Raiffeisen Bank International AG

RBI said year-to-date profit was EUR 708 million, with a strong second quarter “right around EUR 0.5 billion.” Kamila Makhmudova said Q2 net interest income was up 3.2% and up 6% for the first half versus the same period last year; fee income was up 5.6% in the quarter and over 10% in the half year; loan growth was up 2.2% in the quarter and 5.7% year-to-date; and the CET1 ratio excluding Russia was 15.5%. Hannes Mosenbacher said risk costs were 4 basis points in Q2 and 20 basis points year-to-date, with NPE ratio at 1.6% and coverage ratio at 47%. For full-year 2026, RBI guided to NII of EUR 4.4 billion-EUR 4.5 billion, fees close to EUR 2.2 billion, OpEx around EUR 3.8 billion, cost/income ratio around 55%, risk costs up to 35 basis points, organic loan growth above 9.5% including Garanti BBVA Romania, CET1 around 14.3%, and core ROE of 9.5% excluding Russia. Michael Höllerer also said the core business, adjusted for legacy issues, is earning about a 12% ROE and that “clean profitability” is above 12.5%.

Michael Höllerer used the call to lay out a strategic reset: RBI should grow faster in CE/SEE, reallocate capital, improve retail engagement and wealth products, streamline products, and use AI to make customer interaction, product delivery, and internal processes more efficient. He was upbeat but blunt on profitability, saying the core business’s 13% ROE is “not enough” and that spending, efficiency, and capital allocation will be reviewed closely. On Russia, he reiterated that the base case remains a continued rundown and that the bank will keep trying to exit while also pursuing value recovery through the Rasperia litigation.

Kamila Makhmudova said the quarter showed broad-based top-line strength with NII up 3.2% in Q2 and 6% year-to-date, fee income up 5.6% in the quarter, and loan growth up 5.7% year-to-date, while deposit inflows remained solid, especially in retail. She said NIM should remain stable at around 2.3% and that higher NII will mainly come from volume growth, with about EUR 50 million of upside from higher euro rates already included in guidance. She also detailed capital: 15.5% CET1 at quarter-end, about 90 basis points of CET1 generation expected in the next 6 months, roughly 14.3% CET1 at year-end after the planned acquisitions, and around 75 basis points of CET1 benefit from SRT/securitization transactions. On Poland, she reaffirmed roughly EUR 220 million of 2026 litigation provisions and said 2027 litigation provisions could drop by half, then by half again in 2028.

Analysts pressed on the timing and mechanics of the Rasperia claim, including whether proceeds could come in cash or STRABAG shares, whether cash could be accessed outside Russia, and whether the case changes RBI’s Russia exit strategy. Management said the goal is proceeds, not ownership of STRABAG, that the Austrian claim was filed and will now move through court, and that the Russia exit remains a strategic priority, though the Rasperia case is a “step forward” rather than a final answer. Questions also focused on NII/NIM, GC&M selectivity, deposit pricing, CET1 movements, Poland litigation, Addiko governance, and Romania’s ROBOR investigation; RBI said NIM should stay around 2.3%, NII growth is mainly volume-driven, GC&M should become more selective, no provisions have been booked for ROBOR, and Addiko governance is premature to discuss before regulatory approvals and closing.