Raiffeisen Bank International Q3/2016 Results · PDF file16 November 2016 Certain statements contained herein may be statements of future expectations and other forward-looking statements,

Raiffeisen Bank InternationalQ3/2016 Results

16 November 2016

Certain statements contained herein may be statements of future expectations and other forward-looking statements, which are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, words such as "may", "will", "should", "expects", "plans", "contemplates", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions typically identify forward-looking statements.

By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As such, no forward-looking statement can be guaranteed. Undue reliance should not be placed on these forward-looking statements. Many factors could cause our results of operations, financial condition, liquidity, and the development of the industries in which we compete, to differ materially from those expressed or implied by the forward-looking statements contained herein.

These factors include, without limitation, the following: (i) our ability to compete in the regions in which we operate; (ii) our ability to meet the needs of our customers; (iii) our ability to leverage synergies from acquisitions, cost reduction programs or other projects; (iv) uncertainties associated with general economic conditions particularly in CEE; (v) governmental factors, including the costs of compliance with regulations and the impact of regulatory changes; (vi) the impact of currency exchange rate and interest rate fluctuations; and (vii) other risks, uncertainties and factors inherent in our business.

Subject to applicable securities law requirements, we disclaim any intention or obligation to update or revise any forward-looking statements set forth herein, whether as a result of new information, future events or otherwise.

This document is for information purposes only and shall not be treated as giving any investment advice and/or recommendation whatsoever. This presentation and any information (written or oral) provided to you does not constitute an offer of securities, nor a solicitation for an offer of securities, nor a prospectus or advertisement or a marketing or sales activity for such securities. The shares of Raiffeisen Bank International AG (“RBI”) have not been registered under the U.S. Securities Act of 1933 (the “Securities Act”) nor in Canada, U.K. or Japan. No securities may be offered or sold in the United States or in any other jurisdiction, which requires registration or qualification, absent any such registration or qualification or an exemption therefrom. These materials must not be copied or otherwise distributed to “U.S. persons” (according to the definition under Regulation S of the Securities Act as amended from time to time) or publications with general circulation in the United States. The circulation of this document may be restricted or prohibited in certain jurisdictions.

For the United Kingdom: This presentation and related material (these "Materials") are for distribution only to persons who are members of RBI falling within Article 43(2) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Financial Promotion Order") or who (i) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Promotion Order), (ii) are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc") of the Financial Promotion Order, (iii) are outside the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "relevant persons"). These Materials are directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which these Materials relate is available only to relevant persons and will be engaged in only with relevant persons.

Figures shown in the presentation are based on figures disclosed in the annual report as well as the interim reports of RBI. However, figures used in this document have been rounded, which could result in percentage changes differing slightly from those provided in such reports.

We have diligently prepared this presentation. However, rounding, transmission, printing, and typographical errors cannot be ruled out. We are not responsible or liable for any omissions, errors or subsequent changes which have not been reflected herein and we accept no liability whatsoever for any loss or damage howsoever arising from any use of this document or its content or third party data or otherwise arising in connection therewith.

Disclaimer

2Group Investor Relations

16 November 2016

Table of Contents

3

Executive Summary . . . . . . . . . . . . . . . . . . 3

Financials . . . . . . . . . . . . . . . . . . . . . . . . 11

Risk Management . . . . . . . . . . . . . . . . . . . 21

Merger Update . . . . . . . . . . . . . . . . . . . . . 28

Appendix . . . . . . . . . . . . . . . . . . . . . . . . 39

Group Investor Relations

16 November 2016

Executive Summary 1-9/2016

4

Consolidated profit EUR 394 mn

CET1 ratio further improved (12.6% transitional, 12.3% fully loaded)

Net interest margin stabilizing

Substantial reduction in risk costs, especially in retail

NPLs significantly reduced; NPL ratio improving and coverage ratio stable

Raiffeisen Leasing Polska: Sales agreement signed with PKO Leasing resulting in approx. 33BP increase in CET1 ratio (fully loaded) at closing

Romanian mortgage Walkaway Law partially repealed by Constitutional Court

Extraordinary General Meeting approved RZB/RBI merger with 99.4% of share capital in attendance voting in favor

Group Investor Relations January/February 2017

16 November 2016

in EUR mn 1-9/2016 1-9/2015 y-o-y

Profitability

Net interest income 2,187 2,495 (12.3)%

Net fee and commission income 1,097 1,129 (2.8)%

Net trading income 136 (12) -

Operating income 3,470 3,660 (5.2)%

General administrative expenses (2,100) (2,101) (0.1)%

Net provisioning for impairment losses (503) (795) (36.7)%

Other results (122) (56) 115.7%

Profit before tax 746 708 5.3%

Profit after tax 480 516 (6.9)%

Consolidated profit 394 461 (14.7)%30/09/2016 30/09/2015 y-o-y

Asset QualityNPL ratio 10.2% 12.2% (1.9)PPNPL coverage ratio 72.0% 66.8% 5.2PPLoans to customers 69,791 73,284 (4.8)%

30/09/2016 30/09/2015 y-o-y

Regulatory Capital Ratios

Common equity tier 1 ratio (fully loaded) 12.3% 10.7% 1.6PPCommon equity tier 1 ratio (transitional) 12.6% 11.3% 1.3PPTotal capital ratio (fully loaded) 17.6% 16.1% 1.5PPTotal capital ratio (transitional) 17.8% 16.7% 1.1PP

1-9/2016 – Financial Highlights


16 November 2016

Transformation Program Update

6

Targets FY/2014 1-9/2016 Progress Update

RWA reduction to support CET1 target

~20% reduction of cost base vs 2014

2017

2017

Post Transformation

>16% Total capital ratio(fully loaded)

>12% CET1 ratio(fully loaded)

Poland: Sales process continues Raiffeisen Leasing Polska: Sales agreement signed with PKO Leasing Exclusive negotiations with Alior Bank regarding the sale of Raiffeisen

Polbank

Asia: Downscaling RWA reduction ongoing (around 80% reduction since end 2014)

US: Winding down operations Wind down ongoing (around 60% RWA-reduction since end 2014)

Russia: Resizing of footprint Branch optimization completed with reduction of presence from 65 to

