Raiffeisen Bank International Ag · VIE:RBI
Raiffeisen Bank International — Q3 2021 Earnings Presentation
55 slides from Raiffeisen Bank International's earnings presentation, Nov 3, 2021
Slide 1: Raiffeisen Bank International Q3/2021 Results
Raiffeisen Bank International Q3/2021 Results - 3 November 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, Risk Update, Appendix
01 02 03 Business & Financial Risk Update Appendix Update Group Investor Relations 3 November 2021 3
Slide 4: Q3/2021 Executive Summary
Q3/2021 Executive Summary Consolidated profit Core revenues Loans to customers 1-9/2021 1-9/2021, in EUR mn 30/09/2021 EUR 1,055 mn 2,445 1,470 EUR 100,659 mn +76% y-o-y -1 % +16% +11% ytd (incl. Equa) y-o-y y-o-y Net interest Net fee & income commission income CET 1 ratio Consolidated RoE Provision
Slide 5: Q3/2021 Business Update
Q3/2021 Business Update Rating upgrade ▪ Moody’s upgraded RBI’s long-term ratings to A2 (from A3) 2022 Risk cost ▪ The provisioning ratio for 2022 is expected to be around 40 basis points M&A update ▪ Acquisition of Crédit Agricole Srbija on track, expected to close in Q1/2022 ▪ Equa bank consolidat
Slide 6: Q3/2021 Income Statement and KPIs
Q3/2021 Income Statement and KPIs (in EUR mn) Q3/2021 % q-o-q % y-o-y Net interest margin Net interest income 875 +9% +14% Q3/2021 Net fee and commission income 538 +8% +24% 1.99% Net trading income & fair value result -3 - - +7 bp q-o-q Other operating components1 45 -13% -9% Operating income 1,455
Slide 7: Q3/2021 Core Revenue Trends
Q3/2021 Core Revenue Trends Net interest income up 9% (EUR 71 mn) NIM: improvement based on strong NII 875 mn increase and rate hikes EUR ▪ NII mainly driven by higher volumes prev. year in Russia, Romania and Czech 1.92% 1.99% 2020/21 Republic (including Equa effect) +17 bps -9 bps 881 881 875 ▪ Ra
Slide 8: Loan Growth and Key Rates to Drive Revenues
Loan Growth and Key Rates to Drive Revenues RBI loan growth continues to improve following the pandemic ▪ Loans to customers up 11% year to date, equal or better RBI - Loans to customers than peers in most segments (indexed Q4/2020 = 100) 122.9 ▪ Deposits growing faster than the market in most segme
Slide 9: Raiffeisen Czech Republic Update
Raiffeisen Czech Republic Update Raiffeisen Czech Republic to become 4th largest retail Organic loan growth continues in Q3 2021 bank in Czech Republic: ✓ Integration of Equa bank on track – expected synergies q-o-q confirmed 14,633 +20% ✓ Equa client acquisition and consumer loan origination 11,724
Slide 10: Markets – Leveraging CEE Expertise
Markets – Leveraging CEE Expertise Markets business generates 22% of Group revenues Stable growing Markets Revenues … half of which are earned through corporate and retail channels in EUR mn 345 350 301 305 +2% 273 q-o-q Products for Institutional retail +16% clients 36% 22% 33% y-o-y Q3/2020 Q4/202
Slide 11: Polish CHF Mortgage and Developments
Polish CHF Mortgage and Developments The CET1 impact is limited under most scenarios Almost 50% of CET1 or equivalent held against the portfolio Total provisions Q3/2021 Q3/2021 EUR ~510 mn Credit risk RWA1 (driven by 150% risk weighting) and EUR ~940 mn impairments EUR of which in Q3/2021: 231 mn E
