Raiffeisen Bank International Ag · VIE:RBI
Raiffeisen Bank International — FY2021 Earnings Presentation
56 slides from Raiffeisen Bank International's earnings presentation, Feb 2, 2022
Slide 1: Raiffeisen Bank International FY 2021 Results
Raiffeisen Bank International FY 2021 Results - 2 February 2022
Slide 2: Disclaimer
Disclaimer Certain statements contained herein may be statements of uncertainties and factors inherent in our business. professional experience in matters relating to investments future expectations and other forward-looking statements This presentation contains financial and non-financial falling w
Slide 3: Business & Financial Update, Risk Update, Appendix
01 02 03 Business & Financial Risk Update Appendix Update Group Investor Relations 2 February 2022 3
Slide 4: FY/2021 Executive Summary
FY/2021 Executive Summary Consolidated profit Core revenues CIR Adj. for IFRS5 (Bulgaria), 1-12/2021 1-12/2021 Adj. for IFRS5 (Bulgaria), 1-12/2021, in EUR mn 3,327 EUR 1,372 mn 1,985 53.5% +71% y-o-y +7% +18% -2.4 pp y-o-y y-o-y y-o-y Net interest Net fee & income commission income Loans to custome
Slide 5: 2021 Business Highlights
2021 Business Highlights Dividend ▪ The board will propose EUR 1.15 per share for the business year 2021 (28 per cent payout ratio) ▪ The Annual General Meeting will be held on 31 March 2022 Raiffeisen Bulgaria ▪ Raiffeisenbank Bulgaria to be sold to KBC group with closing expected mid- 2022 Retail
Slide 6: Q4/2021 Income Statement and KPIs
Q4/2021 Income Statement and KPIs (in EUR mn) Q4/2021 % q-o-q % y-o-y Net interest margin Net interest income 976 +16% +33% Q4/2021 Net fee and commission income 561 2.22% +8% +24% Net trading income & fair value result 24 - - +24 bp q-o-q Other operating components1 57 +34% +231% Operating income 1
Slide 7: Q4/2021 Core Revenue Trends
Q4/2021 Core Revenue Trends Net interest income up 16% (EUR 132 mn) NIM: improvement based on strong NII increase and rate hikes EUR 976 mn 2021 2020 ▪ NII benefitting from higher interest 2.22% 1.98% 976 rates in the Russia, Czech Republic, Hungary, and Romania +14 bps -7 bps 881 +17 bps 825 843 ▪
Slide 8: Monitoring our Exposure to Russia and Ukraine
Monitoring our Exposure to Russia and Ukraine Russia Ukraine ▪ Exposure to Russia and Ukraine well within the limits which ensure resilience of the group under all possible scenarios EUR 11.6 bn EUR 2.4 bn EUR 2.2 bn EUR 0.32 bn ▪ Russia & Ukraine: no parent funding from Vienna Loans to Equity and o
Slide 9: Polish CHF Mortgage and Developments
Polish CHF Mortgage and Developments Around 50% of CET1 or equivalent held against the portfolio Total provisions Q4/2021 Q4/2021 EUR ~420 mn Credit risk RWA1 (driven by 150% risk weighting) and EUR ~1,020 mn impairments EUR of which in Q4/2021: 364 mn EUR 133 mn EUR ~600 mn Operational risk RWA and
Slide 10: Balance Sheet and Loan Growth
Balance Sheet and Loan Growth 31/12/2021 ∆ q-o-q 31/12/2021 ∆ q-o-q Assets (in EUR mn) 192,101 +1% Liabilities (in EUR mn) 192,101 +1% Loans to banks 16,630 0% Deposits from banks 34,607 -11% Loans to customers 100,832 +4% Deposits from customers 115,153 +5% Securities 22,902 +3% Debt issued and oth
Slide 11: Capital Ratios
Capital Ratios Regulatory capital requirements1 Composition (including results) RBI ▪ P2R of 2.20%: Regulatory 17.6% ▪ 1.24% met with CET1, 41 bps with AT1 and 55 bps with T2 15.0% 14.87% ▪ P2G of 1.25%; to be solely covered by CET1 but Tier 2 applicable to all capital layers 13.1% (incl. P2R) 2.55%
Slide 12: CET1 Ratio Development