44 cities

Ukraine: Return to profitability Turnaround accomplished; very low risk charges

Zuno: Integration Decision taken to integrate Zuno into subsidiaries in Czech Republic and

Slovakia

Slovenia: Bank sale completed Sale of banking operations closed as of end June 2016

Hungary: Visible turnaround Repositioning completed; costs down around 20% (y-o-y)


10.0% 12.3%

15.1%17.6%

EUR 3,024 mn

EUR 2,100 mn

EUR 69 bn EUR 62 bn

16 November 2016

Development in Russia

7

Business Development and Environment Management Actions


Ongoing robust profit after tax of EUR 266 mn YTD

NIM remains well above 5%

RoE after tax 28.8% in 1-9/2016

Provisioning ratio of 1.38% in 1-9/2016 (down 0.86PP y-o-y)

Decrease of NPL ratio to 7.8%; NPL coverage ratio of 71.0%

RUB appreciated 14% YTD driven by rising oil prices

Central bank key rate slightly reduced, inflation moderate but growth remains subdued

Key Figure Overview (in EUR mn) 1-9/2016 FY/2015

Risk-weighted assets (total) 7,956 7,687Total assets 11,306 10,676Employees 7,698 7,635Intercompany funding 553 887NPL ratio 7.8% 8.0%Profit/loss after tax 266 387

RWA reduction ongoing; impacted by RUB appreciation Branch optimization completed (down 16 or 8.1% y-o-y

to 181) with reduction of presence from 65 to 44 cities Focus in corporate remains on multinationals, large

Russian corporates and mid-market Retail: focus on premium customers and digital

transformation Further back office centralization and optimization in

operations and IT centers

16 November 2016

Development in Poland

8

Sale of Polish leasing business

Sale of Polish leasing business to PKO Leasing closed in December (purchase price of approx. EUR 200 mn); positive P&L effect of approx. EUR 30 mn booked at closing

Positive impact on CET1 ratio (fully loaded) of around 33BP for RBI and 28BP for Combined Bank

FX mortgage loans Legislative process in the parliament started officially in October 2016 for

the draft bill related to the partial refund of FX conversion spreads

NPL ratio for EUR 2.9 bn CHF portfolio remains at a low level of 3.0%, provisioning ratio of 0.21% in 1-9/2016

January/February 2017

16 November 2016

Macro Outlook

9

Development of Real GDP (%) General Market Trends

SEE Albania 2.6 3.5 4.0 4.0Bosnia & Herz. 3.0 2.5 3.0 3.5Bulgaria 3.6 3.3 3.0 3.3Croatia 1.6 2.7 2.8 2.8Kosovo 4.1 3.5 3.5 3.5Romania 3.8 4.7 3.6 3.0Serbia 0.7 2.7 3.0 3.0SEE 3.0 3.8 3.3 3.1

Source: RBI/Raiffeisen Research as of 28 December 2016

Country 2015 2016e 2017f 2018fCE Czech Republic 4.6 2.5 2.7 2.5

Hungary 2.9 2.3 3.2 3.4Poland 3.9 2.5 3.0 2.5Slovakia 3.8 3.3 3.3 4.0Slovenia 2.3 2.6 2.7 2.2CE 3.8 2.6 3.0 2.7

EE Belarus (3.9) (3.0) 0.0 1.5Russia (3.7) (0.5) 1.0 1.5Ukraine (9.9) 1.0 2.0 3.0EE (4.1) (0.5) 1.0 1.6

Austria 1.0 1.4 1.3 1.5Germany 1.5 1.8 1.7 1.5Euro area 2.0 1.6 1.5 1.7


Recent economic data underlines moderate, but robust recovery in the euro area. Moreover, the European Central Bank will continue its expansionary monetary policy well into 2017

Dynamics in Central Europe (CE) are expected to remain steady with expected growth of around 3% in 2017. Regional industry growth has been more volatile in recent months, but private consumption continues to support growth in the region and manufacturing sentiment turned upwards again

Growth dynamics in South Eastern Europe (SEE) surprised to the upside, triggering higher estimates for Romania, Bulgaria and Croatia. In 2017 other SEE countries are expected to catch up. An expected economic slowdown in Turkey will have limited impact on SEE

Economic stabilization seen in Russia and Ukraine, but the upcoming recoveries will remain weak in comparison to the past. Ukraine finally put the IMF program back on track. Russia’s economy lacks domestic drivers with consumers still retrenching and both monetary and fiscal policy moderately tight

December 2016/January 2017

16 November 2016

Outlook and Targets

10

We target a CET1 ratio (fully loaded) of at least 12% and a total capital ratio (fully loaded) ofat least 16% by the end of 2017.

After the implementation of the strategic measures defined at the beginning of 2015, the costbase should be approximately 20% below the level of 2014 (general administrative expenses2014: EUR 3,024 mn).

We aim for a return on equity before tax of approximately 14% and a consolidated return onequity of approximately 11% in the medium term.

We further aim to achieve a cost/income ratio of between 50 and 55% in the medium term.

We expect net provisioning for impairment losses for 2016 to be below the level of 2015 (EUR1,264 mn).

General administrative expenses for 2016 should be slightly below the level of the previousyear (2015: EUR 2,914 mn).


16 November 2016

Table of Contents

11


Financials . . . . . . . . . . . . . . . . . . . . . . . . 11

Risk Management . . . . . . . . . . . . . . . . . . . 21

Merger Update . . . . . . . . . . . . . . . . . . . . . 28

Appendix . . . . . . . . . . . . . . . . . . . . . . . . 39


16 November 2016

in EUR mn Q3/2016 Q2/2016 q-o-q

Profitability

Net interest income 732 738 (0.8)%

Net fee and commission income 378 372 1.5%

Net trading income 52 56 (7.7)%

Operating income 1,186 1,180 0.5%

General administrative expenses (687) (694) (1.0)%

Net provisioning for impairment losses (100) (297) (66.3)%

Other results (103) 33 –

Profit/loss before tax 296 221 33.7%

Profit/loss after tax 212 130 63.4%

Consolidated profit/loss 184 96 91.6%30/09/2016 30/06/2016 q-o-q

Asset QualityNPL ratio 10.2% 10.4% (0.2)PPNPL coverage ratio 72.0% 72.1% (0.0)PPLoans to customers 69,791 70,825 (1.5)%

