Raiffeisen Bank International Ag · VIE:RBI
Raiffeisen Bank International — Q1 2021 Earnings Presentation
54 slides from Raiffeisen Bank International's earnings presentation, May 7, 2021
Slide 1: Raiffeisen Bank International Q1 Results
Raiffeisen Bank International Q1 Results - 7 May 2021
Slide 2: Disclaimer
Disclaimer Certain statements contained herein may be statements of uncertainties and factors inherent in our business. (as amended, the "Financial Promotion Order") or who (i) have future expectations and other forward-looking statements This presentation contains financial and non-financial profes
Slide 3: Business & Financial Update, Risk Update, Appendix
01 02 03 Business & Financial Risk Update Appendix Update Group Investor Relations 7 May 2021 3
Slide 4: Q1/2021 Executive Summary
Q1/2021 Executive Summary Consolidated profit Core revenues Core revenues 1-3/2021 1-3/2021, in EUR mn ▪ NII stabilized in Q1 vs. Q4/2020 767 EUR 216 mn 434 ▪ Consolidated profit supported by lower risk costs and bank levies +22% y-o-y -13 % -3 % y-o-y y-o-y Net interest Net fee & commission income
Slide 5: Q1/2021 Income Statement and KPIs
Q1/2021 Income Statement and KPIs (in EUR mn) Q1/2021 % q-o-q % y-o-y Net interest margin Net interest income 767 +0% -13% Q1/2021 Net fee and commission income 434 -7% -3% 1.94% Net trading income & fair value result 5 - -87% -4 bps q-o-q Other operating components1 54 +203% +0% Operating income 1,
Slide 6: Q1/2021 Core Revenue Trends
Q1/2021 Core Revenue Trends Net interest income Q1/2021 NII stable NIM development reflects balance sheet EUR 767 mn ▪ Positive FX effect (EUR 4mn) from RUB and CZK expansion 1.97% 1.94% 866 881 881 ▪ First rate hikes in Russia and 0 bps -3 bps 840 y-o-y Ukraine ▪ Strong deposit inflow and higher 82
Slide 7: Q1/2021 Segments Overview
Q1/2021 Segments Overview Core revenues Loans to customers / NIM Provisioning ratio Profit after tax Q1/21 q-o-q Q2/20 Q3/20 Q4/20 Q1/21 Q1/21 q-o-q Q1/21 q-o-q 29,857 29,921 292 30,000 29,615 29,571 5.00% CE Net Fees 107 +1 % 11 bps EUR 25 mn 29,000 -65 bps +12% NII 184 -2 % 1.91% 1.74% 1.74% 1.61%
Slide 8: Balance Sheet and Loan Growth
Balance Sheet and Loan Growth 31/03/2021 ∆ q-o-q 31/03/2021 ∆ q-o-q Assets (in EUR mn) 176,152 +6% Liabilities (in EUR mn) 176,152 +6% Loans to banks 13,644 +14% Deposits from banks 37,242 +28% Loans to customers 91,861 +1% Deposits from customers 104,211 +2% Securities 23,015 +4% Debt issued and ot
Slide 9: Capital Ratios
Capital Ratios Regulatory capital requirements Q1/2021 Development (including results) RBI 18.1% ▪ P2R of 2.25% is fully optimized: Regulatory ▪ 1.27% met with CET1, 42 bps with AT1 and 56 bps 15.6% with T2 14.91% ▪ P2G of 1.00%; to be solely covered by CET1 but 13.6% Tier 2 applicable to all capita
Slide 10: CET1 Ratio Development
CET1 Ratio Development Q-o-Q -7 bps 13.6% 13.6% -18 bps +16 bps -14 bps -1 bps +10 bps Credit risk Market & FX1 OCI, Retained operational valuation & earnings risk other effects Q4/2020 Q1/2021 (incl. Q1 result) Dividend accruals ▪ Credit Risk: increase by EUR 1.0 bn (excl. FX ▪ The CET1 ratio conti
Slide 11: Funding and Liquidity
Funding and Liquidity Liquidity ratios 170% 165% 160% 164% ▪ LCR remain elevated across network 139% ▪ Loan to deposit ratio impacted by subdued loan demand 122% 123% 124% 113% and further inflow of deposits 111% ▪ Head office deposits at the ECB are largely covered by two-tiered interest rate on re
