Raiffeisen Bank International Ag · VIE:RBI
Raiffeisen Bank International — Q3 2023 Earnings Presentation
57 slides from Raiffeisen Bank International's earnings presentation, Nov 3, 2023
Slide 1: Raiffeisen Bank International Q3/2023
Raiffeisen Bank International Q3/2023 3 November 2023 Raiffeisen Bank International | Member of RBI Group Confidential and proprietary Any use of this material without specific permission of Raiffeisen Bank International is strictly prohibited.
Slide 2: Disclaimer
Disclaimer Certain statements contained herein may be statements of future This presentation contains financial and non-financial information relating to investments falling within Article 19(5) of the Financial expectations and other forward-looking statements about Raiffeisen and statistical data
Slide 3: Business & Financial Update
01 Business & Financial Update 02 Risk Update 03 Appendix 3 November 2023
Slide 4: 1-9/2023 Executive Summary
1-9/2023 Executive Summary RBI Consolidated profit Consolidated RoE CET1 ratio Group 1-9/2023 1-9/2023 30/09/2023, transitional, incl. results EUR 2,114 mn 17.4% 16.5% -25% y-o-y -10 pp y-o-y +0.5 pp ytd Adjusted: Consolidated profit Consolidated RoE CET1 ratio EUR 1,036 mn 10.9% 14.4% +26% y-o-y -0
Slide 5: 1-9/2023 Executive Summary
1-9/2023 Executive Summary RBI Loans to customers Core revenues Opex and Cost/Income Ratio Group 30/09/2023 1-9/2023, in EUR mn 1-9/2023 4,190 EUR 101,931 mn 2,364 EUR 2,874 mn 41.6% -1% ytd +17% -12% y-o-y +12% y-o-y +4 pp Net interest Net fee & income commission income Adjusted: Loans to customers
Slide 6: Q3/2023 Core Revenue Trends
Q3/2023 Core Revenue Trends Net interest income 1,462 1,441 NII excl. Russia and Belarus up 8% in Q3/2023, as the in EUR mn 1,392 1,385 1,364 1,214 benefit of EUR higher rates continues to feed through 986 Group Deposit repricing has stabilized in Czech Republic, 1,039 1,123 Romania, and still very
Slide 7: Loans and Deposits to/from Customers in Q3/2023
Loans and Deposits to/from Customers in Q3/2023 Loans to customers Deposits from customers in EUR bn + 0% in EUR bn + 1% q-o-q q-o-q 109.1 105.3 129.8 103.2 101.8 101.9 125.1 124.8 120.6 121.2 Group Group Core 96.9 Core Excluding 95.7 93.9 94.3 95.0 Excluding 102.2 103.7 102.5 103.1 101.2 Russia/ Be
Slide 8: High Liquidity Across the Group
High Liquidity Across the Group RBI Group - Liquidity ratios 219% 233% RBI head office: conservative liquidity profile 202% 186% 201% LCR 137% 142% LCR at 192% on 27 October 2023 135% 139% 140% NSFR Head office with sufficient liquidity to cover all Loan deposit deposits and maturing funding for ove
Slide 9: CET1 Ratio Development
CET1 Ratio Development + 58 bps q-o-q 16.5% 15.9% + - + + + - +5 bps +8 bps +2 bps -7 bps +68 bps -19 bps Loan Other credit Market & OCI, Retained earnings FX developments risk operational risk valuation & other effects Proposed dividend of EUR 0.80 per share (~27 bps of CET1) already deducted from
Slide 10: CET1 Outlook 2023
CET1 Outlook 2023 16.5% Group CET1 ratio expected around 16.5 per cent at year-end 2023 ~16.5% Any decision on dividends Expected CET1 drivers in 2023: will be based on the capital position of the Group excluding Russia Retained ~30 bps Net of expected 2023 earnings + dividend accrual RWA increase L
Slide 11: P/B Zero Deconsolidation Scenario in Russia
P/B Zero Deconsolidation Scenario in Russia Landing point1: Group CET1 ratio above 13.5% following Capital stack under P/B Zero deconsolidation scenario “P/B Zero deconsolidation” of Russia 14.4% 2.84% T2 Assumptions: 2.65% With Russia deconsolidated at P/B Zero, AT1 and T2 buckets are adequately CE
Slide 12: Capital Ratios and SREP