CET1 Ratio Development Q-o-Q -5 bps 13.2% 13.1% -14 bps -1 bps -8 bps +18 bps Credit risk Market & OCI, Retained operational valuation & earnings risk other effects Q3/2021 Q4/2021 (incl. ytd result) (incl. ytd result) ▪ Credit risk: -14 bps impact, including c. +19 bps offset ▪ Credit risk: Corpora
Slide 13: MREL / Issuance Plans
MREL / Issuance Plans Head office funding in 2022 MREL issuance plans in the network Green issuances possible ▪ EUR 500 mn covered bond issue in January 2022 Funding needs in 2022: ▪ Possible higher wholesale funding needs in 2022, Czech Republic EUR ~300 mn in senior non-preferred subject to lendin
Slide 14: CEE Banking Sector Loan Growth Outlook
CEE Banking Sector Loan Growth Outlook ▪ Phase-out of support measures is offset by the restart of Raiffeisen Research forecast loan growth in local currency, y-o-y the investment cycle and the NGEU program (sizable allocations already expected in 2022/2023) Retail Corporate ▪ Higher inflation to su
Slide 15: Macro Outlook
Macro Outlook GDP (real, % yoy) 2020 2021e 2022f 2023f Czech Republic -5.8 2.6 4.1 3.7 ▪ Above potential growth in Western Europe & CE/SEE in Hungary -5.2 6.5 4.5 3.5 2022/23 supported by a long-lasting and investment- driven (incl. NGEU funds) economic cycle. Supply Poland -2.7 5.7 4.3 4.0 side dis
Slide 16: 2022 Guidance
2022 Guidance Core revenues & ▪ In 2022, NII is expected to increase by high single digit per cent and net fee and commission income loan growth by mid-single per cent ▪ We expect loan growth in the range of 7 to 9 per cent OPEX & ▪ We expect high single digit per cent OPEX growth plus an additional
Slide 17: RBI: Medium term targets
RBI: Medium term targets CIR ~55% Cost/income We are committed to a cost/income ratio of around 55 per cent and aim to improve further in the medium term. Return on Equity 11% Consolidated We target 11 per cent consolidated return on equity in the medium term RoE CET 1 Ratio ~13% CET 1 ratio We conf
Slide 18: Business & Financial Update, Risk Update, Appendix
01 02 03 Business & Financial Risk Update Appendix Update Group Investor Relations 2 February 2022 18
Slide 19: Risk Overview
Risk Overview Provisioning ratio / risk cost NPE ratio Coverage ratio 1-12/2021 1-12/2021 1-12/2021 30 bps EUR 295 mn 1.6% 62.5% -37 bps y-o-y -51% y-o-y -28 bps y-o-y +1.0 pp y-o-y 2022 Credit cycle constructive, event risks need to be managed Employment close to pre-pandemic levels and near 1 full
Slide 20: Integrating ESG into the Risk Framework
Integrating ESG into the Risk Framework Achievements so far – measure transition risks & the sectors most exposed to them ESG scoring ESG industry base score Data foundation to measure transition and physical risks ▪ Heat map of RBI Group corporate and project finance exposure ESG Heatmap ▪ Focus on
Slide 21: Total Exposure
Total Exposure Total exposure by segments, in EUR bn, Q4/2021 Total exposure by sector, in EUR bn, Q4/2021 Total: EUR 232.2 bn, +14.5% (y-o-y) Total: EUR 232.2 bn Retail GC&M +4.1% Mortgages 29 20.7% 95.4 Consumer loans & other 19 Sovereigns & supranationals 54 Sov. and FI CE +27.4% Financial instit
Slide 22: RWA Development
RWA Development 2021 RWA development Estimated RWA effects until year end 2022 1 Credit risk increased by EUR 7.5 bn (FX adjusted), driven by new business in both ▪ Provisions for litigation in Poland may lead to Op. corporate and retail, acquisition of EQUA EUR +1.4 bn. Asset quality effect Risk RW
Slide 23: IFRS 9 Provisioning in Q4/2021
IFRS 9 Provisioning in Q4/2021 EUR EUR Breakdown of total net provisions Q4/2021 76 mn 150 mn ▪ Stage 1 & 2: net release of EUR 39 mn, following improving portfolio composition non-retail (EUR 77 EUR mn) offset by booking of EUR 38 mn in retail - 67 mn mainly in Romania and Hungary (EUR 9 mn each).
