Raiffeisen Bank International Ag · VIE:RBI
Raiffeisen Bank International — FY2023 Earnings Presentation
59 slides from Raiffeisen Bank International's earnings presentation, Jan 31, 2024
Slide 1: Preliminary FY 2023 Results
Raiffeisen Bank International Preliminary FY 2023 Results 31 January 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 31 January 2024
Slide 4: Q4/2023 Update
Q4/2023 Update Dividend proposal of EUR 1.25 for FY/2023 The board will recommend a dividend of EUR 1.25 per share for the business year 2023 – to be voted on at the upcoming AGM (4 April 2024) OFAC request for information STRABAG SE dividend-in-kind on track Asset quality remains excellent despite
Slide 5: STRABAG SE Equity Participation
STRABAG SE Equity Participation All relevant filings submitted, in particular with European STRABAG – Overview competition authorities and Central Bank of Russia Market leader in Austria, Germany, and CEE Stable business profile supported by focus on transportation infrastructure, public customers,
Slide 6: De-risking in Russia
De-risking in Russia Reducing business activity further 13.7 13.0 Loans to EUR/USD: no new lending and run-off of customers 9.0 EUR 38 mn existing portfolio in Russia -56% last 8.1 7.1 six quarters 6.3 6.0 Net-cross Actively steering to reduce deposit volumes border exposure as Trade and export fina
Slide 7: FY/2023 Executive Summary
FY/2023 Executive Summary RBI Consolidated profit Consolidated RoE CET1 ratio Group 1-12/2023 1-12/2023 31/12/2023, transitional, incl. results EUR 2,386 mn 14.8% 17.3% -34% y-o-y -12 pp y-o-y +1.3 pp y-o-y Adjusted: Consolidated profit Consolidated RoE CET1 ratio EUR 997 mn 7.6% 14.6% +1% y-o-y -1.
Slide 8: FY/2023 Executive Summary
FY/2023 Executive Summary RBI Loans to customers Core revenues Opex and Cost/Income Ratio Group 31/12/2023 1-12/2023, in EUR mn 1-12/2023 5,683 EUR 99,434 mn 3,042 EUR 3,908 mn 43.1% -4% y-o-y +12% -22% y-o-y +10% y-o-y +7 pp Net interest Net fee & income commission income Adjusted: Loans to custome
Slide 9: Q4/2023 Core Revenue Trends
Q4/2023 Core Revenue Trends Net interest income 1,462 1,441 1,494 NII excl. Russia and Belarus flat in Q4/2023, with in EUR mn 1,392 1,385 1,364 1,214 benefit of EUR rates still feeding through Group 986 1,000 997 1,039 1,123 1,123 Net interest margin excluding Russia/Belarus flat (up Core 878 0% Ex
Slide 10: Loans and Deposits to/from Customers in Q4/2023
Loans and Deposits to/from Customers in Q4/2023 Loans to customers Deposits from customers in EUR bn - 2% in EUR bn - 2% q-o-q q-o-q 103.2 105.3 101.8 125.1 124.8 101.9 120.6 121.2 119.4 Group 99.4 Group Core Core 93.9 96.9 94.3 95.0 103.7 103.0 Excluding 92.8 Excluding 103.1 102.2 101.2 Russia/ Bel
Slide 11: High Liquidity Across the Group
High Liquidity Across the Group RBI Group - Liquidity ratios 219% RBI head office: conservative liquidity profile 201% 202% LCR 186% 189% 141% LCR at 156% (as of 26 January 2024) 137% 139% 140% 141% NSFR Head office with sufficient liquidity to cover all Loan deposit deposits and maturing funding fo
Slide 12: CET1 Ratio Development
CET1 Ratio Development + 78 bps q-o-q + 17.3% 16.5% + - - + + +49 bps +71 bps -55 bps -21 bps +29 bps +5 bps Loan Other credit Market & OCI, Retained earnings FX developments risk operational risk valuation & other effects Dividend proposal of EUR 1.25 30/09/2023 Benefit from transitional applicatio
Slide 13: CET1 Outlook 2024
CET1 Outlook 2024 Group CET1 ratio expected around 17.8 per cent at year-end 2024 17.3% ~17.8% Expected CET1 drivers in 2024: Any decision on dividends will be based on the capital Retained + ~200 bps Net of expected 2024 position of the Group earnings dividend accrual excluding Russia RWA increase
Slide 14: P/B Zero Deconsolidation Scenario in Russia
P/B Zero Deconsolidation Scenario in Russia Landing point: Expected stable in 2024, before benefit Capital stack under P/B Zero deconsolidation scenario from STRABAG dividend-in-kind 14.6% 2.94% T2 Assumptions: 2.70% With Russia deconsolidated at P/B Zero, AT1 and T2 2.06% buckets are adequately CET
Slide 15: Capital Ratios and SREP
Capital Ratios and SREP RBI, transitional as of 31/12/2023 Current regulatory 21.5% P2R 1.57% to be met with CET1 requirements 2.80% 19.1% 52 bps eligible for AT1 17.3% 16.45% 71 bps eligible for T2 Tier 2 13.75% 2.70% (incl. P2R) 11.72% 2.03% AT 1 P2G To be solely covered by CET1 but (incl. P2R) 1.