Slide 12: Balance Sheet and Loan Growth
Balance Sheet and Loan Growth 30/09/2021 ∆ q-o-q 30/09/2021 ∆ q-o-q Assets (in EUR mn) 190,610 +5% Liabilities (in EUR mn) 190,610 +5% Loans to banks 16,678 +4% Deposits from banks 39,143 +7% Loans to customers 100,659 +7% Deposits from customers 114,651 +5% Securities 22,901 -1% Debt issued and oth
Slide 13: Capital Ratios
Capital Ratios Regulatory capital requirements Q3/2021 Development (including results) RBI ▪ P2R of 2.25% is fully optimized: Regulatory 17.7% ▪ 1.27% met with CET1, 42 bps with AT1 and 56 bps with T2 15.0% 14.88% ▪ P2G of 1.00%; to be solely covered by CET1 but 13.2% Tier 2 applicable to all capita
Slide 14: CET1 Ratio Development
CET1 Ratio Development Q-o-Q +19 bps 13.3% 13.2% 13.0% -30 bps -23 bps -7 bps 1 bps +50 bps Credit risk Market & OCI, Retained operational valuation & earnings risk other effects Q2/2021 1st July 2021 Q3/2021 (incl. Equa bank (incl. ytd result) consolidation) ▪ Credit risk: -23 bps impact (excl. FX
Slide 15: Loan Demand in the Region
Loan Demand in the Region ▪ Steady mortgage business and a pickup in consumer Raiffeisen Research forecast loan growth in local currency, y-o-y finance support retail lending Retail Corporate ▪ Corporate segment returns to longer-term loan/GDP trend path; upside potential for EU member states from 2
Slide 16: Macro Outlook
Macro Outlook GDP (real, % yoy) 2020 2021e 2022f 2023f ▪ Growth projections across the region revised upwards Czech Republic -5.8 3.7 4.4 3.0 for 2021, notably in Russia and Belarus (by Hungary -5.2 7.0 5.5 3.5 >1pp). Continued strong pace of the recovery in Q3 and Q4 is the central scenario with su
Slide 17: Outlook and Targets
Outlook and Targets Loan Growth We now expect loan growth of around 11 per cent (excluding Equa bank) for 2021 Risk Costs The provisioning ratio for 2022 is expected to be around 40 basis points Cost / Income Ratio We remain committed to a cost/income ratio of around 55 per cent Profitability We exp
Slide 18: Business & Financial Update, Risk Update, Appendix
01 02 03 Business & Financial Risk Update Appendix Update Group Investor Relations 3 November 2021 18
Slide 19: Constructive Credit Cycle Outlook
Constructive Credit Cycle Outlook Sovereigns & banking sector Macro outlook remains supportive ▪ Overall indebtedness still moderate after the Cyclical rebound confirmed: GDP growth strong pandemic across the region in 2022 and 2023 ▪ Healthy, liquid and well capitalized banking sector ▪ Credit grow
Slide 20: Total Exposure
Total Exposure Total exposure by segments, in EUR bn, Q3/2021 Total exposure by sector, in EUR bn, Q3/2021 Total: EUR 226.4 bn, +4.3% (q-o-q) Total: EUR 226.4 bn Retail GC&M +3.9% Mortgages 28 21% 95.6 Consumer loans & other 19 Sovereigns & supranationals 56 Sov. and FI CE +5.2% Financial institutio
Slide 21: IFRS 9 Provisioning in Q3/2021
IFRS 9 Provisioning in Q3/2021 EUR EUR Breakdown of total net provisions Q3/2021 38 mn 42 mn ▪ Stage 1 & 2: net release driven by repayments and improving portfolio composition ▪ Equa bank: day 1 IFRS9 booking of EUR 14 mn, mainly Stage 1 (EUR 9 mn from retail and EUR 5 EUR mn from corporate) 14 mn
