Raiffeisen Bank International Ag · VIE:RBI
Raiffeisen Bank International — H1 2021 Earnings Presentation
53 slides from Raiffeisen Bank International's earnings presentation, Jul 30, 2021
Slide 1: Raiffeisen Bank International H1/2021 Results
Raiffeisen Bank International H1/2021 Results - 30 July 2021
Slide 2: Disclaimer
Disclaimer Certain statements contained herein may be statements of uncertainties and factors inherent in our business. (as amended, the "Financial Promotion Order") or who (i) have future expectations and other forward-looking statements This presentation contains financial and non-financial profes
Slide 3: Business & Financial Update
01 02 03 Business & Financial Risk Update Appendix Update Group Investor Relations 30 July 2021 3
Slide 4: H1/2021 Executive Summary
H1/2021 Executive Summary Consolidated profit Core revenues Outlook 1-6/2021 1-6/2021, in EUR mn ▪ Loan growth for 2021 expected in mid to high 1,571 EUR 612 mn 932 single-digit range (excluding Equa bank) ▪ FY 2021 risk cost guidance revised down to +66% y-o-y -8 % +11% around 50 bps, barring renew
Slide 5: Q2/2021 Income Statement and KPIs
Q2/2021 Income Statement and KPIs (in EUR mn) Q2/2021 % q-o-q % y-o-y Net interest margin Net interest income 804 +5% -2% Q2/2021 Net fee and commission income 499 +15% +27% 1.92% Net trading income & fair value result 27 +474% +6% -1 bp q-o-q Other operating components1 52 -4% -9% Operating income
Slide 6: Q2/2021 Core Revenue Trends
Q2/2021 Core Revenue Trends Net interest income up 5% (EUR 37 mn) NIM: NII increase offset by growth in 804 mn interest-bearing assets EUR ▪ Higher volumes (EUR 21 mn impact), prev. year including strong deposit inflows in 1.94% 1.92% 2020/21 CZK, RUB, and UAH +9 bps -10 bps 881 881 866 ▪ EUR 9 mn T
Slide 7: Raiffeisen Czech Republic Update
Raiffeisen Czech Republic Update Equa bank Raiffeisenbank a.s. has Key milestones: completed the 100% acquisition 1 July Q1 Q3 Core assets of Equa bank: of Equa bank: 2021 2022 2022 ▪ Consumer lending engine 480k Closing ✓ Legal merger Operational merger Clients ▪ Digital distribution and customer A
Slide 8: Belarus Overview
Belarus Overview RBI’s presence in Belarus Priorbank within RBI Group: ▪ Stake in Priorbank acquired from EBRD in 2003 as the market was entering a liberalization process ▪ RBI is the only Western bank in Belarus, serving predominantly private sector customers (6.1% overall market share by total ass
Slide 9: Polish CHF Mortgage and Developments
Polish CHF Mortgage and Developments Portfolio update EUR 1.9 bn 28,732 loans EUR ~100 mn 118% Q2/ Current portfolio of p.a. Amortization RWA Credit risk 2021 CHF loans weighting Cases and provisions EUR of which in Q2/2021: 5,455 cases ~300 cases per month 195 mn EUR 77 mn End of Pending cases Expe
Slide 10: Balance Sheet and Loan Growth
Balance Sheet and Loan Growth 30/06/2021 ∆ q-o-q 30/06/2021 ∆ q-o-q Assets (in EUR mn) 181,700 +3% Liabilities (in EUR mn) 181,700 +3% Loans to banks 15,983 +17% Deposits from banks 36,730 -1% Loans to customers 94,052 +2% Deposits from customers 108,808 +4% Securities 23,155 +1% Debt issued and oth