Slide 16: MREL and Funding Plan
MREL and Funding Plan Austria resolution group MREL Including profit Funding plan 2024 31/12/2023 Requirement 44.17% Senior non-preferred issuance to maintain loss absorbing capacity and support credit ratings Actual 15.10% Senior preferred issuance (1 or 2 benchmarks) depending on new lending trend
Slide 17: Macro Outlook
Macro Outlook A rebound in consumer demand and robust labor markets GDP (real, % yoy) 2022 2023e 2024f 2025f Czech Republic 2.4 -0.5 1.7 3.2 are expected to drive muted recovery in the Euro area, CE, Hungary 4.6 -0.5 3.0 4.0 and SEE in 2024 Poland 5.1 0.5 3.1 3.5 Current account balances should be l
Slide 18: Inflation and Key Rates Forecast
Inflation and Key Rates Forecast Inflation & rates Inflation rate (CPI) Disinflation will slow vs. 2023 with some spikes in CPI 10.8% (average, % y-o-y) CZ 11.6% expected throughout 2024. Government interventions still 3.4% 2023 2024f affect prices, while labor markets add upside risks 5.2% SK Banki
Slide 19: 2024 Guidance
2024 Guidance Core Group excluding Russia / Belarus RBI Group Core revenues around EUR 4.0 bn EUR ~1.8 bn around 6% around EUR 5.1 bn EUR ~2.7 bn around 5% & loan growth Net interest Net fee and Loans to Net interest Net fee and Loans to income commission income customers income commission income cu
Slide 20: 02 Risk Update
01 Business & Financial Update 02 Risk Update 03 Appendix 31 January 2024
Slide 21: Risk Overview
Risk Overview FY/2023 31/12/2023 31/12/2023 Risk cost Stock of risk overlays NPE ratio/ coverage ratio Provisioning ratio Risk cost 34 bps EUR 393 mn EUR 765 mn 1.9% 51.7% including impairments -39 bps y-o-y on debt securities +28 bps -7.4 pp GC&M, CE, SEE (CRE, inflation & spillover) EUR 346 mn y-o
Slide 22: IFRS 9 Provisioning
IFRS 9 Provisioning Q4/2023 EUR EUR 256 mn 142 mn Overall EUR 142 mn of IFRS 9 provisions in Q4 + Stage 1 & 2: decrease driven model updates in retail portfolio, partly offset by non-retail Macro update: release mostly driven by EUR improved outlook, particularly in Hungary - -9 mn EUR - -57 mn Over
Slide 23: Q4/2023 RWA Development
Q4/2023 RWA Development Credit risk development largely driven by inorganic effects: Bausparkasse switch to IRB, sovereign model switch to 1 standard approach, and risk weight relief in Poland with start of settlement program Inorganic effect relief of up to EUR -1.5 bn until year end 2 Operational
Slide 24: Poland CHF Update
Poland CHF Update Cases update Provisions taken in Q4/2023 in EUR mn 25,802 CHF loans 13,633 litigation 1,914 1,890 1,869 1,905 Gross exposure outstanding cases 1,338 1,652 1,199 Q4/2023 Other result bookings: 853 Stock of EUR 269 mn EUR 4 mn provisions for litigation New provisions for For net loss
Slide 25: NPE Ratio and NPE Coverage
NPE Ratio and NPE Coverage Central Europe Asset quality development q-o-q 57.7% 58.1% 60.2% 58.4% 7.0% 783 50.0% -3.9% NPE ratio remains below 2% despite Commercial Real Estate insolvencies and war 1.3% 1.3% 1.3% 1.2% in the region Southeastern 0.0% 69.2% 67.2% 67.3% 66.6% (3.0%) 592 7.0% Asset qual
Slide 26: 03 Appendix
01 Business & Financial Update 02 Risk Update 03 Appendix 31 January 2024