Slide 12: Polish FX Portfolio and Developments
Polish FX Portfolio and Developments Portfolio update EUR 2.0 bn 31,000 loans EUR 100-110 mn 118% Q1/ Current portfolio of p.a. Amortization RWA Credit risk 2021 CHF loans weighting Cases and provisions EUR of which in Q1/2021: 4,707 cases ~250-300 cases 115 mn EUR 28 mn per month 5 May Pending case
Slide 13: Macro Outlook
Macro Outlook GDP (real, % yoy) 2019 2020e 2021f 2022f ▪ Slow vaccination rollout and ongoing restrictions present near term headwind to euro area and CEE Czech Republic 2.3 -5.6 2.6 5.5 economies; vaccination rollout expected to Hungary 4.6 -5.2 5.0 5.5 accelerate in spring and summer leading fewer
Slide 14: Loan Growth Forecast for CEE
Loan Growth Forecast for CEE ▪ Mortgage segment and pent-up consumer demand Raiffeisen Research forecast loan growth in local currency, y-o-y among drivers for retail lending, further supported by dedicated state support programs in certain Retail Corporate countries 2021f 2022f 2021f 2022f ▪ Corpor
Slide 15: Outlook and Targets
Outlook and Targets Loan Growth We expect modest loan growth in the first half of 2021, accelerating in the second half of the year Risk Costs The provisioning ratio for FY 2021 is expected to be around 75 basis points, as moratoria and government support programs expire Cost / Income Ratio We remai
Slide 16: Business & Financial Update, Risk Update, Appendix
01 02 03 Business & Financial Risk Update Appendix Update Group Investor Relations 7 May 2021 16
Slide 17: Total Exposure
Total Exposure Total exposure by segments, in EUR bn, Q1/2021 Total exposure by sector, in EUR bn, Q1/2021 Total: EUR 213.9 bn, +5.5% (q-o-q) Total: EUR 213.9 bn GC&M +4.3% Mortgages 26 95.5 Retail Consumer loans & other 17 19.8 % CE +9.0% Sovereigns & supranationals 51 58.3 Financial institutions 3
Slide 18: IFRS 9 Provisioning in Q1/2021
IFRS 9 Provisioning in Q1/2021 Breakdown of total net provisions Q1/2021 EUR EUR 44 mn 79 mn ▪ Low Stage 1 & 2: driven mostly by non-retail rating migrations EUR ▪ Macro assumptions: EUR 5 mn reflects H1/2021 26 mn uncertainty around vaccination rollout and economies reopening EUR EUR ▪ Post-model a
Slide 19: Corporate and Project Finance Rating Classification
Corporate and Project Finance Rating Classification Rating reviews between 01/01/2020 and 31/03/2021 100% 34.1k … have been reviewed Corporate 40% 27% 39% 34% customers + - … have been ≥ 2x Upgrades Unchanged Downgrades reviewed more than once Rating distribution of all corporate customers Rating di
Slide 20: Moratoria Overview
Moratoria Overview (all data as of 31/03/2021) EUR 1 bn loans under moratoria, down from EUR 10.7 bn at peak in 07/2020 Loans and advances subject to moratoria Exposures previously under moratoria Households Household1 loans previously under moratoria: EUR 3.6 bn Gross carrying amount Residual matur
Slide 21: RWA Development
RWA Development Q1/2021 RWA development RWA by segment in EUR bn 1 Credit risk increased by EUR 1.0 bn, with EUR +0.4bn from rating migration and EUR +0.4 bn from new business, mainly retail (EUR +0.3 bn) GC&M 28.8 CE 2 Slight updrift of EUR 0.3 bn, mainly due to dynamics of AMA model in Russia and
Slide 22: NPE Ratio and NPE Coverage