Slide 11: Capital Ratios
Capital Ratios Regulatory capital requirements Q2/2021 Development (including results) RBI 18.1% ▪ P2R of 2.25% is fully optimized: Regulatory ▪ 1.27% met with CET1, 42 bps with AT1 and 56 bps with T2 15.2% 14.91% ▪ P2G of 1.00%; to be solely covered by CET1 but 13.3% Tier 2 applicable to all capita
Slide 12: CET1 Ratio Development
CET1 Ratio Development Q-o-Q -27 bps 13.6% 13.3% -44 bps -7 bps +1 bps -16 bps +39 bps Credit risk Market & FX1 OCI, Retained operational valuation & earnings risk other effects Q1/2021 Q2/2021 (incl. ytd result) Dividend accruals Credit risk: 44 bps impact (excl. FX effect), including: ▪ The CET1 r
Slide 13: Funding and Liquidity
Funding and Liquidity Liquidity ratios Focus on green issuance in 2021 170% ▪ Tier 2 capital: first subordinated green bond (EUR 500 mn) 160% 164% 165% 153% ▪ Green MREL issuance in the network in 2021: 122% 123% 124% Slovakia: EUR 300 mn green bond issuance - first 113% 137% green bond issued by a
Slide 14: Macro Outlook
Macro Outlook GDP (real, % yoy) 2019 2020 2021e 2022f Czech Republic 3.0 -5.8 3.7 4.4 ▪ CE/SEE growth outlook revised upwards for 2021 (by 4.6 -5.2 6.0 5.5 1pp and 1.5pp respectively), led by Hungary (6%) and Hungary Romania (7.5%). Forecast also raised for 2022 with Poland 4.5 -2.7 4.5 5.3 healthy
Slide 15: Outlook and Targets
Outlook and Targets Loan Growth New lending accelerated in the second quarter and we now expect mid to high single-digit percentage loan growth for 2021 (excluding Equa bank) Risk Costs Barring renewed lockdowns, the provisioning ratio for 2021 is expected to be around 50 basis points Cost / Income
Slide 16: Risk Update
01 02 03 Business & Financial Risk Update Appendix Update Group Investor Relations 30 July 2021 16
Slide 17: Total Exposure
Total Exposure Total exposure by segments, in EUR bn, Q2/2021 Total exposure by sector, in EUR bn, Q2/2021 Total: EUR 217.2 bn, +1.5% (q-o-q) Total: EUR 217.2 bn GC&M -3.7% 92.0 Mortgages 27 Retail Consumer loans & other 17 20.2% CE +8.2% Sovereigns & supranationals 55 63.1 Financial institutions 30
Slide 18: IFRS 9 Provisioning in Q2/2021
IFRS 9 Provisioning in Q2/2021 EUR EUR Breakdown of total net provisions Q2/2021 23 mn 31 mn ▪ Stage 1 & 2: net release driven by repayments EUR EUR and changes in exposure composition 30 mn -6 mn ▪ Sanctions risk costs: EUR 30 mn recognized to reflect potential impact of the EU sanctions against Be
Slide 19: Forborne Exposure and Moratoria
Forborne Exposure and Moratoria Forborne exposure % of total exposure ▪ Increase in forborne exposure in Q2 primarily in 0.84% 0.88% Forborne performing performing portfolio 0.57% 0.57% 0.59% Forborne non- ▪ The vast majority of new forborne exposures are in 0.58% 0.61% 0.62% performing industries a
Slide 20: RWA Development
RWA Development Q2/2021 RWA development RWA by segment in EUR bn 1 Credit risk up by 2.7 bn (FX adjusted) driven by new business (EUR 2.1 bn) in corporate, GC&M project finance and retail 28.7 Net rating migration effect of EUR 0.6 bn, mainly due to introduction of master scale in CE the sovereign r
Slide 21: NPE Ratio and NPE Coverage