30/09/2016 30/06/2016 q-o-q

Regulatory Capital Ratios

Common equity tier 1 ratio (fully loaded) 12.3% 12.2% 0.1PPCommon equity tier 1 ratio (transitional) 12.6% 12.5% 0.1PPTotal capital ratio (fully loaded) 17.6% 17.6% 0.0PPTotal capital ratio (transitional) 17.8% 17.8% 0.0PP

Q3/2016 – Financial Highlights


16 November 2016

Development of Financial Ratios in 1-9/2016

13

RoE (Consolidated) and RoTE1 Cost/Income Ratio

Net Interest Margin1 Provisioning Ratio1

1) Annualized

RoE RoTE


7.9%4.8% 5.8% 5.3% 6.6%

10.8%

7.7% 7.8% 7.1%

9.5%

1–9/2015 1–12/2015 1–3/2016 1–6/2016 1–9/2016

57.4% 59.1%65.0% 61.8% 60.5%

1–9/2015 1–12/2015 1–3/2016 1–6/2016 1–9/2016

2.99% 3.00%

2.73% 2.76% 2.76%

1–9/2015 1–12/2015 1–3/2016 1–6/2016 1–9/2016

1.35%1.64%

0.46%

1.11%0.93%

1–9/2015 1–12/2015 1–3/2016 1–6/2016 1–9/2016

16 November 2016

305

746

(135)

(405)

308

522

101

49

Central Europe SoutheasternEurope

Eastern Europe GroupCorporates

GroupMarkets

Non-Core Corporate Center& Reconciliation

Group

14

1-9/2016 Distribution of Profit before Tax

Note: Percentage changes are y-o-y

1

in EUR mn

1) Due to the mostly internal nature of Corporate Center, amount is netted with Reconciliation for illustration purposes

39.1%

33.3%

15.3%17.0%

45.8%

19.4%

5.3%

>500.0%


16 November 2016

Overview of Key Financials

in EUR mn Q3/2016 Q2/2016 q-o-q 1-9/2016 1-9/2015 y-o-yNet interest income 732 738 (0.8)% 2,187 2,495 (12.3)%

Net fee & commission income 378 372 1.5% 1,097 1,129 (2.8)%

Net trading income 52 56 (7.7)% 136 (12) –Recurring other net operating income 24 13 83.2% 49 49 0.9%

Operating income 1,186 1,180 0.5% 3,470 3,660 (5.2)%

General admin expenses (687) (694) (1.0)% (2,100) (2,101) (0.1)%

Staff expenses (347) (353) (1.8)% (1,048) (1,008) 3.9%

Other admin expenses (245) (267) (8.2)% (815) (860) (5.2)%

- Hereof regulatory charges (20) (28) (27.9)% (123) (132) (7.0)%

Depreciation (95) (74) 28.5% (237) (233) 1.6%

Operating result 499 485 2.8% 1,370 1,559 (12.1)%

Net provisioning for imp losses (100) (297) (66.3)% (503) (795) (36.7)%

Other results (103) 33 – (122) (56) 115.7%

Net inc from derivatives (71) (34) 106.9% (133) 11 –

Net inc fin investments (6) 145 – 166 68 141.8%

Bank levies (34) (33) 2.4% (115) (93) 23.3%

Goodwill impairment – – – – (3) –

Profit/loss before tax 296 221 33.7% 746 708 5.3%

Consolidated profit/loss 184 96 91.6% 394 461 (14.7)%

Net interest margin (%) 2.77% 2.80% (3)BP 2.76% 2.99% (23)BP

RoE (consolidated) (%) 9.2% 4.8% 4.4PP 6.6% 7.9% (1.3)PP

RoTE (%) 13.1% 6.4% 6.7PP 9.5% 10.8% (1.3)PP

Development (q-o-q)


Net interest income down mainly due to EUR 15 mn dividends received from affiliated companies in Q2, partly offset by lower interest expenses on deposits from banks

Recurring other net operating income up mostly from release of specific provisions subsequent to Constitutional Court decision in Romania

General administrative expenses down mainly triggered by lower staff expenses, office space (down EUR 7 mn) and IT expenses (down EUR 3 mn); in contrast higher depreciation due to brand impairment (EUR 23 mn) in Poland

Provisioning decrease mostly from Asia (down EUR 90 mn) and Group Corporates (down EUR 65 mn)

Other results down due to one-off from sale of Visa Europe shares (EUR 132 mn) in Q2; negative effects in Q2 from Romanian Walkaway Law (EUR 43 mn) and in Q3 lower valuation result from derivatives driven by own credit spread changes (down EUR 35 mn)

16 November 2016

11%

57%

15%17%

Assets

13%

62%

6%8%12%

Liabilities

Overview of Balance Sheet

16

in EUR mnSep2016

Jun2016 q-o-q

Sep2016

Dec2015 YTD

Total assets 113,838 113,969 (0.1)% 113,838 114,427 (0.5)%

Loans and adv to banks 12,692 13,747 (7.7)% 12,692 10,837 17.1%

Loans and adv to customers 69,791 70,825 (1.5)% 69,791 69,921 (0.2)%

Deposits from banks 14,541 16,655 (12.7)% 14,541 16,369 (11.2)%

Deposits from customers 70,454 68,941 2.2% 70,454 68,991 2.1%

Equity 9,022 8,725 3.4% 9,022 8,501 6.1%

Other assets

Loans and advances to banks (net)

Loans and advances to customers (net)

Securities (including trading assets and investments in associates)

Deposits from banks

Deposits from customers

Debt securities issued

Other liabilities

Equity and subordinated liabilities

EUR 114 bn

RBI Balance Sheet (Sep 2016)


Assets

Loans and advances to customers down EUR 0.1 bn YTD; repo business up EUR 1.0 bn in head office; corporate loans down EUR 1.4 bn due to reductions in Asia, US and IFRS 5 reclassification of Leasing Poland (EUR 0.6 bn); retail loans up EUR 0.4 bn mainly due to portfolio acquisition in Czech Republic, FX-related increase in Russia and growth in Slovakia, while reduction from IFRS 5 reclassification of Leasing Poland (EUR 0.8 bn)

