Raiffeisen Bank International Ag · VIE:RBI
Raiffeisen Bank International — H1 2022 Earnings Presentation
57 slides from Raiffeisen Bank International's earnings presentation, Aug 2, 2022
Slide 1: Raiffeisen Bank International H1/2022 Results
Raiffeisen Bank International H1/2022 Results – 2 August 2022
Slide 2: Disclaimer
Disclaimer Certain statements contained herein may be statements of future risks, uncertainties and factors inherent in our business. falling within Article 43(2) of the Financial Services and Markets Act 2000 expectations and other forward-looking statements about Raiffeisen This presentation conta
Slide 3: Business & Financial Update, Risk Update, Appendix
01 02 03 Business & Financial Risk Update Appendix Update H1/2022 Results - 2 August 2022 3
Slide 4: H1/2022 Executive Summary
H1/2022 Executive Summary Consolidated profit Core revenues CIR 1-6/2022 1-6/2022, in EUR mn 1-6/2022 2,199 EUR 1,712 mn 1,565 39.7% +180% y-o-y +46% +73% y-o-y -15 pp y-o-y Net interest Net fee & income commission income Loans to customers Consolidated RoE CET 1 ratio 30/06/2022 1-6/2022 30/06/2022
Slide 5: Q2/2022 Business Highlights
Q2/2022 Business Highlights M&A and CE/SEE focus ▪ Strong organic loan growth in CE and SEE, notably in Slovakia and Romania ▪ Acquisition of Crédit Agricole Srbija and disposal of Raiffeisenbank Bulgaria completed ▪ #4 in Czech retail with full integration of Equa bank and ING retail portfolio Capi
Slide 6: Q2/2022 Income Statement and KPIs
Q2/2022 Income Statement and KPIs (in EUR mn) Q2/2022 % q-o-q % y-o-y Net interest income 1,214 +23% +57% Net interest margin Q2/2022 Net fee and commission income 882 +29% +82% Net trading income & fair value result 132 -28% +371% 2.56% Other operating components1 40 +42% -20% +35 bp q-o-q Operatin
Slide 7: Q2/2022 Core Revenue Trends
Q2/2022 Core Revenue Trends Net interest income up 23% q-o-q (EUR 228 mn) 1,214 mn 2021/22 ▪ NII up across all markets, with strong contribution from liabilities EUR y-o-y 1,214 excl. Russia / Belarus (margins and volumes), and to a lesser extent asset volumes +30% ▪ EUR 82mn FX effect from RUB appr
Slide 8: Balance Sheet: Assets and Loan Growth
Balance Sheet: Assets and Loan Growth in EUR mn, % q-o-q 30/06/2022 Loans to customers Assets 214,200 +11% ▪ 3.7% loan growth in Slovakia and 1.4% in Czech Republic in Q2 Loans to customers 107,700 +6% ▪ EUR 2.1 bn loan growth in SEE in Q2, driven by organic growth in Romania and Serbia (incl. EUR 1
Slide 9: Balance Sheet: Liabilities and Liquidity
Balance Sheet: Liabilities and Liquidity in EUR mn, % q-o-q 30/06/2022 Deposits from customers Liabilities 214,200 +11% ▪ In Russia, exceptional inflows (up 82% q-o-q, incl. RUB appreciation), despite repricing Deposits from banks 37,293 +8% down and introducing fees Deposits from customers 131,283
Slide 10: CET 1 Ratio Development
CET 1 Ratio Development +116 bps 13.4% q-o-q 12.3% + + + + - - + +14 bps +1 bps -6 bps -26 bps +53 bps +19 bps +61 bps Loan growth Other credit Market & OCI, Retained FX M&A risk operational valuation & earnings (Bulgaria1 risk other effects and Serbia) ▪ Other credit risk: placement of deposit infl
Slide 11: 2022 CET 1 Ratio Outlook
2022 CET 1 Ratio Outlook In 2022, we expect the CET1 ratio to remain above our 13 per cent target 13.4% Expected CET1 drivers in H2/2022 13.8% Group CET1 ratio above 13% even in a worst- +▪ 30 bps to 80 bps organic CET1 13.3% case deconsolidation scenario in Russia generation +▪ Stable loan volumes
Slide 12: Capital Ratios
Capital Ratios Regulatory capital requirements (30/06/2022) P2R ▪ 1.24% to be met with CET1, 41 bps Transitional (including results) 16.7% 2.20% eligible for AT1 and 55 bps for T2 RBI Regulatory 14.9% 14.96% P2G ▪ To be solely covered by CET1 but 1.25% 13.4% 2.55% Tier 2 (incl. P2R) applicable to al
Slide 13: MREL and Issuance Plans
MREL and Issuance Plans Austria resolution group MREL (30/06/2022) Actual 37.06% ▪ One to two issuances planned in covered and senior preferred in H2/2022 Requirement 35.82% 11.87% ▪ Covered bond issuance to refinance TLTRO funding, senior preferred issuance Senior Total MREL for MREL purposes prefe
Slide 14: Russia Update
Russia Update as of 30/06/2022 if not stated otherwise CET1 ratio in Russia up 129 bps q-o-q, LCR at 148% Solvency strengthened: CET 1 ratio Customer portfolio reduction on track: down 22% q-o-q in RUB terms, with substantial Actual, local 13.15% +131 BPS risk costs booked upfront standard q-o-q 30/
Slide 15: Macro Outlook
Macro Outlook GDP (real, % yoy) 2020 2020 2021e2021 2022e 2022f 2023f 2023f ▪ Strong start into 2022 to give way to a noticeably slower Czech Republic -5.8 3.3 2.5 0.9 second half, with sanctions harming Russia, the Euro area, Hungary -5.2 7.1 2.5 2.0 and CEE economies Poland -2.2 5.9 4.6 1.0 Slovak
Slide 16: Focus on Key CE and SEE Markets
Focus on Key CE and SEE Markets Czech Republic 1 Slovakia 2 Hungary 3 Serbia 4 Romania 5 ▪ High dependency on Russian ▪ Benefit from NGEU funds as an ▪ Recent fiscal moderation to limit the ▪ Relatively low gas and oil ▪ Large inflows of EU funds, gas and large share of industry important growth sup
Slide 17: 2022 Guidance
2022 Guidance The following guidance assumes no changes to the existing footprint. All options relating to Russia and Belarus remain on the table. Core revenues ▪ In 2022, net interest income is expected in a range of EUR 4.3 bn to EUR 4.7 bn and net fee and commission & loan growth income of at lea
Slide 18: Business & Financial Update, Risk Update, Appendix
01 02 03 Business & Financial Risk Update Appendix Update H1/2022 Results - 2 August 2022 18
Slide 19: Risk Overview
Risk Overview Q2/2022 30/06/2022 30/06/2022 Provisioning ratio / risk cost Stock of risk overlays NPE ratio/ coverage ratio 76 bps EUR 242 mn EUR 665 mn 1.6% 60.7% Russia / Ukraine EUR 330 mn -22 bps -24% Spillover, energy, inflation EUR 243 mn -18 bps +41 bps q-o-q q-o-q Covid EUR 92 mn y-o-y y-o-y
Slide 20: Gas Supply-Shock Scenario – Potential Effects
Gas Supply-Shock Scenario – Potential Effects Portfolio heatmap Corporate exposure under gas cut-off scenario Countries of risk most exposed Flagged corporate exposure in Assumptions: to scenario: those: Top 5 exposure among vulnerable industries: ▪ Scenario where gas prices Steel Production EUR 1.3
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 15/07/2022 46% 1,000 898 857 863 850 900 800 789 EUR 761 mn 24% 700 17% 600 500 6% 7% 400 -15% 300 vs. 28/02/2022 200 <6 < 12 < 18 < 24 2
Slide 22: Q2/2022 RWA Development
Q2/2022 RWA Development 1 Main decrease in credit risk in Russia (excluding liquidity placement) and Austria, partially offset by increases in Ukraine and SEE. Placement of deposit inflows in Russia resulted in an increase of EUR Estimated RWA effects until year end 2022 3.9 bn. Inorganic & other ef
Slide 23: IFRS 9 Provisioning in Q2/2022
