Raiffeisen Bank International

Raiffeisen Bank International is a universal bank focusing on corporate and retail customers in Central and Eastern Europe (CEE) and on corporate customers in Austria. In CEE, Co. consists of a network of banks, leasing companies and financial service providers. In Austria, Co. is involved in corporate finance and export and trade finance banks. Co. provides services to customers in 2,800 branch offices. In the retail banking business, Co.'s product and service portfolio comprises inter alia credit services (mortgages, credit cards and personal loans), as well as payment transaction and current account package services. As of Dec 31 2014, Co.'s total assets amounted to Euro121.6 million
  • TickerRBI
  • ISINAT0000606306
  • ExchangeVienna Stock Exchange
  • SectorBanks
  • CountryAustria

Analysts

Derya Guzel

Morningstar | RBI Updated Forecasts and Estimates from 17 Jan 2019

No-moat Raiffeisen reported good first-nine months results as operating profits increased 10% to EUR 1,775 million. This was largely owed to a strong macro environment and healthy loan growth more than offsetting only marginally higher expenses. Net interest income grew to EUR 2.5 billion from EUR 2.4 billion last year, as net earnings assets increased 3% and the net interest margins grew 5 basis points to 2.49%. Net fee and commission income came in at EUR 1,325 million versus EUR 1,271 million last year. Expenses were kept under control as staff costs and other general expenses growth rates ...

Research Team

WOOD Morning (16 January)

HEADLINES: • EME macro/strategy: Brexit update • Erste Bank/Raiffeisen Int.: Romanian tax could lead to business cutback NEGATIVE • Polish banks: neutral dividend recommendation from PFSA NEUTRAL • Jumbo: 1H18/19 sales up 7.6% yoy, broadly in line with our estimates • Titan Cement: 4Q performance update in line • Benefit Systems: buys 47.5% stake in Benefit Partners POSITIVE • Turkcell: fined TRY 91m by Competition Board NEUTRAL • Richter: Health Canada imposes restrictions on Esmya NEUTRAL • DIGI Communications: conclusion of the anti-corruption investigation • Rostelecom: may buy DataLi...

Research Team

The Rear-View Mirror – EME markets: All markets down in December, highest loss in Romania

EME Equity Market – December 2018 Market performance – all markets down in December. The BET index reported the highest loss, of 14.7%, in December; while the MSCI EME was down 4.3%, vs. November’s 2.2% gain; the Turkish ISE recorded a loss of 6.2%, following the 13.3% mom rise in November; Prague’s PX index fell 6.8%, after November’s flat performance; Moscow’s index lost 5.9%, vs. the 0.5% loss in the previous month; Budapest’s BUX ended December with a loss of 1.7%; and Greece’s ASE lost 2.7%; while Warsaw’s WIG20 fell 0.9% (all performances measured in EUR terms).

Alex Boulougouris, CFA ...
  • Research Team
  • Stefan Lungu, CFA

WOOD Flash – Romania: budget woes starting

According to statements released by Finance Minister Teodorovici to the press, the 2019 budget will include several bold new policy changes. The statements provide a very incomplete picture and we expect the budget negotiations to prove volatile and lengthy, similar to what we saw in 2017. Overall, these measures do not affect the trajectory we had expected for the country, but we could see significant volatility and a spike in bond yields going forward. According to the preliminary statements, the government is considering: 1) capping gas prices for consumer and industrial users for three yea...

Research Team

WOOD Morning (19 December)

HEADLINES: • Sarantis: From Greece with Love (stays BUY - transfer of coverage) • Romania macro: budget woes starting • Romanian banks: bank tax proposal NEGATIVE • Erste Bank/RBI: could be hit visibly by Romanian tax burden proposals NEGATIVE • OTE: potential impact of Romanian telecoms fee hike NEGATIVE • Romanian energy/telecoms/utilities: impact of the proposed fiscal measures on various sectors • Polish gencos: regulator delays the retail tariff hike, asks for more information NEGATIVE • ING BSK: aiming to buy a 45% stake in NN TFI NEUTRAL • Atrium: Fitch upgrades rating to BBB (from B...

