Raiffeisen Bank International Ag · VIE:RBI
Raiffeisen Bank International — H1 2023 Earnings Presentation
57 slides from Raiffeisen Bank International's earnings presentation, Aug 1, 2023
Slide 1: Raiffeisen Bank International H1/2023
Raiffeisen Bank International H1/2023 1 August 2023 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, Risk Update, Appendix
01 Business & Financial Update 02 Risk Update 03 Appendix
Slide 4: H1/2023 Executive Summary
H1/2023 Executive Summary RBI Consolidated profit Consolidated RoE CET1 ratio Group 1-6/2023 1-6/2023 30/06/2023, transitional, incl. results EUR 1,235 mn 14.9% 15.9% -28% y-o-y -11 pp y-o-y -0.1 pp ytd Adjusted: Consolidated profit Consolidated RoE CET1 ratio EUR 497 mn 7.6% 13.9% -12% y-o-y -7 pp
Slide 5: H1/2023 Executive Summary
H1/2023 Executive Summary RBI Loans to customers Core revenues Opex and Cost/Income Ratio Group 30/06/2023 1-6/2023 1-6/2023 2,749 EUR 101,806 mn 1,698 EUR 1,995 mn 42.9% -1% ytd +25% +8% y-o-y +21% y-o-y +3 pp Net interest Net fee & income commission income Adjusted: Loans to customers Core revenue
Slide 6: Q2/2023 Core Revenue Trends
Q2/2023 Core Revenue Trends Net interest income 1,462 NII excl. Russia and Belarus up 4.2% in Q2/2023, with in EUR mn 1,392 1,385 1,364 1,214 support from EUR rates 986 Group Deposit repricing ongoing in Romania and Hungary, 1,000 997 4% 1,039 NIM in Czech Republic has stabilized Core 878 741 781 Ex
Slide 7: Loans and Deposits to/from Customers in Q2/2023
Loans and Deposits to/from Customers in Q2/2023 Loans to customers Deposits from customers - 3% - 3% 131.3 in EUR bn in EUR bn 129.8 q-o-q q-o-q 125.1 124.8 120.6 107.7 109.1 103.2 105.3 Group 101.8 Group 102.4 103.1 102.2 101.2 Core Core 100.1 95.7 93.9 96.9 94.3 Excluding 93.7 Excluding CE + 2% Ru
Slide 8: High Liquidity Across the Group
High Liquidity Across the Group RBI Group - Liquidity ratios 219% RBI head office: conservative liquidity profile 202% 201% LCR 189% 186% 134% 135% 137% 139% 140% LCR at 164% on 21 July 2023 NSFR Head office with sufficient liquidity to cover all Loan deposit deposits and maturing funding for over o
Slide 9: CET1 Ratio Development
CET1 Ratio Development - 7 bps q-o-q 16.0% + 15.9% + - - - + +13 bps -30 bps -19 bps +1 bps +58 bps -30 bps Loan growth Other credit Market & OCI, Retained earnings FX risk operational risk valuation & other effects Earmarked dividend of EUR 0.80 per share (~27 bps of CET1) deducted from regulatory
Slide 10: CET1 Outlook 2023
CET1 Outlook 2023 15.9% Group CET1 ratio expected above 16 per cent at year-end 2023 > 16.0% Any decision on dividends Expected CET1 drivers in 2023: will be based on the capital position of the Group excluding Russia Retained ~110 bps Net of expected 2023 earnings + dividend accrual RWA increase Lo
Slide 11: P/B Zero Deconsolidation Scenario in Russia
P/B Zero Deconsolidation Scenario in Russia Landing point1: Group CET1 ratio above 13.5% following Capital stack under P/B Zero deconsolidation scenario “P/B Zero deconsolidation” of Russia 13.9% 2.86% T2 Assumptions: 2.65% With Russia deconsolidated at P/B Zero, AT1 and T2 CET1 EUR 4.0 bn IFRS equi
Slide 12: Capital Ratios and SREP
Capital Ratios and SREP RBI, transitional as of 30/06/2023 Current regulatory 20.0% P2R 1.45% to be met with CET1 requirements 2.58% 48 bps eligible for AT1 17.6% 65 bps eligible for T2 15.9% 15.91% Tier 2 13.26% 2.65% (incl. P2R) AT 1 P2G To be solely covered by CET1 but 11.28% 1.98% (incl. P2R) 1.