Slide 27: Geographic Footprint
Geographic Footprint Leading regional player with CEE presence of over 30 years Russia, #15 servicing approx. 18 million customers Central Europe (CE) ▪ Loans: EUR 6.0 bn Southeastern Europe (SEE) ▪ Business outlets : 124 Covering Austria and 12 CEE markets, of which five are EU members. Serbia and
Slide 28: 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 29: Q4/2023 Income Statement and KPIs
Q4/2023 Income Statement and KPIs (in EUR mn) Q4/2023 % q-o-q % y-o-y Net interest income 1,494 +4% +2% Net interest margin Q4/2023 Net fee and commission income 677 +2% -43% Net trading income & fair value result -19 - - 3.06% Other operating components1 10 -80% -8% +10 bps q-o-q Operating income 2
Slide 30: Q4/2023 Income Statement and KPIs (excl. Russia/Belarus)
Adjusted excluding Q4/2023 Income Statement and KPIs Russia / Belarus (in EUR mn) Q4/2023 % q-o-q % y-o-y Net interest income 1,123 +0% +12% Net interest margin Net fee and commission income 453 +7% +0% Q4/2023 Net trading income & fair value result Other operating components1 -29 12 -78% - - -76% 2
Slide 31: Total Exposure
Total Exposure Total exposure by segments Q4/2023 … by sector Q4/2023 in EUR bn in EUR bn Mortgages 28 Consumer loans & other 20 Retail 20% GC&M -7.4% 237 bn 61 Sovereigns & supranationals 96.5 EUR Financial institutions 30 Sov. & FI 38% Industrials 24 -3.6% y-o-y Consumer cyclical 14 Corporate 41%
Slide 32: Q4/2023 Segments Overview
Q4/2023 Segments Overview Core revenues Loans to customers / NIM Provisioning ratio Profit/loss after tax Q4/23 q-o-q Q1/23 Q2/23 Q3/23 Q4/23 Q4/23 q-o-q Q4/23 q-o-q 579 38,192 38,139 37,599 37,596 CE Net Fees 152 +9.6% 5.00% 3 bps EUR -34 mn 30,000 2.42% 2.69% +20 bps - NII 428 +4.4% 2.32% 2.57% 20
Slide 33: Corporate Center/Reconciliation
Corporate Center/Reconciliation In EUR mn 1-12/2023 1-12/2022 y-o-y In EUR mn 1-12/2023 1-12/2022 y-o-y Operating income 748 547 36,6% Operating income (934) (420) 122,5% General admin. expenses (483) (395) 22,2% General admin. expenses 201 170 18,5% Operating result 265 152 73,8% Operating result (
Slide 34: 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 31/12/2022 1.002 4.990 13.637 (3.601) 16.027 1.127 1.610 18.764 Impact of adopting IFRS 17
Slide 35: Regulatory Capital Structure - Overview
Regulatory Capital Structure - Overview in EUR mn 31/12/2023 30/9/2023 30/6/2023 Common equity tier 1 (before deductions) 17,028 16,175 16,614 Deduction items (825) (931) (794) Common equity tier 1 (after deductions) 16,203 15,244 15,819 Additional tier 1 (after deductions) 1,677 1,679 1,681 Tier 1
Slide 36: Maturity Profile
Maturity Profile Maturity Profile at 31/12/2023 30/9/2020 (in EUR mn) 4,562 4,473 4,272 12 347 68 15 2,597 87 4,550 4,110 4,203 1,660 2,511 1,029 758 1,650 665 109 584 535 1,023 665 650 500 500 84 48 6 35 0 10 0 0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 >2035 Senior placements Subordi
Slide 37: 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 38: 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 39: Bank Levies
