Raiffeisen Bank International Ag · VIE:RBI
Raiffeisen Bank International — Q1 2022 Earnings Presentation
58 slides from Raiffeisen Bank International's earnings presentation, May 4, 2022
Slide 1: Raiffeisen Bank International Q1/2022 Results
Raiffeisen Bank International Q1/2022 Results – 4 May 2022
Slide 2: Disclaimer
Disclaimer Certain statements contained herein may be statements of future This presentation contains financial and non-financial information and Order") or who (i) have professional experience in matters relating to expectations and other forward-looking statements about Raiffeisen statistical data
Slide 3: Business & Financial Update, Risk Update, Appendix
01 02 03 Business & Financial Risk Update Appendix Update Q1/2022 Results - 4 May 2022 3
Slide 4: Q1/2022 Executive Summary
Q1/2022 Executive Summary Consolidated profit Core revenues CIR 1-3/2022 Adj. for IFRS5 (Bulgaria), 1-3/2022, in EUR mn Adj. for IFRS5 (Bulgaria), 1-3/2022 986 EUR 442 mn 683 42.1% +39% q-o-q +1% +22% q-o-q -13 pp y-o-y Net interest Net fee & income commission income Loans to customers Consolidated
Slide 5: Q1/2022 Business Highlights
Q1/2022 Business Highlights M&A and CE/SEE focus ▪ Serbia: Acquisition of Crédit Agricole Srbija closed on April 1st ▪ Sale of Raiffeisenbank Bulgaria to KBC group on track – closing expected mid-2022 ▪ Czech Republic: Integration of Equa bank and ING retail customers on track Proactive in unprecede
Slide 6: Q1/2022 Income Statement and KPIs
Q1/2022 Income Statement and KPIs (in EUR mn) Q1/2022 % q-o-q % y-o-y Net interest income 986 +1% +34% Net interest margin Q1/2022 Net fee and commission income 683 +22% +63% Net trading income & fair value result 184 >500% >500% 2.21% Other operating components1 28 -50% -48% -1 bp q-o-q Operating i
Slide 7: Q1/2022 Core Revenue Trends
Q1/2022 Core Revenue Trends Net interest income up 1% q-o-q (EUR 10 mn) Net interest margin stable q-o-q EUR 986 mn 2021/22 y-o-y 2.22% 2.21% 976 986 ▪ NII up 7.8% q-o-q adjusting for TLTRO bonus recognized in Q4 +2 bps -3 bps 825 843 ▪ Strong contribution from higher rates in the Czech Republic (up
Slide 8: Balance Sheet: Assets and Loan Growth
Balance Sheet: Assets and Loan Growth in EUR mn, % q-o-q 31/03/2022 Loans to customers Assets 192,624 +0% ▪ Strong loan growth in Central Europe with the Czech Republic, Slovakia, and Hungary up 7.4%, 3.1%, and 2.1% respectively Loans to customers 101,966 +1% ▪ In Southeastern Europe, Romania grew 5
Slide 9: Balance Sheet: Liabilities and Liquidity
Balance Sheet: Liabilities and Liquidity in EUR mn, % q-o-q 31/03/2022 Deposits from customers Liabilities 192,624 +0% ▪ Across key markets, higher interest rates have led to a shift from current accounts to saving accounts and term deposits Deposits from banks 34,575 -0% ▪ Significantly higher volu
Slide 10: CET 1 Ratio Development
CET 1 Ratio Development -88 bps q-o-q 13.1% - 12.3% + + - - + + -28 bps -115 bps -43 bps +8 bps +40 bps +13 bps +36 bps Loan growth Other credit Market & OCI, Retained FX Re-inclusion of risk operational valuation & earnings 2021 dividend risk other effects ▪ -65 bps from previously flagged RWA effe
Slide 11: CET 1 Ratio Outlook
CET 1 Ratio Outlook Recovery close to - + - x 13.0% 12.3% + +74 bps +25 to -20 bps -10 to 0 bps +40 bps -20 bps incl. FY/2021 M&A Retained Loan Internal rating Inorganic effects dividend earnings growth downgrades offset by countermeasures 31/03/2022 31/12/2022e Transitional Guidance CET 1 ratio In
Slide 12: Capital Ratios
Capital Ratios Regulatory capital requirements Composition (31/03/2022) Transitional (including results) ▪ P2R of 2.20%: RBI Regulatory 15.9% ▪ 1.24% met with CET1, 41 bps with AT1 and 55 bps with T2 13.9% 14.86% ▪ P2G of 1.25%; to be solely covered by CET1 but applicable Tier 2 to all capital layer
Slide 13: MREL and Issuance Plans
MREL and Issuance Plans Austria resolution group MREL (31/03/2022) ▪ EUR 500 mn covered bond issue in January 2022 Actual 36.73% Requirement ▪ Two to three issuances planned in covered and senior preferred in 2022 35.89% 10.99% Senior ▪ Covered bond issuance to refinance TLTRO funding, senior prefer
Slide 14: Russia and Cross-border Exposure
Russia and Cross-border Exposure Raiffeisenbank Russia Exposure Focusing on solvency and liquidity RBI Group exposure to Russia as of 31/03/2022 16.00% Equity and EUR 2.3 bn RWA EUR 19,848 mn EUR 11,955 mn other capital IFRS 31/03/2022 31/03/2022 31/12/2021 Actuals 11.79% 12.63% Total capital (local
Slide 15: CE/SEE Banking Sector Loan Growth Outlook
CE/SEE Banking Sector Loan Growth Outlook Retail Corporate ▪ Credit growth revised down due to high (and still rising) 2022e 2023f 2022e 2023f inflation, economic slowdown, monetary and macroprudential tightening Hungary 8.0% 6.0% 1.0% 2.0% ▪ Corporate loan growth rates expected Czech Republic 5.9%
Slide 16: Macro Outlook
Macro Outlook GDP (real, % yoy) 2020 2020 2021e2021 2022e 2022f 2023f 2023f ▪ The war in Ukraine significantly reduces the growth outlook Czech Republic -5.8 3.3 2.8 0.9 for the region, although 2022 will still benefit from a strong Hungary -5.2 7.1 2.5 2.0 first quarter. Economic conditions expecte
Slide 17: 2022 Guidance
2022 Guidance Core revenues & ▪ In 2022, net interest income is expected to increase by high single digit per cent and net fee and loan growth commission income by mid-single digit per cent ▪ We expect stable loan volumes in 2022, with mid-single digit growth in core CE and SEE markets OPEX & ▪ We e
Slide 18: Risk Update
01 02 03 Business & Financial Risk Update Appendix Update Q1/2022 Results - 4 May 2022 18
Slide 19: Risk Overview
Risk Overview Provisioning ratio / risk cost Stock of Risk Overlays NPE ratio/ coverage ratio 1-3/2022 31/03/2022 1-3/2022 97 bps EUR 319 mn EUR 516 mn 1.6% 61.8% Special risk factors, post model +43 bps q-o-q +113% q-o-q adjustments, and sanction risk +1 bp q-o-q -73 bps q-o-q Risk management EU st
Slide 20: Corporate Playbook – Second Round Effects
Corporate Playbook – Second Round Effects as of 31/03/2022 Portfolio heatmap EUR 82.3 bn corporate exposure reviewed in EUR bn, Corporate exposure Industries >EUR 0.8 bn for “mild” Country level view Impacted Auto parts & equipment 1.8 Airlines & airport 0.4 Austria EUR 1.4 bn services Impacted Chem
Slide 21: Asset Freeze Sanction - Exposure List
Asset Freeze Sanction - Exposure List Exposure to current list of sanctioned corporate and financial Maturities of exposure to sanctioned entities customers as of 30/04/2022 800 705 39% 700 672 641 626 EUR 613 mn 25% 600 17% 500 14% 5% 400 -13% 300 vs. 28/02/2022 200 <6 < 12 < 18 < 24 24 + 28/02 15/
Slide 22: RWA Development
RWA Development Q1/2022 RWA development Estimated RWA effects until year end 2022 1 Credit risk increased by EUR 11.8 bn (before FX). Asset quality effect driven by sovereign ▪ Further provisions for litigation in Poland may lead to Op. downgrades in Russia, Belarus, and Ukraine mainly in corporate,
Slide 23: IFRS 9 Provisioning in Q1/2022
IFRS 9 Provisioning in Q1/2022 EUR EUR EUR ▪ Stage 1 & 2: EUR 116 mn of provisions (EUR 96 mn in non- 105 mn 35 mn 319 mn retail and EUR 19 mn in retail) triggered mainly by rating reviews including EUR 70 mn Russia, EUR 35 mn in head office, and EUR 15 mn Ukraine. EUR 115 mn EUR ▪ Macro update: EUR
Slide 24: Total Exposure
Total Exposure Total exposure by segments, in EUR bn, Q1/2022 Total exposure by sector, in EUR bn, Q1/2022 Total: EUR 231.6 bn, -0.3% (q-o-q) Total: EUR 231.6 bn GC&M +2.7% Retail Mortgages 29 97.9 21.0% Consumer loans & other 19 CE -2.5% Sovereigns & supranationals 53 Sov. and FI 66.5 Financial ins
Slide 25: NPE Ratio and NPE Coverage
NPE Ratio and NPE Coverage Q1/2021 Q2/2021 Q3/2021 Q4/2021 Q1/2022 NPE Stock Asset quality development q-o-q Central Europe in EUR mn 61.4% 60.5% 59.7% 6.0% 56.8% 58.3% Q1/2022 ∆ QoQ ▪ NPE ratio stable at 1.6% 50.0% 953 1.8% 1.8% 1.7% 1.6% 1.7% 1.0% +4.1% ▪ NPE coverage ratio at 61.8% with 3.3 pp in
Slide 26: Appendix
01 02 03 Business & Financial Risk Update Appendix Update Q1/2022 Results - 4 May 2022 26
Slide 27: Geographic Footprint
Geographic Footprint ▪ Leading regional player with CEE presence of over 30 Central Europe (CE) Russia, #10 years servicing approx. 18 million customers Central Europe (CE) ▪ Loans: EUR 10.6 bn Southeastern Europe Southeastern (SEE) Europe (SEE) ▪ Branches: 131 Eastern Eastern Europe(EE) Europe (EE)
Slide 28: Raiffeisen Banking Group Structure
Raiffeisen Banking Group Structure Raiffeisen Banking Group (RBG) – largest banking group in Austria with total assets of EUR 388 bn as of 31/12/2021 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 29: Polish CHF Mortgage and Developments
Polish CHF Mortgage and Developments Around 68% of CET1 or equivalent held against the portfolio Total provisions Q1/2022 EUR ~430 mn Credit risk RWA1 (driven by 150% risk weighting) and EUR of which in Q1/2022: EUR ~1,390 mn impairments 412 mn EUR 54 mn EUR ~960 mn Operational risk RWA and litigati
Slide 30: Q1/2022 Segments Overview
Q1/2022 Segments Overview Core revenues Loans to customers / NIM Provisioning ratio Profit/loss after tax Q1/22 q-o-q Q2/21 Q3/21 Q4/21 Q1/22 Q1/22 q-o-q Q1/22 q-o-q 34,446 35,981 446 30,258 33,224 5.00% CE Net Fees 139 30,000 +7% 26 bps EUR 74 mn 2.13% -37 bps - NII 307 +8% 1.67% 2.01% 20,000 1.51%
Slide 31: Corporate Center/Reconciliation
Corporate Center/Reconciliation In EUR mn 1-3/2022 1-3/2021 y-o-y In EUR mn 1-3/2022 1-3/2021 y-o-y Operating income 183 107 71,7% Operating income (6) (106) (94,1%) General admin. expenses (104) (92) 12,3% General admin. expenses 30 31 -2,1% Operating result 79 14 460,0% Operating result 24 (75) –
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 4.992 10.121 (3.272) 12.843 1.010 1.622 15.475 Capital increases 0 0 0 0 0 0
Slide 33: Regulatory Capital Overview
Regulatory Capital Overview Regulatory Capital Structure In EUR mn 31/3/2022 31/12/2021 30/9/2021 Common equity tier 1 (before deductions) 13.189 12.613 12.342 Deduction items (1.033) (801) (1.070) Common equity tier 1 (after deductions) 12.156 11.812 11.273 Additional tier 1 (after deductions) 1.67
Slide 34: Maturity Profile
Maturity Profile Maturity Maturity Profile Profile at at 30/9/2020 31/3/2022 (in EUR mn) 3,397 16 2,010 546 1,672 3,382 1,498 1,431 1,158 1,135 12 735 1,650 687 1,465 1,498 1,431 109 576 1,157 1,123 500 517 626 500 500 76 48 5 170 17 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 >2035 Senio
Slide 35: RBI AG: Green Bond Allocation and Impact Report
RBI AG: Green Bond Allocation and Impact Report (as of 28 February 2022) Green loan portfolio total volume: Green buildings 1,336 mn 14% under EUR 73% development EUR 975 mn Clean transportation EUR 1,294 mn EUR 42 mn by use of 19% proceeds disbursed undisbursed Suppliers of batteries EUR 200 mn, 86
Slide 36: 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 1 100% XS1756703275 4.500% EUR 500 mn 24 Jan 2018 15 Jun 2025 Semi-annu
Slide 37: 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 New joint monitoring ensu
Slide 38: Bank Levies
Bank Levies Impact in EUR mn FY 2021 1-3/2022 FY 2022e Austria Bank levy based on total assets (excluding derivatives) 21 6 ~22 Bank levy of 0.15% (for up to HUF 50 bn of total assets) and 0.21% (for tax base above Hungary HUF 50 bn) fully reflected in the first quarter; one-time bank levy of 0.19%
Slide 39: 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 31/3/2022 31/3/2022 31/12/2021 31/3/2022 31/12/2021 31/3/2022 31/12/2021 31/3/2022 31/12/2021 Czech Republic 322 1,3% 1,1% 46,5%
Slide 40: RBI Group
RBI Group In EUR mn Q1/2022 Q4/2021 q-o-q Q3/20213 Q2/20213 Q1/20213 1-3/2022 1-3/20213 y-o-y 1-12/2021 Net interest income 986 976 1.0% 843 773 736 986 736 33.9% 3,327 Net fee and commission income 683 561 21.8% 521 483 420 683 420 62.8% 1,985 Net trading income and fair value result 184 24 >500,0%
Slide 41: Country Financials (CE) – Czech Republic
Country Financials (CE) – Czech Republic In EUR mn Q1/2022 Q4/2021 q-o-q Q3/2021 Q2/2021 Q1/2021 1-3/2022 1-3/2021 y-o-y 1-12/2021 Net interest income 166 128 29.4% 105 77 74 166 74 124.5% 385 Net fee and commission income 49 42 16.4% 35 36 33 49 33 48.2% 146 Net trading income and fair value result
Slide 42: Country Financials (CE) – Hungary
Country Financials (CE) – Hungary In EUR mn Q1/2022 Q4/2021 q-o-q Q3/2021 Q2/2021 Q1/2021 1-3/2022 1-3/2021 y-o-y 1-12/2021 Net interest income 67 60 12.6% 49 43 38 67 38 75.7% 189 Net fee and commission income 45 42 5.2% 41 39 35 45 35 27.3% 158 Net trading income and fair value result 2 0 >500,0%
Slide 43: Country Financials (CE) – Poland
Country Financials (CE) – Poland In EUR mn Q1/2022 Q4/2021 q-o-q Q3/2021 Q2/2021 Q1/2021 1-3/2022 1-3/2021 y-o-y 1-12/2021 Net interest income 3 3 (5.7%) 3 3 3 3 3 (1.1%) 13 Net fee and commission income 1 1 20.0% 1 1 1 1 1 6.7% 2 Net trading income and fair value result (0) 1 – 0 0 0 (0) 0 – 2 Othe
Slide 44: Country Financials (CE) – Slovakia
Country Financials (CE) – Slovakia In EUR mn Q1/2022 Q4/2021 q-o-q Q3/2021 Q2/2021 Q1/2021 1-3/2022 1-3/2021 y-o-y 1-12/2021 Net interest income 71 92 (22.8%) 70 68 69 71 69 2.8% 300 Net fee and commission income 45 45 1.1% 44 43 39 45 39 16.1% 171 Net trading income and fair value result 1 2 (42.3%
Slide 45: Country Financials (SEE) – Albania
Country Financials (SEE) – Albania In EUR mn Q1/2022 Q4/2021 q-o-q Q3/2021 Q2/2021 Q1/2021 1-3/2022 1-3/2021 y-o-y 1-12/2021 Net interest income 16 15 3.8% 14 14 13 16 13 20.2% 55 Net fee and commission income 4 4 (3.7%) 4 4 4 4 4 19.3% 16 Net trading income and fair value result 2 0 263.7% 0 0 1 2
Slide 46: Country Financials (SEE) – Bosnia & Herzegovina
Country Financials (SEE) – Bosnia & Herzegovina In EUR mn Q1/2022 Q4/2021 q-o-q Q3/2021 Q2/2021 Q1/2021 1-3/2022 1-3/2021 y-o-y 1-12/2021 Net interest income 15 15 0.3% 15 15 15 15 15 (2.3%) 60 Net fee and commission income 13 13 (4.1%) 13 12 10 13 10 21.3% 49 Net trading income and fair value resul
Slide 47: Country Financials (SEE) – Bulgaria
Country Financials (SEE) – Bulgaria In EUR mn Q1/2022 Q4/2021 q-o-q Q3/2021 Q2/2021 Q1/2021 1-3/2022 1-3/2021 y-o-y 1-12/2021 Net interest income 31 31 2.7% 30 30 29 31 29 9.3% 119 Net fee and commission income 15 16 (5.7%) 16 15 13 15 13 16.3% 60 Net trading income and fair value result 0 1 (38.3%)
