Raiffeisen Bank International Ag · VIE:RBI
Raiffeisen Bank International — FY2020 Earnings Presentation
62 slides from Raiffeisen Bank International's earnings presentation, Mar 17, 2021
Slide 1: Raiffeisen Bank International FY 2020
Raiffeisen Bank International FY 2020 17 March 2021
Slide 2: Disclaimer
Disclaimer Certain statements contained herein may be statements of Subject to applicable securities law requirements, we disclaim communicated or caused to be communicated (all such future expectations and other forward-looking statements about any intention or obligation to update or revise any fo
Slide 3: Business & Financial Update
01 02 03 Business & Financial Risk Update Appendix Update Group Investor Relations 17 March 2021 3
Slide 4: Financial Year 2020 Executive Summary
Financial Year 2020 Executive Summary Consolidated profit CET 1 ratio Proposed dividend of EUR 0.48 per share 1-12/2020 31/12/2020, fully loaded, incl. result ▪ In line with the ECB’s recommendation on dividend EUR 804 mn 13.6% payments ▪ Additional dividend distribution will be considered -34 % y-o
Slide 5: Growing in the Czech Republic
Growing in the Czech Republic Raiffeisen Czech Republic is the largest CEE Bank in the RBI network by loans to customers Leader in digitalization and cross-selling 2020 Efficiency drive With the acquisition of Equa Bank Raiffeisen will become the 4th largest retail bank in the Czech Republic: Target
Slide 6: Raiffeisen Czech Republic: Ready to Scale up
Raiffeisen Czech Republic: Ready to Scale up Powered by digital banking and cross-selling Efficiency drive in 2020 Cost program launched in 2020 – focusing on headcount, +14% 1 branches and office space 89% 95% Personnel expenses Branch network of active customers use Fastest growing digital channel
Slide 7: Three Strategic Initiatives to accelerate Growth
Three Strategic Initiatives to accelerate Growth Acquisition of Equa Bank Loan growth Clients Digital banking users Online digital sales 11% (3-year CAGR) 480k 300k 50% Loans to customers: (30.06.2020) Digital: ✓ Proven digital distribution capabilities 30% Complementary: EUR 2 bn Consumer loans ✓ S
Slide 8: Q4/2020 Income Statement and KPIs
Q4/2020 Income Statement and KPIs (in EUR mn) Q4/2020 % q-o-q % y-o-y Net interest income 765 -1% -13% Net interest margin Net fee and commission income 466 +8% -5% Q4/2020 Net trading income & fair value result -2 - - 1.97% Other operating components1 2 -94% -99% -3 bps q-o-q Operating income 1,232
Slide 9: Q4/2020 Core Revenue Trends
Q4/2020 Core Revenue Trends Net interest income further impacted by FX and interest rate cuts Q4/2020 NII slightly lower Net interest margin stabilized in Q4/2020 EUR 765 mn ▪ Further FX weakness, mainly in 2.00% 1.97% Russia and Ukraine 881 866 881 ▪ Rate cuts earlier in the year 840 -1 bps -2 bps
Slide 10: Opex Overview and Initiatives
Opex Overview and Initiatives General administrative expenses Retail OPEX initiatives: in EUR mn y-o-y Staff expenses -9% 1 Branch transformation and footprint reduction: Other administrative expenses 402 405 367 391 ▪ ~300 branches to be closed and targeting savings of: EUR 62 mn p.a. - 8% Deprecia
Slide 11: Q4/2020 Segments Overview
Q4/2020 Segments Overview Core revenues Loans to customers / NIM Provisioning ratio Profit after tax Q4/20 q-o-q Q1/20 Q2/20 Q3/20 Q4/20 Q4/20 q-o-q Q4/20 q-o-q 29,857 296 30,000 29,334 29,615 29,571 5.00% CE Net Fees 107 +6 % 76 bps 3.00% EUR 22 mn 29,000 2.13% 1.91% 1.74% 1.74% 1.00% +37 bps -59 %
Slide 12: Balance Sheet and Loan Growth
Balance Sheet and Loan Growth 31/12/2020 ∆ q-o-q 31/12/2020 ∆ q-o-q Assets (in EUR mn) 165,959 +1% Liabilities (in EUR mn) 165,959 +1% Loans to banks 11,952 +21% Deposits from banks 29,121 -4% Loans to customers 90,671 -1% Deposits from customers 102,112 +2% Securities 22,162 +1% Debt issued and oth