Bank Levies Impact in EUR mn FY 2022 FY 2023 FY 2024e Austria Bank levy based on total assets (excluding derivatives) 22 0 ~23 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 special tax for banks based on the net profit modified by several
Slide 40: 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 31/12/2023 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 Czech Republic 269 0.9% 1.0%
Slide 41: RBI Group
RBI Group In EUR mn Q4/2023 Q3/2023 q-o-q Q2/2023 Q1/2023 Q4/2022 1-12/2023 1-12/2022 y-o-y Net interest income 1,494 1,441 3.6% 1,364 1,385 1,462 5,683 5,053 12.5% Net fee and commission income 677 667 1.6% 732 966 1,196 3,042 3,878 (21.6%) Net trading income and fair value result (19) 89 – 30 86 1
Slide 42: RBI Core Group – excl. Russia and Belarus
RBI Core Group – excl. Russia and Belarus In EUR mn Q4/2023 Q3/2023 q-o-q Q2/2023 Q1/2023 Q4/2022 1-12/2023 1-12/2022 y-o-y Net interest income 1,123 1,123 0.0% 1,039 997 1,000 4,282 3,399 26.0% Net fee and commission income 453 425 6.8% 417 429 452 1,724 1,739 (0.8%) Net trading income and fair val
Slide 43: Country Financials (CE) – Czech Republic
Country Financials (CE) – Czech Republic In EUR mn Q4/2023 Q3/2023 q-o-q Q2/2023 Q1/2023 Q4/2022 1-12/2023 1-12/2022 y-o-y Net interest income 168 162 4.1% 159 153 144 642 652 (1.5%) Net fee and commission income 47 41 16.5% 48 48 56 183 197 (6.8%) Net trading income and fair value result 4 1 368.4%
Slide 44: Country Financials (CE) – Hungary
Country Financials (CE) – Hungary In EUR mn Q4/2023 Q3/2023 q-o-q Q2/2023 Q1/2023 Q4/2022 1-12/2023 1-12/2022 y-o-y Net interest income 143 137 4.4% 121 123 117 525 356 47.6% Net fee and commission income 54 50 7.4% 52 47 48 202 183 10.5% Net trading income and fair value result (6) (2) 177.0% (19)
Slide 45: Country Financials (CE) – Poland
Country Financials (CE) – Poland In EUR mn Q4/2023 Q3/2023 q-o-q Q2/2023 Q1/2023 Q4/2022 1-12/2023 1-12/2022 y-o-y Net interest income 4 7 (39.9%) 7 0 3 19 12 58.6% Net fee and commission income 0 0 (12.7%) 0 0 (0) 0 1 (48.5%) Net trading income and fair value result 1 1 (8.0%) 1 0 0 2 2 1.1% Other
Slide 46: Country Financials (CE) – Slovakia
Country Financials (CE) – Slovakia In EUR mn Q4/2023 Q3/2023 q-o-q Q2/2023 Q1/2023 Q4/2022 1-12/2023 1-12/2022 y-o-y Net interest income 111 103 8.0% 99 91 93 404 322 25.7% Net fee and commission income 51 48 6.1% 48 46 47 193 185 4.2% Net trading income and fair value result 3 5 (43.1%) 3 4 6 14 11
Slide 47: Country Financials (SEE) – Albania
Country Financials (SEE) – Albania In EUR mn Q4/2023 Q3/2023 q-o-q Q2/2023 Q1/2023 Q4/2022 1-12/2023 1-12/2022 y-o-y Net interest income 32 30 4.1% 28 25 23 114 72 58.9% Net fee and commission income 5 6 (20.8%) 5 4 5 20 19 5.5% Net trading income and fair value result 1 2 (49.4%) (5) 0 0 (2) 0 – Ot
Slide 48: Country Financials (SEE) – Bosnia & Herzegovina
Country Financials (SEE) – Bosnia & Herzegovina In EUR mn Q4/2023 Q3/2023 q-o-q Q2/2023 Q1/2023 Q4/2022 1-12/2023 1-12/2022 y-o-y Net interest income 23 22 5.0% 21 19 18 86 64 34.1% Net fee and commission income 14 14 (1.0%) 13 13 16 54 56 (4.6%) Net trading income and fair value result 0 1 (24.9%)
Slide 49: Country Financials (SEE) – Croatia