Slide 13: MREL and Funding Plan
MREL and Funding Plan Austria resolution group MREL Including profit Funding plan 2023 30/06/2023 Requirement 40.62% Funding, liquidity and MREL needs largely fulfilled for 2023 Actual Senior non-preferred issuances to maintain loss absorbing capacity and 14.57% support credit ratings Senior preferr
Slide 14: Russia Update
Russia Update The Group will continue to progress potential transactions which would result in the sale or spin-off of Raiffeisenbank Russia and deconsolidation of Raiffeisenbank Russia from the Group. We are committing to further reducing business activity in Russia whilst we continue to progress s
Slide 15: Macro Outlook
Macro Outlook Economic slowdown in Europe in H1/2023, with Hungary and GDP (real, % yoy) 2021 2022e 2023f 2024f Czech Republic 3.5 2.4 0.5 2.9 Czechia entering recession. A recovery is expected to follow Hungary 7.1 4.6 0.0 3.0 in H2/2023, however, any recession expected to be shallow Poland 6.9 5.1
Slide 16: Inflation and Key Rates Forecast
Inflation and Key Rates Forecast Inflation & rates 11.2% Inflation rate (CPI) CZ 11.6% (average, % y-o-y) Inflation peaked in CE and SEE - disinflation is in progress 3.7% amid uncertainty about its pace in 2024. Governmental 5.2% 2023f 2024f interventions still affect food and energy prices SK Bank
Slide 17: 2023 Guidance
2023 Guidance Core Group excluding Russia / Belarus RBI Group Core revenues EUR 3.8-4.0 bn EUR ~1.8 bn ~2% EUR 5.3-5.4 bn EUR 3.2-3.4 bn ~0% (flat) & loan growth Net interest Net fee and Loans to Net interest Net fee and Loans to income commission income customers income commission income customers
Slide 18: 02 Risk Update
01 Business & Financial Update 02 Risk Update 03 Appendix
Slide 19: Risk Overview
Risk Overview Q2/2023 30/06/2023 30/06/2023 Net releases of risk cost Stock of risk overlays NPE ratio/ coverage ratio Provisioning ratio Risk cost releases -19 bps EUR -42 mn EUR 865 mn 1.5% 57.6% including impairments on -112 bps q-o-q debt securities GC&M, CE, SEE (spillover, energy, inflation) E
Slide 20: IFRS 9 Provisioning in Q2/2023
IFRS 9 Provisioning in Q2/2023 EUR 22 mn Overall release of EUR 42 mn of IFRS 9 + provisions in Q2 - EUR -10 mn Stage 1 & 2: mainly from Ukraine, Czech, and GC&M Macro update: outlook largely unchanged, - improving in Czech, Russia, and Croatia and EUR - = deteriorating in Ukraine and Hungary -45 mn
Slide 21: Q2/2023 RWA Development
Q2/2023 RWA Development Inorganic effect of EUR 1.8 bn following rating model updates (FI and Specialized Lending) 1 in line with EBA guideline Inorganic effect: expected net relief of up to around Operational risk RWA stable. Market risk largely reflects the loss of the structural FX waiver EUR -2
Slide 22: Poland CHF Update
Poland CHF Update Cases update Provisions taken in Q2/2023 in EUR mn 26,750 CHF loans 11,585 litigation 1,995 1,971 1,914 1,890 Gross exposure outstanding cases 1,199 Q2/2023 Other result bookings: 803 853 Stock of EUR 329 mn EUR 9 mn 554 provisions for litigation New provisions for For net losses o
Slide 23: NPE Ratio and NPE Coverage
NPE Ratio and NPE Coverage Central Europe 60.8% 61.4% 59.7% 6.0%836 Asset quality development q-o-q 57.7% 58.1% -0.9% 50.0% 1.6% 1.5% 1.4% 1.3% 1.3% 1.0% NPE ratio remained stable at 1.5% 0.0% Southeastern 68.2% 70.1% 70.2% 69.2% 67.2% (4.0%) 573 In GC&M both the NPE ratio and coverage 6.0% 0.9% rat
