Raiffeisen Bank continues to redefine the banking experience in Romania. The results of the first 9 months of the year support personal financial planning performance through Raiffeisen Smart Finance tablet, as well as significant developments in daily banking activities. We have continued investments to develop easy, intuitive, and secure digital experiences for customers’ interactions with the bank. The new 100% digital flow in the Smart Mobile banking app has led to a 5-fold increase in digitally enrolled customers within just a few months of launch compared to the same period in 2023. All these customers have become holders of “The Yellow Card that Does Good”, a new financial tool through which Raiffeisen Bank donates, from its own funds to Dăruiește Viață Association for the construction of a medical campus with every POS or online transaction made by customers, regardless of the amount.

We have continued diversifying solutions to support businesses, and in the Mid-Corporate segment, MoonshotX is currently underway. This is the most ambitious program for the international scaling of Romanian companies with turnovers between 5 million and 50 million euros, created by Raiffeisen Bank Romania in partnership with InnovX, aimed at accelerating growth and driving innovation in this vital segment of the economy.

"In the first 9 months of the year, we have continued our mission to support clients in building a stable financial future, whether through savings products, investments, pensions, or insurance products. The number of clients who benefited from financial planning, simulated directly on a tablet, has increased nearly fourfold compared to the same period last year. We also have excellent results in mobile banking. We have accelerated the development of a complex ecosystem of fully digitalized services and products designed to make our clients’ lives easier, and the number of clients enrolled 100% digitally has increased 5 times compared to the first three quarters of last year." - Zdenek Romanek, President & CEO, Raiffeisen Bank Romania.

KEY DEVELOPMENTS IN THE FIRST 9 MONTHS OF 2024

Raiffeisen Bank Romania’s assets exceeded 74.3 billion RON in the first 9 months of the year, marking an increase of 10% compared to the same period last year. The bank’s financial performance remained solid, with a profit of 1,265 million RON, while operating expenses increased by 12% year-over-year due to significant investments in staff training and retention, as well as expanding the team in key areas and modernizing infrastructure.

The liabilities stock continued to consolidate, registering an 8% increase, with positive variations across all customer segments. Deposits from individuals grew by 11%, and those from SMEs by 10%. This significant growth underscores customers’ confidence in the safety and attractiveness of Raiffeisen’s savings products.

The loans stock granted to customers increased by 3% compared to the previous year. Loans for individuals grew by 2%. Meanwhile, legal entities loans stock increased by 3%, fuelled by corporate clients and our participation in government programs such as IMM Invest and Invest EU.

In the Mid-Corporate segment, the loan balance grew by 13% in the first three quarters of the year as compared to the same time span last year, demonstrating Raiffeisen Bank’s commitment to supporting the development of Romania’s business sector.

The total balance of loans granted in the SME segment in the first 9 months of the current year is 7% higher compared to the same period last year. New loan volumes under the IMM INVEST PLUS program granted in the first quarters of the year amount to 143 million euros, while new loan volumes granted under the EIF Microfinance and Competitiveness program in the SME segment have reached approximately 90 million euros.

At the end of the third quarter, financing provided through the program for start-ups, factory by Raiffeisen Bank, exceeded 30 million euros.

Digital Solutions for SMEs

Digital lending continues to support the growth of the SME loan portfolio, with over 1,100 Micro clients benefiting this year from quick and easy access to loans worth more than 20 million euros, without additional documents or trips to the bank.

A further step towards digitizing local companies was the successful implementation of the “3rd party integration” solution, which integrates the RaiPOS solution with the client’s ticketing application. This solution provides a safe and fast experience, significantly reducing the time needed for transactions.

Nearly four times more financial plans

The number of clients who received financial planning in 2024, simulated directly on the Raiffeisen Smart Finance tablet, increased by more than 3.7 times compared to the same period last year.

The subscription process for investment funds has been fully digitized, providing clients with a seamless experience for savings or investment products. New clients and those who transfer or receive their salary at Raiffeisen Bank benefit from preferential interest rates on savings products. Additionally, the insurance portfolio has been expanded, with life insurance attached to mortgage loans doubling.

At the same time, the insurance portfolio increased, with the main achievements including the doubling of the portfolio of life insurance on mortgage loans.

Five times more clients enrolled 100% digitally

In Q3, over 50% more new individual clients chose Raiffeisen Bank compared to the first two quarters of the year.

In July, Raiffeisen Bank launched an improved remote enrollment solution through Smart Mobile. The new design and simplified process allow enrollment and opening of a current account package in less than 8 minutes, with 100% digital documentation. This launch resulted in 5 times increase in digitally acquired clients in Q3 compared to the same period last year (Q3 2023). This process is also available for in-branch colleagues to assist clients who opt for assisted enrollment.

App usage and Loyalty Program

Over 1.4 million clients log into their Smart Mobile app monthly, with approximately 80% logging in at least five times each month. In Q3 2024, over 70,000 individual clients chose to update their data using the digital flow in Smart Mobile.

The Smart Market loyalty app recorded over 900,000 new users two years after its launch, with 90,000 joining in the last three months alone. Through the app, individual clients were rewarded in Q3 with cashback and points worth 130,000 euros and over 450,000 discount vouchers from more than 150 partner merchants.

1 billion euros in investment products in The Private Banking segment

Raiffeisen Private Banking has reached 1-billion-euro milestone in investment products. Additionally, at the beginning of last year, the Raiffeisen Private Banking Division also started overseeing the Premium Invest client segment, which involves clients with personal assets of at least 60,000 euros under management. These clients now have access to dedicated services, a wide range of financial products, and high-level investment expertise through a new team of personal bankers. The total value of assets managed in the two client segments, Private Banking and Premium Invest, exceeded 3.1 billion euros in the first nine months of the year.

Raiffeisen Private Banking continued to expand its offering of financial instruments this year, attracting significant interest from clients. This year, Raiffeisen Bank Romania’s Private Banking Division added U.S. dollar-denominated corporate bonds, and two new international investment funds focused on sustainability:

• Raiffeisen Smart Energy: A euro-denominated equity fund that invests globally in companies providing smart energy solutions or products aimed at reducing greenhouse gas emissions or classified as sustainable.
• Raiffeisen Dollar-ShortTerm: A U.S. dollar-denominated international short- to medium-term bond fund.

Awarded multiple times by some of the most prestigious international publications, Raiffeisen Private Banking once again received the confirmation of its status as Romania’s Best International Private Bank at the Euromoney Global Private Banking Awards 2024.

Raiffeisen Leasing: doubling of new business volumes and stable portfolio performance

From January to September 2024, Raiffeisen Leasing IFN SA saw a 110% increase in new business volumes compared to the same period last year. The main categories of financed assets contributing to this growth were those for domestic and international transport activities, as well as vehicles and equipment in the “green” assets category, demonstrating a commitment to sustainable financing. Furthermore, the non-performing loan rate remains low, reflecting the stability of the financed portfolio.

By the end of Q3 2024, Raiffeisen Leasing achieved total assets of over 385 million euros, and the financing portfolio granted to clients grew by 35% compared to the level recorded on December 31, 2023.

RAM: Over 1 billion euros in assets

SAI Raiffeisen Asset Management (RAM), the investment fund management company of the Raiffeisen group in Romania, has surpassed 1.06 billion euros in total assets under management. Of this, the Raiffeisen Romania Dividend fund, which primarily invests in local stocks listed on the Bucharest Stock Exchange, exceeded 134 million euros.

*This is a press release.