Curious about the Raiffeisen Group net worth in 2024? In this article, we dive into the bank’s financial performance, exploring revenue drivers, market cap, and key insights. Stay updated with the latest analysis from Ando Money.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Raiffeisen Bank International |
| Full Name | Raiffeisen Bank International AG |
| Traded as | Vienna Stock Exchange (WBAG) |
| ISIN | AT0000606306 |
| Founded | 2010 |
| Founders | Raiffeisen Zentralbank |
| Country/Territory | Austria |
| Headquarters | Vienna, Austria |
| Chief Executive Officer | Johann Strobl |
| Number of Employees | Over 45,000 |
| Market Cap | $6.33 Billion |
| Total Assets | N/A |
| Total Equity | N/A |
| Revenue | N/A |
| Net Income | €664 million (Q1 2024) [($709 million)] |
What is the Net Worth/ Market Cap of Raiffeisen Group in 2024?
As of September 2024, Raiffeisen Bank International has a market capitalization of $6.33 billion.
While this places it among significant financial institutions, it is important to note that Raiffeisen’s presence is particularly strong in Central and Southeastern Europe.
In comparison to some of the global banking giants, Raiffeisen may have a smaller market cap, but its role in emerging markets makes it a key player in its region.
When looking at other financial institutions in the industry, here are a few banks you may want to consider:
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Financial Performance Overview
Understanding Financial Performance in 2024
Raiffeisen Bank International had a robust start in 2024, generating a consolidated profit of €664 million ($709 million) in the first quarter.
This is a slight increase from the previous year, where the profit stood at €657 million. A key highlight of this performance is the significant decline in risk costs, which fell by over 90%.
This drop played a crucial role in boosting the bank’s overall profit margin.
Raiffeisen’s net interest income also saw an uptick, rising by €70 million to €1.455 billion ($1.55 billion).
This growth was driven mainly by its operations in Central and Southeastern Europe, where interest rates on customer loans and deposits increased, especially in Slovakia, which reported a €25 million rise in interest income.
However, net fee and commission income saw a sharp decline, dropping by €297 million to €669 million ($714 million).
The most significant contributor to this fall was Russia, where fee income dropped by €287 million.
Other countries in the Raiffeisen Group, however, maintained stable fee income during this period, reflecting the bank’s diversified revenue streams.
Key Revenue Drivers
Raiffeisen Bank’s revenue streams are diverse, but net interest income remains a primary driver, contributing significantly to its financial success.
The bank has capitalized on rising interest rates, especially in markets like Slovakia and Southeastern Europe, where increased income from customer loans and deposits has helped maintain steady financial growth.
Other significant contributors include loan portfolios and customer deposit growth, especially in Eastern European markets, which have been essential in offsetting declines in other areas, such as Russia.
The Impact of Operations in Russia
Russia continues to be a pivotal market for Raiffeisen Bank, despite ongoing geopolitical challenges.
The Russian subsidiary accounted for a significant portion of the group’s net profit, contributing about 50% of total net profits, or €4.2 billion in previous years.
However, risk costs and impairment losses remain substantial, particularly Stage 3 loans, where €43 million in impairment losses were recognized in Q1 2024.
Raiffeisen’s ongoing presence in Russia is under scrutiny, and there are strategic discussions about reducing or deconsolidating operations.
This potential deconsolidation could lower the bank’s CET1 ratio to 14.6%, although it would still remain above regulatory requirements.
Risk Management and Its Effect on Profitability
Raiffeisen has shown remarkable improvement in managing risk, reflected by the sharp decline in risk costs.
In Q1 2024, risk costs dropped to €25 million ($27 million) from €301 million ($321 million) in the previous year.
This reduction was primarily due to net releases of provisions in Hungary, Russia, and Ukraine, which helped strengthen the bank’s balance sheet.
Impairment losses on defaulted loans (Stage 3) were significant, particularly in Russia, where €43 million in impairment losses were recorded.
However, the bank mitigated these losses with strong performance from non-financial companies and households in other regions.
Capital Structure and CET1 Ratio
Raiffeisen Bank International’s CET1 ratio stood at 17.3% at the end of Q1 2024, which is a healthy buffer above the regulatory requirements.
However, if the bank proceeds with its plans to deconsolidate its Russian subsidiary, the CET1 ratio would drop to 14.6%, still comfortably above the regulatory thresholds.
The bank’s capital reserves and regulatory compliance remain strong, allowing it to navigate challenging markets while maintaining financial stability.
The capital adequacy ratio is a crucial indicator of Raiffeisen’s financial health, ensuring that it can absorb potential losses and continue to operate efficiently.
Strategic Acquisitions and Divestments
Raiffeisen has engaged in several strategic moves to bolster its market position.
One of the most notable acquisitions in recent years was the purchase of Credit Agricole Srbija, which helped increase its market share in Serbia to approximately 12%.
This acquisition also expanded Raiffeisen’s loan portfolio in the region, with the total loan portfolio nearing €3 billion ($3.2 billion).
On the divestment side, Raiffeisen made a strategic exit from Bulgaria by selling its local operations to KBC Bank.
This move allowed the bank to streamline its operations and focus on more profitable markets in Central and Southeastern Europe.
Outlook for Financial Growth
Looking ahead, Raiffeisen expects customer loan growth of 3-4% for the full year of 2024, driven by strong demand in key markets.
The bank also anticipates net interest income to reach approximately €4.0 billion ($4.27 billion), supported by continued growth in loans and deposits.
With a solid capital position and ongoing efforts to reduce exposure in riskier markets like Russia, Raiffeisen Bank International remains well-positioned for sustained financial growth in 2024.
FAQs about Raiffeisen Bank International
What is the market capitalization of the Raiffeisen Bank in 2024?
As of September 2024, the bank has a market capitalization of $6.33 billion. This positions it as a major player in Central and Southeastern Europe.
What role does Russia play in Raiffeisen’s overall performance?
Russia contributed significantly to the bank’s profits in previous years, making up 50% of its net profit. Challenges remain due to geopolitical issues, and the bank is considering reducing its exposure there.
How does Raiffeisen manage risk?
It manages risk by releasing provisions, adjusting its loan portfolio, and using geographical diversification. Risk costs were reduced significantly in Q1 2024, particularly in Hungary, Russia, and Ukraine.
What are its recent acquisitions and divestments?
The bank acquired Credit Agricole Srbija, expanding its market share in Serbia to 12%. It exited Bulgaria, selling its local operations to KBC Bank.
What are its projected growth targets for 2024?
The bank expects customer loan growth of 3-4% in 2024. Net interest income is forecasted at €4.0 billion ($4.27 billion), supported by growth in Central Europe.
Conclusion
In conclusion, Raiffeisen Group’s financial performance in 2024 reveals important trends and opportunities. Feel free to leave your comments, share this post, or explore more content on andomoney.com for deeper insights.
