Raiffeisen Bank International (WBAG:RBI) Is Down Sharply After Earnings Slump Is Core Profitability at Risk?

• Raiffeisen Bank International AG recently reported earnings for the first nine months of 2025, showing net income of €926 million compared to €2.08 billion a year earlier and basic earnings per share from continuing operations of €2.56 versus €6.09 previously.
• This substantial decline in net income calls attention to pressures on the bank’s core profitability and invites scrutiny of ongoing operational and regional risks.
• With such a sharp reduction in earnings now public, we'll examine the implications for Raiffeisen Bank International's investment narrative and outlook.

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Raiffeisen Bank International Investment Narrative Recap

To be a shareholder of Raiffeisen Bank International (RBI) is to believe in the ongoing growth story of Central and Eastern European banking, particularly RBI’s potential to benefit from expanding financial services in these regions. However, the sharp drop in net income for the first nine months of 2025 directly impacts short-term confidence, elevating concern about lingering exposure to Russia, operational risks, and pressures on underlying profitability. If sustained earnings weakness persists, the balance between the group’s core catalyst, regional growth, and its biggest risks could shift materially, though at present, the news mainly highlights earnings volatility rather than a transformational change in outlook.

Among recent announcements, the upcoming CFO transition, with Kamila Makhmudova appointed to the role effective January 2026, stands out. While this leadership change may not resolve near-term profitability issues, it signals RBI’s intent to strengthen financial stewardship, which is closely tied to managing cost discipline, capital allocation, and responses to risks such as regulatory or geopolitical shocks.

In contrast, investors should be mindful of how persistent regulatory overhang and future banking taxes could further pressure group returns and compliance costs…

Read the full narrative on Raiffeisen Bank International (it's free!)

Raiffeisen Bank International is projected to reach €7.6 billion in revenue and €1.7 billion in earnings by 2028. This outlook assumes a yearly revenue decline of 4.4% and an increase in earnings of approximately €1.08 billion from the current level of €622.0 million.

Uncover how Raiffeisen Bank International's forecasts yield a €30.12 fair value, a 4% downside to its current price.

Exploring Other Perspectives

In the Simply Wall St Community, seven individual fair value estimates for RBI span from €15.05 to €80.63 per share, reflecting strong differences in outlook. Future earnings pressures, especially from regulatory and regional risks, could further shape returns for RBI, explore several viewpoints to understand the choices facing investors.

Explore 7 other fair value estimates on Raiffeisen Bank International - why the stock might be worth less than half the current price!

Build Your Own Raiffeisen Bank International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Raiffeisen Bank International research is our analysis highlighting 1 key reward and 7 important warning signs that could impact your investment decision.
• Our free Raiffeisen Bank International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Raiffeisen Bank International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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