Raiffeisen Bank International Ag · VIE:RBI
Raiffeisen Bank International — Debt Investor Presentation (March 2021)
41 slides from Raiffeisen Bank International's debt investor presentation, Mar 29, 2021
Slide 1: RBI Group MREL Presentation
RBI Group MREL Presentation 29 March 2021
Slide 2: Disclaimer
Disclaimer Certain statements contained herein may be statements of Subject to applicable securities law requirements, we disclaim communicated or caused to be communicated (all such future expectations and other forward-looking statements about any intention or obligation to update or revise any fo
Slide 3: RBI at a Glance
RBI at a Glance Leading corporate and investment bank in Austria – at home in 13 CEE markets Servicing more than 17.1 million customers and Top 5 market position in 12 countries Solid capital CET1 ratio Total capital ratio position: 31/12/2020, fully loaded, incl. result 31/12/2020, fully loaded 13.
Slide 4: RBI is committed to Sustainable Finance
RBI is committed to Sustainable Finance New in 2021: Largest Austrian issuer of Green RBI becomes Signatory of the global Principles for Bonds Responsible Banking: First Austrian banking group to commit to the UNEP #2 bookrunner in FI Principles for Responsible Banking sustainable issuance in RBI’s
Slide 5: RBI Resolution Strategy
RBI Resolution Strategy Multiple-Point-of-Entry (MPE) is considered the most suitable resolution strategy for RBI 7 Independent and ringfenced resolution groups Strict intra-group limits to mitigate contagion risk MREL relevant resolution groups: Ratings from A3/A- to Baa2 Raiffeisenbank a.s. Tatra
Slide 6: RBI Resolution Strategy and Target Calibration
RBI Resolution Strategy and Target Calibration MPE requirements MREL target calibration MPE is based on the principle that different MPE add-on: financial interconnectedness within RBI group, considering resolution groups can be resolved separately if both EU-RG as well as non-EU network units, is c
Slide 7: Resolution Cascade and Planning
Resolution Cascade and Planning Solvency (own funds), liquidity and asset quality situation Preparation and prevention Secured liabilities phase ▪ Establishing and Retail and SME Deposits < 100 TEUR maintaining a recovery plan Bail-in Retail and SME Deposits > 100 TEUR eligible MREL Early interventi
Slide 8: Resolution Group Austria (RG AT)
Resolution Group Austria (RG AT) MREL Stock Resolution group Austria as at FY 2020 TREA as at FY 2020 Total MREL eligible instruments EUR 16.3 bn EUR 41.5 bn … of which subordinated EUR 11.9 bn ▪ Raiffeisen Bank International AG (incl. equity participations in subsidiaries) EUR 35.5 bn ▪ Raiffeisen
Slide 9: RG AT – MREL Target and Calibration Details
RG AT – MREL Target and Calibration Details Current MREL 2022 intermediate binding 2024 final target ratio target Total MREL target 39.33% (% of RWA) Total MREL ratio 36.00% 37.13% Subordinated MREL target (% of RWA) Statutory transition Loss absorption amount 8.32% Subordinated Recapitalisation amo
Slide 10: Group Capital Steering Approach
Group Capital Steering Approach RBI’s capital steering approach for the Group and network units based on the following pillars: Target Capital RBI has a mid-term target Management Currently approximately 2.5% of CET1 ratio of around 13% CET1 on top of regulatory capital Ratio and aims to fulfill reg