Capital Ratios and SREP RBI, transitional as of 30/09/2023 Current regulatory 20.7% P2R 1.45% to be met with CET1 requirements 2.58% 18.3% 48 bps eligible for AT1 16.5% 15.93% 65 bps eligible for T2 Tier 2 P2R Requirements expected to increase by 13.29% 2.65% (incl. P2R) up to 22 bps in January 2024
Slide 13: MREL and Funding Plan
MREL and Funding Plan Austria resolution group MREL Including profit Funding plan 2024 30/09/2023 Funding, liquidity and MREL needs largely fulfilled for 2023. Two to three Requirement 41.85% benchmarks planned until year end 2024 Actual 14.78% Senior non-preferred issuance to maintain loss absorbin
Slide 14: Russia Update
Russia Update The Group will continue to progress potential transactions which would result in the sale or spin-off of Raiffeisenbank Russia and deconsolidation of Raiffeisenbank Russia from the Group. We are committing to further reducing business activity in Russia whilst we continue to progress s
Slide 15: Macro Outlook
Macro Outlook Following the economic slowdown in Europe in H1/2023, the GDP (real, % yoy) 2022 2023e 2024f 2025f second half of the year is set to show a stagnation or very Czech Republic 2.4 0.0 2.1 3.0 mild recovery Hungary 4.6 0.0 3.0 4.0 The manufacturing sector, key for CE and its major trading
Slide 16: Inflation and Key Rates Forecast
Inflation and Key Rates Forecast Inflation & rates Inflation rate (CPI) Disinflation is in progress while its pace will slow 11.0% (average, % y-o-y) CZ 11.6% significantly in 2024. Government interventions still affect 3.1% 2023f 2024f food and energy prices, labor markets add upside risks 5.2% SK
Slide 17: 2023 Guidance
2023 Guidance Core Group excluding Russia / Belarus RBI Group Core revenues EUR 4.2-4.3 bn EUR ~1.8 bn ~2% EUR 5.6-5.7 bn EUR 2.9-3.0 bn -1% & loan growth Net interest Net fee and Loans to Net interest Net fee and Loans to income commission income customers income commission income customers around
Slide 18: Risk Update
01 Business & Financial Update 02 Risk Update 03 Appendix 3 November 2023
Slide 19: Risk Overview
Risk Overview Q3/2023 30/09/2023 30/09/2023 Net releases of risk cost Stock of risk overlays NPE ratio/ coverage ratio Provisioning ratio Risk cost releases -0 bps EUR -8 mn EUR 812 mn 1.5% 58.9% including impairments +20 bps q-o-q on debt securities +1 bp +131 bps GC&M, CE, SEE (CRE, inflation & sp
Slide 20: IFRS 9 Provisioning
IFRS 9 Provisioning Q3/2023 EUR 5 mn + Overall release of EUR 8 mn of IFRS 9 provisions in Q3 + EUR - Stage 1 & 2: increase driven by retail in -8 mn EUR Russia almost fully offset by non-retail -34 mn Macro update: release driven by improved outlook in Hungary, Russia, Ukraine and - Slovakia EUR EU
Slide 21: Q3/2023 RWA Development
Q3/2023 RWA Development 1 Credit risk in core group reduces by EUR ~1 bn, driven mainly by new securitization (EUR -0.7 bn) as well as rating effects (Corporate and PI). Increase in Russia & Belarus mainly from placements of liquidity Inorganic effect: EUR 2 bn position. inorganic relief in October,
Slide 22: Poland CHF Update
Poland CHF Update Cases update Provisions taken in Q3/2023 in EUR mn 26,196 CHF loans 13,042 litigation 1,971 1,914 1,890 1,869 Gross exposure outstanding cases 1,338 1,199 Q3/2023 Other result bookings: 803 853 Stock of EUR 166 mn EUR 9 mn provisions for litigation New provisions for For net losses
Slide 23: NPE Ratio and NPE Coverage
NPE Ratio and NPE Coverage Central Europe 61.4% 59.7% 60.2% 6.0%815 Asset quality development q-o-q 57.7% 58.1% -2.5% 50.0% 1.5% 1.4% 1.3% 1.3% 1.3% 1.0% NPE ratio remained stable at 1.5% 0.0% Southeastern 70.1% 70.2% 69.2% 67.2% 67.3% (4.0%) 590 In GC&M the coverage ratio decreased to 6.0% 3.0% 41.