Slide 48: Country Financials (SEE) – Croatia
Country Financials (SEE) – Croatia In EUR mn Q1/2022 Q4/2021 q-o-q Q3/2021 Q2/2021 Q1/2021 1-3/2022 1-3/2021 y-o-y 1-12/2021 Net interest income 27 27 0.1% 28 27 29 27 29 (5.4%) 110 Net fee and commission income 20 20 (0.1%) 22 19 15 20 15 36.8% 76 Net trading income and fair value result (4) (1) 36
Slide 49: Country Financials (SEE) – Kosovo
Country Financials (SEE) – Kosovo In EUR mn Q1/2022 Q4/2021 q-o-q Q3/2021 Q2/2021 Q1/2021 1-3/2022 1-3/2021 y-o-y 1-12/2021 Net interest income 12 13 (4.6%) 12 12 12 12 12 2.2% 48 Net fee and commission income 3 4 (2.7%) 5 3 3 3 3 23.8% 14 Net trading income and fair value result (0) (0) (33.5%) 0 (
Slide 50: Country Financials (SEE) – Romania
Country Financials (SEE) – Romania In EUR mn Q1/2022 Q4/2021 q-o-q Q3/2021 Q2/2021 Q1/2021 1-3/2022 1-3/2021 y-o-y 1-12/2021 Net interest income 105 98 7.0% 92 90 90 105 90 15.8% 370 Net fee and commission income 41 48 (14.5%) 46 45 37 41 37 9.7% 177 Net trading income and fair value result (3) 0 –
Slide 51: Country Financials (SEE) – Serbia
Country Financials (SEE) – Serbia In EUR mn Q1/2022 Q4/2021 q-o-q Q3/2021 Q2/2021 Q1/2021 1-3/2022 1-3/2021 y-o-y 1-12/2021 Net interest income 22 23 (1.4%) 22 21 21 22 21 7.8% 86 Net fee and commission income 15 15 (0.3%) 15 14 12 15 12 24.5% 56 Net trading income and fair value result 1 2 (27.3%)
Slide 52: Country Financials (EE) – Belarus
Country Financials (EE) – Belarus In EUR mn Q1/2022 Q4/2021 q-o-q Q3/2021 Q2/2021 Q1/2021 1-3/2022 1-3/2021 y-o-y 1-12/2021 Net interest income 28 24 15.9% 22 20 17 28 17 62.2% 82 Net fee and commission income 23 19 19.9% 15 15 13 23 13 78.7% 62 Net trading income and fair value result 10 1 >500,0%
Slide 53: Country Financials (EE) – Russia
Country Financials (EE) – Russia In EUR mn Q1/2022 Q4/2021 q-o-q Q3/2021 Q2/2021 Q1/2021 1-3/2022 1-3/2021 y-o-y 1-12/2021 Net interest income 222 212 4.7% 196 173 163 222 163 36.2% 744 Net fee and commission income 249 136 83.8% 110 99 75 249 75 232.6% 420 Net trading income and fair value result (
Slide 54: Country Financials (EE) – Ukraine
Country Financials (EE) – Ukraine In EUR mn Q1/2022 Q4/2021 q-o-q Q3/2021 Q2/2021 Q1/2021 1-3/2022 1-3/2021 y-o-y 1-12/2021 Net interest income 75 73 3.8% 66 61 54 75 54 40.3% 254 Net fee and commission income 14 27 (49.5%) 25 21 18 14 18 (24.2%) 91 Net trading income and fair value result 11 4 191.
Slide 55: Group Corporates & Markets
Group Corporates & Markets In EUR mn Q1/2022 Q4/2021 q-o-q Q3/2021 Q2/2021 Q1/2021 1-3/2022 1-3/2021 y-o-y 1-12/2021 Net interest income 148 181 (18.0%) 143 151 132 148 132 12.5% 607 Net fee and commission income 150 145 3.5% 139 133 119 150 119 26.3% 536 Net trading income and fair value result 24
Slide 56: Sustainability Ratings and Industry Awards
Sustainability Ratings and Industry Awards The Banker – Bank of the Year 2021 in The Leading Sustainable Financial Institution in Austria & CEE ▪ Romania ▪ Bosnia and Herzegovina February 2021 RBI is the first Austrian banking group to commit to the UN Principles for Responsible Banking Global Finan
Slide 57: 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 ~58.8%
Slide 58: Contact and Financial Calendar
Contact and Financial Calendar Contact details Financial calendar Group Investor Relations Raiffeisen Bank International AG 25 July 2022 Start of Quiet Period1 Am Stadtpark 9 1030 Vienna 02 August 2022 Semi-Annual Report, Conference Call Austria 25 October 2022 Start of Quiet Period1 +43 1 71 707 20
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