Slide 11: Raiffeisen Bank Romania
Raiffeisen Bank Romania MREL Presentation
Slide 12: Raiffeisen Bank Romania at a Glance
Raiffeisen Bank Romania at a Glance Top 3 network unit in the Group by profit contribution in 2020 ▪ Acquisition in 2001 ▪ Strong franchise ▪ 10% of market share by loans to customers as of Dec’20 ▪ Consistent history of profitability ▪ 6.4% share of RBI’s total assets and 6.4% share of RWA as of De
Slide 13: Focus on Sustainability…
Focus on Sustainability… Green bond framework Raiffeisen Bank intends to have a significant part of 2021 MREL needs covered through issuances of green bonds and invest the proceeds into sustainable green projects ▪ Credible, impactful and aligned with Green Bond Principles 2018 ▪ Aligned with EU Tax
Slide 14: …and Digital Transformation
…and Digital Transformation Diversified customer touch points Branches Direct Selling Agents 333 Digital customers 8.6% market share 19% of loan production for Flexi 880 ths. and 37% for Credit Card Active users, +17% y-o-y 2.2 mn Customers Points of Sale ATM / Multifunctional Machines 23 ths. 1.1 t
Slide 15: Diversified Loan Portfolio and Sound Asset Quality
Diversified Loan Portfolio and Sound Asset Quality Total assets Strong loans to 31/12/2020, in EUR mn Personal loans customer growth: 45% Revolving loans Other Retail 3,603 9% +7.5 % 294 CAGR 5-years Investment financing Mortgages 9% EUR 10,692 mn 37% SMB High quality 13% +16.6 % y-o-y liquid assets
Slide 16: Comfortable Capital Position and Strong Earning Power
Comfortable Capital Position and Strong Earning Power Capital stack Equity End of period, in EUR mn, without AT1 (EUR 49mn) Actual 22.62% Requirement 1,081 19.09% 18.16% Cumulated 15.65% retained 710 earnings 12.86% 2.79% 571 10.76% 2.10% Tier 2 EUR 774 mn AT 1 Retained earnings CET 1 Life-to-date C
Slide 17: Stable Funding Base and Ample Liquidity Position
Stable Funding Base and Ample Liquidity Position Funding Liquidity Others, of which: ▪ Senior Liabilities 2% 256% ▪ Debt securities issued 1% ▪ Subordinated liabilities 1% 164% 157% 162% 162% 146% 138% 142% Non-retail deposits Retail deposits 24% 69% 75% 80% 77% 67% 2017 2018 2019 2020 LCR NSFR Loan
Slide 18: Romania – MREL Calibration
Romania – MREL Calibration Current MREL Situation (2020) MREL Targets received in March 2020 Total MREL target (in EUR mn) in EUR mn Subordination exemption expected to be in line with CRR 72b: 3.5% of TREAs Tier 2 190 at 01.01.2022 at 01.01.2023 at 01.01.2024 AT 1 49 22.68 % 29.95% 27.73% MREL rati
Slide 19: Tatra banka Group
Tatra banka Group MREL Presentation
Slide 20: Slovakia – Strong and Diversified Economy
Slovakia – Strong and Diversified Economy GDP Unemployment rate in % Real GDP, seas.adjusted 22.3 9.0 21.8 8.0 - 2.6% 21.3 7.0 20.8 20.3 6.0 19.8 5.0 19.3 4.0 18.8 1.2018 7.2018 1.2019 7.2019 1.2020 7.2020 1.2021 1Q18 3Q18 1Q19 3Q19 1Q20 3Q20 Source: Eurostat Source: Eurostat House price, EUR/m2 Pub
Slide 21: First Private Bank in Slovakia
First Private Bank in Slovakia Bank established as greenfield company in 1990 Tatra Banka Group Member of First private bank in Slovakia RBI Group Leader in digital banking and innovation Leader in Premium Retail segment and Student segment No. 1 in corporate business with over 20% share Leader in a