NPE Ratio and NPE Coverage Q1/2020 Q2/2020 Q3/2020 Q4/2020 Q1/2021 NPE Stock Asset Quality Development q-o-q Central Europe in EUR mn 62.8% 63.3% 65.0% 63.1% 0.06 Q1/2021 ▪ NPE ratio at 1.8% vs. 1.9% in Q4/2020 driven by low 61.4% ∆ QoQ net increase of NPE stock and higher overall exposure 0.5 899 2
Slide 23: Business & Financial Update, Risk Update, Appendix
01 02 03 Business & Financial Risk Update Appendix Update Group Investor Relations 7 May 2021 23
Slide 24: Geographic Footprint
Geographic Footprint ▪ Leading regional player with CEE presence of over 30 Russia, #10 years servicing approx. 17.4 million customers Central Europe (CE) ▪ Loans: EUR 9.5 bn Southeastern Europe (SEE) ▪ Branches: 131 Eastern Europe (EE) ▪ Covering Austria and 13 CEE markets, of which six are EU Ukra
Slide 25: Raiffeisen Banking Group Structure
Raiffeisen Banking Group Structure ▪ Raiffeisen Banking Group (RBG) – largest banking group in Austria with total assets of EUR 318 bn as of 30/06/2020 ▪ Solid funding profile of RBG based on a domestic market share of around 32% of total customer deposits, not least due to superior brand recognitio
Slide 26: Limited Exposure to most impacted Corporate Customers
Limited Exposure to most impacted Corporate Customers 1.3% (EUR 1,504 mn) of non-retail exposure to customers rated1 substandard and below, in moderate and high Covid-19 impact industries in EUR mn in EUR mn Moderate Covid impact Most impacted by Covid and lengthy recovery … net exposure rated subst
Slide 27: Committed to Sustainable Finance
Committed to Sustainable Finance Head office green bond issuance Certifications ▪ Green loan portfolio with total volume of eligible assets: “C+” level and Prime status in ESG EUR 1,497 mn as of 31/03/2021 corporate rating by ISS ESG (June 2020) ▪ The reference portfolio comprises green buildings (7
Slide 28: Corporate Center/Reconciliation
Corporate Center/Reconciliation In EUR mn 1-3/2021 1-3/20201 y-o-y In EUR mn 1-3/2021 1-3/20201 y-o-y Operating income 107 16 >500,0% Operating income (104) (9) >500,0% General admin. expenses (92) (92) (0.1%) General admin. expenses 32 34 -5.8% Operating result 14 (77) – Operating result (71) 26 –
Slide 29: 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 1/1/2021 1,002 4,992 9,234 (3,394) 11,835 820 1,633 14,288 Capital increases 0 0 0 0 0 0 0
Slide 30: Regulatory Capital Overview
Regulatory Capital Overview Regulatory Capital Structure In EUR mn 31/3/2021 31/12/2020 31/3/2020 Common equity tier 1 (before deductions) 11,524 11,374 10,769 Deduction items (725) (612) (878) Common equity tier 1 (after deductions) 10,798 10,762 9,891 Additional tier 1 (after deductions) 1,684 1,7
Slide 31: Maturity Profile
Maturity Profile Maturity Maturity Profile Profile at at 30/9/2020 31/3/2021 (in EUR mn) 2,103 15 1,893 1,751 546 1,333 1,207 500 1,057 979 2,088 1,650 723 500 1,347 98 1,207 562 1,057 833 626 500 479 212 212 48 24 62 96 5 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 >2035 Senior placement
Slide 32: 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 99.6% XS1756703275 4.500% EUR 500 mn 17 Jan 2018 25 Jun 2025 Semi-ann
Slide 33: The Institutional Protection Scheme (IPS)
The Institutional Protection Scheme (IPS) 1 RBI is part of the Raiffeisen Banking Group federal 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 early identificati
Slide 34: Bank Levies
