Raiffeisen Bank International Ag · VIE:RBI
Raiffeisen Bank International — Q3 2022 Earnings Presentation
59 slides from Raiffeisen Bank International's earnings presentation, Nov 3, 2022
Slide 1: Raiffeisen Bank International Q3/2022 Results
Raiffeisen Bank International Q3/2022 Results – 3 November 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
01 02 03 Business & Financial Risk Update Appendix Update Q3/2022 Results - 3 November 2022 3
Slide 4: 1-9/2022 Executive Summary
1-9/2022 Executive Summary Consolidated profit Core revenues CIR 1-9/2022 1-9/2022, in EUR mn 1-9/2022 3,591 EUR 2,801 mn 2,682 37.6% +165% y-o-y +53% +88% y-o-y -16 pp y-o-y Net interest Net fee & income commission income Loans to customers Consolidated RoE CET 1 ratio 30/09/2022 1-9/2022 30/09/202
Slide 5: 1-9/2022 Business Highlights
1-9/2022 Business Highlights Encouraging results ex-Russia and Belarus year-to-date ▪ EUR 822 mn consolidated profit and 11% RoE excluding Russia and Belarus as well as gain on sale of Bulgaria ▪ Strong core revenues excluding Russia and Belarus: NII and NFCI up 38% and 18% y-o-y, respectively ▪ 8%
Slide 6: Q3/2022 Income Statement and KPIs
Q3/2022 Income Statement and KPIs (in EUR mn) Q3/2022 % q-o-q % y-o-y Net interest income 1,392 +15% +65% Net interest margin Q3/2022 Net fee and commission income 1,117 +27% +114% Net trading income & fair value result 155 +17% - 2.71% Other operating components1 36 -11% -15% +15 bp q-o-q Operating
Slide 7: Q3/2022 Core Revenue Trends
Q3/2022 Core Revenue Trends Net interest income up 15% q-o-q (EUR 178 mn) EUR 1,392 mn 2021/22 2021/20 1,392 excl. Russia / Belarus ▪ NII up across all markets, with further strong contribution +59% from liabilities (margins and volumes) 1,214 y-o-y 976 986 878 ▪ NII excluding Russia and Belarus up
Slide 8: Balance Sheet
Balance Sheet in EUR mn, % q-o-q 30/09/2022 in EUR mn, % q-o-q 30/09/2022 Assets 219,834 +3% Liabilities 219,834 +3% Loans to customers 109,066 +1% Deposits from banks 40,769 +9% Deposits from customers 129,786 -1% Loans to banks 17,699 +4% Securities 23,882 +2% Cash and other assets 69,188 +5% Debt
Slide 9: CET 1 Ratio Development
CET 1 Ratio Development +123 bps 14.6% q-o-q + 13.4% + - + - + -9 bps +62 bps -48 bps +22 bps +83 bps +13 bps Loan growth Other credit Market & OCI, Retained FX risk operational valuation & earnings risk other effects ▪ Other credit risk: largely from optimization of deposits in Russia and improved
Slide 10: Capital Steering Overview
Capital Steering Overview New targets and 2023 Outlook CET 1 target increased to 13.5% from January 2023 and 14.0% at year-end 2023 Capital steering approach With a “P/B Zero deconsolidation” of Russia, Group CET1 to remain above 13% - as of 30/09/2022: 13.3% Any decision on dividends will be based
Slide 11: CET1 Outlook
CET1 Outlook 14.6% Group CET1 ratio expected above > 14.0% New CET1 ratio targets: 14 per cent at year-end 2022 13.5% 14.0% January 2023 Year end 2023 Expected CET1 drivers in Q4: Organic + ~60 bps Retained earnings Any decision on dividends will be based on the capital position of the Group excludi
Slide 12: P/B Zero Deconsolidation Scenario in Russia
P/B Zero Deconsolidation Scenario in Russia Landing point: Group CET1 ratio above 13% Capital stack under P/B Zero deconsolidation scenario 13.3% following “P/B Zero deconsolidation” of Russia 2.99% T2 Assumptions: 2.55% With Russia deconsolidated CET1 EUR 4.3 bn IFRS equity partially offset at P/B