Slide 24: Appendix
01 Business & Financial Update 02 Risk Update 03 Appendix 3 November 2023
Slide 25: Geographic Footprint
Geographic Footprint Leading regional player with CEE presence of over 30 years Russia, #14 servicing approx. 18 million customers Central Europe (CE) ▪ Loans: EUR 6.3 bn Southeastern Europe (SEE) ▪ Business outlets : 125 Covering Austria and 12 CEE markets, of which five are EU members. Serbia and
Slide 26: Raiffeisen Banking Group Structure
Raiffeisen Banking Group Structure Raiffeisen Banking Group (RBG) – largest banking group in Austria with total assets of EUR 400 bn as of 31/12/2022 Solid funding profile of RBG based on a domestic market share of around 34% of total customer deposits, not least due to superior brand recognition Th
Slide 27: Q3/2023 Income Statement and KPIs
Q3/2023 Income Statement and KPIs (in EUR mn) Q3/2023 % q-o-q % y-o-y Net interest income 1,441 +6% +4% Net interest margin Q3/2023 Net fee and commission income 667 -9% -40% Net trading income & fair value result 89 +197% -43% 2.95% Other operating components1 51 -29% +41% +22 bps q-o-q Operating i
Slide 28: Q3/2023 Income Statement and KPIs (excl. Russia / Belarus)
Adjusted excluding Q3/2023 Income Statement and KPIs Russia / Belarus (in EUR mn) Q3/2023 % q-o-q % y-o-y Net interest income 1,123 +8% +28% Net interest margin Q3/2023 Net fee and commission income 425 +2% -16% Net trading income & fair value result 45 - - 2.54% Other operating components1 54 -21%
Slide 29: Total Exposure
Total Exposure Total exposure by segments Q3/2023 … by sector Q3/2023 in EUR bn in EUR bn Mortgages 28 GC&M -2.1% Consumer loans & other 20 Retail 20% 100.5 EUR 242 bn Sovereigns & supranationals Financial institutions 36 59 Sov. & FI 39% Industrials 23 -1.0% q-o-q Materials 11 Corporate 41% CE -1.0
Slide 30: Q3/2023 Segments Overview
Q3/2023 Segments Overview Core revenues Loans to customers / NIM Provisioning ratio Profit/loss after tax Q3/23 q-o-q Q4/22 Q1/23 Q2/23 Q3/23 Q3/23 q-o-q Q3/23 q-o-q 548 37,707 38,192 38,139 37,599 CE Net Fees 138 -6% 5.00% -17 bps EUR 99 mn 30,000 2.57% -42 bps - NII 409 +6% 2.39% 2.32% 2.42% 20,00
Slide 31: Corporate Center/Reconciliation
Corporate Center/Reconciliation In EUR mn 1-9/2023 1-9/2022 y-o-y In EUR mn 1-9/2023 1-9/2022 y-o-y Operating income 517 397 30.5% Operating income (576) (255) 126.1% General admin. expenses (361) (322) 12.3% General admin. expenses 121 110 10.1% Operating result 156 75 108.6% Operating result (455)
Slide 32: 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 1/1/2022 1,002 4,990 13,637 (3,601) 16,027 1,127 1,610 18,764 Impact of adopting IFRS 17 0
Slide 33: Regulatory Capital Structure - Overview
Regulatory Capital Structure - Overview in EUR mn 30/9/2023 30/6/2023 31/3/2023 Common equity tier 1 (before deductions) 16,175 16,614 16,640 Deduction items (931) (794) (848) Common equity tier 1 (after deductions) 15,244 15,819 15,792 Additional tier 1 (after deductions) 1,679 1,681 1,684 Tier 1 (
Slide 34: Maturity Profile
Maturity Profile Maturity MaturityProfile Profileat at30/09/2023 30/9/2020 (in EUR mn) 4,645 370 4,259 4,250 16 70 12 2,579 79 4,260 4,180 4,247 1,294 2,500 1,160 1,029 546 733 755 109 584 535 1,023 1,150 748 733 646 500 500 84 48 10 6 35 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 >2035
Slide 35: 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 Recognition Coupon outstanding Raiffeisen Bank 5Y EUR ms Additional Tier 1 100% XS1756703275 4.500% EUR 500 mn 24 Jan 2018 15 Jun 2025 Semi-annua