NPE Ratio and NPE Coverage Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q2/2021 NPE Stock Asset quality development q-o-q Central Europe in EUR mn 63.3% 65.0% 63.1% 6.0% Q2/2021 61.4% 56.8% ▪ NPE ratio at 1.7% vs 1.8% in Q1 due to asset growth ∆ QoQ 50.0% outpacing NPE net inflow 971 2.1% 1.9% 1.9% 1.8% 1.8% 1.0
Slide 22: Appendix
01 02 03 Business & Financial Risk Update Appendix Update Group Investor Relations 30 July 2021 22
Slide 23: Geographic Footprint
Geographic Footprint ▪ Leading regional player with CEE presence of over 30 Russia, #9 years servicing approx. 17.7 million customers Central Europe (CE) ▪ Loans: EUR 10.1 bn Southeastern Europe (SEE) ▪ Branches: 131 Eastern Europe (EE) ▪ Covering Austria and 13 CEE markets, of which six are EU Ukra
Slide 24: Raiffeisen Banking Group Structure
Raiffeisen Banking Group Structure ▪ Raiffeisen Banking Group (RBG) – largest banking group in Austria with total assets of EUR 318 bn as of 30/06/2020 ▪ 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 25: Q2/2021 Segments Overview
Q2/2021 Segments Overview Core revenues Loans to customers / NIM Provisioning ratio Profit after tax Q2/21 q-o-q Q3/20 Q4/20 Q1/21 Q2/21 Q2/21 q-o-q Q2/21 q-o-q 311 31,000 29,857 29,921 30,258 5.00% CE Net Fees 119 30,000 +11% 29,571 -12 bps 3.00% EUR 53 mn 29,000 1.74% 1.51% 1.00% -23 bps +112% 1.7
Slide 26: Corporate Center/Reconciliation
Corporate Center/Reconciliation In EUR mn 1-6/2021 1-6/2020 1 y-o-y In EUR mn 1-6/2021 1-6/2020 1 y-o-y Operating income 647 104 >500,0% Operating income (655) (152) 332.3% General admin. expenses (194) (195) (0.5%) General admin. expenses 69 67 2.2% Operating result 453 (91) – Operating result (587
Slide 27: 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 48 0
Slide 28: Regulatory Capital Overview
Regulatory Capital Overview Regulatory Capital Structure In EUR mn 30/6/2021 31/3/2021 31/12/2020 Common equity tier 1 (before deductions) 12,285 11,524 11,374 Deduction items (989) (725) (612) Common equity tier 1 (after deductions) 11,296 10,798 10,762 Additional tier 1 (after deductions) 1,648 1,
Slide 29: Maturity Profile
Maturity Profile Maturity Profile at 30/9/2020 30/6/2021 (in EUR mn) 2,129 15 1,898 1,751 546 1,264 57 1,110 983 2,114 1,650 743 723 502 1,352 632 97 1,207 562 1,110 347 743 341 626 500 481 285 341 35 62 96 5 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 >2035 Senior placements Subordinated
Slide 30: RBI AG: Green Bond Allocation and Impact Report
RBI AG: Green Bond Allocation and Impact Report (as of 30 April 2021) Green loan portfolio total volume: Green buildings EUR 1,436 mn 75% 31% under development EUR 1,070 mn by use of Clean transportation EUR 1,326 mn EUR 110 mn proceeds 18% disbursed undisbursed Suppliers of batteries EUR 44% built
Slide 31: 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 99.4% XS1756703275 4.500% EUR 500 mn 24 Jan 2018 15 Jun 2025 Semi-ann
Slide 32: 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 33: Bank Levies
