Raiffeisen Bank International Ag · VIE:RBI
Raiffeisen Bank International — H1 2020 Earnings Presentation
62 slides from Raiffeisen Bank International's earnings presentation, Aug 11, 2020
Slide 1: Raiffeisen Bank International H1/2020 Results
Raiffeisen Bank International H1/2020 Results – 11 August 2020
Slide 2: Disclaimer
Disclaimer Certain statements contained herein may be statements of future statements set forth herein, whether as a result of new information, not relevant persons. Any investment or investment activity to which expectations and other forward-looking statements about Raiffeisen future events or oth
Slide 3: Executive Summary
Executive Summary 01 02 03 04 Executive Financials Risk Management Appendix Summary JOHANN STROBL Group Investor Relations 11 August 2020 3
Slide 4: Executive Summary H1/2020
Executive Summary H1/2020 Operating Result (in EUR mn) Consolidated Profit (in EUR mn) 1-6/2020 1,216 1-6/2020 368 1-6/2019 1,009 1-6/2019 571 Operating income up 7% driven by net trading income/fair Consolidated profit includes EUR 312 mn risk costs (vs. EUR 12 value result mn in H1/2019) NII
Slide 5: Financial Performance H1/2020
Financial Performance H1/2020 Operating Income Net Interest 1-6/2020 2.31% 2.44 y-o-y Margin EUR 2,690 mn 7.3% 1-6/2019 2.42% Net Interest Income y-o-y EUR 1,706 mn 2.5% 1-6/2020 54.8% 2.44 Fee Income Cost/Income y-o-y Ratio EUR 840 mn 1-6/2019 59.7% 0.0% General Admin. Expenses y-o-y Consolidated 1
Slide 6: Recovery in Activity across the Region
Recovery in Activity across the Region Mobility data and leading indicators suggest a sustained uptick in EU Recovery Fund very supportive for CE and SEE region activity since May 55 55 Austria & CE Manufacturing PMI 30 50 AT ~ 6% EUR 80 bn ~ 14% 5 SEE 45 RU ≈ -20 CZ ~ 7% ~ 3% -45 40 20% of allocati
Slide 7: Digital Banking Continues to Grow
Digital Banking Continues to Grow Digital behavior and penetration increased during Q2 lockdowns … Digital customers Growth in mobile banking users Digitally initiated sales (mn) (mn / at least 1 login / month) (share) 5.0 4.0 44% 3.9 4.7 3.9 3.8 4.4 44% 3.7 38% 30% 32% of total private of total pri
Slide 8: Macro Outlook
Macro Outlook Real GDP (%, y-o-y) 2018 2019 2020e 2021f Macro data in some CE/SEE countries better than CE Czech Republic 2.9 2.3 -6.0 4.1 expected in H1/2020, while signs of a recovery in Western Europe and significant stimulus packages keep Hungary 5.1 4.9 -3.5 4.0 risks to the CE/SEE GDP foreca
Slide 9: Outlook and Targets
Outlook and Targets Loan Growth We expect modest loan growth in 2020 Risk Costs The provisioning ratio for FY 2020 is currently expected to be around 75 basis points, depending on the length and severity of disruption Cost / Income Ratio We aim to achieve a cost / income ratio of around 55 per cent
Slide 10: Financials
Financials 01 02 03 04 Executive Financials Risk Management Appendix Summary JOHANN STROBL Group Investor Relations 11 August 2020 10
Slide 11: Capital Ratios
Capital Ratios Regulatory capital requirements H1/2020 Development (including H1/2020 results) RBI P2R of 2.25% now fully optimized: Regulatory 1.27% met with CET1, 42 bps with AT1 and 56 bps 17.5% with T2 P2G of 1.00%; to be entirely held in CET1 CBR composition: 14.6% 15.07% systemic ris
Slide 12: CET 1 Ratio Development in Q2/2020