Slide 22: RWA Development
RWA Development Q3/2021 RWA development Estimated RWA effects until year end 2022 1 Credit risk increased by EUR 3.1 bn EUR (FX adjusted) driven by new business ▪ Structural FX position: EUR +0.7 bn market risk (EUR 4.2 bn) in both corporate and retail. Asset quality effect of EUR -1.1 bn, RWA drive
Slide 23: NPE Ratio and NPE Coverage
NPE Ratio and NPE Coverage Q3/2020 Q4/2020 Q1/2021 Q2/2021 Q3/2021 NPE Stock Asset quality development q-o-q Central Europe in EUR mn 65.0% 63.1% 6.0% Q3/2021 61.4% 56.8% 58.3% ▪ NPE ratio at 1.6% vs 1.7% in Q2 , recoveries in both ∆ QoQ 50.0% retail and corporate portfolio contributes to NPE ratio
Slide 24: Business & Financial Update, Risk Update, Appendix
01 02 03 Business & Financial Risk Update Appendix Update Group Investor Relations 3 November 2021 24
Slide 25: Geographic Footprint
Geographic Footprint ▪ Leading regional player with CEE presence of over 30 Russia, #9 years servicing approx. 18.6 million customers Central Europe (CE) ▪ Loans: EUR 11.2 bn Southeastern Europe (SEE) ▪ Branches: 131 Eastern Europe (EE) ▪ Covering Austria and 13 CEE markets, of which six are EU Ukra
Slide 26: 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 27: Q3/2021 Segments Overview
Q3/2021 Segments Overview Core revenues Loans to customers / NIM Provisioning ratio Profit after tax Q3/21 q-o-q Q4/20 Q1/21 Q2/21 Q3/21 Q3/21 q-o-q Q3/21 q-o-q 33,224 348 29,857 29,921 30,258 5.00% CE Net Fees 121 30,000 +1% 22 bps 3.00% EUR 76 mn 25,000 1.61% 1.67% 1.00% +35 bps +44% 1.74% 1.51% N
Slide 28: Corporate Center/Reconciliation
Corporate Center/Reconciliation In EUR mn 1-9/2021 1-9/20201 y-o-y In EUR mn 1-9/2021 1-9/20201 y-o-y Operating income 722 443 62,9% Operating income (724) (510) 42,0% General admin. expenses (292) (279) 4,6% General admin. expenses 106 106 0,8% Operating result 430 164 162,0% Operating result (618)
Slide 29: 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 30: Regulatory Capital Overview
Regulatory Capital Overview Regulatory Capital Structure In EUR mn 30/9/2021 30/6/2021 31/3/2021 Common equity tier 1 (before deductions) 12.342 12.285 11.524 Deduction items (1.070) (989) (725) Common equity tier 1 (after deductions) 11.273 11.296 10.798 Additional tier 1 (after deductions) 1.647 1
Slide 31: Maturity Profile
Maturity Profile Maturity Profile at 30/9/2020 30/9/2021 (in EUR mn) 2,219 15 1,897 1,751 546 1,264 1,242 1,145 57 2,204 986 1,650 784 723 505 1,351 97 1,207 562 1,145 339 626 500 481 458 87 339 62 35 5 96 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 >2035 Senior placements Subordinated Ad
Slide 32: 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 33: 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 34: 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 35: Bank Levies
Bank Levies Impact in EUR mn FY 2020 1-9/2021 FY 2021e 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 15 ~21 Bank levy of 0.15% (for up to HUF 50 bn of total assets) and 0.21% (for tax base a
Slide 36: 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 30/9/2021 30/9/2021 31/12/2020 30/9/2021 31/12/2020 30/9/2021 31/12/2020 30/9/2021 31/12/2020 Czech Republic 351 1,4% 1,5% 42,6%