Slide 36: The Institutional Protection Scheme (IPS)
The Institutional Protection Scheme (IPS) 1 RBI AG and its Austrian subsidiaries are members of the 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 monitoring ensures the earl
Slide 37: Bank Levies
Bank Levies Impact in EUR mn FY 2022 1-9 2023 FY 2023e Austria Bank levy based on total assets (excluding derivatives) 22 0 ~0 Bank levy of 0.15% (for up to HUF 50 bn of total assets) and 0.21% (for tax base above HUF 50 bn) fully reflected in the first quarter; special tax for banks on net income f
Slide 38: 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 30/9/2023 30/9/2023 31/12/2022 30/9/2023 31/12/2022 30/9/2023 31/12/2022 30/9/2023 31/12/2022 Czech Republic 273 0.9% 1.0% 50.8%
Slide 39: RBI Group
RBI Group In EUR mn Q3/2023 Q2/2023 q-o-q Q1/2023 Q4/2022 Q3/20223 1-9/2023 1-9/20223 y-o-y 1-12/2022 Net interest income 1,441 1,364 5.7% 1,385 1,462 1,392 4,190 3,591 16.7% 5,053 Net fee and commission income 667 732 (8.9%) 966 1,196 1,117 2,364 2,682 (11.8%) 3,878 Net trading income and fair valu
Slide 40: RBI Core Group – excl. Russia and Belarus
RBI Core Group – excl. Russia and Belarus In EUR mn Q3/2023 Q2/2023 q-o-q Q1/2023 Q4/2022 Q3/20223 1-9/2023 1-9/20223 y-o-y 1-12/2022 Net interest income 1,123 1,039 8.0% 997 1,000 878 3,159 2,399 31.7% 3,399 Net fee and commission income 425 417 1.8% 429 452 447 1,271 1,287 (1.3%) 1,739 Net trading
Slide 41: Country Financials (CE) – Czech Republic
Country Financials (CE) – Czech Republic In EUR mn Q3/2023 Q2/2023 q-o-q Q1/2023 Q4/2022 Q3/2022 1-9/2023 1-9/2022 y-o-y 1-12/2022 Net interest income 162 159 1.8% 153 144 183 474 507 (6.7%) 652 Net fee and commission income 41 48 (14.6%) 48 56 45 136 141 (3.5%) 197 Net trading income and fair value
Slide 42: Country Financials (CE) – Hungary
Country Financials (CE) – Hungary In EUR mn Q3/2023 Q2/2023 q-o-q Q1/2023 Q4/2022 Q3/2022 1-9/2023 1-9/2022 y-o-y 1-12/2022 Net interest income 137 121 13.0% 123 117 96 382 239 59.7% 356 Net fee and commission income 50 52 (3.3%) 47 48 45 148 134 10.3% 183 Net trading income and fair value result (2
Slide 43: Country Financials (CE) – Poland
Country Financials (CE) – Poland In EUR mn Q3/2023 Q2/2023 q-o-q Q1/2023 Q4/2022 Q3/2022 1-9/2023 1-9/2022 y-o-y 1-12/2022 Net interest income 7 7 2.9% 0 3 4 15 9 56.0% 12 Net fee and commission income 0 0 465.8% 0 (0) 0 0 1 (74.3%) 1 Net trading income and fair value result 1 1 14.8% 0 0 2 1 2 (11.
Slide 44: Country Financials (CE) – Slovakia
Country Financials (CE) – Slovakia In EUR mn Q3/2023 Q2/2023 q-o-q Q1/2023 Q4/2022 Q3/2022 1-9/2023 1-9/2022 y-o-y 1-12/2022 Net interest income 103 99 4.1% 91 93 79 293 229 27.9% 322 Net fee and commission income 48 48 (0.7%) 46 47 46 142 138 3.0% 185 Net trading income and fair value result 5 3 93
Slide 45: Country Financials (SEE) – Albania
Country Financials (SEE) – Albania In EUR mn Q3/2023 Q2/2023 q-o-q Q1/2023 Q4/2022 Q3/2022 1-9/2023 1-9/2022 y-o-y 1-12/2022 Net interest income 30 28 9.2% 25 23 18 83 49 67.4% 72 Net fee and commission income 6 5 20.7% 4 5 5 15 14 7.0% 19 Net trading income and fair value result 2 (5) – 0 0 (1) (3)
Slide 46: Country Financials (SEE) – Bosnia & Herzegovina
Country Financials (SEE) – Bosnia & Herzegovina In EUR mn Q3/2023 Q2/2023 q-o-q Q1/2023 Q4/2022 Q3/2022 1-9/2023 1-9/2022 y-o-y 1-12/2022 Net interest income 22 21 4.7% 19 18 17 63 47 34.5% 64 Net fee and commission income 14 13 4.0% 13 16 15 40 41 (2.0%) 56 Net trading income and fair value result
Slide 47: Country Financials (SEE) – Croatia