Slide 24: 03 Appendix
01 Business & Financial Update 02 Risk Update 03 Appendix
Slide 25: Geographic Footprint
Geographic Footprint Leading regional player with CEE presence of over 30 years Central Europe (CE) Russia, #10 servicing approx. 18 million customers ▪ Loans: EUR 7.1 bn Southeastern Europe (SEE) ▪ Business outlets : 124 Covering Austria and 12 CEE markets, of which five are EU Eastern Europe (EE)
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 31/12/2022 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 27: Q2/2023 Income Statement and KPIs
Q2/2023 Income Statement and KPIs (in EUR mn) Q2/2023 % q-o-q % y-o-y Net interest income 1,364 -1% +12% Net interest margin Q2/2023 Net fee and commission income 732 -24% -17% Net trading income & fair value result 30 -65% -77% 2.74% Other operating components1 71 +223% +77% -1 bp q-o-q Operating i
Slide 28: Q2/2023 Income Statement and KPIs (Adjusted)
Adjusted excluding Q2/2023 Income Statement and KPIs Russia / Belarus (in EUR mn) Q2/2023 % q-o-q % y-o-y Net interest income 1,039 +4% +33% Net interest margin Q2/2023 Net fee and commission income 417 -3% -3% Net trading income & fair value result -20 - - 2.32% Other operating components1 68 +24%
Slide 29: Total Exposure
Total Exposure Total exposure by segments Q2/2023 … by sector Q2/2023 in EUR bn in EUR bn Mortgages 29 Consumer loans & other 20 Retail 20% GC&M -2.4% 102.7 EUR 244 bn Sovereigns & supranationals Financial institutions 39 58 Sov. & FI 39% Industrials 24 -1.6% q-o-q Materials 12 Corporate 41% CE +1.3
Slide 30: Q2/2023 Segments Overview
Q2/2023 Segments Overview Core revenues Loans to customers / NIM Provisioning ratio Profit/loss after tax Q2/23 q-o-q Q3/22 Q4/22 Q1/23 Q2/23 Q2/23 q-o-q Q2/23 q-o-q 534 37,138 37,707 38,192 38,139 CE Net Fees 147 +4% 5.00% 25 bps EUR -132 mn 30,000 +12 bps - NII 386 +5% 2.49% 2.39% 2.32% 2.42% 20,0
Slide 31: Corporate Center/Reconciliation
Corporate Center/Reconciliation In EUR mn 1-6/2023 1-6/2022 y-o-y In EUR mn 1-6/2023 1-6/2022 y-o-y Operating income 443 386 14,9% Operating income (492) (206) 138,9% General admin. expenses (255) (217) 17,4% General admin. expenses 80 72 11,8% Operating result 188 168 11,8% Operating result (412) (
Slide 32: Equity Overview
Equity Overview Non- Subscribed Capital Retained Cumulative other Consolidated controlling Additional Total In EUR mn capital reserves earnings comprehensive income equity interests tier 1 Equity Equity as at 1/1/2022 1.002 4.990 13.637 (3.601) 16.027 1.127 1.610 18.764 Impact of adopting IFRS 17 0
Slide 33: Regulatory Capital Structure - Overview
Regulatory Capital Structure - Overview in EUR mn 30/6/2023 31/3/2023 31/12/2022 Common equity tier 1 (before deductions) 16.614 16.640 16.442 Deduction items (794) (848) (799) Common equity tier 1 (after deductions) 15.819 15.792 15.643 Additional tier 1 (after deductions) 1.681 1.684 1.676 Tier 1
Slide 34: Maturity Profile
Maturity Profile Maturity MaturityProfile Profileat at30/06/2023 30/9/2020 (in EUR mn) 4,587 340 4,238 16 4,174 67 13 2,080 4,230 4,171 4,161 80 1,655 1,310 1,029 546 2,000 737 755 1,650 109 577 530 1,023 764 736 646 500 500 77 48 5 6 30 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 >2035 S