Bank Levies Impact in EUR mn FY 2020 1-6/2021 FY 2021e Bank levy based on total assets (excluding derivatives) and including a one-off payment 1 Austria 59 11 ~21 (spread over 4 years) of EUR 163 mn from 2017 to 2020. Bank levy of 0.15% (for up to HUF 50 bn of total assets) and 0.21% (for tax base a
Slide 34: 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 30/6/2021 30/6/2021 31/12/2020 30/6/2021 31/12/2020 30/6/2021 31/12/2020 30/6/2021 31/12/2020 Czech Republic 306 1.4% 1.5% 45.0%
Slide 35: RBI Group
RBI Group In EUR mn Q2/2021 Q1/2021 q-o-q Q4/20203 Q3/20203 Q2/20203 1-6/2021 1-6/20203 y-o-y 1-12/20203 Net interest income 804 767 4.9% 765 770 825 1,571 1,706 (7.9%) 3,241 Net fee and commission income 499 434 15.0% 466 433 392 932 840 11.1% 1,738 Net trading income and fair value result 27 5 473
Slide 36: Country Financials (CE) – Czech Republic
Country Financials (CE) – Czech Republic In EUR mn Q2/2021 Q1/2021 q-o-q Q4/20203 Q3/20203 Q2/20203 1-6/2021 1-6/20203 y-o-y 1-12/20203 Net interest income 77 74 4.3% 74 73 82 151 183 (17.5%) 330 Net fee and commission income 36 33 9.7% 30 29 26 69 62 11.3% 121 Net trading income and fair value resu
Slide 37: Country Financials (CE) – Hungary
Country Financials (CE) – Hungary In EUR mn Q2/2021 Q1/2021 q-o-q Q4/20203 Q3/20203 Q2/20203 1-6/2021 1-6/20203 y-o-y 1-12/20203 Net interest income 43 38 11.7% 38 36 38 81 75 7.8% 149 Net fee and commission income 39 35 12.5% 36 34 32 75 68 10.1% 139 Net trading income and fair value result (3) (0)
Slide 38: Country Financials (CE) – Poland
Country Financials (CE) – Poland In EUR mn Q2/2021 Q1/2021 q-o-q Q4/20203 Q3/20203 Q2/20203 1-6/2021 1-6/20203 y-o-y 1-12/20203 Net interest income 3 3 19.4% 4 4 4 6 8 (18.5%) 16 Net fee and commission income 1 1 (14.7%) 1 1 1 1 1 (20.3%) 3 Net trading income and fair value result 0 0 16.4% 0 0 0 1
Slide 39: Country Financials (CE) – Slovakia
Country Financials (CE) – Slovakia In EUR mn Q2/2021 Q1/2021 q-o-q Q4/20203 Q3/20203 Q2/20203 1-6/2021 1-6/20203 y-o-y 1-12/20203 Net interest income 68 69 (1.2%) 73 72 73 138 147 (6.0%) 292 Net fee and commission income 43 39 11.1% 40 36 36 82 72 14.6% 148 Net trading income and fair value result 4
Slide 40: Country Financials (SEE) – Albania
Country Financials (SEE) – Albania In EUR mn Q2/2021 Q1/2021 q-o-q Q4/20203 Q3/20203 Q2/20203 1-6/2021 1-6/20203 y-o-y 1-12/20203 Net interest income 14 13 4.6% 13 13 13 26 27 (1.9%) 53 Net fee and commission income 4 4 8.2% 2 3 3 7 6 18.0% 12 Net trading income and fair value result 0 1 (53.9%) 1 1
Slide 41: Country Financials (SEE) – Bosnia & Herzegovina
Country Financials (SEE) – Bosnia & Herzegovina In EUR mn Q2/2021 Q1/2021 q-o-q Q4/20203 Q3/20203 Q2/20203 1-6/2021 1-6/20203 y-o-y 1-12/20203 Net interest income 15 15 1.4% 15 16 16 30 32 (5.4%) 63 Net fee and commission income 12 10 12.4% 11 11 9 22 19 17.0% 40 Net trading income and fair value re
Slide 42: Country Financials (SEE) – Bulgaria
Country Financials (SEE) – Bulgaria In EUR mn Q2/2021 Q1/2021 q-o-q Q4/20203 Q3/20203 Q2/20203 1-6/2021 1-6/20203 y-o-y 1-12/20203 Net interest income 30 29 3.7% 28 28 28 58 58 1.4% 114 Net fee and commission income 15 13 11.8% 13 14 11 28 24 16.0% 50 Net trading income and fair value result 1 1 70.
