SCGLY - Raiffeisen Bank International: A Buy On Recent Weakness

2024-03-22 12:35:01 ET

Summary

• Raiffeisen Bank International (RBI) dropped on recent news related to a deal to downsize its Russia exposure.
• The bank reported a consolidated ROE of 7.6% in 2023, with an increase to 11% expected in 2024.
• RBI appears attractively valued relative to peers such as Unicredit and Societe Generale.
• The 14.6% CET1 ratio, excluding Russia and Belarus, is above the 12.22% requirement, allowing capital distributions.
• Greater than estimated losses related to Russia and general weakness in the banking sector are key risks for the investment case.

Introduction

Raiffeisen Bank International ( OTCPK:RAIFF ), or RBI for short, is one of the few European banks trading below its year-end 2021 levels, significantly underperforming the iShares Euro Stoxx Banks 30 15 UCITS ETF ( OTC:SXERF ) which is currently trading at five-year highs....

For further details see: