Raiffeisen Bank International Ag · VIE:RBI
Raiffeisen Bank International — H1 2024 Earnings Presentation
57 slides from Raiffeisen Bank International's earnings presentation, Jul 30, 2024
Slide 1: H1/2024 Results
Raiffeisen Bank International H1/2024 Results 30 July 2024 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 30 July 2024
Slide 4: H1/2024 Executive Summary
H1/2024 Executive Summary RBI Consolidated profit Consolidated RoE CET1 ratio Group 1-6/2024 1-6/2024 30/06/2024, transitional, incl. results EUR 1,324 mn 15.0% 17.8% +7% y-o-y +0.1 pp y-o-y +0.5 pp ytd Adjusted: Consolidated profit Consolidated RoE CET1 ratio EUR 604 mn 9.1% 14.7% +21% y-o-y +1.5 p
Slide 5: H1/2024 Executive Summary
H1/2024 Executive Summary RBI Loans to customers Core revenues Opex and Cost/Income Ratio1 Group 30/06/2024 1-6/2024, in EUR mn 1-6/2024 2,895 EUR 101,920 mn 1,391 EUR 1,924 mn 42.7% +3% ytd +5% -18% y-o-y -4% y-o-y +0.3 pp Net interest Net fee & income commission income Adjusted: Loans to customers
Slide 6: De-risking in Russia
De-risking in Russia Significant business reduction since 2022 Target business model Assets Liabilities Cash / liquidity placement Deposits from customers 27.1 RWA Mainly RUB at Central Bank of Russia Strict restrictions on deposit taking in Russia Strict limits on FX liquidity placements under IFRS
Slide 7: Q2/2024 Core Revenue Trends
Q2/2024 Core Revenue Trends Net interest income in EUR mn NII stable across most markets, but decreasing in head 1,494 1,455 1,385 1,364 1,441 1,440 office and Hungary Group Net interest margin excluding Russia/Belarus down 1,123 1,123 1,092 1,067 Core 997 1,039 7 bps q-o-q to 2.4% Excluding -2% Rus
Slide 8: Loans and Deposits to/from Customers in Q2/2024
Loans and Deposits to/from Customers in Q2/2024 Loans to customers Deposits from customers in EUR bn in EUR bn + 1% + 4% q-o-q q-o-q Group Group 120.6 120.9 125.3 101.8 101.9 99.4 100.4 101.9 121.2 119.4 Core Core Excluding Excluding 108.8 94.3 95.0 92.8 93.8 95.3 103.0 104.7 Russia/ Belarus Russia/
Slide 9: High Liquidity Across the Group
High Liquidity Across the Group RBI Group - Liquidity ratios RBI head office: conservative liquidity profile 201% 196% 210% LCR 189% 195% LCR at 172% (as of 22 July 2024) 140% 141% 143% 147% 146% NSFR Head office with sufficient liquidity to cover all deposits and maturing funding for over one Loan/
Slide 10: CET1 Ratio Development
CET1 Ratio Development + 45 bps q-o-q 17.8% 17.3% + + - - - - -7 bps -10 bps -23 bps -2 bps +49 bps +38 bps Credit risk Other credit Market & OCI, Retained earnings FX Core Group risk operational risk valuation & other effects Dividend accrual based on last year’s payout ratio (17.3%) 31/03/2024 Ben
Slide 11: CET1 Outlook 2024
CET1 Outlook 2024 Group CET1 ratio expected around 17.0 per cent at year-end 2024, 17.8% reflecting further business reduction measures in Russia ~17.0% Expected CET1 drivers in 2024: Any decision on dividends will be based on the capital position of the Group Retained + ~97 bps Net of expected 2024
Slide 12: P/B Zero Deconsolidation Scenario in Russia
P/B Zero Deconsolidation Scenario in Russia Capital stack under P/B Zero deconsolidation scenario 14.7% Expected stable in 2024 2.94% T2 Assumptions: 2.70% With Russia deconsolidated EUR 5.6 bn at P/B Zero, AT1 and T2 CET1 IFRS equity partially offset by deduction 2.07% AT 1 2.03% buckets are adequa
Slide 13: Capital Ratios and SREP
Capital Ratios and SREP RBI, transitional, pro forma as of 30/06/2024 Current regulatory 21.9% P2R 1.57% to be met with CET1 requirements 19.5% 2.80% 53 bps eligible for AT1 17.8% 16.46% 70 bps eligible for T2 Tier 2 13.76% 2.70% (incl. P2R) 11.73% 2.03% AT 1 P2G To be solely covered by CET1 but (in
Slide 14: MREL and Funding Plan
MREL and Funding Plan Austria resolution group MREL Including profit Funding plan 2024 30/06/2024 Requirement 43.03% Senior preferred issuance after the summer Actual 10.83% Senior Total MREL requirement 36.02% preferred Other resolution groups (30/06/2024) 32.20% Actual Requirements MREL needs Rank
Slide 15: Macro Outlook
Macro Outlook Muted recovery driven by consumer demand rebound and GDP (real, % yoy) 2022 2023e 2024f 2025f better-than-expected investments. Recovery in exports will Czech Republic 2.9 0.0 1.5 2.9 Hungary 4.6 -0.8 2.2 3.4 also contribute Poland 5.6 0.2 3.1 3.8 Investments boosted by EU funds are st
Slide 16: Inflation and Key Rates Forecast
Inflation and Key Rates Forecast Inflation & rates Inflation rate (CPI) Gradual disinflation is progressing, while fight against (average, % y-o-y) CZ 2.5% 2.4% inflation is not yet over. Negative surprises in core and 3.0% 3.8% 2024f 2025f services inflation highlight that risks to the upside remai
Slide 17: 2024 Guidance
2024 Guidance Core Group excluding Russia / Belarus Core revenues around EUR 4.1 bn EUR ~1.8 bn 4% to 5% & loan growth Net interest Net fee and Loans to income commission income customers The 2024 guidance for the around EUR 3.3 bn around 52% OPEX & CIR OPEX CIR Group including Russia and Belarus ha
Slide 18: Risk Update
01 Business & Financial Update 02 Risk Update 03 Appendix 30 July 2024
Slide 19: Risk Overview
Risk Overview Q2/2024 30/06/2024 30/06/2024 Risk cost Stock of risk overlays NPE ratio/ coverage ratio Provisioning ratio Risk cost1 27 bps EUR 23 mn EUR 788 mn 1.8% 53.3% +5 bps q-o-q -11 bps +3.3 pp GC&M, CE, SEE (CRE, inflation & spillover) EUR 415 mn q-o-q q-o-q 32 bps Russia / Belarus EUR 283 m
Slide 20: IFRS 9 Provisioning
IFRS 9 Provisioning Q2/2024 EUR EUR Overall EUR 23 mn of IFRS 9 provisions in Q2 78 mn 23 mn + Stage 1 & 2: driven by rating upgrades and FX Macro update: slightly improved outlook, - mainly in Hungary EUR -40 mn - + Overlays: booking for leverage financing offset by exposure decrease in Russia EUR
Slide 21: Q2/2024 RWA Development
Q2/2024 RWA Development Development in core group credit RWAs, partly driven by Retail in Czechia and Romania 1 Inorganic effect following improvement in corporate ratings Increase in Russia driven by deposit increase at CBR Inorganic effect relief of around EUR –0.5 bn until year 2 Operational Risk
Slide 22: Poland FX Mortgage Update
Poland FX Mortgage Update Cases update Poland FX mortgage exposure and stock of provisions CHF loans EUR loans CHF loans EUR loans Loans outstanding 24,477 9,764 Exposure EUR 1,719 mn Exposure EUR 417 mn Litigation cases 15,698 838 Stock of Stock of provisions for litigation: provisions for litigati
Slide 23: NPE Ratio and NPE Coverage
NPE Ratio and NPE Coverage Central Europe Asset quality development q-o-q 60.2% 58.4% 59.0% 58.6% 7.0% 785 0.9% 50.0% NPE ratio reduced to 1.8% mainly due to 1.3% 1.2% 1.2% 1.2% recoveries, sales and re-aging in head office Southeastern 0.0% 67.3% 66.6% 66.0% 67.2% (3.0%) 615 and Russia 7.0% Europe
Slide 24: Appendix
01 Business & Financial Update 02 Risk Update 03 Appendix 30 July 2024
Slide 25: Geographic Footprint
Geographic Footprint Leading regional player with CEE presence of over 30 years Russia, #16 servicing approx. 19 million customers Central Europe (CE) ▪ Loans: EUR 5.8 bn Southeastern Europe (SEE) ▪ Business outlets: 117 Covering Austria and 12 CEE markets, of which five are EU members. Four countri
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 31/12/2023 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: Q2/2024 Income Statement and KPIs
Q2/2024 Income Statement and KPIs (in EUR mn) Q2/2024 % q-o-q % y-o-y Net interest income 1,440 -1% +6% Net interest margin Q2/2024 Net fee and commission income 722 +8% -1% Net trading income & fair value result 42 +150% +40% 2.92% Other operating components1 53 -13% -26% -6 bps q-o-q Operating inc
Slide 28: Q2/2024 Income Statement and KPIs
Adjusted excluding Q2/2024 Income Statement and KPIs Russia / Belarus (in EUR mn) Q2/2024 % q-o-q % y-o-y Net interest income 1,067 -2% +3% Net interest margin Q2/2024 Net fee and commission income 456 +7% +9% Net trading income & fair value result 33 - - 2.39% Other operating components1 55 -15% -2
Slide 29: Total Exposure
Total Exposure Total exposure by segments Q2/2024 … by sector Q2/2024 in EUR bn, q-o-q in EUR bn Mortgages 28 GC&M +3.4% Consumer loans & other 21 Retail 20% 250 bn 69 Sovereigns & supranationals 104.1 Sov. & FI 41% EUR Financial institutions 35 Industrials 25 +3.5% q-o-q Materials 10 Corporate 39%
Slide 30: Q2/2024 Segments Overview
Q2/2024 Segments Overview Core revenues Loans to customers / NIM Provisioning ratio Profit/loss after tax Q2/24 q-o-q Q3/23 Q4/23 Q1/24 Q2/24 Q2/24 q-o-q Q2/24 q-o-q 548 37,599 37,596 37,158 37,555 CE Net Fees 152 +6% 5.00% 4 bps EUR -61 mn 30,000 2.69% +40 bps - NII 397 -2% 2.57% 2.52% 2.47% 20,000
Slide 31: Raiffeisen Capital Management
Raiffeisen Capital Management Raiffeisen Capital Management (RCM) is one of the AUM 40% leading asset managers in Central Europe for more than ESG 35 years and is a 100% owned subsidiary of RBI 71% 39% RCM’s core competencies include responsible & sustainable investing in fixed income, equity and EU
Slide 32: Corporate Center/Reconciliation
Corporate Center/Reconciliation In EUR mn 1-6/2024 1-6/2023 y-o-y In EUR mn 1-6/2024 1-6/2023 y-o-y Operating income 1.039 443 134,4% Operating income (1.076) (492) 118,6% General admin. expenses (236) (255) (7,5%) General admin. expenses 96 80 20,4% Operating result 803 188 326,4% Operating result
Slide 33: 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 1/1/2024 1.002 4.988 15.600 (4.580) 17.009 1.231 1.610 19.849 Capital increases 0 0 0 0 0 (
Slide 34: Regulatory Capital Structure - Overview
Regulatory Capital Structure - Overview in EUR mn 30/6/2024 31/3/2024 31/12/2023 Common equity tier 1 (before deductions) 18.252 16.849 17.028 Deduction items (775) (918) (825) Common equity tier 1 (after deductions) 17.477 15.931 16.203 Additional tier 1 (after deductions) 1.688 1.680 1.677 Tier 1