Slide 13: Capital Ratios
Capital Ratios Regulatory capital requirements Q4/2020 Development (including results) ▪ P2R of 2.25% is fully optimized: RBI 18.4% Regulatory ▪ 1.27% met with CET1, 42 bps with AT1 and 56 bps with T2 15.7% ▪ P2G of 1.00%; to be solely covered by CET1 but 14.91% applicable to all capital layers 13.6
Slide 14: CET1 Ratio Development
CET1 Ratio Development Q-o-Q + 60 bps +22 bps +17 bps 13.6% +10 bps 13.1% +3 bps +6 bps +9 bps -8 bps RWA FX1 Sovereign Securitization Non- Deduction Retained Development Exposure in EU Private Real deduction items earnings currency Estate Software & other Financing AT Assets effects Q3/2020 Q4/2020
Slide 15: MREL Requirements and MREL Issuance Plans
MREL Requirements and MREL Issuance Plans ▪ RBI pursues a Multiple Point of Entry (MPE) resolution strategy, with each EU network unit forming a separate resolution group, in line with RBI’s group structure ▪ 2021 MREL issuance plans in line with overall funding plan. Targets communicated by SRB are
Slide 16: Funding and Liquidity
Funding and Liquidity Liquidity ratios Liquidity surplus management 170% ▪ LCR remain elevated across network 160% 164% ▪ Loan to deposit ratio impacted by subdued loan 140% 139% demand and further inflow of deposits 122% 123% 112% 111% 113% ▪ Deposits at the ECB are largely covered by tiering ▪ A f
Slide 17: Retail – Digital Update
Retail – Digital Update Further growth in digital penetration in 2020 … Customer growth Mobile penetration Increase in digital sales 12.5 Total 11.5 11.9 customers 55% 48% 55% 43% (in mn) 33% 25% 6.7 5.5 Digital Mobile Digital 4.4 customers penetration sales (in mn) (%) (%) YE YE Ambition YE YE Ambi
Slide 18: New Thermal Coal Policy
New Thermal Coal Policy Covering general financing, advisory services, or other form of financial assistance to companies ✓ related to the thermal coal industry ✓ Important development towards achieving the Paris Agreement Goals Phase out from thermal coal by latest 2030 by amortization of existing
Slide 19: Macro Outlook
Macro Outlook GDP (real, % yoy) 2019 2020e 2021f 2022f ▪ Despite new lockdowns, CEE economies showed more resilience in late 2020, with Q4 GDP surprised to the Czech Republic 2.3 -5.6 2.5 5.5 upside, leading to smaller contractions in CE, SEE and Russia than previously estimated Hungary 4.6 -5.2 5.0
Slide 20: 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 21: Risk Update
01 02 03 Business & Financial Risk Update Appendix Update Group Investor Relations 17 March 2021 21
Slide 22: Total Exposure and Credit Portfolio Development
Total Exposure and Credit Portfolio Development Total exposure by segments, in EUR bn, FY/2020 Total exposure by sector, in EUR bn, FY/2020 Total: EUR 202.7 bn, +7.2% (y-o-y) Total: EUR 202.7 bn GC&M +14.5% Mortgages 25 Retail 91.6 Consumer loans & other 16 20.5 % CE +7.1% Sovereigns & supranational
Slide 23: FY/2020 IFRS 9 Provisioning
FY/2020 IFRS 9 Provisioning Breakdown of total net provisions 2020 Post-model adjustments drove 2020 risk costs ▪ Low organic Stage 1 & 2: driven mostly by non-retail rating migrations ▪ EUR 217 mn forward looking IFRS 9 provisions, mainly booked as post-model adjustments ▪ Macro assumptions: EUR 65
Slide 24: Moratoria Overview
Moratoria Overview (all data as of 31/12/2020) EUR 2.8 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 Households1 loans previously under moratoria: EUR 3.5 bn Gross carrying amount Residual ma
Slide 25: RWA Development
RWA Development FY/2020 RWA development RWA by segment in EUR bn 1 Credit risk only increased slightly (EUR +0.5 bn) as new business, rating migration GC&M and risk weight effects were largely offset by FX impact and RWA steering 27.5 measures (-1.9bn) CE CC & EUR 2 20.4 Reconciliation No notable ch
