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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 has been driven by robust financial results, with a reported EUR 1.443 billion profit, navigating litigation and operational risks. The bank's involvement in the Qivalis consortium, a European stablecoin project, has garnered attention. Additionally, Raiffeisen's strong presence in Central and Eastern Europe has been a focal point. However, the bank faces challenges, including a Russian court ordering it to pay nearly $400 million in compensation. Its participation in the euro-backed stablecoin project aims to counter U.S. dollar dominance.

1.c. Company Highlights

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

Raiffeisen Bank International reported a consolidated profit of EUR 1,443 million for 2025, excluding Russia, with a return on equity of 10.6%. The bank's net interest income was broadly stable quarter-on-quarter and up slightly year-on-year, with some modest interest rate headwinds. Fee income ticked up nicely in Q4, with a full-year total of EUR 2 billion, up 8.5% from 2024. The actual EPS for 2025 was not disclosed, but it is relative to estimates at 3.02.

Publication Date: Feb -22

📋 Highlights
  • Profit & ROE:: Consolidated profit of EUR 1,443 million (2025), ROE of 10.6% excluding Russia.
  • Capital Strength:: CET1 ratio at 15.5% (2025), guidance above 15% in 2026; expects stable cost/income ratio of 52.5%.
  • Loan Growth:: 6% growth in 2025, targeting 7% in 2026; net interest income and fees expected to improve by 4-5% in 2026.
  • Russian Litigation Impact:: EUR 339 million penalty added to EUR 2.4 billion claim; operational risk RWA decline to boost CET1 by 30 bps annually over 3 years.
  • Dividend & Governance:: Proposed EUR 1.6/share dividend (40% payout ratio); leadership changes including CEO transition and new Board members.

Loan Growth and Credit Quality

The bank achieved 6% loan growth in 2025, in line with guidance, and expects 7% growth in 2026. Risk costs were EUR 192 million in 2025, down EUR 95 million from 2024, with guidance for 2026 around 35 basis points. The improvement in credit quality is supported by a strong employment rate and low unemployment rate in their markets.

Capital and Liquidity

The CET1 ratio was 15.5% at year-end, slightly above guidance, and is expected to remain above 15% in 2026. The bank's liquidity position is strong, with a loan-to-deposit ratio below 30% and an LCR above 500%. The bank's MREL and funding plans are on track, with a subordination requirement of 26.71% and no changes to issuance plans.

Valuation and Dividend Yield

With a P/TBV ratio of 0.75, the bank's valuation appears reasonable. The dividend yield is 2.57%, which is attractive for income investors. The bank proposed a dividend of EUR 1.6 per share for 2025, subject to audited figures and approval at the Annual Shareholder Meeting.

Outlook for 2026

The bank expects to achieve 7% loan growth in 2026, with a stable ROE around 10.5% for the group, excluding Russia. Management is cautiously optimistic about their prospects for 2026, with a focus on achieving their loan growth and ROE guidance while navigating the challenges of the current market environment. As Johann Strobl stated, "the loan growth guidance of 7% seems conservative, given the strong base they have so far."

3. NewsRoom

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BBVA Joins Twelve European Banks Building Euro Stablecoin to Challenge Tether Dominance

Feb -04

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Financial Services Roundup: Market Talk

Jan -30

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Raiffeisen Bank International AG (RAIFF) (Full Year 2025) Earnings Call Highlights: Strong ...

Jan -30

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Russian court orders Austrian bank Raiffeisen to pay compensation

Dec -18

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Assessing Raiffeisen Bank International After an 82.2% 2025 Rally and Mixed Valuation Signals

Dec -07

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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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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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A-Score: 5.5/10

Value: 7.0

Growth: 4.1

Quality: 3.1

Yield: 6.2

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Volatility: 3.0

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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

42.82$

Current Price

42.82$

Potential

-0.00%

Expected Cash-Flows