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 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 joint monitoring ensures
Slide 37: Bank Levies
Bank Levies Impact in EUR mn FY 2022 1-6 2023 FY 2023e Austria Bank levy based on total assets (excluding derivatives) 22 0 ~2 Bank levy of 0.15% (for up to HUF 50 bn of total assets) and 0.21% (for tax base above HUF 50 bn) fully reflected in the first quarter; special tax for banks (bank levy) on
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 30/6/2023 30/6/2023 31/12/2022 30/6/2023 31/12/2022 30/6/2023 31/12/2022 30/6/2023 31/12/2022 Czech Republic 269 0,9% 1,0% 47,9%
Slide 39: RBI Group
RBI Group In EUR mn Q2/2023 Q1/2023 q-o-q Q4/2022 Q3/20223 Q2/20223 1-6/2023 1-6/20223 y-o-y 1-12/2022 Net interest income 1,364 1,385 (1.5%) 1,462 1,392 1,214 2,749 2,199 25.0% 5,053 Net fee and commission income 732 966 (24.2%) 1,196 1,117 882 1,698 1,565 8.4% 3,878 Net trading income and fair val
Slide 40: RBI Core Group – excl. Russia and Belarus
RBI Core Group – excl. Russia and Belarus In EUR mn Q2/2023 Q1/2023 q-o-q Q4/2022 Q3/20223 Q2/20223 1-6/2023 1-6/20223 y-o-y 1-12/2022 Net interest income 1,039 997 4.2% 1,000 878 781 2,036 1,522 33.8% 3,399 Net fee and commission income 417 429 (2.8%) 452 447 431 846 840 0.7% 1,739 Net trading inco
Slide 41: Country Financials (CE) – Czech Republic
Country Financials (CE) – Czech Republic In EUR mn Q2/2023 Q1/2023 q-o-q Q4/2022 Q3/2022 Q2/2022 1-6/2023 1-6/2022 y-o-y 1-12/2022 Net interest income 159 153 3.9% 144 183 159 312 325 (4.0%) 652 Net fee and commission income 48 48 (0.7%) 56 45 47 95 95 (0.1%) 197 Net trading income and fair value re
Slide 42: Country Financials (CE) – Hungary
Country Financials (CE) – Hungary In EUR mn Q2/2023 Q1/2023 q-o-q Q4/2022 Q3/2022 Q2/2022 1-6/2023 1-6/2022 y-o-y 1-12/2022 Net interest income 121 123 (1.2%) 117 96 76 245 143 70.6% 356 Net fee and commission income 52 47 9.8% 48 45 45 98 90 9.8% 183 Net trading income and fair value result (19) (7
Slide 43: Country Financials (CE) – Poland
Country Financials (CE) – Poland In EUR mn Q2/2023 Q1/2023 q-o-q Q4/2022 Q3/2022 Q2/2022 1-6/2023 1-6/2022 y-o-y 1-12/2022 Net interest income 7 0 >500,0% 3 4 3 8 6 25.5% 12 Net fee and commission income 0 0 (69.9%) (0) 0 1 0 1 (87.5%) 1 Net trading income and fair value result 1 0 >500,0% 0 2 0 1 (
Slide 44: Country Financials (CE) – Slovakia
Country Financials (CE) – Slovakia In EUR mn Q2/2023 Q1/2023 q-o-q Q4/2022 Q3/2022 Q2/2022 1-6/2023 1-6/2022 y-o-y 1-12/2022 Net interest income 99 91 9.3% 93 79 78 190 150 26.7% 322 Net fee and commission income 48 46 4.4% 47 46 47 94 92 2.2% 185 Net trading income and fair value result 3 4 (27.5%)
Slide 45: Country Financials (SEE) – Albania
Country Financials (SEE) – Albania In EUR mn Q2/2023 Q1/2023 q-o-q Q4/2022 Q3/2022 Q2/2022 1-6/2023 1-6/2022 y-o-y 1-12/2022 Net interest income 28 25 12.0% 23 18 16 52 31 68.2% 72 Net fee and commission income 5 4 10.3% 5 5 5 9 9 0.6% 19 Net trading income and fair value result (5) 0 – 0 (1) (1) (5
Slide 46: Country Financials (SEE) – Bosnia & Herzegovina