Slide 26: NPE Ratio and Coverage
NPE Ratio and Coverage Asset Quality Developments YTD Q4/2019 Q1/2020 Q2/2020 Q3/2020 Q4/2020 NPE Stock Central Europe in EUR mn 0.06 ▪ NPE ratio decreased by 0.2PP y-o-y to historical low of 1.9% 62.8% 63.3% 65.0% 63.1% Q4/2020 58.6% driven by recoveries (EUR 729 mn), write-offs (EUR 355 mn) ∆ YoY
Slide 27: Appendix
01 02 03 Business & Financial Risk Update Appendix Update Group Investor Relations 17 March 2021 27
Slide 28: Geographic Footprint
Geographic Footprint ▪ Leading regional player with CEE presence of over Russia, #9 30 years servicing approx. 17.2 million customers Central Europe (CE) ▪ Loans: EUR 9.1 bn Southeastern Europe (SEE) ▪ Branches: 132 Eastern Europe (EE) ▪ Covering Austria and 13 CEE markets, of which six Ukraine, #5
Slide 29: 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 30: Fiscal / Monetary Policy Response to Corona Crisis
Fiscal / Monetary Policy Response to Corona Crisis Unconventional Conventional QE QE-LIKE Czech National Cumulative 200bp rate cuts as crisis Legal foundations for QE laid, but Higher frequency of repo operations (3x instead Bank response; counter cyclical capital buffer CNB announced QE only to be
Slide 31: Recovery Assumptions by Industry
Recovery Assumptions by Industry At 31.12.2020 High For each industry recovery assumptions based on: 3a 3c ▪ Shape of recovery and assumptions on the post-pandemic outlook ▪ Impact of Covid: Severity and direct impact of lockdown measures Impact of 3b Covid 1 2 Total, in EUR bn 1 2 3a 3b 3c Gross ex
Slide 32: Limited Exposure to most impacted Corporate Customers
Limited Exposure to most impacted Corporate Customers At 31.12.2020 1.6% (EUR 1,725 mn) of non-retail exposure to customers rated1 substandard and below, in moderate and high COVID-19 impact industries 2 3 in EUR mn in EUR mn Moderate Covid impact and U-shaped recovery Most impacted by Covid and len
Slide 33: Committed to Sustainable Finance
Committed to Sustainable Finance Five green bonds issued Certifications ▪ Green loan portfolio with total volume of eligible assets: EUR “C+” level and Prime status in ESG corporate 1,506 mn as of 31/12/2020 rating by ISS ESG (June 2020) ▪ The reference portfolio comprises green buildings (81%), eve
Slide 34: Corporate Center/Reconciliation
Corporate Center/Reconciliation In EUR mn 1-12/2020 1-12/2019 y-o-y In EUR mn 1-12/2020 1-12/2019 y-o-y Operating income 667 834 (20.0%) Operating income (803) (894) (10.2%) General admin. expenses (370) (353) 4.9% General admin. expenses 148 131 12.6% Operating result 297 481 (38.2%) Operating resu
Slide 35: Equity Overview
Equity Overview Cumulative other Subscribed Capital Retained comprehensive Consolidated Non-controlling Additional Total In EUR mn capital reserves earnings income equity interests tier 1 Equity Equity as at 1/1/2020 1,002 4,992 8,443 (2,620) 11,817 811 1,137 13,765 Capital increases 0 0 0 0 0 7 497
Slide 36: Regulatory Capital Overview
Regulatory Capital Overview Regulatory Capital Structure I n EUR mn 31/12/2020 30/9/2020 31/12/2019 Common equity tier 1 (before deductions) 11,374 11,019 11,659 Deduction items (612) (964) (797) Common equity tier 1 (after deductions) 10,762 10,055 10,862 Additional tier 1 (after deductions) 1,727
Slide 37: Maturity Profile
Maturity Profile MaturityProfile Maturity Profileat at31/12/2020 30/9/2020 (in EUR mn) 2,080 15 1,928 1,893 1,751 500 546 1,186 1,056 983 2,065 1,650 724 1,428 505 1,347 99 1,186 547 1,056 626 500 217 478 217 57 47 17 96 5 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 >2035 Senior placement