Slide 22: Tatra Banka as Multibrand
Tatra Banka as Multibrand Tatra Raiffeisen banka Bank 78.78% 21.22% RBI Others 94 branches 62 branches Shareholder structure Assets Loans to customers Customers 31/12/2020, cons 31/12/2020, cons 31/12/2020, cons EUR 15,641 mn EUR 11,328 mn 930 tsd +7.8 % y-o-y +3.4 % y-o-y Global Finance - Tatra ban
Slide 23: Leader in Digitalization
Leader in Digitalization Mobile App ➔ used by 65% of active clients (and continuously growing) Voice biometrics ➔ active for 60% of clients Chatbot Adam ➔ covers 200+ conversation areas; over 20% reduction of call center inquiries during weekends Digital sales ➔ 40% of sales to retail clients initia
Slide 24: Tatra Banka Group – Lending Profile and Asset Quality
Tatra Banka Group – Lending Profile and Asset Quality Total assets NPE, coverage, and risk cost profile 31/12/2020, in EUR mn, cons Securities, bonds, Cash and central NPE 67.7% 69.1% 67.8% loans to banks bank 1,714 58.2% 58.8% coverage 49.8% 2,279 Others Total Assets 320 15 641 NPE 3.7% 3.8% 2.7% 2
Slide 25: Tatra Banka Group – Capital
Tatra Banka Group – Capital Strong and sustainable Capital Adequacy Ratio Equity Capital Adequacy Ratio 31/12/2020, cons End of period, in EUR mn, without AT1 (EUR 100mn) Actual 20.80% 1,245 Requirement 18.46% Buffer 996 16.87% 14.47% Buffer 6.32% 850 Cumulated 6.35% Buffer 12.10% retained 6.55% 2.3
Slide 26: Tatra Banka Group – Funding
Tatra Banka Group – Funding Funding average for relevant year ▪ Strong self-funding with solid deposit base ▪ Strong liquidity position Others, of which: ▪ Bank deposits 8% 175% 167% 168% ▪ Covered bonds 4% ▪ Senior bonds 1% 119% 126% 117% Retail deposits Corporate 60% deposits 94% 93% 92% 26% 2018
Slide 27: Tatra Bank Group – MREL Calibration
Tatra Bank Group – MREL Calibration Current MREL Situation MREL Targets based on SRB draft decision Combined Buffer Requirement 31.12.2020, in EUR mn MREL requirement SP Bonds 114 at 01.01.2022 at 01.01.2023 at 01.01.2024 Tier 2 147 21.01% 24.27% 27.53% AT 1 100 22.60% 5.46% 5.46% MREL ratio 5.46% 1
Slide 28: Raiffeisen Czech Republic
Raiffeisen Czech Republic MREL Presentation
Slide 29: Raiffeisen Czech Republic Resolution Group
Raiffeisen Czech Republic Resolution Group Largest network unit in the Group Assets CET 1 ratio 31/12/2020 31/12/2020, fully loaded, incl. result ▪ Largest CEE Bank in the RBI network by loans to customers EUR 18,363 mn 14.33% ▪ Greenfield launch in 1993 and successful +25.4 % y-o-y +0.5 pp y-o-y ac
Slide 30: Czech Republic – Macro Overview
Czech Republic – Macro Overview ▪ Stable political environment ▪ Reliable infrastructure combined with strategic geographical location in the center of Europe ▪ High private sector savings rate and low private indebtedness ▪ Low government debt – 42% after COVID support measures ▪ Stable and fully c
Slide 31: Raiffeisen Czech Republic: Ready for Scale
Raiffeisen Czech Republic: Ready for Scale Powered by digital banking and cross-selling 2020 efficiency drive Cost program launched in 2020 – focusing on head count, +14% 1 branches and office space 89% 95% Personnel expenses Closing branches of active customers use Fastest growing digital channels
Slide 32: Three strategic initiatives to accelerate growth