Country Financials (SEE) – Bosnia & Herzegovina In EUR mn Q2/2023 Q1/2023 q-o-q Q4/2022 Q3/2022 Q2/2022 1-6/2023 1-6/2022 y-o-y 1-12/2022 Net interest income 21 19 11.0% 18 17 15 40 30 35.3% 64 Net fee and commission income 13 13 4.1% 16 15 13 26 26 0.4% 56 Net trading income and fair value result 1
Slide 47: Country Financials (SEE) – Croatia
Country Financials (SEE) – Croatia In EUR mn Q2/2023 Q1/2023 q-o-q Q4/2022 Q3/2022 Q2/2022 1-6/2023 1-6/2022 y-o-y 1-12/2022 Net interest income 44 41 8.3% 32 30 27 85 54 56.0% 116 Net fee and commission income 17 18 (5.1%) 21 25 21 35 42 (15.2%) 87 Net trading income and fair value result (7) 1 – 1
Slide 48: Country Financials (SEE) – Kosovo
Country Financials (SEE) – Kosovo In EUR mn Q2/2023 Q1/2023 q-o-q Q4/2022 Q3/2022 Q2/2022 1-6/2023 1-6/2022 y-o-y 1-12/2022 Net interest income 16 15 5.9% 16 14 13 31 25 24.6% 55 Net fee and commission income 4 4 16.9% 3 6 4 8 8 (1.5%) 17 Net trading income and fair value result 0 0 26.7% (0) (0) 0
Slide 49: Country Financials (SEE) – Romania
Country Financials (SEE) – Romania In EUR mn Q2/2023 Q1/2023 q-o-q Q4/2022 Q3/2022 Q2/2022 1-6/2023 1-6/2022 y-o-y 1-12/2022 Net interest income 143 140 1.8% 141 129 115 283 219 29.2% 489 Net fee and commission income 44 41 9.0% 43 48 48 85 89 (4.4%) 180 Net trading income and fair value result 3 4
Slide 50: Country Financials (SEE) – Serbia
Country Financials (SEE) – Serbia In EUR mn Q2/2023 Q1/2023 q-o-q Q4/2022 Q3/2022 Q2/2022 1-6/2023 1-6/2022 y-o-y 1-12/2022 Net interest income 66 59 11.6% 51 40 34 125 56 123.4% 147 Net fee and commission income 26 25 4.4% 27 25 24 51 39 30.9% 91 Net trading income and fair value result 4 3 20.3% 3
Slide 51: Country Financials (EE) – Belarus
Country Financials (EE) – Belarus In EUR mn Q2/2023 Q1/2023 q-o-q Q4/2022 Q3/2022 Q2/2022 1-6/2023 1-6/2022 y-o-y 1-12/2022 Net interest income 20 27 (24.0%) 32 32 31 47 59 (20.6%) 123 Net fee and commission income 38 30 30.4% 26 32 30 68 54 26.3% 112 Net trading income and fair value result 7 8 (14
Slide 52: Country Financials (EE) – Russia
Country Financials (EE) – Russia In EUR mn Q2/2023 Q1/2023 q-o-q Q4/2022 Q3/2022 Q2/2022 1-6/2023 1-6/2022 y-o-y 1-12/2022 Net interest income 322 377 (14.6%) 436 476 394 698 615 13.5% 1,527 Net fee and commission income 264 496 (46.8%) 709 629 420 760 670 13.5% 2,008 Net trading income and fair val
Slide 53: Country Financials (EE) – Ukraine
Country Financials (EE) – Ukraine In EUR mn Q2/2023 Q1/2023 q-o-q Q4/2022 Q3/20223 Q2/20223 1-6/2023 1-6/20223 y-o-y 1-12/2022 Net interest income 99 101 (1.1%) 110 101 88 200 163 22.3% 375 Net fee and commission income 20 24 (13.1%) 29 29 15 44 28 54.7% 87 Net trading income and fair value result 8
Slide 54: Group Corporates & Markets
Group Corporates & Markets In EUR mn Q2/2023 Q1/2023 q-o-q Q4/2022 Q3/2022 Q2/2022 1-6/2023 1-6/2022 y-o-y 1-12/2022 Net interest income 238 226 5.6% 228 191 166 464 314 47.6% 733 Net fee and commission income 129 158 (18.3%) 166 146 155 287 305 (6.0%) 617 Net trading income and fair value result 37
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 24 October 2023 Start of Quiet Period 3 November 2023 Third Quarter Report, Conference Call Group Investor Relations 24 January 2024 Start of Quiet Period 31 January 2024 Preliminary Results 2023, Conference Call Raiffeisen Bank 22 February 2024 Annual Financial Report 2023 Intern
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