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 Semi- Additional Tier 1 99.6% XS1756703275 4.500% EUR 500 mn 17 Jan 2018 25 Jun 2025 Pe
Slide 39: Available Distributable Items (ADI) to Cover Discretionary Distributions
Available Distributable Items (ADI) to Cover Discretionary Distributions Distributable Items Available Distributable Items (EUR mn) ▪ Discretionary coupon payments on AT1 capital are subject to sufficient distributable items1 7,776 7,375 7,065 770 7,009 6,979 481 ▪ Distributable items based on RBI A
Slide 40: 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 41: Bank Levies
Bank Levies Impact in EUR mn FY 2019 FY 2020 FY 2021e Bank levy based on total assets (excluding derivatives) and including a one-off Austria 57 59 1 ~18 payment (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 Hu
Slide 42: 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 31/12/2020 31/12/2020 31/12/2019 31/12/2020 31/12/2019 31/12/2020 31/12/2019 31/12/2020 31/12/2019 Czech Republic 273 1.5% 1.4%
Slide 43: Country and Segment Overview
Country and Segment Overview 1-12/2020 Total Assets2 Share of Loan/deposit Net Interest Cost/income Provisioning Return on equity 2 (EUR mn) Total Assets Ratio Margin Ratio Ratio after tax Czech Republic 18,363 11.1% 75.3% 1.89% 57.5% 0.64% 6.4% Hungary 8,808 5.3% 64.5% 1.90% 59.7% 0.59% 6.3% Poland
Slide 44: RBI Group
RBI Group In EUR mn Q4/2020 Q3/2020 q-o-q Q2/2020 Q1/2020 Q4/2019 1-12/2020 1-12/2019 y-o-y Net interest income 765 770 (0.6%) 825 881 881 3,241 3,412 (5.0%) Net fee and commission income 466 433 7.6% 392 448 489 1,738 1,797 (3.3%) Net trading income and fair value result (2) 33 – 25 37 70 94 (17) –
Slide 45: Country Financials (CE) – Czech Republic
Country Financials (CE) – Czech Republic In EUR mn Q4/2020 Q3/2020 q-o-q Q2/2020 Q1/2020 Q4/2019 1-12/2020 1-12/2019 y-o-y Net interest income 74 73 1.8% 82 101 96 330 395 (16.4%) Net fee and commission income 30 29 2.8% 26 36 33 121 130 (7.3%) Net trading income and fair value result 2 (0) – (1) (7
Slide 46: Country Financials (CE) – Hungary
Country Financials (CE) – Hungary In EUR mn Q4/2020 Q3/2020 q-o-q Q2/2020 Q1/2020 Q4/2019 1-12/2020 1-12/2019 y-o-y Net interest income 38 36 5.7% 38 37 22 149 127 17.6% Net fee and commission income 36 34 6.1% 32 36 38 139 149 (6.9%) Net trading income and fair value result 7 (5) – 3 3 1 8 (0) – Ot
Slide 47: Country Financials (CE) – Poland
Country Financials (CE) – Poland In EUR mn Q4/2020 Q3/2020 q-o-q Q2/2020 Q1/2020 Q4/2019 1-12/2020 1-12/2019 y-o-y Net interest income 4 4 (2.2%) 4 4 3 16 14 10.7% Net fee and commission income 1 1 (16.9%) 1 1 0 3 2 40.7% Net trading income and fair value result 0 0 50.3% 0 0 0 1 1 (26.4%) Other net
Slide 48: Country Financials (CE) – Slovakia
Country Financials (CE) – Slovakia In EUR mn Q4/2020 Q3/2020 q-o-q Q2/2020 Q1/2020 Q4/2019 1-12/2020 1-12/2019 y-o-y Net interest income 73 72 0.9% 73 74 75 292 294 (0.9%) Net fee and commission income 40 36 9.6% 36 35 41 148 160 (7.5%) Net trading income and fair value result 4 3 20.3% 7 2 30 15 32
Slide 49: Country Financials (SEE) – Albania
Country Financials (SEE) – Albania In EUR mn Q4/2020 Q3/2020 q-o-q Q2/2020 Q1/2020 Q4/2019 1-12/2020 1-12/2019 y-o-y Net interest income 13 13 (3.3%) 13 14 14 53 57 (7.4%) Net fee and commission income 2 3 (29.3%) 3 3 4 12 16 (25.6%) Net trading income and fair value result 1 1 (19.5%) (4) 8 1 5 3 7
Slide 50: Country Financials (SEE) – Bosnia & Herzegovina
Country Financials (SEE) – Bosnia & Herzegovina In EUR mn Q4/2020 Q3/2020 q-o-q Q2/2020 Q1/2020 Q4/2019 1-12/2020 1-12/2019 y-o-y Net interest income 15 16 (2.6%) 16 16 17 63 68 (6.5%) Net fee and commission income 11 11 (0.4%) 9 10 11 40 42 (3.6%) Net trading income and fair value result 0 1 (47.2%
Slide 51: Country Financials (SEE) – Bulgaria