Slide 13: Capital Ratios and SREP
Capital Ratios and SREP RBI, transitional as of 30/09/2022 Regulatory requirements as of December 2023 18.4% P2R ▪ P2R Requirements expected to increase by up to 2.58% 38 bps in January 20231 16.2% 16.14% ▪ 1.45% to be met with CET1 (21 bps increase) 14.6% Tier 2 ▪ 48 bps eligible for AT1 (7 bps inc
Slide 14: MREL and Issuance Plans
MREL and Issuance Plans Austria resolution group MREL (30/09/2022) ▪ M-MDA improved 199 bps to 323 bps Requirement Actual ▪ TREA in AT at EUR 45,748 mn 39.05% ▪ MREL requirements for resolution group AT incl. CBR of 4.54% Total ▪ Further EUR 500 mn of MREL eligible liabilities issued in October (equ
Slide 15: Funding and Liquidity
Funding and Liquidity 6 benchmark issuances despite volatile markets Funding plans 2023 Strong investor demand across the liability structure Around 2 to 3 benchmarks in different formats expected in 2023 2022 2023 … thereof 1x 2x 1x green 3x 2x - 3x ▪ Pre-funding started in Q4/2022 Tier 2 Senior pr
Slide 16: Russia Update
Russia Update as of 30/09/2022 if not stated otherwise RWAs deceased EUR 4.5 bn in Q3/2022, largely from deposit optimization Solvency strengthened: CET 1 ratio Actual, local 13.58% +43 BPS standard q-o-q LCR improves to 313% as HQLA increase and lower deposit outflows q-o-q 30/09/2022 Buffer above
Slide 17: Macro Outlook
Macro Outlook GDP (real, % yoy) 2020 2020 2021e2021 2022e 2022f 2023f 2023f ▪ Strong start into 2022 with boost from recovering services Czech Republic -5.8 3.3 2.5 0.9 in the summer months to give way to a weaker end of the Hungary -5.2 7.1 3.5 1.0 year as sanctions are felt in the Euro and CEE eco
Slide 18: Governmental Responses to Inflation and Energy Prices
Governmental Responses to Inflation and Energy Prices 30% Anti-inflationary measures: CZ 15% Other policy responses ▪ Tax cuts, price caps, and subsidies SK ▪ Windfall tax in the Czech Republic, in 2023 24% the impact will be c. EUR 30 mn (incl. Equa) ▪ Measures mainly targeting food (or 29% 36% bas
Slide 19: Guidance
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 around EUR 4.8 bn and net fee and commission income around EUR & loan growth 3.7 bn ▪ Excluding Russi
Slide 20: Risk Update
01 02 03 Business & Financial Risk Update Appendix Update Q3/2022 Results - 3 November 2022 20
Slide 21: Risk Overview
Risk Overview Q3/2022 30/09/2022 30/09/2022 Provisioning ratio / risk cost Stock of risk overlays NPE ratio/ coverage ratio 43 bps EUR 160 mn EUR 776 mn 1.5% 61.5% Russia / Ukraine EUR 382 mn -32 bps -34% Spillover, energy, inflation EUR 324 mn -11 bps -75 bps q-o-q Covid EUR 27 mn y-o-y y-o-y Furth
Slide 22: Energy and Inflation Vulnerability – Estimated Impact
Energy and Inflation Vulnerability – Estimated Impact Portfolio heatmap update Inflation and interest rates Broader impact analysis on the corporate book Impact on households Analysis ▪ Scenario where gas prices level permanently at EUR 300 / MWh for at least 12 months Asset quality stable: househol
Slide 23: 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 19/10/2022 36% 1,000 898 857 863 850 900 800 789 733 EUR 637 mn 22% 700 688 647 17% 16% 600 9% 500 400 -29% 300 vs. 28/02/2022 200 <6 < 1
Slide 24: Q3/2022 RWA Development