CET 1 Ratio Development in Q2/2020 Q-o-Q +20 bps Regulatory CRR "Quick-fixes" 19 bps 15 bps 16 bps Q2 SME supporting factor: -7 bps 2020 -14 bps -6 bps + 15 bps (fully loaded) Q4 IFRS9 transitional provisions for 1 2 3 4 2020 expected credit losses: Credit Op. Market FX Deduction Retained up to + 30
Slide 13: Key Financials
Key Financials Profitability (in EUR mn) Q2/2020 Q1/2020 q-o-q Q2/2019 Change in consolidated profit Net interest income 825 881 (6.5%) 840 (q-o-q) Net fee and commission income 392 448 (12.5%) 437 17 192 Operating income 1,286 1,405 (8.5%) 1,293 177 (83) 90 General administrative expenses (719) (75
Slide 14: Operating Result
Operating Result In EUR mn Operating income Net interest income down EUR 57 mn; decrease mainly due to rate cuts across the region and 1,405 (57) reduction in new business in several countries (56) NIM at 2.21% (down 22 bps) with strongest declines in Ukraine (down 63 bps) and Czech Republic (12
Slide 15: Central Europe Q2/2020
Central Europe Q2/2020 Q2/2020 29,615 Loan growth in Hungary, stable in Czech Loans to Republic (in CZK terms), slightly down in +1% Customers Q1/2020 29,334 Slovakia (EUR mn) NIM impacted by 200 bps2.44 rate cuts in 2.44 Czech Republic YTD Q2/2020 1.91% NIM (22) bps Economies reopening and su
Slide 16: Southeastern Europe Q2/2020
Southeastern Europe Q2/2020 Limited new lending amid Loans to Q2/2020 15.998 lockdown; economies Customers (2%) reopening (EUR mn) Q1/2020 16.259 2.44 2.44 NIM down across the region, particularly in Romania and Q2/2020 3.27% Bulgaria NIM (21) bps Q1/2020 3.48% EU Next Generation program expec
Slide 17: Eastern Europe Q2/2020
Eastern Europe Q2/2020 Q2/2020 13,219 Loan growth driven by FX movements Loans to but down in LCY terms Customers +4% (EUR mn) Q1/2020 12,756 NIM down further in Ukraine (down 63 bps q-o-q) 2.44 2.44 Q2/2020 5.48% Partial recovery of oil price and RUB in NIM (11) bps Q2 Q1/2020 5.59% Cost/ Q2/
Slide 18: Group Corporates & Markets Q2/2020
Group Corporates & Markets Q2/2020 Q2/2020 33,611 Loan growth in Q2 mainly driven by repo and short-term business, Loans to corporate and project finance lending stable Customers +6% (EUR mn) Q1/2020 31,766 NII up 6% due to higher volumes, NIM stable 2.44 CIR improvement mainly due to market r
Slide 19: Funding and Liquidity
Funding and Liquidity Liquidity ratios Comfortable position across the Group 160% LCR remain elevated across network 139% 140% 139% Stable customer deposit stock in RBI head office and net 131% reversal of drawings from committed lines 110% 109% 112% 111% 113% Nearly full utilization of TLTRO
Slide 20: Risk Management
Risk Management 01 02 03 04 Executive Financials Risk Management Appendix Summary HANNES MÖSENBACHER Group Investor Relations 11 August 2020 20
Slide 21: Total Exposure and Credit Portfolio Development
Total Exposure and Credit Portfolio Development Total exposure by segments, in EUR bn, Q2/2020 Total exposure by sector, in EUR bn, Q2/2020 Total: EUR 198.7 bn, +4.3% (q-o-q) Total: EUR 198.7 bn GC&M +4.9 % Mortgages 24 Retail 90.23 20.7 % Consumer loans & other 17 CE +5.6% Sovereigns & supranationa
Slide 22: RWA Development in Q2/2020
RWA Development in Q2/2020 RWA development RWA by segment in EUR bn 1 Non-retail credit risk up EUR 1 bn mainly from new business in GC&M (financial GC&M institutions) and net rating migration 28 CE EUR 2 21 Operational risk increased by EUR 0.8 bn due to incorporation of FX mortgage litigation 80.5