Slide 24: NPE Ratio and NPE Coverage
NPE Ratio and NPE Coverage Q4/2020 Q1/2021 Q2/2021 Q3/2021 Q4/2021 NPE Stock Asset quality development y-o-y Central Europe in EUR mn 63.1% 6.0% Q4/2021 61.4% 56.8% 58.3% 60.5% ▪ NPE ratio at 1.6% (vs 1.9% in YE 2020): recoveries in ∆ YoY 50.0% both retail and corporate portfolio contributes to NPE
Slide 25: Business & Financial Update, Risk Update, Appendix
01 02 03 Business & Financial Risk Update Appendix Update Group Investor Relations 2 February 2022 25
Slide 26: Geographic Footprint
Geographic Footprint ▪ Leading regional player with CEE presence of over 30 Russia, #10 years servicing approx. 19.0 million customers Central Europe (CE) ▪ Loans: EUR 11.6 bn Southeastern Europe (SEE) ▪ Branches: 132 Eastern Europe (EE) ▪ Covering Austria and 13 CEE markets, of which six are EU Ukr
Slide 27: Raiffeisen Banking Group Structure
Raiffeisen Banking Group Structure ▪ Raiffeisen Banking Group (RBG) – largest banking group in Austria with total assets of EUR 349 bn as of 31/12/2020 ▪ Solid funding profile of RBG based on a domestic market share of around 32% of total customer deposits, not least due to superior brand recognitio
Slide 28: Q4/2021 Segments Overview
Q4/2021 Segments Overview Core revenues Loans to customers / NIM Provisioning ratio Profit/loss after tax Q4/21 q-o-q Q1/21 Q2/21 Q3/21 Q4/21 Q4/21 q-o-q Q4/21 q-o-q 33,224 34,446 413 35,000 29,921 30,258 5.00% CE Net Fees 129 30,000 +7% 63 bps 3.00% EUR -16 mn 25,000 1.51% 1.67% 2.01% 1.00% +41 bps
Slide 29: Corporate Center/Reconciliation
Corporate Center/Reconciliation In EUR mn 1-12/2021 1-12/2020 y-o-y In EUR mn 1-12/2021 1-12/2020 y-o-y Operating income 1,151 668 72.2% Operating income (1,146) (819) 40.0% General admin. expenses (405) (371) 9.1% General admin. expenses 163 146 11.7% Operating result 746 297 151.0% Operating resul
Slide 30: Equity Overview
Equity Overview Cumulative other Non- Subscribed Capital Retained comprehensive Consolidated controlling Additional Total In EUR mn capital reserves earnings income equity interests tier 1 Equity Equity as at 1/1/2021 1.002 4.992 9.234 (3.394) 11.835 820 1.633 14.288 Capital increases 0 0 0 0 0 49 0
Slide 31: Regulatory Capital Overview
Regulatory Capital Overview Regulatory Capital Structure In EUR mn 31/12/2021 30/9/2021 30/6/2021 Common equity tier 1 (before deductions) 12,613 12,342 12,285 Deduction items (801) (1,070) (989) Common equity tier 1 (after deductions) 11,812 11,273 11,296 Additional tier 1 (after deductions) 1,647
Slide 32: Maturity Profile
Maturity Profile 30/9/2020 Maturity Profile at 31/12/2021 (in EUR mn) 2,450 15 2,010 546 1,678 1,395 1,153 2,434 999 952 931 12 1,650 735 516 1,465 1,395 109 562 1,153 500 940 931 626 500 483 500 41 62 5 23 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 >2035 Senior placements Subordinated A
Slide 33: RBI AG: Green Bond Allocation and Impact Report
RBI AG: Green Bond Allocation and Impact Report (as of 30 September 2021) Green loan portfolio total volume: Green buildings EUR 1,520 mn 75% 31% under development EUR 1,143 mn by use of Clean transportation EUR 1,439 mn EUR 81 mn proceeds 17% disbursed undisbursed Suppliers of batteries EUR 44% bui
Slide 34: 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 Raiffeisen Bank 5Y EUR ms Additional Tier 1 100% XS1756703275 4.500% EUR 500 mn 24 Jan 2018 15 Jun 2025 Semi-annu
Slide 35: The New Institutional Protection Scheme (IPS)
