Personal financial planning remains a constant growth driver in Raiffeisen Bank Romania’s long-term strategy. In the first half of 2024, the number of newly opened pension, investment and life insurance plans increased by over 40% compared to the same period in 2023. Simultaneously, the digitalization of workflows and the simplification of client interactions remain essential across all segments, whether it involves current operations, savings accounts, term deposits, life insurance, or investment funds. The number of customers who opened a Raiffeisen account directly through the mobile banking app grew by approximately 300% in the first half of the year compared to the same period last year and online payments saw a 30% increase.

”In the first half of the year, we systematically continued to accelerate financial planning services to support our clients in building a better future. We launched MoonShotX, a project that facilitates the expansion of businesses in Romania at regional level. We introduced a new card that combines digital payment services with our long-term commitment to community support. We have invested in innovative technologies based on Cloud and AI, which help us redefine and optimize operations so that our teams can focus on personalized 1:1 interaction with our clients.”- Zdenek Romanek, President & CEO, Raiffeisen Bank Romania

H1 2024: evolution and trends  

Raiffeisen Bank Romania’s assets reached 74 billion lei in the first half of 2024, an increase of 12% compared to the same period in 2023, and financial performance has remained solid, with a profit of 820 million lei. Additionally, a healthy risk profile and revenue growth (+8% year-on-year) continue to be strong points in Raiffeisen Bank’s performance over the first half of 2024.

Operating expenses have increased by 12% year-on-year, reflecting investments in employee training, retention of well-qualified staff, expansion of the team in key areas, as well as the modernization of IT infrastructure, digital transformation projects, and the continuous improvement of applications and solutions offered to clients.

Customer deposits (57.20 billion lei) continue to strengthen with a 9% year-on-year increase, showing positive variations across all customer segments.

The loan stock reaches 40,9 billion lei. After a beginning of the year in which the demand for loans in the market was rather modest, the second quarter saw a rebound in the balance of loans granted to companies (+5% compared to the previous quarter), especially in the area of corporate customers.

In terms of the evolution of volumes originated in the first half of 2024 to individuals, personal loans increased by around 40% and mortgage loans increased by around 22% compared to the same period of the previous year. Very competitive offers launched in Q2 bring even more dynamics and record sales for the next months, both on unsecured and secured PI loans.     

Solid capitalization and liquidity in S1 2024

Solid capitalization and strong liquidity position enables the bank to continue supporting through lending the development of the Romanian economy. The capital adequacy ratio was 22.08%, well above the minimum required by the NBR (17.81%). Non-performing exposures remained at a low level (1.69%) and the liquidity coverage ratio (LCR) was at a comfortable level (249%), well above the regulatory minimum (100%). At the same time, own funds, and eligible liabilities (MREL) stood at 35.93%, significantly above the regulatory requirements applicable as of June 30, 2024 (32.00%).

On May 22, 2024, Moody’s has reaffirmed our senior unsecured debt and deposit ratings at Baa1 with a stable outlook, two notches above Romania’s sovereign rating, and our senior non-preferred debt rating at Baa2, reflecting the bank’s strong financial position and proven access to international capital markets.

+300% more customers enrolled through mobile banking

In the first half of the year, the number of people who chose to open a Raiffeisen account directly from their phone via the mobile banking app, Smart Mobile, increased by approximately 300% compared to the first half of the previous year. This positive trend indicates that remote enrollment is increasingly appreciated by customers, being an easy and quick process.

Over 1.4 million users access the Raiffeisen Smart Mobile banking app monthly, and besides numerous constant optimizations to improve the customer experience, it benefited from two important new features in the first half of 2024:

• Raiffeisen Bank customers can view, in a distinct section of Smart Mobile, the total amount earned from interest paid by the bank in the previous year and the current year for savings products (savings accounts and term deposits) held at Raiffeisen Bank. This feature provides customers with the convenience of easily calculating their total annual non-salary income (bank savings product interest, rental income, royalties, capital market investments, etc.) to file their single income statement for the previous fiscal year if required by the Fiscal Code.
• Another feature available in Smart Mobile addresses the legal requirement for periodic updating of customer identification data, a process essential for maintaining security and compliance in the banking system. Starting this year, customers who have renewed their identity cards can update their personal data more easily in Smart Mobile in just a few steps by simply photographing their identification document.