Three strategic initiatives to accelerate growth Acquisition of Equa Bank Loan growth Clients Digital banking users Online digital sales 11% (3-year CAGR) 480k 300k 50% Loans to customers: (30.06.2020) Digital: ✓ Proven digital distribution capabilities 30% Complementary: EUR 2 bn Consumer loans ✓ S
Slide 33: Raiffeisen Czech Republic – Bank Lending Profile
Raiffeisen Czech Republic – Bank Lending Profile Total assets – Bank only 31/12/2020, in EUR mn EUR 15,664 mn Asset quality - Bank only 69.4% 69.6% Securities & +7.4 % y-o-y 55.7% 62.9% 63.4% Other NPE 50.9% bonds 912 coverage 5,081 4.7% 3.6% 2.5% 1.8% 1.7% 2.3% NPE Loans to customers ratio 2015 201
Slide 34: Raiffeisen Czech Republic Group – Capital
Raiffeisen Czech Republic Group – Capital Capital stack Strong Organic Equity Generation Actual Over EUR 1.2 bn Net Income since launch Requirement 19.14% 1,244 16.43% 14.33% 13.80% Cumulated 867 retained 11.80% 2.00% Tier 2 9.85% earnings 1.95% AT 1 561 CET 1 EUR 822 mn Retained earnings Life-to-da
Slide 35: Raiffeisen Czech Republic – Bank Funding Profile
Raiffeisen Czech Republic – Bank Funding Profile Funding Liquidity ▪ Strong self-funding with solid deposit base 217% 209% Bank Covered 206% bonds Other 191% deposits 3% 4% 4% 134% 122% 120% 124% Corporate deposits 81% 80% 79% 67% 29% 2017 2018 2019 2020 Retail deposits 60% LCR NSFR Loan/deposit rat
Slide 36: Raiffeisen Czech Republic – Group MREL Calibration
Raiffeisen Czech Republic – Group MREL Calibration Current MREL Situation MREL Targets (received in 2020) Total MREL target (in EUR mn) in EUR mn Subordinated MREL target (in EUR mn) at 01.01.2022 at 01.01.2023 at 01.01.2024 Tier 2 205 19.1 % 23.6% AT 1 MREL ratio 18.7% 18.7% 159 CET 1 1,081 Funding
Slide 37: Preparation for MREL Issuance
Preparation for MREL Issuance International program governed by German law already established in Issuance 11/2020 Program ▪ Issuances issued under the program will be listed on Clearstream LUX and quoted on LUX bourse. ▪ Expected timing is 2Q/2021, aiming for May. We plan to rate single issuances r
Slide 38: Hungary, Croatia and Bulgaria Resolution Groups
Raiffeisen Bank Zrt. Hungary Raiffeisenbank Austria d.d. Croatia Raiffeisenbank EAD Bulgaria Hungary, Croatia and Bulgaria Resolution Groups
Slide 39: Raiffeisen Hungary - MREL
Raiffeisen Hungary - MREL Current MREL Situation MREL Targets as of March 2021 Total MREL target (in EUR mn) 31/12/2020 Subordinated MREL target (in EUR mn) at 01.01.2022 at 01.01.2023 at 01.01.2024 Tier 2 172 21.0 % 23.28% 26.42% 20.14% MREL ratio AT 1 1 86 15.20% 21.0 % Subordinated ratio CET 1 Fu
Slide 40: Raiffeisen Croatia - MREL
Raiffeisen Croatia - MREL Current MREL Situation Indicative MREL Targets as of January 2021 Total MREL target (in EUR mn) 31/12/2020 Subordinated MREL target (in EUR mn) at 01.01.2022 at 01.01.2023 at 01.01.2024 Tier 2 34 39 AT 1 24.97 % 29.96% MREL ratio 26.97% 23.98% 20.51% 20.51% 20.51% 24.94 % C
Slide 41: Raiffeisen Bulgaria – MREL
Raiffeisen Bulgaria – MREL Current MREL Situation Indicative MREL Targets as of January 2021 Total MREL target (in EUR mn) 31/12/2020 Subordinated MREL target (in EUR mn) at 01.01.2022 at 01.01.2023 at 01.01.2024 27.84% Tier 2 23.74 % 23.98% 25.91% 162 MREL ratio 20.25% 20.25% 20.25% 23.74 % Subordi
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