Interbank business up EUR 1.9 bn YTD; repo business up EUR 3.7 bn while short term placements with ECB and banks decreased in head office and Slovakia

Liabilities Deposits from customers up EUR 1.5 bn YTD; retail deposits up EUR 3.1 bn mostly in Czech Republic (portfolio

acquisition), Russia and Slovakia; corporate deposits down EUR 1.3 bn mostly in head office, Slovakia and Poland while increase in Russia; deposits from sovereigns down EUR 0.3 bn mainly in head office

Deposits from banks down EUR 1.8 bn YTD mainly from money market business in head office

16 November 2016

Revenue Composition

Split of Operating Income (in EUR mn) Development (q-o-q)

Net Interest Margin Net Fee and Commission Income

17

Net interest income Net fee and commission incomeNet trading income Recurring other net operating income

Payment transfers Foreign currencyLoan & guarantee Other


Net interest income down EUR 6 mn; in Q3 NIM fell to 2.77% (down 3 bps) mainly driven by EUR 15 mndividends received from affiliated companies in Q2, partly offset by lower interest expenses on deposits from banks; positive development in Russia was due to FX effect and deposit repricing, offset by falling interest rates in Belarus and Ukraine

Net fee and commission income up EUR 5 mn mainly due to higher volumes in Q3 and support from RUB appreciation; payment transfer business increase mainly in Ukraine, head office and Croatia due to higher volumes and margins; increase in other banking services mainly in Russia

Net trading income down EUR 4 mn mainly from interest-based business (down EUR 13 mn) triggered by valuation losses and lower interest income from derivatives and securities in head office, Poland and Russia

Recurring other net operating income up EUR 11 mnmostly from release of specific provisions subsequent to Constitutional Court decision in Romania

814 832 718 738 732

384 390347 372 378

(14) 2928 56 52

33 1811 13 24

1,216 1,2691,104 1,180 1,186

Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016

2.80% 2.77%

Q2/2016 Q3/2016

161 168

99 100

45 3967 72

372 378

Q2/2016 Q3/2016

16 November 2016

Expense Base Breakdown

Split of Other Administrative Expenses

Development of General Administrative Expenses (in EUR mn) Development (q-o-q)

18

Total Q3/2016: EUR 245 mn


General administrative expenses down EUR 7 mn mainly due to lower other administrative expenses and staff expenses partly offset by brand impairment in Poland; negative influence from FX of EUR 2 mn mainly from Eastern European currencies

Staff expenses down EUR 6 mn triggered by higher provisions due to lower discount rate applied in head office in Q2 and provision for unused vacation allocated in Poland in Q2

Other administrative expenses down EUR 22 mn mainly due to lower office space expenses (down EUR 7 mn), lower resolution fund fees (down EUR 5 mn – bulk was already booked in previous quarters for full year 2016), lower deposit insurance fees (down EUR 3 mn), lower IT (down EUR 3 mn) and legal expenses (down EUR 2 mn)

Depreciation of tangible and intangible assets up EUR 21 mn mainly due to brand impairment in Poland (EUR 23 mn)

352 381 347 353 347

282 314 302 267 245

79118

68 74 95

713813

718 694 687

Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016

Staff expenses Other administrative expenses Depreciation

IT expenses26%

Office space expenses

23%Advertising9%

Legal and consulting

8%

Communication 7%

Deposit insurance8%

Other 19%

16 November 2016

Regulatory Capital Overview

Regulatory Capital Structure Changes in Regulatory Capital (YTD)

in EUR mn Sep 2016 Dec 2015

CET1 (before deductions) 8,383 8,034

Deduction items (568) (363)

CET1 (after deductions) 7,815 7,671

Additional Tier 1 (after deductions) 0 0

Tier 1 (after deductions) 7,815 7,671

Tier 2 (after deductions) 3,224 3,316

Total capital 11,039 10,987

RWA (total) 62,078 63,272

CET1 ratio (fully loaded) 12.3% 11.5%

CET1 ratio (transitional) 12.6% 12.1%

Tier 1 ratio (transitional) 12.6% 12.1%

Total capital ratio (fully loaded) 17.6% 16.8%

Total capital ratio (transitional) 17.8% 17.4%

19

Development of CET1 ratio (fully loaded) in 2016


Common equity tier 1 ratio (fully loaded) of 12.3% (up 0.8PP) and transitional of 12.6% (up 0.5PP); this includes H1 interim profit; including Q3 profit CET1 ratios would increase by 0.4PP to 12.7% (fully loaded) and 13.0% (transitional)

Common equity tier 1 capital up EUR 144 mn to EUR 7,815 mn; increase resulting from inclusion of half year profit 2016 and currency revaluation (RUB), partly offset by phase-in rules for 2016 and higher deduction items

RWA decreased by EUR 1,194 mn primarily driven by credit risk, down EUR 928 mn (volume decrease; rating improvement of Belarus); market risk down EUR 484 mn; operational risk up EUR 217 mn

Leverage ratio (fully loaded) of 5.7% (transitional: 5.8%)

11.5%0.2%

0.4%0.2% (0.1)% 12.3%

31/12/2015 FX effectincl.

hedging

H1/2016profit

RWAdecrease

Other 30/09/2016

16 November 2016

Funding Overview

Funding Structure (Sep 2016) Loan/deposit ratio

Total: EUR 96 bn

Overview 2016 Funding Plan


Funding mix dominated by 73% share of customer deposits (up 2.3PP q-o-q)

Loan/deposit ratio down by 1.9PP q-o-q to 91.5%

Retail deposits are planned to further increase in 2017, high stickiness remains despite historically low interest rates in mostmarkets

Wholesale funding demand for 2017 approximately EUR 3.5 bn

Diversification of funding continues, including unsecured and covered bonds, international and local markets

111%107% 107% 105%

98%92% 94% 93% 91%

Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16

Customer deposits

73%

Medium & long-term funding

12%

Short-term funding

10%

Subordinated liabilities

4%

16 November 2016

Table of Contents

21


Financials . . . . . . . . . . . . . . . . . . . . . . . . 11

Risk Management . . . . . . . . . . . . . . . . . . . 21

Merger Update . . . . . . . . . . . . . . . . . . . . . 28

Appendix . . . . . . . . . . . . . . . . . . . . . . . . 39


16 November 2016

Corporates28%

Retail23%

Sovereigns6%

Financial Institutions

3%

Other16%

Operational Risk12%

Market Risk3%

FX Risk Capital Position

5%

Risk Buffer5%

Diversified Risk Profile

Economic Capital Comments

Credit Risk: 60%

22

Risk-adjusted return on economic capital as key group steering measure

Total economic capital requirement of EUR 5.5 bn was stable compared to June 2016 (down EUR 26 mn) and below the level of 2015 (down EUR 132 mn)

EUR 3.26 bn or 60% of economic capital is consumed by credit risk; in absolute terms this corresponds to a YTD decrease of EUR 100 mn that was largely driven by the reduction of corporate exposure in Asia

Market risk decreased by EUR 57 mn during Q3 to EUR 181 mnor 3% of economic capital and explains the majority of the remainder of the overall decline in economic capital, due to lower credit spread and interest rate risk

Operational risk increased by EUR 45 mn in Q3 to EUR 640 mn or 12% due to the inclusion of historical losses from mandatory FX loan conversions in Hungary; however on a YTD basis it remained nearly unchanged

FX risk from capital position declined by EUR 52 mn in Q3 as the FX volatility in recent months has been significantly lower than at the beginning of 2016

Other risk includes macroeconomic risk, other tangible fixed assets, equity participation risk, liquidity risk and CVA risk; the overall volume of those categories has remained stable over the business year


16 November 2016

Portfolio Overview

23

Highlights (YTD)

Exposure to Business Lines by Region at end of September 2016 (in EUR bn)

The corporate portfolio is spread over all regions and dominates RBI Group’s business model; the exposure decreased by EUR 1.9 bn to EUR 74.9 bn within the first nine months of 2016, driven by reductions in Asia (minus EUR 1.6 bn), Austria (minus EUR 1.3 bn) and the US (minus EUR 0.8 bn), partially offset by increased repo and derivative business with Western European customers

The overall retail portfolio increased by EUR 1.7 bn to EUR 29.5 bn, driven mostly by private customers in the Czech Republic (portfolio acquisition) and growth in Slovakia, but also in Bosnia & Herzegovina and Romania. In Russia the increase was due to the RUB appreciation, while adjusted for FX the portfolio decreased due to the exit from car financing business. FX lending further decreased YTD and makes up 24.5% of the total portfolio

The financial institutions portfolio increased by EUR 3.3 bn to EUR 20.3 bn driven by higher volumes in repo business and swaps, while at the same time loans to banks and bond investments were reduced

The sovereign portfolio decreased by EUR 5.3 bn to EUR 24.0 bn mainly as a result of lower liquidity placements with the Austrian National Bank (down EUR 4.5 bn)

Total: EUR 149 bn


64%43%

44% 62% 48% 57% 64%

34%

33% 22%26%

1%

8% 44%

30% 21%

10%

22%

23% 9% 8%

13% 16%

21

51

2519

24

3 6

Austria CE SEE Eastern Europe Other EU Asia RoW

Corporates Retail Financial Institutions Sovereigns

16 November 2016

RWA (Total) Overview

Overview by Country Comments (YTD)

in EUR mn30/9/2016

31/12/2015

Change(YTD)

31/12/ 2014*

Change

Czech Republic 4,901 4,477 9.5% 5,113 (4.1)%Hungary 3,464 2,940 17.8% 4,060 (14.7)%Slovakia 5,363 5,493 (2.4)% 5,302 1.1%Central Europe 13,728 12,910 6.3% 14,475 (5.2)%Albania 1,500 1,725 (13.0)% 1,707 (12.1)%Bosnia and Herzegovina 1,549 1,484 4.3% 1,171 32.3%Bulgaria 1,773 1,775 (0.1)% 1,826 (2.9)%Croatia 2,890 2,966 (2.6)% 3,073 (5.9)%Kosovo 521 472 10.4% 524 (0.4)%Romania 4,313 4,031 7.0% 4,140 4.2%Serbia 1,707 1,515 12.7% 1,299 31.4%Southeastern Europe 14,253 13,968 2.0% 13,740 3.7%Belarus 1,346 1,606 (16.2)% 1,552 (13.3)%Kazakhstan 8 4 74.9% 27 (71.4)%Russia 7,956 7,687 3.5% 8,372 (5.0)%Ukraine 2,173 2,345 (7.3)% 3,047 (28.7)%Eastern Europe 11,483 11,642 (1.4)% 12,998 (11.7)%Group Corporates 8,922 8,590 3.9% 9,106 (2.0)%Group Markets 3,249 3,781 (14.1)% 3,916 (17.0)%Corporate Center 14,136 14,777 (4.3)% 18,622 (24.1)%Asia 598 1,289 (53.6)% 2,528 (76.3)%Poland 8,058 8,037 0.3% 7,744 4.1%Slovenia 98 310 (68.5)% 486 (79.9)%USA 398 836 (52.4)% 1,013 (60.7)%Zuno 120 140 (14.1)% 113 6.6%Non-Core 9,272 10,611 (12.6)% 11,829 (21.6)%Reconciliation (12,966) (13,007) (0.3)% (15,966) (18.8)%Total RBI Group 62,078 63,272 (1.9)% 68,721 (9.7)%

RWA (Total) Split by Risk Category (30 Sep 2016)

24

* Basis for transformation program Total: EUR 62 bn


Decrease of RWA mainly driven by: Credit risk RWA: decrease of EUR 928 mn

Non-retail RWA down EUR 1,286 mn due to exposure decrease mainly in Asia and US, revaluation of RUB partly offset by devaluation of UAH/PLN/USD and rating improvement for Belarus

Retail RWA up EUR 358 mn due to purchase of retail portfolio in Czech Republic and increase in Russia and Slovakia; in contrast default probability changes in Romania, Slovenian bank sale

Market risk RWA: down EUR 484 mn primarily from RWA for open FX positions (down EUR 267 mn) due to reduced positions in USD, ALL, HUF and RON

Operational risk RWA: up EUR 217 mn due to updated gross income figures

Credit risk internal rating approach

46%Credit risk standard

approach35%

Operational risk15%

Market risk4% Credit risk CVA risk

1%

16 November 2016

NPL Development

NPLs as % of Customer Loans and NPL Coverage Ratio NPL Breakdown by Segment (30 Sep 2016)

NPL Ratio Development in 1-9/2016

1) Including exposure to banks

1)


NPLs of EUR 7,148 mn (down EUR 1,180 mn YTD, thereof minus EUR 1,117 mn organic change)

FX impact of minus EUR 63 mn YTD, mainly from UAH, USD, CHF devaluation; RUB revaluation

NPL allocation (YTD net of FX effects) mainly Asia (up EUR 82 mn), Belarus (up EUR 49 mn), Czech Republic (up EUR 33 mn)

NPL release (YTD net of FX effects) due to write-offs in Group Corporates (down EUR 544 mn), Ukraine (down EUR 243 mn), and Group Markets (down EUR 233 mn); Slovenia down EUR 118 mn due to sale of bank

NPL ratio down 1.7PP to 10.2% YTD; highest decrease in Group Markets with 4.5PP and Group Corporates with 4.4PP

NPL coverage ratio up 0.8PP to 72.0% YTD driven by Non-Core (up 5.9PP) and Group Corporates (up 4.4PP); decrease in Group Markets (down 8.4PP)

12.2% 11.9% 11.4%10.4% 10.2%

67%71% 70% 72% 72%

Sep 15 Dec 15 Mar 16 Jun 16 Sep16

NPLs as % of customer loans Coverage ratio

6.7% 11.2%16.4%

5.0% 1.3%

16.5%

70.9% 74.5%83.7%

61.1%73.5% 68.3%

CE SEE EE Group Corporates

Group Markets

Non-Core

NPLs as % of customer loans Coverage ratio

11.9%

(0.1)%

0.0%

(1.6)%

10.2%

NPL ratio Dec 15

FX effects Loan volume change

Organic Changes

NPL Ratio Sep 16

16 November 2016

1) Relative to NPLs recorded at previous end of period; NPLs at the end of Q3/2016 EUR 7,148 mn

Provisioning

Quarterly Change in NPL Stock (in EUR mn)

Development of Provisioning Ratio

26

1

Comments (y-o-y)


Loan loss provisioning for loans and advances decreased by 36.7% or EUR 292 mn y-o-y due to improved risk situation in most markets while higher provisioning in Non-Core (Asia, US)

Main y-o-y developments: lower individual loan loss provisioning (down EUR 280 mn) and lower portfolio-based loan loss provisioning (down EUR 14 mn)

The loan loss provisioning mainly derives from EUR 346 mn (down EUR 124 mn y-o-y) corporate and EUR 141 mn (down EUR 168 mn y-o-y) retail provisioning

Individual loan loss provisioning down EUR 280 mn y-o-y mainly driven by Ukraine (down EUR 163 mn), Hungary (down EUR 55 mn), Group Corporates (down EUR 51 mn) and Russia (down EUR 43 mn) while increases recorded in Albania (up EUR 33 mn), US (up EUR 29 mn) and Group Markets (up EUR 27 mn)

Portfolio-based loan loss provisioning down EUR 14 mn y-o-y; decreases were recorded in Russia (down EUR 29 mn as a result of two new large corporate defaults); further decrease also in Czech Republic (down EUR 13 mn) and Belarus (down EUR 5 mn) while increases in Ukraine (up EUR 11 mn), Asia (up EUR 10 mn) and Croatia (up EUR 6 mn)

(202)(606)

(222)(742)

(216)

(2)%(7)%

(3)%(10)%

(3)%

Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016

Absolute NPL net change Relative NPL net change

191

469

106

297

100

1.02%

2.62%

0.46%

1.68%

0.56%

Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016

Net provisioning for impairment losses in EUR mn

Net provisioning ratio (q-o-q) (average customer loans)

16 November 2016

2,851

249

6541

15

Poland Romania Serbia Hungary Croatia

Breakdown CHF Loan Exposures

CHF Loan Exposures (30 Sep 2016, in EUR mn) CHF NPL Ratio & NPL Coverage Ratio (30 Sep 2016)

27

NPL Coverage RatioNPL Ratio

Poland, Romania, Serbia: CHF exposure predominantly in retail

94% (EUR 245 mn) of the CHF loan portfolio in Croatia was converted YTD, while the related charge was already booked in 2015; remaining NPL portfolio to be converted during Q4/2016

In Romania the CHF portfolio decreased by 23% (EUR 77 mn) YTD driven by restructuring and discounted conversions; since June the reduction was also driven by Walkaway Law notifications (EUR 10 mn)

Remaining exposure in Hungary predominantly corporate (retail EUR 4 mn)


54.8%

69.3%63.5%

74.4%

92.5%

3.0%

16.9% 20.3% 23.6%

40.0%

Poland Romania Serbia Hungary Croatia

16 November 2016


Financials . . . . . . . . . . . . . . . . . . . . . . . . 11

Risk Management . . . . . . . . . . . . . . . . . . . 21

Merger Update . . . . . . . . . . . . . . . . . . . . . 28

Appendix . . . . . . . . . . . . . . . . . . . . . . . . 39

Table of Contents


16 November 2016

Timeline


By end of Q1/2017:

Closing (Commercial Register entry)

24 January 2017:

RBI EGM

On 10 May 2016 the Boards of Raiffeisen Zentralbank Österreich AG (RZB) and Raiffeisen Bank International AG (RBI) resolved to examine a potential consolidation of RZB and RBI

On 5 October 2016 the Boards of RZB and RBI passed in principle a resolution to merge RZB into RBI On 16 December 2016 the merger exchange ratio which was passed by the Boards of RZB and RBI was published.

Based on the relative valuation of the RZB Contributed Business and RBI, the valuation determined for the entities to be merged would translate into a shareholding of 34.9% for the current RBI free float shareholders in the Combined Bank1

The Combined Bank will continue to be listed on the stock exchange The Extraordinary General Meeting (EGM) of RBI approved the merger on 24 January 2017 with 99.4% of share capital

in attendance voting in favor

1) Compared to RBI’s current free float shareholding of 39.2% of total shares outstanding (excl. Treasury shares of 509,977 as of 30 September 2016)

15 March 2017:

FY 2016 results publication

5 October 2016:

Go decision

October November December January February March

2016 2017

16 November 2016:

RBI Q3 results publication

16 December 2016:

Publication of merger exchange ratio

21 December 2016:

Invitation RBI EGM & publication of merger documentation

23 January 2017:

RZB EGM

16 November 2016

Key Objectives of Transaction

30

ImprovedGovernance

More efficient organizational and governance structure Faster and more focused decision making processes

within the organization Elimination of overlapping functions

Improved Overall Capitalization ofUltimate Group

Optimization of capital planning and allocation Elimination of current and future minority deductions on

RZB level

Financial Targets to remain unchanged for Combined Bank

IncreasedTransparency

Alignment of shareholder (RBI-centric) and regulatory (RZB-centric) views

Improved transparency for all stakeholder groups through reduction of structural complexity

Limited Adaptation of

Proven Business Model


16 November 2016

Strengths of Combined Bank

31

Attractive Geographic Footprint

Higher interest rates and better growth prospects in CEE compared to Western Europe –present in 14 markets with Top 5 positions in 9

Stable business in Austria complemented by distribution channels of Austrian Raiffeisen Banks – strong market positions with CEE-focused corporates and through specialized subsidiaries (e.g. asset management and mortgage products)

Proven Customer Coverage

Focus on locally serviced long term customer relationships Wholesale: customer oriented solutions through use of extensive network and local market

access Retail: comprehensive multi-channel offering in CEE

Continued Emphasison Efficiency

Transformation Program on track Ongoing focus on costs remains a top priority Streamlined organizational structure to improve efficiency and transparency

Sustainable Value Creation

At least 12% CET1 ratio (fully-loaded) by end of 2017; to be further increased in the medium term

Consolidated return on equity of approximately 11% in the medium term Cost/income ratio between 50 and 55% in the medium term


16 November 2016

Shareholder Structure of Combined Bank

322

Free Float1 Pro Forma Shareholder Structure1

Both Management and Supervisory Boards have agreed on an exchange ratio that would translate into a shareholding of 34.9% for the current RBI free float shareholders in the Combined Bank

This merger exchange ratio was based on the valuations as conducted by BDO and EY that were engaged by RZB and RBI respectively

In addition, three international investment banks provided fairness opinions on the relative valuation of the two entities

Number of shares issued will increase from 292,979,038 RBI shares to 328,939,621 in the Combined Bank

Post transaction

Raiffeisen Bank International

Combined Bank

Pre transaction

1) Based on shares outstanding (which excludes 509,977 treasury shares as of 30 September 2016)

Free float39.2%

RZB60.8%


Former RBI free floatshareholders

34.9%

Former RZB shareholders65.1%

16 November 2016

RBI91%

RZB Contributed

Business9%

RBI93%

RZB Contributed

Business7%

RBI89%

RZB Contributed

Business11%

RBI83%

RZB Contributed

Business17%

Key Financials of Combined Bank (1-9/2016)

33

Total: EUR 70.1 bn

Total Assets (in EUR bn) RWA (in EUR bn)

Operating Income (in EUR mn) Consolidated Profit (in EUR mn)

Total: EUR 137.3 bn

Total: EUR 3,737 mn Total: EUR 433 mn

Note: Pro forma figures; income statement figures adjusted to exclude impact from planned 15.4% net reduction of UNIQA stake and any related contribution from this stake


16 November 2016

RZB Contributed Business – Key Financials

34

Central Institution and Specialized Subsidiaries

Other Equity Participations

Reconciliation and allocation to segment

RBI

RZB Contributed Business

1-9/2016 FY/2015 1-9/2016 FY/2015 1-9/2016 FY/2015 1-9/2016 FY/2015

Income statementOperating income 239 313 93 142 (64) (96) 268 359 General administrative expenses (182) (232) (33) (48) 21 24 (194) (256)Operating result 56 80 60 95 (43) (72) 73 103

Net provisioning for impairment losses 4 3 0 0 (2) 2 2 5

Other result (34) (31) 0 24 (5) (35) (40) (41)Profit/loss before tax 26 53 60 119 (50) (105) 35 66 Profit/loss after tax 25 41 58 121 (39) (91) 44 71 Profit attributable to non-controlling interests (5) (16) 0 0 0 3 (4) (13)

Consolidated profit/loss 21 25 58 121 (39) (87) 40 58

Statement of financial positionAssets 24,666 26,120 1,498 1,531 (2,690) (3,922) 23,474 23,728 Average Equity 874 959 174 187 (620) (426) 428 720 Risk-weighted assets (total RWA) 6,707 6,520 1,418 1,403 (103) (77) 8,022 7,846

Key ratiosReturn on equity before tax 2.2% 5.5% 25.7% 63.5% – – 6.2% 9.2%Cost/income ratio 76.4% 74.3% 35.5% 33.5% – – 72.6% 71.3%

in EUR mn



16 November 2016

RZB Contributed Business – Detailed Financials (1-9/2016)

35

Consolidated Profit, in EUR mn 1-9/2016

Segment Central institution and specialized subsidiaries 20R-Bausparkasse Group 15Raiffeisen Capital Management 10RZB Central Institution Business (20)Raiffeisen Informatik GmbH (13)R-Leasing Group 16Valida Group 9Other Verbundunternehmen/subsidiaries 3

Segment Other equity participations 58card complete Service Bank AG 21Leipnik-Lundenburger Invest Beteiligungs AG 13UNIQA Insurance Group AG 14Other 10

Reconciliation and allocation to segment RBI (39)

Consolidated profit 40



Contributed Business Detail (1-9/2016) Comments

R-Bausparkasse: Valuation losses on swaps used to hedge fixed rate loans (EUR 45 mn); effect only arises as hedge accounting not yet applied

RZB Central Institution Business: RZB AG result from Central Institution business and Group management functions

Raiffeisen Informatik: 2016 negatively impacted by adjustment in relation to 2015 result and various effects relating to Comparex subsidiary; positive result in FY 2015

