Raiffeisen Bank International: Profit Slump due to Provisions for Russia
Raiffeisen Bank International's consolidated profit decreased by over 50% in 2024 due to a €840 million provision from a Russian court ruling, which ordered the bank to pay EUR 2 billion in damages.

Raiffeisen Bank International (RBI) recorded a massive profit slump in the 2024 financial year. According to the bank's preliminary figures, consolidated net profit fell to 1.16 billion euros, compared to 2.39 billion euros in the previous year. The main reasons for the decline are considerable extraordinary charges in connection with the bank's Russian business and high provisions for foreign currency loans in Poland.
Russian business remains problematic
RBI is still active in Russia, but the withdrawal is proving difficult. Although the credit volume in Russia was reduced by 30 percent to 4.2 billion euros and customer deposits were cut by 35 percent, a complete exit from the Russian market remains challenging. A Russian court ruling could also cost the bank dearly: The RBI subsidiary AO Raiffeisenbank was sentenced to pay damages of 2.04 billion euros in a legal dispute with the Russian investment company Rasperia. The bank had to form a provision of 840 million euros for these proceedings alone.
A Russian court handed down its verdict in the proceedings brought by Rasperia Trading Limited against STRABAG SE, its Austrian core shareholders and AO Raiffeisenbank. The court ruled that STRABAG SE and its Austrian core shareholders must make a payment of EUR 2.044 billion to Rasperia, whereby the judgment can be enforced against the assets of AO Raiffeisenbank.
AO Raiffeisenbank will appeal against the judgment, which has a suspensive effect. At the same time, the RBI Group plans to take legal action in Austria to minimize the damages incurred. These measures are in full compliance with EU sanctions law and are aimed at achieving enforcement against Rasperia's assets in Austria. This includes 28.5 million STRABAG SE shares including dividends from 2021 to 2023 and the cash distribution from the capital reduction in March 2024.
Following IFRS and Russian accounting standards, AO Raiffeisenbank will recognize a provision for the fourth quarter of 2024. The amount of this provision will be based on the amount awarded by the Russian court, but reduced by the expected proceeds from the legal enforcement against Rasperia's assets in Austria.
In its ruling, the Russian court also decided that the ownership rights to the STRABAG SE shares held by Rasperia should be transferred to AO Raiffeisenbank. However, Russian judgments are not legally binding in Austria, meaning that the transfer of these shares cannot be enforced. Furthermore, Rasperia's STRABAG SE shares are currently subject to an EU sanctions-related asset freeze, which also prevents a transfer.
Western sanctions are also making further business operations in Russia considerably more difficult. Regulatory restrictions and geopolitical uncertainties ensure that RBI's complete withdrawal from the Russian market remains a complex and protracted challenge.
The sale of Belarus subsidiary completed
RBI was able to take a significant step towards risk reduction with the sale of its Belarusian subsidiary Priorbank. This step reduced the political risk for the Group. Nevertheless, the uncertainty surrounding the remaining Russian activities remains. RBI has announced that it will continue to examine options for an orderly separation from the Russian business, but regulatory requirements and political influence stand in the way of this.
Polish foreign currency loans weigh on the balance sheet
In addition to the problems in Russia, provisions for foreign currency loans in Poland had a significant negative impact on the consolidated result. In total, RBI had to set aside EUR 649 million to cover potential losses from legal disputes in Poland. The background to this is the situation of numerous Polish borrowers who had taken out real estate loans in foreign currencies and are now suffering from currency fluctuations.
The Polish government is putting pressure on Western banks to contribute to the compensation of affected customers. Legal experts assume that further provisions could become necessary if the trend toward unilateral annulment of loan agreements by Polish courts continues. This could continue to burden RBI in the coming years and weaken its strategic position in the region.
Dividend cut, capital ratio stable
Despite the massive burdens, RBI was able to maintain a common equity tier 1 ratio of 17.1 percent. Without the Russian business, this ratio would have been 15.1 percent. However, shareholders will have to be satisfied with a lower dividend: instead of 1.25 euros in the previous year, only 1.10 euros per share will be distributed for 2024. This measure is intended to help strengthen the bank's capital base and increase its resilience to further geopolitical risks.
Growth despite challenges
For 2025, RBI expects net interest income of around 4.15 billion euros and net commission income of around 1.95 billion euros. Loans and advances to customers are expected to grow by 6 to 7 percent. The bank is aiming for a return on equity of at least 13 percent in the medium term, provided that the provisions for Russia and the problems in Poland are excluded from the balance sheet.
In addition, RBI is planning increased expansion in other Eastern European markets in order to compensate for the losses from Russia. The management sees growth potential in the Czech Republic, Hungary, and Romania in particular. The expansion of the digital banking business is also to be driven forward in order to reach new customer groups and make the operating business more efficient.
RBI is facing a double challenge: on the one hand, the laborious withdrawal from Russia and, on the other, the legal disputes in Poland. Despite the setbacks, the management is confident that the bank will be stable in the medium term. However, as long as geopolitical analysts keep a close eye on how the geopolitical conditions develop and whether RBI can tap into new markets as stable sources of income. However, political processes in the background could sabotage solving business strategies.