Raiffeisen Bank International AG: Raiffeisen Bank International's Additional Tier 1 issuance improves loss-absorption buffers

The successful placement will improve the bank’s AT1 capital buffer to €1.15 billion from just under €650 million as of September 2017.

Raiffeisen Bank International AG: Update following upgrade of deposit ratings to A3

FINANCIAL INSTITUTIONS CREDIT OPINION 10 November 2017 Update RATINGS Raiffeisen Bank International AG Domicile Vienna, Austria Long Term Debt A3 Type Senior Unsecured - Fgn Curr Outlook Stable Long Term Deposit A3 Type LT Bank Deposits - Fgn Curr Outlook Stable Please see the 

Raiffeisen Bank International AG: RBI's improved credit profile is positive for Austria's Raiffeisen sector

FINANCIAL INSTITUTIONS ISSUER IN-DEPTH 3 November 2017 RATINGS Raiffeisen Bank International AG Deposits / Senior Unsecured A3 / A3 BCA / Adjusted BCA ba1 / baa3 Subordinate Baa3 Pref. Stock non-cumulative Ba3(hyb) Issuer Outlook Stable Source: Moody's Investors Service KEY METRICS: Raiffeisen Bank International AG 2015 2016 2Q 2017 Problem loans / Gross loans

Raiffeisen Bank International AG: RBI's improved credit profile is positive for Austria's Raiffeisen sector

FINANCIAL INSTITUTIONS ISSUER IN-DEPTH 3 November 2017 RATINGS Raiffeisen Bank International AG Deposits / Senior Unsecured A3 / A3 BCA / Adjusted BCA ba1 / baa3 Subordinate Baa3 Pref. Stock non-cumulative Ba3(hyb) Issuer Outlook Stable Source: Moody's Investors Service KEY METRICS: Raiffeisen Bank International AG 2015 2016 2Q 2017 Problem loans / Gross loans

Raiffeisen Bank International AG: Semiannual update

FINANCIAL INSTITUTIONS CREDIT OPINION 22 September 2017 Update RATINGS Raiffeisen Bank International AG Domicile Vienna, Austria Long Term Debt Baa1 Type Senior Unsecured - Fgn Curr Outlook Stable Long Term Deposit Baa1 Type LT Bank Deposits - Fgn Curr Outlook Stable Please see the 

Derya Guzel

Morningstar | RBI Updated Forecasts and Estimates from 17 Jan 2019

No-moat Raiffeisen reported good first-nine months results as operating profits increased 10% to EUR 1,775 million. This was largely owed to a strong macro environment and healthy loan growth more than offsetting only marginally higher expenses. Net interest income grew to EUR 2.5 billion from EUR 2.4 billion last year, as net earnings assets increased 3% and the net interest margins grew 5 basis points to 2.49%. Net fee and commission income came in at EUR 1,325 million versus EUR 1,271 million last year. Expenses were kept under control as staff costs and other general expenses growth rates ...

Research Team

The Rear-View Mirror – EME markets: All markets down in December, highest loss in Romania

EME Equity Market – December 2018 Market performance – all markets down in December. The BET index reported the highest loss, of 14.7%, in December; while the MSCI EME was down 4.3%, vs. November’s 2.2% gain; the Turkish ISE recorded a loss of 6.2%, following the 13.3% mom rise in November; Prague’s PX index fell 6.8%, after November’s flat performance; Moscow’s index lost 5.9%, vs. the 0.5% loss in the previous month; Budapest’s BUX ended December with a loss of 1.7%; and Greece’s ASE lost 2.7%; while Warsaw’s WIG20 fell 0.9% (all performances measured in EUR terms).