Q3/2022 RWA Development 1 Main decrease in credit risk is from the Russian liquidity placement. Exposure increase in various Net EUR 1 bn of inorganic effects in FY/2023: countries offset by further reductions in Russia (in addition to RU liquidity placements) ▪ IRB applications approx. relief of EU
Slide 25: IFRS 9 Provisioning in Q3/2022
IFRS 9 Provisioning in Q3/2022 EUR EUR 86 mn 160 mn ▪ Stage 1 & 2: net release of EUR 61 mn due to model updates in Poland and in Russia. EUR ▪ Macro update: EUR 27 mn, mainly booked in Central 108 mn Europe due to the deteriorated economic outlook. ▪ Overlays: EUR 108 mn booked in Q3, including: EU
Slide 26: NPE Ratio and NPE Coverage
NPE Ratio and NPE Coverage Q3/2021 Q4/2021 Q1/2022 Q2/2022 Q3/2022 NPE Stock Asset quality development q-o-q Central Europe in EUR mn 60.5% 59.7% 60.8% 61.4% 6.0% 58.3% Q3/2022 ∆ QoQ ▪ NPE ratio decreased to 1.5%. 50.0% 842 1.7% 1.6% 1.7% 1.6% 1.5% 1.0% -7.2% ▪ In Eastern Europe the NPE ratio increa
Slide 27: Appendix
01 02 03 Business & Financial Risk Update Appendix Update Q3/2022 Results - 3 November 2022 27
Slide 28: 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 13.0 bn Southeastern Europe (SEE) ▪ Branches: 126 Eastern Europe (EE) ▪ Covering Austria and 12 CEE markets, of which five are EU Ukra
Slide 29: Raiffeisen Banking Group Structure
Raiffeisen Banking Group Structure Raiffeisen Banking Group (RBG) – largest banking group in Austria with total assets of EUR 411 bn as of 30/06/2022 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 30: Total Exposure
Total Exposure Total exposure by segments, in EUR bn, Q3/2022 Total exposure by sector, in EUR bn, Q3/2022 Total: EUR 256.9 bn, +2.2% (q-o-q) Total: EUR 256.9 bn Retail GC&M +7.8% Mortgages 31 19.8% 111.8 Consumer loans & other 20 Sovereigns & supranationals 61 Sov. and FI CE +1.2% Financial institu
Slide 31: Polish CHF Mortgage and Developments
Polish CHF Mortgage and Developments Over 90% of CET1 or equivalent held against the portfolio Total provisions Q3/2022 30/09/2022 EUR ~376 mn Credit risk RWA1 (driven by 150% risk weighting) and of which net allocation in EUR 1-9/2022: EUR ~1,863 mn impairments 554 mn EUR 186 mn EUR ~1,486 mn Opera
Slide 32: Q3/2022 Segments Overview
Q3/2022 Segments Overview Core revenues Loans to customers / NIM Provisioning ratio Profit/loss after tax Q3/22 q-o-q Q4/21 Q1/22 Q2/22 Q3/22 Q3/22 q-o-q Q3/22 q-o-q 36,329 37,138 497 34,446 35,981 5.00% CE Net Fees 136 -2% -42 bps EUR 148 mn 30,000 2.13% 2.23% 2.49% -73 bps +99% NII 361 +14% 2.01%
Slide 33: Corporate Center/Reconciliation
Corporate Center/Reconciliation In EUR mn 1-9/2022 1-9/2021 y-o-y In EUR mn 1-9/2022 1-9/2021 y-o-y Operating income 397 722 (45,1%) Operating income (255) (730) (65,1%) General admin. expenses (322) (292) 10,3% General admin. expenses 110 101 8,9% Operating result 75 430 (82,6%) Operating result (1
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 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 35: Regulatory Capital Overview
Regulatory Capital Overview Regulatory Capital Structure In EUR mn 30/9/2022 30/6/2022 31/3/2022 Common equity tier 1 (before deductions) 16.736 15.579 13.189 Deduction items (848) (959) (1.033) Common equity tier 1 (after deductions) 15.888 14.620 12.156 Additional tier 1 (after deductions) 1.673 1
Slide 36: Maturity Profile