Slide 37: RBI Group
RBI Group In EUR mn Q3/2021 Q2/2021 q-o-q Q1/2021 Q4/20203 Q3/20203 1-9/2021 1-9/20203 y-o-y 1-12/20203 Net interest income 875 804 8.8% 767 765 770 2,445 2,476 (1.2%) 3,241 Net fee and commission income 538 499 7.8% 434 466 433 1,470 1,272 15.6% 1,738 Net trading income and fair value result (3) 27
Slide 38: Country Financials (CE) – Czech Republic
Country Financials (CE) – Czech Republic In EUR mn Q3/2021 Q2/2021 q-o-q Q1/2021 Q4/20203 Q3/20203 1-9/2021 1-9/20203 y-o-y 1-12/20203 Net interest income 105 77 36.5% 74 74 73 256 256 0.1% 330 Net fee and commission income 35 36 (1.8%) 33 30 29 104 91 14.8% 121 Net trading income and fair value res
Slide 39: Country Financials (CE) – Hungary
Country Financials (CE) – Hungary In EUR mn Q3/2021 Q2/2021 q-o-q Q1/2021 Q4/20203 Q3/20203 1-9/2021 1-9/20203 y-o-y 1-12/20203 Net interest income 49 43 13.8% 38 38 36 130 111 16.6% 149 Net fee and commission income 41 39 3.0% 35 36 34 115 102 12.8% 139 Net trading income and fair value result 0 (3
Slide 40: Country Financials (CE) – Poland
Country Financials (CE) – Poland In EUR mn Q3/2021 Q2/2021 q-o-q Q1/2021 Q4/20203 Q3/20203 1-9/2021 1-9/20203 y-o-y 1-12/20203 Net interest income 3 3 (10.7%) 3 4 4 9 12 (19.6%) 16 Net fee and commission income 1 1 21.0% 1 1 1 2 2 (21.1%) 3 Net trading income and fair value result 0 0 5.8% 0 0 0 1 1
Slide 41: Country Financials (CE) – Slovakia
Country Financials (CE) – Slovakia In EUR mn Q3/2021 Q2/2021 q-o-q Q1/2021 Q4/20203 Q3/20203 1-9/2021 1-9/20203 y-o-y 1-12/20203 Net interest income 70 68 1.6% 69 73 72 207 219 (5.2%) 292 Net fee and commission income 44 43 2.5% 39 40 36 126 108 17.0% 148 Net trading income and fair value result 0 4
Slide 42: Country Financials (SEE) – Albania
Country Financials (SEE) – Albania In EUR mn Q3/2021 Q2/2021 q-o-q Q1/2021 Q4/20203 Q3/20203 1-9/2021 1-9/20203 y-o-y 1-12/20203 Net interest income 14 14 4.3% 13 13 13 41 40 0.7% 53 Net fee and commission income 4 4 14.8% 4 2 3 12 10 22.1% 12 Net trading income and fair value result 0 0 (68.1%) 1 1
Slide 43: Country Financials (SEE) – Bosnia & Herzegovina
Country Financials (SEE) – Bosnia & Herzegovina In EUR mn Q3/2021 Q2/2021 q-o-q Q1/2021 Q4/20203 Q3/20203 1-9/2021 1-9/20203 y-o-y 1-12/20203 Net interest income 15 15 (1.5%) 15 15 16 46 48 (4.9%) 63 Net fee and commission income 13 12 14.0% 10 11 11 36 30 20.5% 40 Net trading income and fair value
Slide 44: Country Financials (SEE) – Bulgaria
Country Financials (SEE) – Bulgaria In EUR mn Q3/2021 Q2/2021 q-o-q Q1/2021 Q4/20203 Q3/20203 1-9/2021 1-9/20203 y-o-y 1-12/20203 Net interest income 30 30 0.5% 29 28 28 88 86 2.8% 114 Net fee and commission income 16 15 12.6% 13 13 14 44 37 18.1% 50 Net trading income and fair value result 1 1 (28.
Slide 45: Country Financials (SEE) – Croatia
Country Financials (SEE) – Croatia In EUR mn Q3/2021 Q2/2021 q-o-q Q1/2021 Q4/20203 Q3/20203 1-9/2021 1-9/20203 y-o-y 1-12/20203 Net interest income 28 27 2.7% 29 28 28 83 87 (3.9%) 115 Net fee and commission income 22 19 20.9% 15 14 18 56 47 18.6% 61 Net trading income and fair value result 2 2 43.