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 2023 1-6/2024 FY 2024e Austria Bank levy based on total assets (excluding derivatives) 0 12 ~22 Bank levy of 0.15% (for up to HUF 50 bn of total assets) and 0.21% (for tax base above HUF 50 bn); Hungary 91 64 ~64 special tax for banks based on the net profit modified
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 30/6/2024 30/6/2024 31/12/2023 30/6/2024 31/12/2023 30/6/2024 31/12/2023 30/6/2024 31/12/2023 Czech Republic 285 0.9% 0.9% 51.0%
Slide 39: RBI Group
RBI Group In EUR mn Q2/2024 Q1/2024 q-o-q Q4/2023 Q3/2023 Q2/2023 1-6/2024 1-6/2023 y-o-y 1-12/2023 Net interest income 1,440 1,455 (1.1%) 1,494 1,441 1,364 2,895 2,749 5.3% 5,683 Net fee and commission income 722 669 8.0% 677 667 732 1,391 1,698 (18.1%) 3,042 Net trading income and fair value resul
Slide 40: RBI Core Group – excl. Russia and Belarus
RBI Core Group – excl. Russia and Belarus In EUR mn Q2/2024 Q1/2024 q-o-q Q4/2023 Q3/2023 Q2/2023 1-6/2024 1-6/2023 y-o-y 1-12/2023 Net interest income 1,067 1,092 (2.4%) 1,123 1,123 1,039 2,159 2,036 6.0% 4,282 Net fee and commission income 456 427 6.9% 453 425 417 882 846 4.3% 1,724 Net trading in
Slide 41: Country Financials (CE) – Czech Republic
Country Financials (CE) – Czech Republic In EUR mn Q2/2024 Q1/2024 q-o-q Q4/2023 Q3/2023 Q2/2023 1-6/2024 1-6/2023 y-o-y 1-12/2023 Net interest income 150 151 (0.9%) 168 162 159 301 312 (3.4%) 642 Net fee and commission income 45 41 9.2% 47 41 48 86 95 (10.3%) 183 Net trading income and fair value r
Slide 42: Country Financials (CE) – Hungary
Country Financials (CE) – Hungary In EUR mn Q2/2024 Q1/2024 q-o-q Q4/2023 Q3/2023 Q2/2023 1-6/2024 1-6/2023 y-o-y 1-12/2023 Net interest income 117 133 (11.5%) 143 137 121 250 245 2.3% 525 Net fee and commission income 56 52 6.7% 54 50 52 108 98 10.0% 202 Net trading income and fair value result (3)
Slide 43: Country Financials (CE) – Poland
Country Financials (CE) – Poland In EUR mn Q2/2024 Q1/2024 q-o-q Q4/2023 Q3/2023 Q2/2023 1-6/2024 1-6/2023 y-o-y 1-12/2023 Net interest income 13 4 220.2% 4 7 7 17 8 122.5% 19 Net fee and commission income 0 0 11.8% 0 0 0 0 0 184.5% 0 Net trading income and fair value result 1 (0) – 1 1 1 1 1 (7.7%)
Slide 44: Country Financials (CE) – Slovakia
Country Financials (CE) – Slovakia In EUR mn Q2/2024 Q1/2024 q-o-q Q4/2023 Q3/2023 Q2/2023 1-6/2024 1-6/2023 y-o-y 1-12/2023 Net interest income 116 116 0.8% 111 103 99 232 190 22.4% 404 Net fee and commission income 51 50 1.3% 51 48 48 101 94 7.4% 193 Net trading income and fair value result 2 4 (3
Slide 45: Country Financials (SEE) – Albania
Country Financials (SEE) – Albania In EUR mn Q2/2024 Q1/2024 q-o-q Q4/2023 Q3/2023 Q2/2023 1-6/2024 1-6/2023 y-o-y 1-12/2023 Net interest income 33 31 5.1% 32 30 28 64 52 22.7% 114 Net fee and commission income 7 6 26.7% 5 6 5 12 9 36.0% 20 Net trading income and fair value result 1 1 (10.6%) 1 2 (5
Slide 46: Country Financials (SEE) – Bosnia & Herzegovina
Country Financials (SEE) – Bosnia & Herzegovina In EUR mn Q2/2024 Q1/2024 q-o-q Q4/2023 Q3/2023 Q2/2023 1-6/2024 1-6/2023 y-o-y 1-12/2023 Net interest income 22 22 (0.0%) 23 22 21 45 40 10.3% 86 Net fee and commission income 15 13 11.9% 14 14 13 29 26 9.1% 54 Net trading income and fair value result