The New Institutional Protection Scheme (IPS) 1 RBI AG and its Austrian subsidiaries are members of the new Raiffeisen 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 New monitoring ensu
Slide 36: Bank Levies
Bank Levies Impact in EUR mn FY 2020 FY 2021 FY 2022e Bank levy based on total assets (excluding derivatives) and including a one-off 1 Austria payment (spread over 4 years) of EUR 163 mn from 2017 to 2020. 59 21 ~24 Bank levy of 0.15% (for up to HUF 50 bn of total assets) and 0.21% (for tax base ab
Slide 37: 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 31/12/2021 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 Czech Republic 287 1,1% 1,5%
Slide 38: RBI Group
RBI Group In EUR mn Q4/2021 Q3/20213 q-o-q Q2/20213 Q1/20213 Q4/2020 3 1-12/2021 1-12/2020 3 y-o-y Net interest income 976 843 15.7% 773 736 735 3,327 3,121 6.6% Net fee and commission income 561 521 7.8% 483 420 452 1,985 1,684 17.8% Net trading income and fair value result 24 (4) – 28 4 (3) 53 91
Slide 39: Country Financials (CE) – Czech Republic
Country Financials (CE) – Czech Republic In EUR mn Q4/2021 Q3/2021 q-o-q Q2/2021 Q1/2021 Q4/20203 1-12/2021 1-12/20203 y-o-y Net interest income 128 105 21.9% 77 74 74 385 330 16.5% Net fee and commission income 42 35 18.1% 36 33 30 146 121 21.1% Net trading income and fair value result 6 6 (1.9%) 2
Slide 40: Country Financials (CE) – Hungary
Country Financials (CE) – Hungary In EUR mn Q4/2021 Q3/2021 q-o-q Q2/2021 Q1/2021 Q4/20203 1-12/2021 1-12/20203 y-o-y Net interest income 60 49 22.8% 43 38 38 189 149 26.8% Net fee and commission income 42 41 4.4% 39 35 36 158 139 13.7% Net trading income and fair value result 0 0 (76.5%) (3) (0) 7
Slide 41: Country Financials (CE) – Poland
Country Financials (CE) – Poland In EUR mn Q4/2021 Q3/2021 q-o-q Q2/2021 Q1/2021 Q4/20203 1-12/2021 1-12/20203 y-o-y Net interest income 3 3 (1.6%) 3 3 4 13 16 (20.0%) Net fee and commission income 1 1 (13.9%) 1 1 1 2 3 (20.7%) Net trading income and fair value result 1 0 134.8% 0 0 0 2 1 60.0% Othe
Slide 42: Country Financials (CE) – Slovakia
Country Financials (CE) – Slovakia In EUR mn Q4/2021 Q3/2021 q-o-q Q2/2021 Q1/2021 Q4/20203 1-12/2021 1-12/20203 y-o-y Net interest income 92 70 32.6% 68 69 73 300 292 2.8% Net fee and commission income 45 44 0.8% 43 39 40 171 148 15.6% Net trading income and fair value result 2 0 245.4% 4 1 4 6 15
Slide 43: Country Financials (SEE) – Albania
Country Financials (SEE) – Albania In EUR mn Q4/2021 Q3/2021 q-o-q Q2/2021 Q1/2021 Q4/20203 1-12/2021 1-12/20203 y-o-y Net interest income 15 14 6.1% 14 13 13 55 53 4.4% Net fee and commission income 4 4 (0.2%) 4 4 2 16 12 34.3% Net trading income and fair value result 0 0 283.6% 0 1 1 2 5 (60.6%) O
Slide 44: Country Financials (SEE) – Bosnia & Herzegovina
Country Financials (SEE) – Bosnia & Herzegovina In EUR mn Q4/2021 Q3/2021 q-o-q Q2/2021 Q1/2021 Q4/20203 1-12/2021 1-12/20203 y-o-y Net interest income 15 15 (2.5%) 15 15 15 60 63 (4.7%) Net fee and commission income 13 13 (1.3%) 12 10 11 49 40 21.9% Net trading income and fair value result 1 0 7.2%
Slide 45: Country Financials (SEE) – Bulgaria
Country Financials (SEE) – Bulgaria In EUR mn Q4/2021 Q3/2021 q-o-q Q2/2021 Q1/2021 Q4/20203 1-12/2021 1-12/20203 y-o-y Net interest income 31 30 2.2% 30 29 28 119 114 4.3% Net fee and commission income 16 16 (2.0%) 15 13 13 60 50 20.1% Net trading income and fair value result 1 1 21.9% 1 1 1 3 3 5.