Alex Boulougouris, CFA ...
  • Research Team
  • Stefan Lungu, CFA

WOOD Flash – Romania: budget woes starting

According to statements released by Finance Minister Teodorovici to the press, the 2019 budget will include several bold new policy changes. The statements provide a very incomplete picture and we expect the budget negotiations to prove volatile and lengthy, similar to what we saw in 2017. Overall, these measures do not affect the trajectory we had expected for the country, but we could see significant volatility and a spike in bond yields going forward. According to the preliminary statements, the government is considering: 1) capping gas prices for consumer and industrial users for three yea...

Research Team

The Rear-View Mirror – EME markets: Turkish equities stand out in November

EME Equity Market – November 2018 Market performance – Turkey up by 13.3% mom in EUR terms in November. The MSCI EME gained 2.2% in November, while the Turkish ISE rose by 13.3% in EUR terms, which was driven mostly by the appreciation of the TRY against EUR, as the index gained 6.1% mom in TRY terms. The Hungarian BUX was up by 8.3% mom, followed by the Polish WIG20 (+7.7% mom) and Romania’s BET (+1.8% mom). The Czech PX index was flat mom, while the Russian MOEX and the Greek ASE ended the month in negative territory (-0.3% mom and -1.5% mom, respectively).

Hai Thanh Le Phuong

Raiffeisen - Still Strong Results, Sanctions Are The Only Obstacle

Raiffeisen – Instant Earnings Comment Recommendation:  Buy Target price (12M): EUR 32.2   RBI reported EUR 417 mln net income in the third quarter, up by 16.8% q-o-q and 29.3% y-o-y. If we adjust the results for the negative one-off in Q2, then there was a decline in net income due to lack of risk provision reversals and lack of other income. NIM remained stable and NII increased 2.6% on the back of basically all segments, including Russia as well which was up by 6.0% q-o-q but Romania and the Czech Republic also performed well. Cost-to-income was also stable and expenses declined 2.6%...

1 director bought

A director at Raiffeisen Bank International Ag bought 10,000 shares at 26.999EUR and the significance rating of the trade was 78/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. ...

Research Team

WOOD Morning (16 January)

HEADLINES: • EME macro/strategy: Brexit update • Erste Bank/Raiffeisen Int.: Romanian tax could lead to business cutback NEGATIVE • Polish banks: neutral dividend recommendation from PFSA NEUTRAL • Jumbo: 1H18/19 sales up 7.6% yoy, broadly in line with our estimates • Titan Cement: 4Q performance update in line • Benefit Systems: buys 47.5% stake in Benefit Partners POSITIVE • Turkcell: fined TRY 91m by Competition Board NEUTRAL • Richter: Health Canada imposes restrictions on Esmya NEUTRAL • DIGI Communications: conclusion of the anti-corruption investigation • Rostelecom: may buy DataLi...

Research Team

WOOD Morning (19 December)

HEADLINES: • Sarantis: From Greece with Love (stays BUY - transfer of coverage) • Romania macro: budget woes starting • Romanian banks: bank tax proposal NEGATIVE • Erste Bank/RBI: could be hit visibly by Romanian tax burden proposals NEGATIVE • OTE: potential impact of Romanian telecoms fee hike NEGATIVE • Romanian energy/telecoms/utilities: impact of the proposed fiscal measures on various sectors • Polish gencos: regulator delays the retail tariff hike, asks for more information NEGATIVE • ING BSK: aiming to buy a 45% stake in NN TFI NEUTRAL • Atrium: Fitch upgrades rating to BBB (from B...

Research Team

WOOD Morning (14 November)

HEADLINES: • Jumbo: still a safe play (stays BUY - transfer of coverage) • Raiffeisen Int.: posts very strong set of 3Q18 results POSITIVE • Bank Handlowy: mediocre 3Q18, starting to see a risk for generous dividend payments in medium term NEGATIVE • Inter Cars: 3Q18 below the market consensus, weak cash flows NEGATIVE • PGE: 3Q18 results in line with preliminary numbers, 2019E guidance in line with our expectations NEUTRAL • GTC: 3Q18 - EBIT broadly in line with our estimates, en route to exceed our FY18E FFO NEUTRAL • Pfleiderer: 3Q18 results neutral, but 2021E EBITDA margin and revenue tar...