Bank Levies Impact in EUR mn FY 2020 1-3/2021 FY 2021e Bank levy based on total assets (excluding derivatives) and including a one-off payment 1 Austria 59 5 ~18 (spread over 4 years) of EUR 163 mn from 2017 to 2020. Bank levy of 0.15% (for up to HUF 50 bn of total assets) and 0.21% (for tax base ab
Slide 35: 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 31/3/2021 31/3/2021 31/12/2020 31/3/2021 31/12/2020 31/3/2021 31/12/2020 31/3/2021 31/12/2020 Czech Republic 290 1.5% 1.5% 48.7%
Slide 36: RBI Group
RBI Group In EUR mn Q1/2021 Q4/20203 q-o-q Q3/20203 Q2/20203 Q1/20203 1-3/2021 1-3/20203 y-o-y 1-12/20203 Net interest income 767 765 0.2% 770 825 881 767 881 (13.0%) 3,241 Net fee and commission income 434 466 (6.9%) 433 392 448 434 448 (3.2%) 1,738 Net trading income and fair value result 5 (2) –
Slide 37: Country Financials (CE) – Czech Republic
Country Financials (CE) – Czech Republic In EUR mn Q1/2021 Q4/20203 q-o-q Q3/20203 Q2/20203 Q1/20203 1-3/2021 1-3/20203 y-o-y 1-12/20203 Net interest income 74 74 (0.3%) 73 82 101 74 101 (27.1%) 330 Net fee and commission income 33 30 10.2% 29 26 36 33 36 (9.2%) 121 Net trading income and fair value
Slide 38: Country Financials (CE) – Hungary
Country Financials (CE) – Hungary In EUR mn Q1/2021 Q4/20203 q-o-q Q3/20203 Q2/20203 Q1/20203 1-3/2021 1-3/20203 y-o-y 1-12/20203 Net interest income 38 38 0.5% 36 38 37 38 37 2.0% 149 Net fee and commission income 35 36 (3.8%) 34 32 36 35 36 (2.4%) 139 Net trading income and fair value result (0) 7
Slide 39: Country Financials (CE) – Poland
Country Financials (CE) – Poland In EUR mn Q1/2021 Q4/20203 q-o-q Q3/20203 Q2/20203 Q1/20203 1-3/2021 1-3/20203 y-o-y 1-12/20203 Net interest income 3 4 (25.0%) 4 4 4 3 4 (27.6%) 16 Net fee and commission income 1 1 (9.6%) 1 1 1 1 1 (26.3%) 3 Net trading income and fair value result 0 0 (34.3%) 0 0
Slide 40: Country Financials (CE) – Slovakia
Country Financials (CE) – Slovakia In EUR mn Q1/2021 Q4/20203 q-o-q Q3/20203 Q2/20203 Q1/20203 1-3/2021 1-3/20203 y-o-y 1-12/20203 Net interest income 69 73 (4.7%) 72 73 74 69 74 (6.5%) 292 Net fee and commission income 39 40 (2.5%) 36 36 35 39 35 10.2% 148 Net trading income and fair value result 1
Slide 41: Country Financials (SEE) – Albania
Country Financials (SEE) – Albania In EUR mn Q1/2021 Q4/20203 q-o-q Q3/20203 Q2/20203 Q1/20203 1-3/2021 1-3/20203 y-o-y 1-12/20203 Net interest income 13 13 0.3% 13 13 14 13 14 (8.3%) 53 Net fee and commission income 4 2 47.8% 3 3 3 4 3 6.0% 12 Net trading income and fair value result 1 1 69.8% 1 (4
Slide 42: Country Financials (SEE) – Bosnia & Herzegovina
Country Financials (SEE) – Bosnia & Herzegovina In EUR mn Q1/2021 Q4/20203 q-o-q Q3/20203 Q2/20203 Q1/20203 1-3/2021 1-3/20203 y-o-y 1-12/20203 Net interest income 15 15 (1.4%) 16 16 16 15 16 (7.9%) 63 Net fee and commission income 10 11 (0.6%) 11 9 10 10 10 2.7% 40 Net trading income and fair value
Slide 43: Country Financials (SEE) – Bulgaria
Country Financials (SEE) – Bulgaria In EUR mn Q1/2021 Q4/20203 q-o-q Q3/20203 Q2/20203 Q1/20203 1-3/2021 1-3/20203 y-o-y 1-12/20203 Net interest income 29 28 2.3% 28 28 29 29 29 (2.1%) 114 Net fee and commission income 13 13 2.0% 14 11 13 13 13 1.4% 50 Net trading income and fair value result 1 1 (6
Slide 44: Country Financials (SEE) – Croatia
Country Financials (SEE) – Croatia In EUR mn Q1/2021 Q4/20203 q-o-q Q3/20203 Q2/20203 Q1/20203 1-3/2021 1-3/20203 y-o-y 1-12/20203 Net interest income 29 28 2.1% 28 29 30 29 30 (4.9%) 115 Net fee and commission income 15 14 5.1% 18 12 17 15 17 (11.7%) 61 Net trading income and fair value result 1 2
Slide 45: Country Financials (SEE) – Kosovo
Country Financials (SEE) – Kosovo In EUR mn Q1/2021 Q4/20203 q-o-q Q3/20203 Q2/20203 Q1/20203 1-3/2021 1-3/20203 y-o-y 1-12/20203 Net interest income 12 12 (1.0%) 12 12 12 12 12 2.6% 47 Net fee and commission income 3 3 1.0% 3 2 2 3 2 24.2% 9 Net trading income and fair value result 0 0 (40.9%) 0 (0
Slide 46: Country Financials (SEE) – Romania
Country Financials (SEE) – Romania In EUR mn Q1/2021 Q4/20203 q-o-q Q3/20203 Q2/20203 Q1/20203 1-3/2021 1-3/20203 y-o-y 1-12/20203 Net interest income 90 93 (2.7%) 91 93 96 90 96 (6.0%) 372 Net fee and commission income 37 41 (9.8%) 41 35 39 37 39 (4.3%) 156 Net trading income and fair value result
Slide 47: Country Financials (SEE) – Serbia
Country Financials (SEE) – Serbia In EUR mn Q1/2021 Q4/20203 q-o-q Q3/20203 Q2/20203 Q1/20203 1-3/2021 1-3/20203 y-o-y 1-12/20203 Net interest income 21 21 (1.7%) 21 21 21 21 21 (3.2%) 85 Net fee and commission income 12 13 (4.1%) 12 10 12 12 12 0.7% 48 Net trading income and fair value result 1 1 (
Slide 48: Country Financials (EE) – Belarus
Country Financials (EE) – Belarus In EUR mn Q1/2021 Q4/20203 q-o-q Q3/20203 Q2/20203 Q1/20203 1-3/2021 1-3/20203 y-o-y 1-12/20203 Net interest income 17 19 (8.0%) 18 22 25 17 25 (30.7%) 83 Net fee and commission income 13 13 (2.0%) 15 13 15 13 15 (14.3%) 57 Net trading income and fair value result 2
Slide 49: Country Financials (EE) – Russia
Country Financials (EE) – Russia In EUR mn Q1/2021 Q4/20203 q-o-q Q3/20203 Q2/20203 Q1/20203 1-3/2021 1-3/20203 y-o-y 1-12/20203 Net interest income 163 170 (3.9%) 172 193 207 163 207 (21.1%) 741 Net fee and commission income 75 111 (32.5%) 88 84 91 75 91 (17.8%) 374 Net trading income and fair valu
Slide 50: Country Financials (EE) – Ukraine
Country Financials (EE) – Ukraine In EUR mn Q1/2021 Q4/20203 q-o-q Q3/20203 Q2/20203 Q1/20203 1-3/2021 1-3/20203 y-o-y 1-12/20203 Net interest income 54 52 3.9% 54 63 67 54 67 (19.7%) 236 Net fee and commission income 18 22 (18.7%) 23 20 22 18 22 (19.6%) 88 Net trading income and fair value result 5
Slide 51: Group Corporates & Markets
Group Corporates & Markets In EUR mn Q1/2021 Q4/20203 q-o-q Q3/20203 Q2/20203 Q1/20203 1-3/2021 1-3/20203 y-o-y 1-12/20203 Net interest income 132 130 1.1% 141 160 151 132 151 (12.9%) 582 Net fee and commission income 119 118 0.8% 100 96 104 119 104 14.0% 417 Net trading income and fair value result
Slide 52: Sustainable Ratings and Industry Awards
Sustainable Ratings and Industry Awards The Banker – Bank of the Year 2020 in “C+” level and Prime status in ESG corporate rating by ISS ESG (June 2020) ▪ Central & Eastern Europe ▪ Slovakia ▪ Ukraine Low risk of experiencing material Global Finance 2021 – Best Bank in financial impacts from ESG fac
Slide 53: 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 ▪ 328,939,621 ordinary shares issued banks ▪ ISIN:
Slide 54: Contact and Financial Calendar
Contact and Financial Calendar Contact Details Financial Calendar Group Investor Relations 16 July 2021 Start of Quiet Period1 30 July 2021 Semi-Annual Report, Conference Call Raiffeisen Bank International AG 20 October 2021 Start of Quiet Period1 Am Stadtpark 9 1030 Vienna 03 November 2021 Third Qu
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