Slide 23: Overview of Moratoria
Overview of Moratoria Loans and advances subject to moratoria (as of 30/06/2020) Main industries and countries under moratoria Gross carrying Residual maturity Risk perspective amount of moratoria > 6 months Subject to forward Non-performing looking life-time Manufacturing EUR 789 mn provisioning EU
Slide 24: Recovery Assumptions by Industry
Recovery Assumptions by Industry High For each industry recovery assumptions based on: 3c Shape of recovery and assumptions on the post-pandemic outlook 3a Impact of Covid: Severity and direct impact of lockdown measures Impact of 3b Covid 1 2 Total, in EUR bn 1 2 3a 3b 3c Gross exposure 157.5 9
Slide 25: Limited Exposure to most vulnerable Corporate Customers
Limited Exposure to most vulnerable Corporate Customers 1.8% (EUR 1,782 mn) of non-retail exposure to customers rated1 substandard and below, in U-shaped and L-shaped industries 46% of which mature in the next 18 months Non-performing exposure Stage 3 coverage: 58% Stage 2 provision stock: EUR
Slide 26: IFRS 9 Provisioning in Q2/2020
IFRS 9 Provisioning in Q2/2020 EUR EUR Risk Costs Development 85 mn 158 mn Total risk costs of EUR 158 mn, of which EUR 96 mn related to retail, EUR 62mn EUR related to non-retail In CE, EUR 41 mn mainly related to Slovakia (EUR 23 mn) and Czech Republic (EUR 15 mn), driven by Stage 3 and Covid
Slide 27: NPE Ratio and NPE Coverage
NPE Ratio and NPE Coverage NPE Ratio and NPE Coverage Ratio Asset Quality Developments YTD Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 NPE Stock NPE ratio down to 1.9% driven by writebacks and Central Europe 57.2% 59.1% 58.6% 62.8% 63.3% in EUR mn recoveries (EUR 474 mn), write-offs (EUR 109 mn) and Q
Slide 28: Appendix
Appendix 01 02 03 04 Executive Financials Risk Management Appendix Summary Group Investor Relations 11 August 2020 28
Slide 29: Geographic Footprint
Geographic Footprint Central Europe (CE) Russia, #9 Southeastern Europe (SEE) Leading regional player with Loans: EUR 10.5 bn Eastern Europe (EE) Branches: 154 CEE presence of over 30 years servicing approx. 16.7 million customers Austria, #3 Ukraine, #5 Loans: EUR 37.4 bn Loans: EUR 1.5 b
Slide 30: Raiffeisen Banking Group Structure
Raiffeisen Banking Group Structure Raiffeisen Banking Group (RBG) – largest banking group in Austria with total assets of EUR 320 bn as of 31/12/2019 Solid funding profile of RBG based on a domestic market share of around 33% of total customer deposits, not least due to superior brand recognitio
Slide 31: Overview of Measures in CEE
Overview of Measures in CEE Country Moratorium Rescue package (% of GDP) Potential external support Czech 3 months or 6 months Opt-in Principal only, interest still due from businesses, 20.8% incl. 15.4% of indirect 3.7% of GDP in grants EU Recovery Fund* Republic but capitalized for individuals mea
Slide 32: CEE Monetary Policy Response to Corona Crisis
CEE Monetary Policy Response to Corona Crisis Unconventional Conventional QE QE-LIKE Czech National Cum. 200bp rate cuts as crisis response; Legal foundations for QE laid, but CNB Higher frequency of repo Bank counter cyclical capital buffer cut to announced QE only to be used as emergency operation
Slide 33: Committed to Sustainable Finance