Maturity Profile Maturity Profile at 30/9/2020 30/9/2022 (in EUR mn) 4,005 16 2,010 2,034 3,940 1,917 12 546 1,659 1,432 1,470 1,108 2,034 1,000 1,840 735 1,650 1,464 1,432 109 576 383 1,107 626 500 345 470 76 48 5 38 4 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 >2035 Senior placements S
Slide 37: Green Bond Allocation and Impact Report
Green Bond Allocation and Impact Report (as of 30 June 2022) Green loan portfolio total volume: (as of 30 June 2022) Green Buildings 47% EUR 2,015 mn EUR 942 mn EUR 1,528 mn EUR 487 mn by use of proceeds disbursed undisbursed Energy Efficiency 20% Renewable EUR 350 mn Energy (as of 30 June 2022) 21%
Slide 38: 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 39: 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 40: Bank Levies
Bank Levies Impact in EUR mn FY 2021 1-9/2022 FY 2022e Austria Bank levy based on total assets (excluding derivatives) 21 16 ~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 41: 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 30/9/2022 30/9/2022 31/12/2021 30/9/2022 31/12/2021 30/9/2022 31/12/2021 30/9/2022 31/12/2021 Czech Republic 243 0,9% 1,1% 50,2%
Slide 42: RBI Group
RBI Group In EUR mn Q3/2022 Q2/2022 q-o-q Q1/2022 Q4/2021 Q3/20213 1-9/2022 1-9/20213 y-o-y 1-12/2021 Net interest income 1,392 1,214 14.7% 986 976 843 3,591 2,352 52.7% 3,327 Net fee and commission income 1,117 882 26.6% 683 561 521 2,682 1,424 88.4% 1,985 Net trading income and fair value result 1
Slide 43: Country Financials (CE) – Czech Republic
Country Financials (CE) – Czech Republic In EUR mn Q3/2022 Q2/2022 q-o-q Q1/2022 Q4/2021 Q3/2021 1-9/2022 1-9/2021 y-o-y 1-12/2021 Net interest income 183 159 15.0% 166 128 105 507 256 98.0% 385 Net fee and commission income 45 47 (3.0%) 49 42 35 141 104 34.9% 146 Net trading income and fair value r
Slide 44: Country Financials (CE) – Hungary
Country Financials (CE) – Hungary In EUR mn Q3/2022 Q2/2022 q-o-q Q1/2022 Q4/2021 Q3/2021 1-9/2022 1-9/2021 y-o-y 1-12/2021 Net interest income 96 76 25.7% 67 60 49 239 130 84.6% 189 Net fee and commission income 45 45 (0.7%) 45 42 41 134 115 16.8% 158 Net trading income and fair value result (12) (
Slide 45: Country Financials (CE) – Poland
Country Financials (CE) – Poland In EUR mn Q3/2022 Q2/2022 q-o-q Q1/2022 Q4/2021 Q3/2021 1-9/2022 1-9/2021 y-o-y 1-12/2021 Net interest income 4 3 12.8% 3 3 3 9 9 0.1% 13 Net fee and commission income 0 1 (71.8%) 1 1 1 1 2 (25.9%) 2 Net trading income and fair value result 2 0 418.0% (0) 1 0 2 1 76.
Slide 46: Country Financials (CE) – Slovakia
Country Financials (CE) – Slovakia In EUR mn Q3/2022 Q2/2022 q-o-q Q1/2022 Q4/2021 Q3/2021 1-9/2022 1-9/2021 y-o-y 1-12/2021 Net interest income 79 78 1.1% 71 92 70 229 207 10.3% 300 Net fee and commission income 46 47 (2.8%) 45 45 44 138 126 9.3% 171 Net trading income and fair value result 4 (0) –
Slide 47: Country Financials (SEE) – Albania
Country Financials (SEE) – Albania In EUR mn Q3/2022 Q2/2022 q-o-q Q1/2022 Q4/2021 Q3/2021 1-9/2022 1-9/2021 y-o-y 1-12/2021 Net interest income 18 16 16.2% 16 15 14 49 41 22.1% 55 Net fee and commission income 5 5 (0.2%) 4 4 4 14 12 18.8% 16 Net trading income and fair value result (1) (1) (5.1%) 2
Slide 48: Country Financials (SEE) – Bosnia & Herzegovina
Country Financials (SEE) – Bosnia & Herzegovina In EUR mn Q3/2022 Q2/2022 q-o-q Q1/2022 Q4/2021 Q3/2021 1-9/2022 1-9/2021 y-o-y 1-12/2021 Net interest income 17 15 10.9% 15 15 15 47 46 2.2% 60 Net fee and commission income 15 13 10.5% 13 13 13 41 36 14.8% 49 Net trading income and fair value result