Slide 47: Country Financials (SEE) – Croatia
Country Financials (SEE) – Croatia In EUR mn Q2/2024 Q1/2024 q-o-q Q4/2023 Q3/2023 Q2/2023 1-6/2024 1-6/2023 y-o-y 1-12/2023 Net interest income 47 44 6.9% 48 47 44 91 85 7.3% 181 Net fee and commission income 19 19 3.9% 19 20 17 38 35 7.2% 73 Net trading income and fair value result (3) 1 – 16 (4)
Slide 48: Country Financials (SEE) – Kosovo
Country Financials (SEE) – Kosovo In EUR mn Q2/2024 Q1/2024 q-o-q Q4/2023 Q3/2023 Q2/2023 1-6/2024 1-6/2023 y-o-y 1-12/2023 Net interest income 18 18 (2.6%) 18 17 16 36 31 14.3% 66 Net fee and commission income 4 3 32.1% 4 6 4 8 8 (2.5%) 17 Net trading income and fair value result 0 (0) – 0 1 0 0 1
Slide 49: Country Financials (SEE) – Romania
Country Financials (SEE) – Romania In EUR mn Q2/2024 Q1/2024 q-o-q Q4/2023 Q3/2023 Q2/2023 1-6/2024 1-6/2023 y-o-y 1-12/2023 Net interest income 154 153 0.6% 149 147 143 307 283 8.5% 579 Net fee and commission income 49 41 17.1% 54 46 44 90 85 5.8% 184 Net trading income and fair value result 0 2 (8
Slide 50: Country Financials (SEE) – Serbia
Country Financials (SEE) – Serbia In EUR mn Q2/2024 Q1/2024 q-o-q Q4/2023 Q3/2023 Q2/2023 1-6/2024 1-6/2023 y-o-y 1-12/2023 Net interest income 75 74 1.4% 73 72 66 150 125 19.6% 270 Net fee and commission income 31 29 6.1% 29 27 26 59 51 15.6% 108 Net trading income and fair value result 3 3 3.4% 3
Slide 51: Country Financials (EE) – Belarus
Country Financials (EE) – Belarus In EUR mn Q2/2024 Q1/2024 q-o-q Q4/2023 Q3/2023 Q2/2023 1-6/2024 1-6/2023 y-o-y 1-12/2023 Net interest income 28 26 8.3% 21 19 20 54 47 14.7% 86 Net fee and commission income 40 27 49.8% 30 30 38 67 68 (1.7%) 128 Net trading income and fair value result 8 5 55.6% 4
Slide 52: Country Financials (EE) – Russia
Country Financials (EE) – Russia In EUR mn Q2/2024 Q1/2024 q-o-q Q4/2023 Q3/2023 Q2/2023 1-6/2024 1-6/2023 y-o-y 1-12/2023 Net interest income 377 368 2.5% 382 331 322 745 698 6.8% 1,411 Net fee and commission income 220 208 5.5% 186 206 264 428 760 (43.6%) 1,152 Net trading income and fair value re
Slide 53: Country Financials (EE) – Ukraine
Country Financials (EE) – Ukraine In EUR mn Q2/2024 Q1/2024 q-o-q Q4/2023 Q3/2023 Q2/2023 1-6/2024 1-6/2023 y-o-y 1-12/2023 Net interest income 97 103 (5.0%) 106 112 99 200 200 (0.0%) 418 Net fee and commission income 17 17 (0.9%) 23 17 20 34 44 (23.2%) 84 Net trading income and fair value result 5
Slide 54: Group Corporates & Markets
Group Corporates & Markets In EUR mn Q2/2024 Q1/2024 q-o-q Q4/2023 Q3/2023 Q2/2023 1-6/2024 1-6/2023 y-o-y 1-12/2023 Net interest income 219 233 (6.2%) 256 248 238 452 464 (2.4%) 967 Net fee and commission income 140 147 (4.9%) 150 142 129 287 287 0.2% 578 Net trading income and fair value result 34
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 23 October 2024 Start of Quiet Period 30 October 2024 Third Quarter Report, Conference Call Group Investor Relations 27 January 2025 Start of Quiet Period 4 February 2025 Preliminary Results 2024, Conference Call Raiffeisen Bank 25 February 2025 Annual Report 2024 International AG
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