Slide 46: Country Financials (SEE) – Croatia
Country Financials (SEE) – Croatia In EUR mn Q4/2021 Q3/2021 q-o-q Q2/2021 Q1/2021 Q4/20203 1-12/2021 1-12/20203 y-o-y Net interest income 27 28 (2.2%) 27 29 28 110 115 (3.8%) Net fee and commission income 20 22 (8.8%) 19 15 14 76 61 24.5% Net trading income and fair value result (1) 2 – 2 1 2 4 3 4
Slide 47: Country Financials (SEE) – Kosovo
Country Financials (SEE) – Kosovo In EUR mn Q4/2021 Q3/2021 q-o-q Q2/2021 Q1/2021 Q4/20203 1-12/2021 1-12/20203 y-o-y Net interest income 13 12 6.7% 12 12 12 48 47 2.9% Net fee and commission income 4 5 (27.9%) 3 3 3 14 9 51.3% Net trading income and fair value result (0) 0 – (0) 0 0 0 0 (11.4%) Oth
Slide 48: Country Financials (SEE) – Romania
Country Financials (SEE) – Romania In EUR mn Q4/2021 Q3/2021 q-o-q Q2/2021 Q1/2021 Q4/20203 1-12/2021 1-12/20203 y-o-y Net interest income 98 92 6.0% 90 90 93 370 372 (0.6%) Net fee and commission income 48 46 4.1% 45 37 41 177 156 12.8% Net trading income and fair value result 0 1 (63.4%) 4 2 4 7 2
Slide 49: Country Financials (SEE) – Serbia
Country Financials (SEE) – Serbia In EUR mn Q4/2021 Q3/2021 q-o-q Q2/2021 Q1/2021 Q4/20203 1-12/2021 1-12/20203 y-o-y Net interest income 23 22 2.6% 21 21 21 86 85 1.9% Net fee and commission income 15 15 5.3% 14 12 13 56 48 17.3% Net trading income and fair value result 2 1 77.1% 1 1 1 5 7 (24.2%)
Slide 50: Country Financials (EE) – Belarus
Country Financials (EE) – Belarus In EUR mn Q4/2021 Q3/2021 q-o-q Q2/2021 Q1/2021 Q4/20203 1-12/2021 1-12/20203 y-o-y Net interest income 24 22 9.8% 20 17 19 82 83 (0.4%) Net fee and commission income 19 15 29.5% 15 13 13 62 57 10.0% Net trading income and fair value result 1 3 (46.9%) 2 2 2 8 11 (2
Slide 51: Country Financials (EE) – Russia
Country Financials (EE) – Russia In EUR mn Q4/2021 Q3/2021 q-o-q Q2/2021 Q1/2021 Q4/20203 1-12/2021 1-12/20203 y-o-y Net interest income 212 196 8.4% 173 163 170 744 741 0.4% Net fee and commission income 136 110 23.7% 99 75 111 420 374 12.1% Net trading income and fair value result (9) (4) 111.4% (
Slide 52: Country Financials (EE) – Ukraine
Country Financials (EE) – Ukraine In EUR mn Q4/2021 Q3/2021 q-o-q Q2/2021 Q1/2021 Q4/20203 1-12/2021 1-12/20203 y-o-y Net interest income 73 66 9.2% 61 54 52 254 236 7.4% Net fee and commission income 27 25 7.0% 21 18 22 91 88 4.1% Net trading income and fair value result 4 3 25.8% 3 5 3 14 15 (5.5%
Slide 53: Group Corporates & Markets
Group Corporates & Markets In EUR mn Q4/2021 Q3/2021 q-o-q Q2/2021 Q1/2021 Q4/20203 1-12/2021 1-12/20203 y-o-y Net interest income 181 143 26.4% 151 132 130 607 582 4.2% Net fee and commission income 145 139 4.3% 133 119 118 536 417 28.4% Net trading income and fair value result 17 (0) – 30 14 11 60
Slide 54: Sustainability Ratings and Industry Awards
Sustainability Ratings and Industry Awards The Banker – Bank of the Year 2021 in The Leading Sustainable Financial Institution in Austria & CEE ▪ Romania ▪ Bosnia and Herzegovina February 2021 RBI is the first Austrian banking group to commit to the UN Principles for Responsible Banking Global Finan
Slide 55: 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, MSCI Standard Index Europe, EURO STOXX Banks Regional Raiffeisen Free float ▪ 328,939,621 ordinary shares issued banks ▪ ISIN:
Slide 56: Contact and Financial Calendar
Contact and Financial Calendar Contact details Financial calendar Group Investor Relations 15 February 2022 RBI Annual Report 2021 (figures subject to final Supervisory Board examination) 03 March 2022 Annual Financial Report 2021 Raiffeisen Bank International AG 21 March 2022 Record Date Annual Gen
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