Slide 49: Country Financials (SEE) – Croatia
Country Financials (SEE) – Croatia In EUR mn Q3/2022 Q2/2022 q-o-q Q1/2022 Q4/2021 Q3/2021 1-9/2022 1-9/2021 y-o-y 1-12/2021 Net interest income 30 27 10.1% 27 27 28 85 83 1.4% 110 Net fee and commission income 25 21 18.1% 20 20 22 67 56 19.4% 76 Net trading income and fair value result (1) (0) >500
Slide 50: Country Financials (SEE) – Kosovo
Country Financials (SEE) – Kosovo In EUR mn Q3/2022 Q2/2022 q-o-q Q1/2022 Q4/2021 Q3/2021 1-9/2022 1-9/2021 y-o-y 1-12/2021 Net interest income 14 13 4.4% 12 13 12 39 36 9.3% 48 Net fee and commission income 6 4 32.3% 3 4 5 14 11 29.5% 14 Net trading income and fair value result (0) 0 – (0) (0) 0 (0
Slide 51: Country Financials (SEE) – Romania
Country Financials (SEE) – Romania In EUR mn Q3/2022 Q2/2022 q-o-q Q1/2022 Q4/2021 Q3/2021 1-9/2022 1-9/2021 y-o-y 1-12/2021 Net interest income 129 115 12.8% 105 98 92 348 272 28.1% 370 Net fee and commission income 48 48 (0.6%) 41 48 46 137 129 6.4% 177 Net trading income and fair value result (5)
Slide 52: Country Financials (SEE) – Serbia
Country Financials (SEE) – Serbia In EUR mn Q3/2022 Q2/2022 q-o-q Q1/2022 Q4/2021 Q3/2021 1-9/2022 1-9/2021 y-o-y 1-12/2021 Net interest income 40 34 18.1% 22 23 22 96 64 50.5% 86 Net fee and commission income 25 24 4.8% 15 15 15 64 41 57.1% 56 Net trading income and fair value result 2 2 28.7% 1 2
Slide 53: Country Financials (EE) – Belarus
Country Financials (EE) – Belarus In EUR mn Q3/2022 Q2/2022 q-o-q Q1/2022 Q4/2021 Q3/2021 1-9/2022 1-9/2021 y-o-y 1-12/2021 Net interest income 32 31 2.7% 28 24 22 91 59 55.5% 82 Net fee and commission income 32 30 5.8% 23 19 15 86 43 101.4% 62 Net trading income and fair value result 5 15 (68.1%) 1
Slide 54: Country Financials (EE) – Russia
Country Financials (EE) – Russia In EUR mn Q3/2022 Q2/2022 q-o-q Q1/2022 Q4/2021 Q3/2021 1-9/2022 1-9/2021 y-o-y 1-12/2021 Net interest income 476 394 20.9% 222 212 196 1,091 532 105.2% 744 Net fee and commission income 629 420 49.8% 249 136 110 1,299 284 357.4% 420 Net trading income and fair value
Slide 55: Country Financials (EE) – Ukraine
Country Financials (EE) – Ukraine In EUR mn Q3/2022 Q2/2022 q-o-q Q1/2022 Q4/2021 Q3/2021 1-9/2022 1-9/2021 y-o-y 1-12/2021 Net interest income 101 88 14.9% 75 73 66 265 181 46.0% 254 Net fee and commission income 29 15 95.1% 14 27 25 57 64 (10.9%) 91 Net trading income and fair value result 23 19 2
Slide 56: Group Corporates & Markets
Group Corporates & Markets In EUR mn Q3/2022 Q2/2022 q-o-q Q1/2022 Q4/2021 Q3/2021 1-9/2022 1-9/2021 y-o-y 1-12/2021 Net interest income 191 166 14.9% 148 181 143 505 426 18.4% 607 Net fee and commission income 146 155 (5.8%) 150 145 139 451 391 15.4% 536 Net trading income and fair value result 55
Slide 57: 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 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 ~58.8%
Slide 59: Contact and Financial Calendar
Contact and Financial Calendar 2 January 2023 Start of Restricted Period 25 January Start of Quiet Period 1 February Preliminary Results 2022, Conference Call Group Investor Relations 23 February Annual Financial Report 2022 20 March Record Date Annual General Meeting Raiffeisen Bank International A
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