Country Financials (SEE) – Croatia In EUR mn Q4/2023 Q3/2023 q-o-q Q2/2023 Q1/2023 Q4/2022 1-12/2023 1-12/2022 y-o-y Net interest income 48 47 2.1% 44 41 32 181 116 55.3% Net fee and commission income 19 20 (4.6%) 17 18 21 73 87 (15.7%) Net trading income and fair value result 16 (4) – (7) 1 1 6 (5)
Slide 50: Country Financials (SEE) – Kosovo
Country Financials (SEE) – Kosovo In EUR mn Q4/2023 Q3/2023 q-o-q Q2/2023 Q1/2023 Q4/2022 1-12/2023 1-12/2022 y-o-y Net interest income 18 17 4.8% 16 15 16 66 55 20.4% Net fee and commission income 4 6 (30.0%) 4 4 3 17 17 1.4% Net trading income and fair value result 0 1 (81.5%) 0 0 (0) 1 (0) – Othe
Slide 51: Country Financials (SEE) – Romania
Country Financials (SEE) – Romania In EUR mn Q4/2023 Q3/2023 q-o-q Q2/2023 Q1/2023 Q4/2022 1-12/2023 1-12/2022 y-o-y Net interest income 149 147 1.1% 143 140 141 579 489 18.4% Net fee and commission income 54 46 17.4% 44 41 43 184 180 2.6% Net trading income and fair value result 2 0 >500,0% 3 4 9 9
Slide 52: Country Financials (SEE) – Serbia
Country Financials (SEE) – Serbia In EUR mn Q4/2023 Q3/2023 q-o-q Q2/2023 Q1/2023 Q4/2022 1-12/2023 1-12/2022 y-o-y Net interest income 73 72 2.4% 66 59 51 270 147 84.3% Net fee and commission income 29 27 8.4% 26 25 27 108 91 19.1% Net trading income and fair value result 3 4 (22.3%) 4 3 3 14 8 60.
Slide 53: Country Financials (EE) – Belarus
Country Financials (EE) – Belarus In EUR mn Q4/2023 Q3/2023 q-o-q Q2/2023 Q1/2023 Q4/2022 1-12/2023 1-12/2022 y-o-y Net interest income 21 19 10.6% 20 27 32 86 123 (29.7%) Net fee and commission income 30 30 1.9% 38 30 26 128 112 14.2% Net trading income and fair value result 4 6 (26.2%) 7 8 7 25 37
Slide 54: Country Financials (EE) – Russia
Country Financials (EE) – Russia In EUR mn Q4/2023 Q3/2023 q-o-q Q2/2023 Q1/2023 Q4/2022 1-12/2023 1-12/2022 y-o-y Net interest income 382 331 15.6% 322 377 436 1,411 1,527 (7.6%) Net fee and commission income 186 206 (10.0%) 264 496 709 1,152 2,008 (42.6%) Net trading income and fair value result 5
Slide 55: Country Financials (EE) – Ukraine
Country Financials (EE) – Ukraine In EUR mn Q4/2023 Q3/2023 q-o-q Q2/2023 Q1/2023 Q4/2022 1-12/2023 1-12/2022 y-o-y Net interest income 106 112 (6.0%) 99 101 110 418 375 11.4% Net fee and commission income 23 17 36.4% 20 24 29 84 87 (3.0%) Net trading income and fair value result 4 9 (50.7%) 8 12 11
Slide 56: Group Corporates & Markets
Group Corporates & Markets In EUR mn Q4/2023 Q3/2023 q-o-q Q2/2023 Q1/2023 Q4/2022 1-12/2023 1-12/2022 y-o-y Net interest income 256 248 3.2% 238 226 228 967 733 32.0% Net fee and commission income 150 142 6.1% 129 158 166 578 617 (6.2%) Net trading income and fair value result 21 48 (55.1%) 37 57 4
Slide 57: 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 58: 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 59: Financial Calendar
Financial Calendar Group Investor Relations 22 February 2024 Annual Financial Report 2023 25 March 2024 Record Date Annual General Meeting 4 April 2024 Annual General Meeting Raiffeisen Bank International AG 9 April 2024 Ex-Dividend Date 10 April 2024 Record Date Dividend Am Stadtpark 9 11 April 202
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