RBI lifts half-year profit by a quarter and plans CET1 ratio under Russia scenario

Disappearance of the Rasperia effect

In the previous year, penalty payments in the legal dispute with Rasperia had still weighed on RBI's results. This effect fell away in the current half-year period and thus also contributed to the profit increase. The bank had dealt with the company in the proceedings, which is connected to a former business relationship.

Strategic projects in Southeast Europe

RBI had recently initiated several steps for a strategic realignment. These include the planned takeover of Addiko Bank, which is intended to strengthen the branch and retail banking business in Southeast Europe. A stake in Slovenia's NLB as well as projects around the Romanian subsidiary are also taken into account in the capital planning.

In parallel, the institution continues to work on an exit or a reduction of its exposure in Russia. The bank has been under political and regulatory pressure here for years because Western sanctions and Russian countermeasures are increasingly complicating the business. A full deconsolidation would have significant effects on the balance sheet structure and would, according to earlier estimates, release capital that could be deployed elsewhere.

In the business with Turkish BBVA Garanti, RBI is likewise pursuing its own plans. The bank had already adjusted its stake in the Turkish subsidiary in earlier steps and is reviewing further options for the future direction.

Outlook on the second half

On the capital markets, the half-year report was received cautiously overall. Observers pointed out that the targeted CET1 ratio, while above the regulatory minimum requirements, remains below the prior-year figure if all Russia assets are actually deconsolidated.

RBI's top management around the CEO emphasized that the announced acquisitions and the planned Russia wind-down are being prepared in parallel. Spokesman Michael Höllerer said: "man rechne mit einer weiterhin soliden Ertragsentwicklung im Kernmarkt und einer schrittweisen Verbesserung der Effizienz."

For the second half of the year, the institution announced that it would push ahead with the integration of Addiko Bank and the preparation of further steps in Romania and the Balkans. The final level of the CET1 ratio will also depend on how quickly a solution for the Russia business is found.

Overall, RBI considers itself financially well positioned to handle the upcoming transactions, according to its own statements. The coming months are likely, in the assessment of market observers, to show whether the planned steps – from the Addiko integration to the Russia wind-down – can be implemented as envisaged.