amorgos34
CHIAGNI & FOTTI SRL
Raiffeisen Bank International (RBI AV)
2Q15: Strong beat; CET1 at 10.7%
Overweight
Price: €12.17
18 Aug 2015
Price Target: €18.00
PT End Date: 31 Dec 2016
RBI reported 2Q15 net profit of €204 mn, beating both JPMe (€120 mn) and company-compiled consensus (€133 mn), on the back of higher NII (+5% vs. expectations, though €36 mn from the €41 mn q/q increase came from derivatives); better fees (+4-5% beat, up 7% q/q, supported by a wide range of factors, including business development, seasonality and currency effects); higher trading income (€64 mn vs. €30 mn JPMe) and lower provisions (€332 mn vs. €365 mn JPMe and €345 mn consensus). Importantly, B3 FL CET1 increased by 80 bps q/q to 10.7% (from 9.9% in 1Q15), helped by profit retention and FX appreciation. Also positively, Russian (€85 mn), Ukrainian (€25 mn) and Hungarian (€16 mn) subsidiaries were profitable and the NPL ratio of 11.9% was stable q/q. Management has reiterated its FY15 guidance, in particular, keeping the expectation of “elevated” provisions unchanged, despite only ~€600 mn in 1H15, as a pick-up in 2H15 is likely. Less encouragingly, gross loans declined by 5% q/q and the management sees the closing of the Polish subsidiary sale “within a one-year period” as “unlikely”, although discussions with multiple parties are ongoing and the preparation for IPO by mid-16 is still underway. On balance, we view these results as positive. RBI is trading at 16-17E P/E of 12.0-4.7x and P/NAV of 0.5x for 10% RoNAV in 10%.
2Q15: Strong beat; CET1 at 10.7%
Overweight
Price: €12.17
18 Aug 2015
Price Target: €18.00
PT End Date: 31 Dec 2016
RBI reported 2Q15 net profit of €204 mn, beating both JPMe (€120 mn) and company-compiled consensus (€133 mn), on the back of higher NII (+5% vs. expectations, though €36 mn from the €41 mn q/q increase came from derivatives); better fees (+4-5% beat, up 7% q/q, supported by a wide range of factors, including business development, seasonality and currency effects); higher trading income (€64 mn vs. €30 mn JPMe) and lower provisions (€332 mn vs. €365 mn JPMe and €345 mn consensus). Importantly, B3 FL CET1 increased by 80 bps q/q to 10.7% (from 9.9% in 1Q15), helped by profit retention and FX appreciation. Also positively, Russian (€85 mn), Ukrainian (€25 mn) and Hungarian (€16 mn) subsidiaries were profitable and the NPL ratio of 11.9% was stable q/q. Management has reiterated its FY15 guidance, in particular, keeping the expectation of “elevated” provisions unchanged, despite only ~€600 mn in 1H15, as a pick-up in 2H15 is likely. Less encouragingly, gross loans declined by 5% q/q and the management sees the closing of the Polish subsidiary sale “within a one-year period” as “unlikely”, although discussions with multiple parties are ongoing and the preparation for IPO by mid-16 is still underway. On balance, we view these results as positive. RBI is trading at 16-17E P/E of 12.0-4.7x and P/NAV of 0.5x for 10% RoNAV in 10%.
, nel top management della società, ha esordito con uno slancio di humor insolito a quelle latitudini:
