Raiffeisen Bk Intl Ag Ord

Good afternoon, ladies and gentlemen. Very warm welcome. Thank you for joining the call today. Talking about first quarter, profit was up 22% year-on-year, driven to a large extent by lower risk costs. On the revenue side, net interest income was stable compared to the fourth quarter in 2020, and net fee and commission income has now almost recovered to the Q1 level of 2022. We are seeing positive signals in some of our markets as yield curves begin to steepen. While this is unlikely to have a major impact in 2021, it is nevertheless a step in the right direction. Loans to customers grew by 1.3% in the first quarter, with some support by FX movements. In retail, loan growth was primarily driven by mortgage loans and, to a lesser extent, by personal loans. New landing was mainly short-term. We expect loan growth to remain modest in the first half of 2021, but for the growth rate to increase in the second half of the year. This assumes primarily organic growth, and there could also be some additional support from exchange rates. This does account for the consolidation of Equibank. With respect to the acquisition, we still expect the transaction to close in the second or third quarter, pending on regulatory approval. The ING transaction in the Czech Republic is also proceeding according to plan, with over 75,000 customers recontracted to date. We issued green bonds during the quarter and continuing to do so. You are aware that Slovakia We came with 300 million Euro Green Senior Preferred Bond in April and today we had an inaugural Green Senior Preferred Bond in Romania, in RON if you are also interested in that currency. And we expect more from our Czech entity as well throughout this year. When moving to the next slide, you see a little bit more details to the P&L. I already have mentioned the net interest and fee and commission income. I think I can refer to the costs as overall in a positive development, but here be aware that we have also a new definition of the cost-income ratio. Overall, this leads to an improvement of the operating results on a year-on-year, quarter-on-quarter basis, and a minus 18% on a year-on-year. and to the risk costs, which are substantially improved. Hannes Mosenbacher will give you later on more details. When looking at slide six, some more insights to the core revenue trends. I have mentioned previously that we believe that net interest income has now brought them out, and you see this in the numbers of the last three quarters. The first quarter was somehow impacted by maturing hedges and their repricing. But now most of the structural interest rate positions have been repriced and their contribution to the NII is expected to be stable in the coming quarters. And the rate hikes what we have seen in Russia and Ukraine should be supportive. We saw a positive trend in the NI and Net Fee and Commission income in the last weeks of the quarter and this makes us Thank you very much. Thank you. Thank you very much. Thank you. When moving to the next slide, and here before we move I should say that, and you have heard this also in the last couple of calls, in these days, The net interest margin is not that informative as it usually had been. You know, we are flooded with liquidity and also the central bank supportive measures make their way to our balance sheet and by thus diluting a little bit the net interest margin. When looking at the segments, Yeah, what you see here, as I mentioned already, decrease in the net interest margin in most of our segments. As I said, this comes from the high liquidity in these countries.

Loan growth.

You see is in all the markets somehow visible, but as I said modest at the beginning of the first quarter, but it's visible now. Now quite a lot of contact with customers, quite a lot of interest. Maybe there's still more discussion than real drawing on investment loans, but we believe a pickup will come also in the unsecured loan in the second half of next year. You still see on slide eight, you see the volatility in the various loan products. You see the stabilizing in the retail area. and the volatility in the long-term corporate spot. Moving to slide number nine, we have almost stable CT1 ratio. You see that the ratios in comparison to the requirements, a very stable picture on slide nine. The impact of the development of the first quarter is visible on slide 10. Minus 18 basis points impact from the credit risk. Some additional impact from market and operational risk effects not visible and retained earnings are compensating for that so that we almost end just seven basis points below what we had at year end. You are aware that the dividend was paid out in, so not had been reflected and is not relevant the way we handle it for the CD1 ratio. The 48 cents had been paid out on the 30th of April and we keep the Andrii Serhiyovych Stepanenko, Magistrate Marie-Valerie Brunner, Sabine Abfalter This enormous liquidity is dominating everything in our balance sheet. And of course, the offer from the TLTRO finds its way also in the balance sheet. Currently, we have drawn around $8 billion, $5 billion on head office level, and Tatra Panka took another $3 billion. If we move then to the next slide, which is Poland, and I'm aware that currently there is a communication by the Supreme Court, the Senate of Seven Judges, on the question of statute of limitation and the theory of two convictions. Here I rather give and I cannot in detail comment on that. We will have to look it up. We also had a ruling by the European Court of Justice on the 29th of April to request of the PPH case. I find this ruling very informative, very clear. After our Tupiak case, the direction for legal experts was set rather clear. For non-legal experts like me, it still was difficult to fully understand the intention and the ruling of the European Court of Justice. I think the The very good thing of this ruling now is that it's very clear stating that indexation is not something which is unfair or abusive or whatever. It's one way to create the Swiss franc loan. We also understood that there is a clear declaration that invalidation of contract is only the last resort to resolve case. But the main goal should always be the reestablishment of a balance between the consumer and the bank. And even more so that it's not up to the customer's wish to decide whether a contract shall be invalidated or not, but it's an objective court decision. Depending on which parts of a contract might be ruled as unfair. It was again a strong statement that for the consumer there is some support by the court or putting it in other words, the court has the obligation to inform the customer in detail about the consequences. When following the public discussion, I think it's also important to read in that resolution that invalidation of a contract cannot constitute a sanction against the bank. But it's just, as I said at the very beginning, the last resort to resolve the issues. And personally, I'm I also think that the statement on the blue pencil roll might also create quite a lot of certainty for all these. What does it mean for us? We have a portfolio, just an update for you, of around 2 billion euros in Swiss francs, 31,000 loans. Amortization in the range of 100 to 110 million, so very long term. High RWA weightings of 118%. Huge number of cases pending at courts, more than 4,700. Recently we had an inflow of 250 to 300 cases per month. We will see if the ruling what we have seen today in combination with the ECJ ruling and there's another one announced by the full by the Supreme Court into full civil chamber to the six questions which had been asked by the president and then we will see if this changes anything in the inflow.