Slide 46: Country Financials (SEE) – Kosovo
Country Financials (SEE) – Kosovo In EUR mn Q3/2021 Q2/2021 q-o-q Q1/2021 Q4/20203 Q3/20203 1-9/2021 1-9/20203 y-o-y 1-12/20203 Net interest income 12 12 (1.9%) 12 12 12 36 35 1.8% 47 Net fee and commission income 5 3 76.4% 3 3 3 11 7 60.9% 9 Net trading income and fair value result 0 (0) – 0 0 0 0
Slide 47: Country Financials (SEE) – Romania
Country Financials (SEE) – Romania In EUR mn Q3/2021 Q2/2021 q-o-q Q1/2021 Q4/20203 Q3/20203 1-9/2021 1-9/20203 y-o-y 1-12/20203 Net interest income 92 90 2.7% 90 93 91 272 279 (2.6%) 372 Net fee and commission income 46 45 2.2% 37 41 41 129 115 11.8% 156 Net trading income and fair value result 1 4
Slide 48: Country Financials (SEE) – Serbia
Country Financials (SEE) – Serbia In EUR mn Q3/2021 Q2/2021 q-o-q Q1/2021 Q4/20203 Q3/20203 1-9/2021 1-9/20203 y-o-y 1-12/20203 Net interest income 22 21 5.6% 21 21 21 64 64 0.1% 85 Net fee and commission income 15 14 7.0% 12 13 12 41 35 16.4% 48 Net trading income and fair value result 1 1 (23.6%)
Slide 49: Country Financials (EE) – Belarus
Country Financials (EE) – Belarus In EUR mn Q3/2021 Q2/2021 q-o-q Q1/2021 Q4/20203 Q3/20203 1-9/2021 1-9/20203 y-o-y 1-12/20203 Net interest income 22 20 10.3% 17 19 18 59 64 (8.8%) 83 Net fee and commission income 15 15 3.1% 13 13 15 43 43 (1.1%) 57 Net trading income and fair value result 3 2 23.3
Slide 50: Country Financials (EE) – Russia
Country Financials (EE) – Russia In EUR mn Q3/2021 Q2/2021 q-o-q Q1/2021 Q4/20203 Q3/20203 1-9/2021 1-9/20203 y-o-y 1-12/20203 Net interest income 196 173 12.8% 163 170 172 532 571 (6.9%) 741 Net fee and commission income 110 99 10.3% 75 111 88 284 263 7.9% 374 Net trading income and fair value resu
Slide 51: Country Financials (EE) – Ukraine
Country Financials (EE) – Ukraine In EUR mn Q3/2021 Q2/2021 q-o-q Q1/2021 Q4/20203 Q3/20203 1-9/2021 1-9/20203 y-o-y 1-12/20203 Net interest income 66 61 8.8% 54 52 54 181 185 (1.8%) 236 Net fee and commission income 25 21 20.7% 18 22 23 64 66 (1.9%) 88 Net trading income and fair value result 3 3 2
Slide 52: Group Corporates & Markets
Group Corporates & Markets In EUR mn Q3/2021 Q2/2021 q-o-q Q1/2021 Q4/20203 Q3/20203 1-9/2021 1-9/20203 y-o-y 1-12/20203 Net interest income 143 151 (5.4%) 132 130 141 426 452 (5.7%) 582 Net fee and commission income 139 133 4.4% 119 118 100 391 300 30.6% 417 Net trading income and fair value result
Slide 53: 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 and Eastern Europe ▪ Slovakia February 2021 ▪ Ukraine RBI is the first Austrian banking group to commit to the UN Principles for Responsible Banki
Slide 54: 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 55: Contact and Financial Calendar
Contact and Financial Calendar Contact details Financial calendar Group Investor Relations 10 November 2021 Extraordinary General Meeting 15 November 2021 Ex-Dividend Date Raiffeisen Bank International AG 16 November 2021 Record Date Dividends Am Stadtpark 9 17 November 2021 Dividend Payment Date 10
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