Other functionalities have also been improved, including the expansion of the early repayment feature for more types of loans in the portfolio, the ability to close savings accounts directly from the app when the user no longer needs those accounts, and the option to dispute transactions if irregularities are observed.

The Smart Market loyalty app has reached 820,000 users in the two years since its launch, with 180,000 joining in the first half of this year alone. Through the app, individual customers have been rewarded since the beginning of the year with cashback and points worth 200,000 euros and over 570,000 discount vouchers from more than 150 partner merchants.

+30% growth in the online payments segment

In the first 6 months of the year, online transactions using debit cards recorded increases of over 30%, while the number of cash withdrawal transactions decreased compared to the same period last year. As card transactions become increasingly convenient for customers, through the expansion of payment points and the availability of simple payment methods such as mobile payments, card transactions are preferred over cash transactions.

Financing and digital solutions in support of Romanian entrepreneurs

Through collaboration with the European Investment Fund, Raiffeisen Bank Romania continues to support SME financing with two guarantee schemes worth 400 million euros, the largest investment plan in recent years dedicated to Romanian SMEs. In the first half of 2024, under the two active programs (EIF Microfinance and EIF Competitiveness), over 86 million euros were financed.

Also, in the first half of the year, Raiffeisen Bank has been actively involved in the SME Plus program, the facilities granted under this program reaching approximately 430 million euro, cumulatively in the Mid-Corporate and Micro & Small segments, which is an important factor of support for small and medium-sized companies. 

In June, the European Investment Bank signed a new guarantee agreement with Raiffeisen Bank under the Recovery and Resilience Facility. This agreement enables Raiffeisen Bank Romania to mobilize 250 million euros for financing mid-to-large scale investment projects, especially in climate action and digitalization sectors.

This new agreement marks an important milestone in the nearly 15-year partnership with the EIB, during which over 1 billion euros have successfully been channeled into projects that improve financing access for SMEs, enhancing their competitiveness and supporting their transition to a sustainable future.

Factory by Raiffeisen Bank program, launched 6 years ago to support early-stage entrepreneurs, has now exceeded the financing of 500 businesses, with a total financing value of approximately 28 million euros.

Raiffeisen Leasing: +107% in new business volume

For Raiffeisen Leasing IFN SA, the first half of 2024 saw a 107% increase in new business volumes compared to the same period of the previous year. The main categories of financed assets that contributed to this growth were both those for domestic and international transportation activities, as well as vehicles and equipment in the "green" asset category, confirming the focus on sustainable financing. At the same time, the non-performing loan ratio remains at a low level, reflecting the stability of the financing portfolio.

By the end of the first half of 2024, Raiffeisen Leasing recorded total assets exceeding 370 million euros, and the financing portfolio granted to customers increased by 25% compared to the level recorded on December 31, 2023.

RAM: total assets over 1 billion euros, mostly invested in Romania

SAI Raiffeisen Asset Management (RAM), the company specialized in managing investment funds for the Raiffeisen group in Romania, has exceeded 1 billion euros in total assets under management through 13 investment funds and the voluntary pension fund Raiffeisen Acumulare, thereby consolidating its top position in the investment fund market in Romania.

Additionally, Raiffeisen Romania Dividend, a fund that predominantly invests in local stocks listed on the Bucharest Stock Exchange, has reached a value of 120 million euros, making it the fund with the fastest asset growth since the beginning of the year. In the first half of 2024, the fund achieved a return of nearly 20%.

Private Banking & Premium Invest

In the first half of 2024, the Private Banking segment reached 1 billion euros in investment products. Total assets managed by the Private Banking and Premium Invest segments grew by 150 million euros compared to the end of the previous year.

The range of financial instruments continued to expand with the launch of dollar-denominated corporate bond issues, which attracted significant interest from Private Banking clients due to the competitive yields offered. Additionally, the investment offering includes two international investment funds focused on sustainability, managed by the Raiffeisen Group’s investment fund management company in Vienna.

Currently, the Private Banking Division manages total assets valued at over 3.1 billion euros, providing clients with access to a broad investment universe that includes local investment funds, international investment funds, government bonds, and corporate bonds.

* This is a press release.