IFRS 9 Provisioning in Q2/2022 EUR EUR ▪ Stage 1 & 2: net release of EUR 28 mn due to core 92 mn 242 mn portfolio improvement EUR ▪ Macro update: EUR 27 mn mainly from EE due to the 151 mn deteriorated economic outlook ▪ Overlays: EUR 151 mn booked in Q2, including: ▪ Russia/Ukraine: EUR 107 mn book
Slide 24: NPE Ratio and NPE Coverage
NPE Ratio and NPE Coverage Q2/2021 Q3/2021 Q4/2021 Q1/2022 Q2/2022 NPE Stock Asset quality development q-o-q Central Europe in EUR mn 60.5% 59.7% 60.8% 6.0% 56.8% 58.3% Q2/2022 ∆ QoQ ▪ NPE ratio stable at 1.6% 50.0% 908 1.8% 1.7% 1.6% 1.7% 1.6% 1.0% -4.8% ▪ In Eastern Europe the NPE ratio increased
Slide 25: Business & Financial Update, Risk Update, Appendix
01 02 03 Business & Financial Risk Update Appendix Update H1/2022 Results - 2 August 2022 25
Slide 26: Geographic Footprint
Geographic Footprint ▪ Leading regional player with CEE presence of over 30 years Central Europe (CE) Russia, #10 servicing approx. 17 million customers ▪ Loans: EUR 13.7 bn Southeastern Europe (SEE) ▪ Branches: 129 Eastern Europe (EE) ▪ Covering Austria and 12 CEE markets, of which five are EU Ukra
Slide 27: Raiffeisen Banking Group Structure
Raiffeisen Banking Group Structure Raiffeisen Banking Group (RBG) – largest banking group in Austria with total assets of EUR 386 bn as of 31/03/2022 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 28: Total Exposure
Total Exposure Total exposure by segments, in EUR bn, Q2/2022 Total exposure by sector, in EUR bn, Q2/2022 Total: EUR 251.2 bn, +8.5% (q-o-q) Total: EUR 251.2 bn Retail Mortgages 30 GC&M +5.9% 20.1% Consumer loans & other 20 103.7 Sovereigns & supranationals 54 Sov. and FI CE +2.6% Financial institu
Slide 29: Polish CHF Mortgage and Developments
Polish CHF Mortgage and Developments Around 68% of CET1 or equivalent held against the portfolio Total provisions Q2/2022 30/06/2022 EUR ~355 mn Credit risk RWA1 (driven by 150% risk weighting) and EUR of which in H1/2022: EUR ~1,387 mn impairments 497 mn EUR 138 mn EUR ~1,032 mn Operational risk RW
Slide 30: Q2/2022 Segments Overview
Q2/2022 Segments Overview Core revenues Loans to customers / NIM Provisioning ratio Profit/loss after tax Q2/22 q-o-q Q3/21 Q4/21 Q1/21 Q2/22 Q2/22 q-o-q Q2/22 q-o-q 35,981 36,329 456 33,224 34,446 5.00% CE Net Fees 139 +0% 31 bps EUR 74 mn 30,000 2.01% 2.23% +5 bps +1% NII 316 +3% 2.13% 20,000 1.67
Slide 31: Corporate Center/Reconciliation
Corporate Center/Reconciliation In EUR mn 1-6/2022 1-6/2021 y-o-y In EUR mn 1-6/2022 1-6/2021 y-o-y Operating income 386 647 (40.4%) Operating income (206) (658) (68.7%) General admin. expenses (217) (194) 11.9% General admin. expenses 72 65 9.8% Operating result 168 453 (62.8%) Operating result (13
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 30/6/2022 31/3/2022 31/12/2021 Common equity tier 1 (before deductions) 15.579 13.189 12.613 Deduction items (959) (1.033) (801) Common equity tier 1 (after deductions) 14.620 12.156 11.812 Additional tier 1 (after deductions) 1.673
Slide 34: Maturity Profile
Maturity Profile Maturity Profile at 30/9/2020 30/6/2022 (in EUR mn) 3,451 15 2,011 1,815 546 3,436 12 1,659 1,504 1,432 1,108 1,728 735 1,650 1,504 700 1,465 1,432 109 576 502 1,106 500 428 626 500 76 48 200 5 74 4 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 >2035 Senior placements Subor
Slide 35: Green Bond Allocation and Impact Report
Green Bond Allocation and Impact Report (as of 30 June 2022) Green loan portfolio total volume: Green buildings EUR 2,106 mn 47% Clean transportation EUR 989 mn 12% EUR 247 mn EUR 1,565 mn EUR 541 mn by use of proceeds disbursed undisbursed Others The average green asset seasoning in the eligible 1%
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 1-6/2022 FY 2022e Austria Bank levy based on total assets (excluding derivatives) 21 11 ~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; special tax for banks (bank
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 30/6/2022 30/6/2022 31/12/2021 30/6/2022 31/12/2021 30/6/2022 31/12/2021 30/6/2022 31/12/2021 Czech Republic 299 1,1% 1,1% 46,1%
Slide 40: RBI Group
RBI Group In EUR mn Q2/2022 Q1/2022 q-o-q Q4/2021 Q3/20213 Q2/20213 1-6/2022 1-6/20213 y-o-y 1-12/2021 Net interest income 1,214 986 23.1% 976 843 773 2,199 1,509 45.8% 3,327 Net fee and commission income 882 683 29.1% 561 521 483 1,565 903 73.3% 1,985 Net trading income and fair value result 132 18
Slide 41: Country Financials (CE) – Czech Republic
Country Financials (CE) – Czech Republic In EUR mn Q2/2022 Q1/2022 q-o-q Q4/2021 Q3/2021 Q2/2021 1-6/2022 1-6/2021 y-o-y 1-12/2021 Net interest income 159 166 (4.3%) 128 105 77 325 151 115.0% 385 Net fee and commission income 47 49 (4.0%) 42 35 36 95 69 38.5% 146 Net trading income and fair value re
Slide 42: Country Financials (CE) – Hungary
Country Financials (CE) – Hungary In EUR mn Q2/2022 Q1/2022 q-o-q Q4/2021 Q3/2021 Q2/2021 1-6/2022 1-6/2021 y-o-y 1-12/2021 Net interest income 76 67 13.3% 60 49 43 143 81 77.1% 189 Net fee and commission income 45 45 1.0% 42 41 39 90 75 20.4% 158 Net trading income and fair value result (1) 2 – 0 0
Slide 43: Country Financials (CE) – Poland
Country Financials (CE) – Poland In EUR mn Q2/2022 Q1/2022 q-o-q Q4/2021 Q3/2021 Q2/2021 1-6/2022 1-6/2021 y-o-y 1-12/2021 Net interest income 3 3 8.1% 3 3 3 6 6 (6.2%) 13 Net fee and commission income 1 1 (21.6%) 1 1 1 1 1 2.7% 2 Net trading income and fair value result 0 (0) – 1 0 0 (0) 1 – 2 Othe
Slide 44: Country Financials (CE) – Slovakia
Country Financials (CE) – Slovakia In EUR mn Q2/2022 Q1/2022 q-o-q Q4/2021 Q3/2021 Q2/2021 1-6/2022 1-6/2021 y-o-y 1-12/2021 Net interest income 78 71 10.0% 92 70 68 150 138 8.6% 300 Net fee and commission income 47 45 4.4% 45 44 43 92 82 12.4% 171 Net trading income and fair value result (0) 1 – 2
Slide 45: Country Financials (SEE) – Albania
Country Financials (SEE) – Albania In EUR mn Q2/2022 Q1/2022 q-o-q Q4/2021 Q3/2021 Q2/2021 1-6/2022 1-6/2021 y-o-y 1-12/2021 Net interest income 16 16 1.1% 15 14 14 31 26 18.2% 55 Net fee and commission income 5 4 15.7% 4 4 4 9 7 23.6% 16 Net trading income and fair value result (1) 2 – 0 0 0 1 1 (3
Slide 46: Country Financials (SEE) – Bosnia & Herzegovina
Country Financials (SEE) – Bosnia & Herzegovina In EUR mn Q2/2022 Q1/2022 q-o-q Q4/2021 Q3/2021 Q2/2021 1-6/2022 1-6/2021 y-o-y 1-12/2021 Net interest income 15 15 2.1% 15 15 15 30 30 (2.0%) 60 Net fee and commission income 13 13 5.6% 13 13 12 26 22 17.4% 49 Net trading income and fair value result
Slide 47: Country Financials (SEE) – Croatia
Country Financials (SEE) – Croatia In EUR mn Q2/2022 Q1/2022 q-o-q Q4/2021 Q3/2021 Q2/2021 1-6/2022 1-6/2021 y-o-y 1-12/2021 Net interest income 27 27 0.8% 27 28 27 54 56 (2.1%) 110 Net fee and commission income 21 20 4.1% 20 22 19 42 33 24.4% 76 Net trading income and fair value result (0) (4) (94.
Slide 48: Country Financials (SEE) – Kosovo
Country Financials (SEE) – Kosovo In EUR mn Q2/2022 Q1/2022 q-o-q Q4/2021 Q3/2021 Q2/2021 1-6/2022 1-6/2021 y-o-y 1-12/2021 Net interest income 13 12 9.4% 13 12 12 25 24 5.8% 48 Net fee and commission income 4 3 26.6% 4 5 3 8 6 40.2% 14 Net trading income and fair value result 0 (0) – (0) 0 (0) (0)
Slide 49: Country Financials (SEE) – Romania
Country Financials (SEE) – Romania In EUR mn Q2/2022 Q1/2022 q-o-q Q4/2021 Q3/2021 Q2/2021 1-6/2022 1-6/2021 y-o-y 1-12/2021 Net interest income 115 105 9.7% 98 92 90 219 180 21.8% 370 Net fee and commission income 48 41 17.0% 48 46 45 89 82 7.9% 177 Net trading income and fair value result (8) (3)
Slide 50: Country Financials (SEE) – Serbia
Country Financials (SEE) – Serbia In EUR mn Q2/2022 Q1/2022 q-o-q Q4/2021 Q3/2021 Q2/2021 1-6/2022 1-6/2021 y-o-y 1-12/2021 Net interest income 34 22 50.9% 23 22 21 56 42 34.7% 86 Net fee and commission income 24 15 54.1% 15 15 14 39 26 50.1% 56 Net trading income and fair value result 2 1 36.6% 2 1
Slide 51: Country Financials (EE) – Belarus
Country Financials (EE) – Belarus In EUR mn Q2/2022 Q1/2022 q-o-q Q4/2021 Q3/2021 Q2/2021 1-6/2022 1-6/2021 y-o-y 1-12/2021 Net interest income 31 28 12.9% 24 22 20 59 37 60.2% 82 Net fee and commission income 30 23 30.4% 19 15 15 54 28 94.5% 62 Net trading income and fair value result 15 10 49.8% 1
Slide 52: Country Financials (EE) – Russia
Country Financials (EE) – Russia In EUR mn Q2/2022 Q1/2022 q-o-q Q4/2021 Q3/2021 Q2/2021 1-6/2022 1-6/2021 y-o-y 1-12/2021 Net interest income 394 222 77.3% 212 196 173 615 336 83.1% 744 Net fee and commission income 420 249 68.6% 136 110 99 670 174 284.0% 420 Net trading income and fair value resul
Slide 53: Country Financials (EE) – Ukraine
Country Financials (EE) – Ukraine In EUR mn Q2/2022 Q1/2022 q-o-q Q4/2021 Q3/2021 Q2/2021 1-6/2022 1-6/2021 y-o-y 1-12/2021 Net interest income 88 75 16.9% 73 66 61 163 115 42.3% 254 Net fee and commission income 15 14 8.1% 27 25 21 28 39 (27.1%) 91 Net trading income and fair value result 19 11 70.
Slide 54: Group Corporates & Markets
Group Corporates & Markets In EUR mn Q2/2022 Q1/2022 q-o-q Q4/2021 Q3/2021 Q2/2021 1-6/2022 1-6/2021 y-o-y 1-12/2021 Net interest income 166 148 11.8% 181 143 151 314 283 11.0% 607 Net fee and commission income 155 150 3.3% 145 139 133 305 252 21.1% 536 Net trading income and fair value result 15 24
Slide 55: 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 RBI has been committed to the UN Global Compact, since 2010 and signed up to the UNEP FI Principles for Responsible Banki
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 ~58.8%
Slide 57: Contact and Financial Calendar
Contact and Financial Calendar 25 October 2022 Start of Quiet Period1 03 November Third Quarter Report, Conference Call 2 January 2023 Start of Restricted Period 25 January Start of Quiet Period Group Investor Relations 1 February Preliminary Results 2022, Conference Call 23 February Annual Financia
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