Committed to Sustainable Finance Five green bonds issued Certifications Green loan portfolio with total volume of eligible assets: EUR “C+” level and Prime status in ESG corporate 1,583 mn as of 31/05/2020 rating by ISS ESG (June 2020) The reference portfolio comprises green buildings (82%), eve
Slide 34: Corporate Center/Reconciliation
Corporate Center/Reconciliation In EUR mn 1-6/2020 1-6/2019 y-o-y In EUR mn 1-6/2020 1-6/2019 y-o-y Operating income 103 674 (84.7%) Operat ing income (151) (804) (81.2%) General admin. expenses (194) (184) 5.9% General admin. expenses 67 63 6.1% Operating result (91) 491 – Operat ing result (84) (7
Slide 35: Equity Overview
Equity Overview Cumulative other Subscribed Capital Retained comprehensive Consolidated Non-controlling Additional Total In EUR mn capital reserves earnings income equity interests tier 1 Equity Equity as at 1/1/2020 1,002 4,992 8,443 (2,620) 11,817 811 1,137 13,765 A T1 capital dividend allotment 0
Slide 36: Regulatory Capital Overview
Regulatory Capital Overview Regulatory Capital Structure In EUR mn 30/6/2020 31/3/2020 31/12/2019 Common equity tier 1 (before deductions) 11,389 10,769 11,659 Deduction items (749) (878) (797) Common equity tier 1 (after deductions) 10,640 9,891 10,862 Additional tier 1 (after deductions) 1,239 1,2
Slide 37: Maturity Profile
Maturity Profile Maturity Profile at 30/6/2020 1,941 (in EUR mn) 500 1,541 1,349 14 1,251 546 1,184 1,160 152 1,055 966 723 1,441 510 1,335 99 1,150 1,184 511 1,008 995 1,055 623 500 456 101 52 101 52 11 96 5 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 >2035 Senior placements Subordinated
Slide 38: AT1 and Subordinated Instruments
AT1 and Subordinated Instruments Regulatory Capital Initial Nominal Issuer ISIN Reset Coupon Issuance date First Call Date Call period Maturity Treatment1 Recognition2 Coupon outstanding 5Y EUR Raiffeisen Bank Additional Tier 1 99.6% XS1756703275 4.500% ms EUR 500 mn 17 Jan 2018 25 Jun 2025 Semi-ann
Slide 39: Available Distributable Items (ADI) to Cover Discretionary Distributions
Available Distributable Items (ADI) to Cover Discretionary Distributions Distributable Items Available Distributable Items (EUR mn) Discretionary coupon payments on AT1 capital are 7,180 7,274 7,009 7,065 6,979 subject to sufficient distributable items1 260 354 332 387 301 Distributable items ba
Slide 40: The Institutional Protection Scheme (IPS)
The Institutional Protection Scheme (IPS) 1 RBI is part of the Raiffeisen Banking Group federal IPS. The IPS supports members if needed to ensure solvency and liquidity 2 IPS serves as capital cushion and source of liquidity to its members. Uniform and joint monitoring ensures the early identificati
Slide 41: Bank Levies and Resolution Fund
Bank Levies and Resolution Fund Impact in EUR mn FY 2019 1-6/2020 FY 2020e Bank levy based on total assets (excluding derivatives) and including a one-off 1 Austria 57 50 ~58 payment (spread over 4 years) of EUR 163 mn from 2017 on Bank levy of 0.15% (for up to HUF 50 bn of total assets) and 0.21% (
Slide 42: NPE and NPL Distribution by Country
NPE and NPL Distribution by Country In EUR mn NPE Stock NPE Ratio NPE Ratio NPE Coverage Ratio NPE Coverage Ratio NPL Ratio NPL Ratio NPL Coverage Ratio NPL Coverage Ratio 30/6/2020 30/6/2020 31/12/2019 30/6/2020 31/12/2019 30/6/2020 31/12/2019 30/6/2020 31/12/2019 Czech Republic 225 1.3% 1.4% 59.5%
Slide 43: Country and Segment Overview
