exposed to risks of the new variants, especially post-summer that could lead to new restriction measures, while full lockdown appear to be avoidable.

Cover photo: Getty Images.