Research Team

Focus: Bank Millennium announces acquisition of SocGen’s consumer wing in Poland, Eurobank; MMK’s 3Q18 financial results – 5% ahead of consensus EBITDA, 4.4% quarterly dividend yield; Polish banks – PKO BP & Pekao’s EBA stress test results

HEADLINES: • Bank Millennium: announces acquisition of SocGen's consumer wing in Poland, Eurobank POSITIVE • MMK: 3Q18 financial results - 5% ahead of consensus EBITDA, 4.4% quarterly dividend yield POSITIVE • Polish banks: PKO BP and Pekao's EBA stress test results prove strong capitalisation of both POSITIVE • Austrian banks: still sensitive to adverse scenario, but capital stronger NEGATIVE • OTP Bank: sensitive to adverse macro outlook, but hefty capitalisation more than covers the risk NEUTRAL • EME Strategy: MSCI November 2018 SAIR predictions • Turkish automotive: domestic LV sales do...

Research Team

Focus: Moscow Exchange not paying an interim dividend for 1H18, approves acquisition of a stake in KASE; Pfleiderer’s 2Q18 results – in line with preliminary figures; Polish watchdog fines Raiffeisen unit PLN 50m

HEADLINES: • Moscow Exchange: not paying an interim dividend for 1H18; approves acquisition of a stake in KASE NEGATIVE • Pfleiderer: 2Q18 results - in line with preliminary figures NEUTRAL • Raiffeisen Int.: Polish watchdog fines Raiffeisen unit PLN 50m NEGATIVE • Fourlis: French sports retailer Decathlon entering Greek market NEGATIVE • Getin Noble Bank: takeaways from post-2Q18 meeting with management • Short News (EAT, EUR, PLY, SNN, RO Sovereign Fund)

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

ING
Hendrik Wiersma ...
  • Jeroen van den Broek
  • Job Veenendaal
  • Nadège Tillier
  • Suvi Platerink Kosonen

Coffee, Croissants & Credit/Rabobank to issue the first Dutch non-preferred

Rabobank (RABOBK) has indicated its intentions to issue a non-preferred senior unsecured bond with a 5yr maturity according to various press sources. The IPTs for the Rabodeal are set at MS +low 70s. The bond is expected to be rated A3/A-/AA- and will thus be better rated than the outstanding French comparables. The bond is expected to be launched in the near future subject to market conditions. (For full story, download report)

ING
Suvi Platerink Kosonen

Raiffeisen Bank International/Green RBI with a decent pickup vs German peers

Raiffeisen Bank International[de] is an Austrian bank with the bulk of its earnings generated in Eastern European countries. The bank's CET1 ratio in 1H18 was 12.8% and the total capital ratio protecting senior debtholders 17.8%. RBI is rated A3/BBB+. The bank issued its inaugural green bond in July and the bond has performed well since its launch. In our view, RBIAV0.25 7/21 offers decent pickup versus German green non-preferred senior comparables.

Expert Corporate Governance Service (ECGS)

Proxy Rapport 21/06/2018

Item 4: Since there is no vote on Management Board members' remuneration in Austria, we take this opportunity to voice our concerns regarding the remuneration system currently in place at Raiffeisen Bank International AG which we consider has several shortcomings: The targets for the short-term incentive (STI) have not been adequately disclosed. Likewise, there is no disclosure provided on maximum amounts. Since financial year 2014, there is no long-term incentive (LTI) in place. Benefits in kind and pension provisions are not disclosed separately but included in the fixed and other remunerati...

ResearchPool Subscriptions

Get the most out of your insights

Get in touch