Country and Segment Overview 2 1-6/2020 Total Assets Share of Loan/deposit Net Interest Cost/income Provisioning Return on equity 2 (EUR mn) Total Assets Ratio Margin Ratio Ratio after tax Czech Republic 18,176 11.1% 82.6% 2.15% 55.4% 0.45% 8.3% Hungary 7,925 4.8% 72.9% 1.96% 55.6% 0.42% 6.6% Poland
Slide 44: RBI Group
RBI Group 3 3 3 In EUR mn Q2/2020 Q1/2020 q-o-q Q4/2019 Q3/2019 Q2/2019 1-6/2020 1-6/2019 y-o-y 1-12/2019 Net int erest income 825 881 (6.5%) 881 866 840 1,706 1,664 2.5% 3,412 Net fee and commission income 392 448 (12.5%) 489 468 437 840 839 0.0% 1,797 Net trading income and fair value result 25 37
Slide 45: Country Financials (CE) – Czech Republic
Country Financials (CE) – Czech Republic In EUR mn Q2/2020 Q1/2020 q-o-q Q4/2019 Q3/2019 Q2/2019 1-6/2020 1-6/2019 y-o-y 1-12/2019 Net int erest income 82 101 (19.3%) 96 104 98 183 195 (6.2%) 395 Net fee and commission income 26 36 (28.9%) 33 32 33 62 65 (5.1%) 130 Net trading income and fair value
Slide 46: Country Financials (CE) – Hungary
Country Financials (CE) – Hungary In EUR mn Q2/2020 Q1/2020 q-o-q Q4/2019 Q3/2019 Q2/2019 1-6/2020 1-6/2019 y-o-y 1-12/2019 Net interest income 38 37 0.3% 22 34 34 75 71 5.1% 127 Net fee and commission income 32 36 (11.6%) 38 37 37 68 74 (8.0%) 149 Net t rading income and fair value result 3 3 3.2%
Slide 47: Country Financials (CE) – Poland
Country Financials (CE) – Poland 3 3 3 In EUR mn Q2/2020 Q1/2020 q-o-q Q4/2019 Q3/2019 Q2/2019 1-6/2020 1-6/2019 y-o-y 1-12/2019 Net interest income 4 4 (5.1%) 3 4 4 8 7 10.1% 14 Net fee and commission income 1 1 (28.6%) 0 1 1 1 1 3.7% 2 Net t rading income and fair value result 0 0 (21.4%) 0 0 1 0
Slide 48: Country Financials (CE) – Slovakia
Country Financials (CE) – Slovakia 3 3 3 In EUR mn Q2/2020 Q1/2020 q-o-q Q4/2019 Q3/2019 Q2/2019 1-6/2020 1-6/2019 y-o-y 1-12/2019 Net int erest income 73 74 (2.2%) 75 74 73 147 145 1.1% 294 Net fee and commission income 36 35 3.0% 41 40 39 72 78 (8.6%) 160 Net trading income and fair value result 7
Slide 49: Country Financials (SEE) – Albania
Country Financials (SEE) – Albania In EUR mn Q2/2020 Q1/2020 q-o-q Q4/2019 Q3/2019 Q2/2019 1-6/2020 1-6/2019 y-o-y 1-12/2019 Net interest income 13 14 (8.8%) 14 14 15 27 29 (6.2%) 57 Net fee and commission income 3 3 (12.9%) 4 4 4 6 8 (22.8%) 16 Net t rading income and fair value result (4) 8 – 1 1
Slide 50: Country Financials (SEE) – Bosnia & Herzegovina
Country Financials (SEE) – Bosnia & Herzegovina In EUR mn Q2/2020 Q1/2020 q-o-q Q4/2019 Q3/2019 Q2/2019 1-6/2020 1-6/2019 y-o-y 1-12/2019 Net interest income 16 16 (3.9%) 17 17 17 32 34 (5.9%) 68 Net fee and commission income 9 10 (13.6%) 11 11 10 19 20 (4.5%) 42 Net t rading income and fair value r
Slide 51: Country Financials (SEE) – Bulgaria
Country Financials (SEE) – Bulgaria In EUR mn Q2/2020 Q1/2020 q-o-q Q4/2019 Q3/2019 Q2/2019 1-6/2020 1-6/2019 y-o-y 1-12/2019 Net int erest income 28 29 (3.4%) 29 29 29 58 55 4.7% 114 Net fee and commission income 11 13 (14.9%) 13 15 14 24 27 (11.7%) 55 Net t rading income and fair value result 1 0
Slide 52: Country Financials (SEE) – Croatia
Country Financials (SEE) – Croatia 3 3 3 In EUR mn Q2/2020 Q1/2020 q-o-q Q4/2019 Q3/2019 Q2/2019 1-6/2020 1-6/2019 y-o-y 1-12/2019 Net int erest income 29 30 (4.1%) 31 31 30 59 60 (1.5%) 122 Net fee and commission income 12 17 (26.2%) 20 22 17 29 33 (12.1%) 75 Net t rading income and fair value resu
Slide 53: Country Financials (SEE) – Kosovo
