RAIFF - Raiffeisen Q1: Still Too Cheap Even Excluding Russia

2024-05-09 16:49:32 ET

Summary

• In keeping with recent results, Austrian bank Raiffeisen reported a fairly noisy Q1, albeit with a bottom-line beat driven largely by low loan loss provisioning.
• Legal provisions relating to Polish mortgages should fade next year, albeit this will be a slight headwind for the rest of 2024 alongside normalizing bad debt expenses.
• The stock continues to look too cheap relative to earnings power, even when completely writing off its Russian business.

Austrian bank Raiffeisen ( OTCPK:RAIFF )( OTCPK:RAIFY ) has been a fairly weak performer since my last update at the end of 2023, with a -12% total return representing over 20ppt of underperformance versus broader European financials ( EUFN ) in that time. The stock has, however, fared better since I opened on it around a year ago, outperforming peers with a roughly 30% total return in this period....

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