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Investing.com -- Raiffeisen Bank International shares gained 3% after the bank reported third-quarter pre-tax profit excluding Russia and Belarus of €661 million, 17% above consensus expectations.
Core revenues exceeded analyst forecasts by 2%, with both net interest income and net fee and commission income beating estimates by 2%. Total revenues came in 1% above expectations, despite trading and other income falling 14% below consensus.
Operating expenses were 2% below consensus, helping the bank deliver a pre-provision operating result 6% better than expected. Loan loss provisions were significantly lower, coming in 83% below analyst forecasts.
The bank achieved a 14.0% return on equity excluding Russia in Q3 2025 and 10.0% for the first nine months of the year.
Raiffeisen’s fully loaded CET1 ratio excluding Russia and Belarus remained stable at 15.7% quarter-over-quarter, 10 basis points above consensus. Customer loans excluding Russia increased by 1% from the previous quarter, driven by strong growth in Hungary and Romania, along with solid growth in retail mortgages in Czechia and Slovakia. Corporate activity also showed some acceleration in Central Europe and Southeast Europe.
Deposits increased 4% quarter-over-quarter, primarily from retail deposits. Risk costs excluding Russia were only 1 basis point in Q3, with Stage 3 provisions and increased overlays in Ukraine offsetting Stage 1 and 2 releases.
The bank improved its risk cost guidance to around 30 basis points from 35 basis points previously, excluding potential use of overlays. This is 3 basis points lower than current consensus.
For the rest of 2025, Raiffeisen maintained its guidance excluding Russia and Belarus: net interest income at €4.15 billion with 6-7% loan growth year-over-year, net fee and commission income at €1.95 billion, operating expenses at €3.45 billion, consolidated return on equity of 10%, and a CET1 ratio excluding Russia of 15.2% at year-end.
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