Shares Trade Higher as Results Beat Expectations
Raiffeisen Bank International shares traded higher after the Austrian bank raised its guidance for net interest income and reported results that beat consensus expectations at the top and bottom lines.
Strong Performance and Increased Guidance
At 0902 GMT on Friday, shares in Raiffeisen were up 4.5% at EUR14.72. The bank announced that it now expects net interest income to amount to between 4.2 billion and 4.3 billion euros ($4.46 billion-$4.57 billion) this year, excluding its operations in Russia and Belarus. This is significantly higher than the previous estimate of EUR3.8 billion to EUR4.0 billion.
Focus on Restructuring Russian Business
Raiffeisen has been actively scaling down its Russian business in recent quarters as part of its strategic initiatives. The bank continues to work on options leading to a deconsolidation.
Financial Results Overview
For the third quarter, net interest income increased to EUR1.44 billion from EUR1.39 billion in the same period last year. However, a decline in net fee and commissions income resulted in a decrease in operating income to EUR2.25 billion from EUR2.70 billion, according to Raiffeisen.
Beatings Analyst Expectations
The bank reported a net profit of EUR879 million for the quarter, which was lower than the previous year’s figure of EUR1.09 billion. However, it still surpassed analyst estimates of EUR630 million. Consensus estimates provided by the bank also indicated analysts expected net interest income of EUR1.35 billion and operating income of EUR2.11 billion.
In conclusion, Raiffeisen Bank International’s strong financial performance and increased guidance for net interest income have led to a surge in share prices. The bank’s focus on restructuring its Russian business further demonstrates its commitment to strategic initiatives.