Country Financials (SEE) – Croatia In EUR mn Q3/2023 Q2/2023 q-o-q Q1/2023 Q4/2022 Q3/2022 1-9/2023 1-9/2022 y-o-y 1-12/2022 Net interest income 47 44 7.1% 41 32 30 132 85 56.5% 116 Net fee and commission income 20 17 14.1% 18 21 25 55 67 (17.7%) 87 Net trading income and fair value result (4) (7) (
Slide 48: Country Financials (SEE) – Kosovo
Country Financials (SEE) – Kosovo In EUR mn Q3/2023 Q2/2023 q-o-q Q1/2023 Q4/2022 Q3/2022 1-9/2023 1-9/2022 y-o-y 1-12/2022 Net interest income 17 16 4.9% 15 16 14 48 39 24.1% 55 Net fee and commission income 6 4 34.9% 4 3 6 13 14 (2.2%) 17 Net trading income and fair value result 1 0 45.2% 0 (0) (0
Slide 49: Country Financials (SEE) – Romania
Country Financials (SEE) – Romania In EUR mn Q3/2023 Q2/2023 q-o-q Q1/2023 Q4/2022 Q3/2022 1-9/2023 1-9/2022 y-o-y 1-12/2022 Net interest income 147 143 3.1% 140 141 129 430 348 23.5% 489 Net fee and commission income 46 44 2.9% 41 43 48 131 137 (4.4%) 180 Net trading income and fair value result 0
Slide 50: Country Financials (SEE) – Serbia
Country Financials (SEE) – Serbia In EUR mn Q3/2023 Q2/2023 q-o-q Q1/2023 Q4/2022 Q3/2022 1-9/2023 1-9/2022 y-o-y 1-12/2022 Net interest income 72 66 8.3% 59 51 40 197 96 105.2% 147 Net fee and commission income 27 26 3.8% 25 27 25 78 64 22.5% 91 Net trading income and fair value result 4 4 6.4% 3 3
Slide 51: Country Financials (EE) – Belarus
Country Financials (EE) – Belarus In EUR mn Q3/2023 Q2/2023 q-o-q Q1/2023 Q4/2022 Q3/2022 1-9/2023 1-9/2022 y-o-y 1-12/2022 Net interest income 19 20 (7.1%) 27 32 32 66 91 (28.0%) 123 Net fee and commission income 30 38 (22.4%) 30 26 32 98 86 13.6% 112 Net trading income and fair value result 6 7 (1
Slide 52: Country Financials (EE) – Russia
Country Financials (EE) – Russia In EUR mn Q3/2023 Q2/2023 q-o-q Q1/2023 Q4/2022 Q3/2022 1-9/2023 1-9/2022 y-o-y 1-12/2022 Net interest income 331 322 2.7% 377 436 476 1,029 1,091 (5.7%) 1,527 Net fee and commission income 206 264 (21.8%) 496 709 629 966 1,299 (25.6%) 2,008 Net trading income and fa
Slide 53: Country Financials (EE) – Ukraine
Country Financials (EE) – Ukraine In EUR mn Q3/2023 Q2/2023 q-o-q Q1/2023 Q4/2022 Q3/20223 1-9/2023 1-9/20223 y-o-y 1-12/2022 Net interest income 112 99 13.0% 101 110 101 312 265 18.0% 375 Net fee and commission income 17 20 (17.6%) 24 29 29 61 57 6.3% 87 Net trading income and fair value result 9 8
Slide 54: Group Corporates & Markets
Group Corporates & Markets In EUR mn Q3/2023 Q2/2023 q-o-q Q1/2023 Q4/2022 Q3/2022 1-9/2023 1-9/2022 y-o-y 1-12/2022 Net interest income 248 238 4.1% 226 228 191 711 505 41.0% 733 Net fee and commission income 142 129 9.8% 158 166 146 428 451 (5.1%) 617 Net trading income and fair value result 48 37
Slide 55: Sustainability Ratings
Sustainability Ratings The Leading Sustainable Financial Institution in Austria & CEE RBI has been committed to the UN Global Compact, since 2010 and signed up to the UNEP FI Principles for Responsible Banking In January 2021. Since then, a comprehensive portfolio impact analysis was performed, and
Slide 56: 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 banks 328,939,621 ordinary shares issued ISIN: AT00006
Slide 57: Financial Calendar
Financial Calendar 11 November 2023 Record Date Extraordinary General Meeting 21 November 2023 Extraordinary General Meeting Group Investor Relations 24 November 2023 Ex-Dividend Date 27 November 2023 Record Date Dividend 28 November 2023 Dividend Payment Date Raiffeisen Bank 24 January 2024 Start o
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