Country Financials (SEE) – Bulgaria In EUR mn Q4/2020 Q3/2020 q-o-q Q2/2020 Q1/2020 Q4/2019 1-12/2020 1-12/2019 y-o-y Net interest income 28 28 (1.0%) 28 29 29 114 114 0.3% Net fee and commission income 13 14 (5.0%) 11 13 13 50 55 (8.4%) Net trading income and fair value result 1 0 189.9% 1 0 1 3 3
Slide 52: Country Financials (SEE) – Croatia
Country Financials (SEE) – Croatia In EUR mn Q4/2020 Q3/2020 q-o-q Q2/2020 Q1/2020 Q4/2019 1-12/2020 1-12/2019 y-o-y Net interest income 28 28 1.4% 29 30 31 115 122 (5.6%) Net fee and commission income 14 18 (20.0%) 12 17 20 61 75 (19.0%) Net trading income and fair value result 2 3 (39.5%) 2 (5) 2
Slide 53: Country Financials (SEE) – Kosovo
Country Financials (SEE) – Kosovo In EUR mn Q4/2020 Q3/2020 q-o-q Q2/2020 Q1/2020 Q4/2019 1-12/2020 1-12/2019 y-o-y Net interest income 12 12 1.3% 12 12 11 47 44 7.3% Net fee and commission income 3 3 10.3% 2 2 3 9 10 (9.2%) Net trading income and fair value result 0 0 145.2% (0) 0 0 0 0 (71.4%) Oth
Slide 54: Country Financials (SEE) – Romania
Country Financials (SEE) – Romania In EUR mn Q4/2020 Q3/2020 q-o-q Q2/2020 Q1/2020 Q4/2019 1-12/2020 1-12/2019 y-o-y Net interest income 93 91 2.2% 93 96 96 372 374 (0.6%) Net fee and commission income 41 41 2.2% 35 39 40 156 168 (7.1%) Net trading income and fair value result 4 4 9.7% 9 3 10 20 18
Slide 55: Country Financials (SEE) – Serbia
Country Financials (SEE) – Serbia In EUR mn Q4/2020 Q3/2020 q-o-q Q2/2020 Q1/2020 Q4/2019 1-12/2020 1-12/2019 y-o-y Net interest income 21 21 (0.5%) 21 21 22 85 88 (3.9%) Net fee and commission income 13 12 4.6% 10 12 13 48 51 (5.0%) Net trading income and fair value result 1 2 (14.1%) 2 2 2 7 8 (12
Slide 56: Country Financials (EE) – Belarus
Country Financials (EE) – Belarus In EUR mn Q4/2020 Q3/2020 q-o-q Q2/2020 Q1/2020 Q4/2019 1-12/2020 1-12/2019 y-o-y Net interest income 19 18 2.8% 22 25 27 83 103 (19.9%) Net fee and commission income 13 15 (8.8%) 13 15 15 57 57 (0.8%) Net trading income and fair value result 2 4 (55.6%) (2) 8 2 11
Slide 57: Country Financials (EE) – Russia
Country Financials (EE) – Russia In EUR mn Q4/2020 Q3/2020 q-o-q Q2/2020 Q1/2020 Q4/2019 1-12/2020 1-12/2019 y-o-y Net interest income 170 172 (1.3%) 193 207 218 741 789 (6.1%) Net fee and commission income 111 88 26.3% 84 91 121 374 394 (5.0%) Net trading income and fair value result 1 5 (75.0%) 2
Slide 58: Country Financials (EE) – Ukraine
Country Financials (EE) – Ukraine In EUR mn Q4/2020 Q3/2020 q-o-q Q2/2020 Q1/2020 Q4/2019 1-12/2020 1-12/2019 y-o-y Net interest income 52 54 (4.7%) 63 67 68 236 250 (5.6%) Net fee and commission income 22 23 (3.4%) 20 22 29 88 106 (17.4%) Net trading income and fair value result 3 4 (28.7%) 8 1 5 1
Slide 59: Group Corporates & Markets
Group Corporates & Markets In EUR mn Q4/2020 Q3/2020 q-o-q Q2/2020 Q1/2020 Q4/2019 1-12/2020 1-12/2019 y-o-y Net interest income 130 141 (7.3%) 160 151 143 582 598 (2.7%) Net fee and commission income 118 100 18.2% 96 104 118 417 394 5.8% Net trading income and fair value result 11 36 (69.8%) 59 (13
Slide 60: 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 2020 – Best Bank in financial impacts from ESG fac
Slide 61: 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, ATX five, MSCI Standard Index Europe, EURO STOXX Banks ▪ 328,939,621 ordinary shares issued Regional Raiffeisen Free float ban
Slide 62: Contact and Financial Calendar
Contact and Financial Calendar Contact Details Financial Calendar Group Investor Relations 12 April 2021 Record Date Annual General Meeting Raiffeisen Bank International AG 22 April 2021 Annual General Meeting 23 April 2021 Start of Quiet Period1 Am Stadtpark 9 1030 Vienna 28 April 2021 Ex-Dividend
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