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1. Company Snapshot

1.a. Company Description

Raiffeisen Bank International AG, together with its subsidiaries, engages in the provision of corporate, retail, and investment banking services.The company offers cross border accounts, cash management, electronic banking, payments solutions, sustainable and subsidized financing, leveraged and acquisition financing, project and structured financing, real estate financing, leasing, factoring, trade and export financing, investment banking, investing, hedging, and investor services to its institutional clients and corporate customers in agri commodities and fertilizers, automotive, construction and building materials, food and beverage, healthcare and pharmaceuticals, infrastructure and logistics, manufacturing, metals and mining, oil and gas, packaging, real estate, retail, technology, telecom, and utilities industries.It also provides retail and private banking services, including deposits, loans, and advisory services to retail customers and small and medium-sized enterprises.


In addition, the company offers clearing, settlement, credit and debit cards, credit guarantees, letters of credit, acceptances, securities, asset management, custody and fiduciary, and foreign exchange services.It operates through a network of business outlets in Central, Southeastern, and Eastern Europe, as well as Austria, Czech Republic, Hungary, Poland, and Slovakia.Raiffeisen Bank International AG was founded in 1886 and is headquartered in Vienna, Austria.


Raiffeisen Bank International AG operates as a subsidiary of Raiffeisen Banks.

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1.b. Last Insights on RBI

Raiffeisen Bank International AG's recent performance was positively driven by the derecognition of a $1.41 billion legal claim from Rasperia, which relieved the bank of a significant financial burden. The Vienna-based bank's board concluded that the criteria for recognizing expected proceeds from enforcement of legal recourse against Rasperia were no longer met. This development allowed RBI to recoup damages through legal action in Austria, targeting Rasperia's assets. The move follows a failed deal that would have unlocked frozen Russian assets.

1.c. Company Highlights

2. Raiffeisen Bank International's Q3 2025 Earnings: A Closer Look

Raiffeisen Bank International reported a consolidated profit of EUR 1.027 billion for the first 9 months of 2025, excluding Russia, with a return on equity of 10%. The bank's earnings per share (EPS) came in at EUR 1.78, beating analyst estimates of EUR 1.64. Revenue growth is expected to decline by 4.3% next year, according to analyst estimates. The bank's Net Interest Margin (NIM) is a key performance indicator, and Johann Strobl, CEO, attributed the decline in NII in the Austrian business to lower loan growth and a lower loan book.

Publication Date: Nov -02

📋 Highlights
  • Consolidated Profit: EUR 1.027 billion for Q3 2025, excluding Russia, with a 10% ROE aligned with guidance.
  • ROE Target: Aiming for ~13% ROE (excluding Russia and Poland) by 2025 and beyond.
  • Loan Growth Impact: Czechia’s NII rose due to 6-7% retail loan growth, while Austrian NII fell from slower loan growth.
  • Capital Ratios: CET1 ratio dipped due to Q4 loan growth, with a current level of 15.2% (not the target post-Russia exit).
  • Poland Provisions: Increased to EUR 220-250 million (from EUR 150 million) due to euro mortgage litigation risks.

Financial Performance

The bank's financial performance was largely driven by its retail lending business, with significant growth in loan volumes, mainly in the Czech Republic. The bank's NIM is expected to remain stable, but there are risks of pressure from competition and changes in market conditions. The bank's loan growth is expected to reach 6-7% in 2025, driven by the retail area, and is expected to continue in 2026, contributing to NII growth.

Risk Management

Hannes Mosenbacher, Chief Risk Officer, highlighted the risks from trade restrictions and geopolitical developments, particularly in Ukraine and Russia. The bank has overlays of around EUR 500 million for Ukraine and Russia, which will be released when there is a clear change in risk perception and a substantial change towards sanctions in war-related risks.

Valuation

Raiffeisen Bank International's Price-to-Tangible Book Value (P/TBV) ratio is not directly available, but its Price-to-Book Ratio (P/B Ratio) stands at 0.53, indicating that the bank may be undervalued. The Dividend Yield is 3.4%, which is a relatively attractive yield for investors seeking income. The bank's Return on Equity (ROE) is -0.38%, but excluding Russia, the ROE is 10%, in line with the bank's guidance.

Outlook

The bank is optimistic about its loan growth prospects, driven by its retail lending business. However, corporate lending is expected to be a key driver of growth, and the pipeline looks strong, but competition is significant. The bank's deposit growth is expected to continue, driven by customers earning wages and putting them into their accounts, but there are risks of pressure from Central Banks reducing liquidity and increasing competition.

3. NewsRoom

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10 EU Banks Unite to Launch Euro Stablecoin by 2026

Dec -03

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10 European Banks Form Stablecoin Company qivalis

Dec -02

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CanCambria Energy Corp. Engages Raiffeisen Bank International as Strategic Advisor

Oct -16

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Financial Services Roundup: Market Talk

Sep -30

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Is Raiffeisen Bank (WBAG:RBI) Trading Above or Below Fair Value? A Fresh Look at Its Recent Surge

Sep -24

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Divesting Russia Unit Not in Raiffeisen's Hands, CEO Says

Sep -15

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German Fintech Tangany Secures €10M to Expand Regulated Crypto Custody Across Europe

Sep -02

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Financial Services Roundup: Market Talk

Aug -07

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.40%)

6. Segments

Banking and Related Activities

Expected Growth: 5.4%

Raiffeisen Bank International AG's 5.4% growth in Banking and Related Activities is driven by increasing lending activities, particularly in Central and Eastern Europe, as well as a strong deposit growth. Additionally, the bank's diversified revenue streams, including fees and commissions, and a solid cost management have contributed to the growth.

7. Detailed Products

Corporate Banking

Raiffeisen Bank International AG provides corporate banking services to large and medium-sized companies, including cash management, trade finance, and risk management solutions.

Retail Banking

Raiffeisen Bank International AG offers retail banking services to individuals, including current and savings accounts, credit cards, personal loans, and mortgages.

Markets and Investment Banking

Raiffeisen Bank International AG provides markets and investment banking services, including debt and equity capital markets, mergers and acquisitions, and leveraged finance.

Leasing

Raiffeisen Bank International AG offers leasing services to companies, enabling them to finance equipment, vehicles, and real estate.

Asset Management

Raiffeisen Bank International AG provides asset management services, including portfolio management and investment funds.

Transaction Banking

Raiffeisen Bank International AG offers transaction banking services, including cash management, trade finance, and supply chain finance.

8. Raiffeisen Bank International AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Raiffeisen Bank International AG faces moderate threat from substitutes, as customers have limited alternatives for banking services. However, the rise of fintech companies and digital payment systems poses a moderate threat to the bank's market share.

Bargaining Power Of Customers

Raiffeisen Bank International AG has a large customer base, which reduces the bargaining power of individual customers. Additionally, the bank's diversified product offerings and strong brand reputation further reduce customer bargaining power.

Bargaining Power Of Suppliers

Raiffeisen Bank International AG has a strong negotiating position with its suppliers, given its large scale of operations and diversified supplier base. This reduces the bargaining power of suppliers.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory requirements and capital requirements. This makes it difficult for new entrants to enter the market, reducing the threat of new entrants for Raiffeisen Bank International AG.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Raiffeisen Bank International AG faces intense competition from other banks, fintech companies, and digital payment systems, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 73.44%
Debt Cost 3.95%
Equity Weight 26.56%
Equity Cost 10.79%
WACC 5.76%
Leverage 276.44%

11. Quality Control: Raiffeisen Bank International AG passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

34.82$

Current Price

34.82$

Potential

-0.00%

Expected Cash-Flows