Country Financials (SEE) – Kosovo In EUR mn Q2/2020 Q1/2020 q-o-q Q4/2019 Q3/2019 Q2/2019 1-6/2020 1-6/2019 y-o-y 1-12/2019 Net interest income 12 12 2.8% 11 11 11 23 21 9.0% 44 Net fee and commission income 2 2 (20.7%) 3 4 2 4 4 (1.3%) 10 Net t rading income and fair value result (0) 0 – 0 (0) (0)
Slide 54: Country Financials (SEE) – Romania
Country Financials (SEE) – Romania 3 3 3 In EUR mn Q2/2020 Q1/2020 q-o-q Q4/2019 Q3/2019 Q2/2019 1-6/2020 1-6/2019 y-o-y 1-12/2019 Net int erest income 93 96 (3.5%) 96 96 92 189 182 3.4% 374 Net fee and commission income 35 39 (9.6%) 40 44 44 74 84 (11.6%) 168 Net t rading income and fair value resu
Slide 55: Country Financials (SEE) – Serbia
Country Financials (SEE) – Serbia In EUR mn Q2/2020 Q1/2020 q-o-q Q4/2019 Q3/2019 Q2/2019 1-6/2020 1-6/2019 y-o-y 1-12/2019 Net int erest income 21 21 (1.6%) 22 22 22 43 44 (2.4%) 88 Net fee and commission income 10 12 (15.3%) 13 13 13 23 25 (7.6%) 51 Net t rading income and fair value result 2 2 31
Slide 56: Country Financials (EE) – Belarus
Country Financials (EE) – Belarus In EUR mn Q2/2020 Q1/2020 q-o-q Q4/2019 Q3/2019 Q2/2019 1-6/2020 1-6/2019 y-o-y 1-12/2019 Net interest income 22 25 (12.6%) 27 28 25 46 49 (4.8%) 103 Net fee and commission income 13 15 (12.7%) 15 16 14 29 27 7.0% 57 Net t rading income and fair value result (2) 8 –
Slide 57: Country Financials (EE) – Russia
Country Financials (EE) – Russia In EUR mn Q2/2020 Q1/2020 q-o-q Q4/2019 Q3/2019 Q2/2019 1-6/2020 1-6/2019 y-o-y 1-12/2019 Net int erest income 193 207 (6.6%) 218 205 190 399 365 9.3% 789 Net fee and commission income 84 91 (7.6%) 121 106 89 175 167 5.3% 394 Net t rading income and fair value result
Slide 58: Country Financials (EE) – Ukraine
Country Financials (EE) – Ukraine In EUR mn Q2/2020 Q1/2020 q-o-q Q4/2019 Q3/2019 Q2/2019 1-6/2020 1-6/2019 y-o-y 1-12/2019 Net int erest income 63 67 (5.2%) 68 65 61 130 117 11.3% 250 Net fee and commission income 20 22 (10.2%) 29 31 24 43 46 (8.1%) 106 Net trading income and fair value result 8 1
Slide 59: Group Corporates & Markets
Group Corporates & Markets 3 3 3 In EUR mn Q2/2020 Q1/2020 q-o-q Q4/2019 Q3/2019 Q2/2019 1-6/2020 1-6/2019 y-o-y 1-12/2019 Net interest income 160 151 5.7% 143 160 149 311 295 5.4% 598 Net fee and commission income 96 104 (8.3%) 118 97 92 200 180 11.0% 394 Net trading income and fair value result 59
Slide 60: Sustainable Ratings and Industry Awards
Sustainable Ratings and Industry Awards The Banker – Bank of the Year 2019 in “C+” level and prime status Central & Eastern Europe in sustainability rating by ISS ESG Bulgaria (June 2020) Bosnia and Herzegovina Ukraine Global Finance 2020 – Best Bank in Overall ESG score 77 Central and Eas
Slide 61: Shareholder Information Overview
Shareholder Information Overview General Information Shareholder Structure1 Listed since 25 April 2005 on the Vienna Stock Exchange Prime Market Indices: ATX, ATX Prime, ATX five, MSCI Standard Index Europe, Regional Free EURO STOXX Banks Raiffeisen banks float 328,939,621 ordinary shares issu
Slide 62: Contact and Financial Calendar
Contact and Financial Calendar Contact Details Financial Calendar Group Investor Relations 28 July 2020 Start of Quiet Period1 Raiffeisen Bank International AG 11 August 2020 Semi-Annual Report, Conference Call 9 October 20202 Record Date Annual General Meeting Am Stadtpark 9 1030 Vienna 20 October
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