Investing.com -- Shares of Raiffeisen Bank International AG (VIE:RBI) climbed 2% today, recovering slightly from a drop the previous day, prompted by an earnings report that showed resilience in the bank's core operations, excluding Russia and Belarus.
The bank's earnings report, which came out today, presented a mixed picture with a net loss of €926 million. However, when excluding the Russian and Belarusian operations, the core group reported a net profit of €128 million, which, despite being 5% below consensus, indicated a 2% year-over-year (YoY) revenue increase to €2,205 million. This revenue figure exceeded expectations by 2% for the group's operations excluding Russia and Belarus.
The cost of risk at €13 million was better than anticipated, and the pre-provision profit was approximately 12% above consensus for the core group. The bank's net interest income (NII) showed a modest YoY increase, with the fourth-quarter net interest margin (NIM) improving to 3.13% compared to 2.87% in the third quarter.
The group's net fee income was slightly down by about 1% YoY, but the core operations outside Russia and Belarus performed well, with net fee income 4% better than consensus and up 8% YoY.
On the capital front, Raiffeisen reported a common equity tier 1 (CET1) ratio of 17.1%, down 70 basis points quarter-over-quarter but still above estimates. Excluding the Russian segment, the CET1 ratio stood at 15.1%, slightly better than the consensus of 14.9%.
Barclays (LON:BARC) analysts commented on the situation, stating, "In our view, the Russian situation continues to dominate the headlines, with the stock down 9% due to Russian news flows. During the conference call, questions are expected to focus on business dynamics, the potential Austrian levy, Russia-related issues, and the moving parts of the >13% ROE target."
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