Slide 43: Country Financials (SEE) – Croatia
Country Financials (SEE) – Croatia In EUR mn Q2/2021 Q1/2021 q-o-q Q4/20203 Q3/20203 Q2/20203 1-6/2021 1-6/20203 y-o-y 1-12/20203 Net interest income 27 29 (5.9%) 28 28 29 56 59 (5.7%) 115 Net fee and commission income 19 15 24.4% 14 18 12 33 29 13.9% 61 Net trading income and fair value result 2 1
Slide 44: Country Financials (SEE) – Kosovo
Country Financials (SEE) – Kosovo In EUR mn Q2/2021 Q1/2021 q-o-q Q4/20203 Q3/20203 Q2/20203 1-6/2021 1-6/20203 y-o-y 1-12/20203 Net interest income 12 12 2.3% 12 12 12 24 23 2.4% 47 Net fee and commission income 3 3 0.1% 3 3 2 6 4 38.6% 9 Net trading income and fair value result (0) 0 – 0 0 (0) 0 (
Slide 45: Country Financials (SEE) – Romania
Country Financials (SEE) – Romania In EUR mn Q2/2021 Q1/2021 q-o-q Q4/20203 Q3/20203 Q2/20203 1-6/2021 1-6/20203 y-o-y 1-12/20203 Net interest income 90 90 (0.6%) 93 91 93 180 189 (4.6%) 372 Net fee and commission income 45 37 20.6% 41 41 35 82 74 10.9% 156 Net trading income and fair value result 4
Slide 46: Country Financials (SEE) – Serbia
Country Financials (SEE) – Serbia In EUR mn Q2/2021 Q1/2021 q-o-q Q4/20203 Q3/20203 Q2/20203 1-6/2021 1-6/20203 y-o-y 1-12/20203 Net interest income 21 21 0.8% 21 21 21 42 43 (2.0%) 85 Net fee and commission income 14 12 10.8% 13 12 10 26 23 14.9% 48 Net trading income and fair value result 1 1 51.0
Slide 47: Country Financials (EE) – Belarus
Country Financials (EE) – Belarus In EUR mn Q2/2021 Q1/2021 q-o-q Q4/20203 Q3/20203 Q2/20203 1-6/2021 1-6/20203 y-o-y 1-12/20203 Net interest income 20 17 15.5% 19 18 22 37 46 (20.3%) 83 Net fee and commission income 15 13 11.6% 13 15 13 28 29 (3.1%) 57 Net trading income and fair value result 2 2 (
Slide 48: Country Financials (EE) – Russia
Country Financials (EE) – Russia In EUR mn Q2/2021 Q1/2021 q-o-q Q4/20203 Q3/20203 Q2/20203 1-6/2021 1-6/20203 y-o-y 1-12/20203 Net interest income 173 163 6.3% 170 172 193 336 399 (15.8%) 741 Net fee and commission income 99 75 32.6% 111 88 84 174 175 (0.5%) 374 Net trading income and fair value re
Slide 49: Country Financials (EE) – Ukraine
Country Financials (EE) – Ukraine In EUR mn Q2/2021 Q1/2021 q-o-q Q4/20203 Q3/20203 Q2/20203 1-6/2021 1-6/20203 y-o-y 1-12/20203 Net interest income 61 54 13.8% 52 54 63 115 130 (11.9%) 236 Net fee and commission income 21 18 16.2% 22 23 20 39 43 (8.4%) 88 Net trading income and fair value result 3
Slide 50: Group Corporates & Markets
Group Corporates & Markets In EUR mn Q2/2021 Q1/2021 q-o-q Q4/20203 Q3/20203 Q2/20203 1-6/2021 1-6/20203 y-o-y 1-12/20203 Net interest income 151 132 14.8% 130 141 160 283 311 (9.0%) 582 Net fee and commission income 133 119 12.1% 118 100 96 252 200 26.1% 417 Net trading income and fair value result
Slide 51: Sustainability Ratings and Industry Awards
Sustainability Ratings and Industry Awards The Banker – Bank of the Year 2020 in The Leading Sustainable Financial Institution in Austria & CEE ▪ Central & Eastern Europe ▪ Slovakia February 2021 ▪ Ukraine RBI is the first Austrian banking group to commit to the UN Principles for Responsible Banking
Slide 52: 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 53: Contact and Financial Calendar
Contact and Financial Calendar Contact details Financial calendar Group Investor Relations 20 October 2021 Start of Quiet Period1 03 November 2021 Third Quarter Report, Conference Call Raiffeisen Bank International AG Am Stadtpark 9 1030 Vienna Austria +43 1 71 707 2089 ir@rbinternational.com www.rb
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