R-Leasing: Gain on sale of real estate in Czech Republic, Sweden and Austria (EUR 17 mn); impairment of goodwill (hotel in Czech Republic, EUR 5 mn)

card complete: Extraordinary income of EUR 17 mn from sale of Visa Europe shares

16 November 2016

Combined Bank Route to Target CET1 Ratio (fully loaded)


Note: Pro forma figures; RWA relief displayed without effects of potential sales prices 1) Figures of Combined Bank include impact from planned 15.4% net reduction of UNIQA stake2) RWA relief only; further 0.1% from gain on sale included in retained earnings

Target CET1 ratio

(fully loaded) of

at least 12% by

the end of 2017

Q3/2016 Q3 profit Sale of Polishleasing unit

RWA relief Businessgrowth

Regulatory &other effects

Retainedearnings

11.3% 0.3%0.2%

1.3%(0.7)%

(0.5)%

(EUR 3.7 bn) (EUR 2.2 bn)

1

2

16 November 2016

12.3%

Pro Forma Capitalization Levels of Combined Bank

37

in EUR mn RBI RZB Combined Bank

CET1 (before deductions) 8,383 8,397 8,740

Deduction items 568 1,036 642

CET1 (after deductions) 7,815 7,361 8,098

Additional Tier 1 (after deductions) 0 0 0

Tier 1 (after deductions) 7,815 7,361 8,098

Tier 2 (after deductions) 3,224 1,902 3,229

Total capital 11,039 9,263 11,327

RWA (total) 62,078 70,680 70,100

CET 1 ratio (transitional) 12.6% 10.4% 11.6%

CET 1 ratio (fully loaded) 12.3% 10.5% 11.3%

Tier 1 ratio (transitional) 12.6% 10.4% 11.6%

Total capital ratio (transitional) 17.8% 13.1% 16.2%

Total capital ratio (fully loaded) 17.6% 12.7% 16.0%

Leverage ratio (fully loaded) 5.7% 4.6% 4.9%

Leverage exposure (total) 135,220 161,893 161,893

Regulatory Capital Structure (September 2016) Impact of Merger on CET 1 Ratio (transitional and fully loaded, September 2016)

Note: Pro forma figures of Combined Bank include impact from planned 15.4% net reduction of UNIQA stake

Minority deduction effect for RZB's shareholding in RBI is 0.0% on a fully loaded basis at Q3 2016. In the present corporate group structure

minority deduction effects on RZB level would however again increase with future capital generation of RBI.

fully-loaded basis

10.5% 0.6% 0.0% 0.1%

0.5% 11.3%

(1.6)%


11.3%

12.6%

(1.6)%

0.6% 11.6%

RBI RWA ofContributed

Business

Capital ofContributed

Business

CombinedBank

10.4% 0.4% 0.6% 0.1% 11.6%

RZB Partial UNIQAstake sale

Elimination ofminority

deduction

Other CombinedBank

16 November 2016

Combined Bank Financial Targets

38

Capital Ratios We target a CET1 ratio (fully loaded) of at least 12% and a total capital ratio

(fully loaded) of at least 16% by the end of 2017; to be further increased in the medium term

Return on Equity We aim for a return on equity before tax of approximately 14% and a consolidated return on equity of approximately 11% in the medium term

Cost/Income Ratio We further aim to achieve a cost/income ratio of between 50 and 55% in the medium term


16 November 2016

Table of Contents

39


Financials . . . . . . . . . . . . . . . . . . . . . . . . 11

Risk Management . . . . . . . . . . . . . . . . . . . 21

Merger Update . . . . . . . . . . . . . . . . . . . . . 28

Appendix . . . . . . . . . . . . . . . . . . . . . . . . 39


16 November 2016

Geographic Footprint

Croatia, #4 Loans: 2.8 bn

Customers: 450,021

Business Outlets: 78

Bosnia & Herzeg., #2 Loans: 1.2 bn

Customers: 448,724


Albania, #2 Loans: 0.8 bn

Customers: 749,567


Kosovo, #1 Loans: 0.5 bn

Customers: 308,321


Romania, #5 Loans: 4.8 bn

Customers: 2,110,921


Poland, #9 Loans: 9.7 bn

Customers: 796,222


Czech Republic, #5 Loans: 7.9 bn

Customers: 607,773


Hungary, #5 Loans: 3.4 bn

Customers: 542,292


Austria, #3 Loans: 19.9 bn

Customers: 9,760

Business Outlets: 3

Bulgaria, #6 Loans: 2.1 bn

Customers: 642,366


Serbia, #5 Loans: 1.1 bn

Customers: 691,098


Russia, #11 Loans: 7.5 bn



Belarus, #7 Loans: 0.9 bn

Customers: 761,969


Ukraine, #9 Loans: 1.8 bn



Slovakia, #3 Loans: 8.4 bn

Customers: 846,434


Central Europe (CE)

Southeastern Europe (SEE)

Eastern Europe (EE)

Non-Core

40

Leading regional player with CEE presence of over 25 years

Covering 15 markets (incl. Austria), thereof eight are EU members and Serbia and Albania have candidate status

Top 5 market position in 10 countries

Strong market position with Austrian corporatesfocusing on CEE

Note: Position based on loans and advances to customers as of Q2/2016. All loan data in EUR. Additionally, RBI operates leasing units in Slovenia, Moldova and Kazakhstan.


16 November 2016

Bank levies and resolution fund


Impact in EUR mn

2) Of which EUR 28 mn booked in Corporate Center, EUR 15 mn in Group Corporates, EUR 13 mn in Group Markets and EUR 1 mn in Non-Core

Based on balance sheet total less equity and unencumbered assets

Full amounts booked in Q1/2016 according to IFRIC 21

In Austria period for achieving the fund’s target level was reduced from 10y to 8y, additionally calculation base reduced

FY 2015RBI

1-9/2016RBI

FY 2016eRBI

AustriaBank levy based on balance sheet total (excluding derivatives) and including a one-off payment1 from 2017 on (spread over 4 years)

84 572 ~76

HungaryProvision for additional bank levy charge of EUR 21mn from 2014 released in 2015, in 2016 the bank levy was halved to 0.24%

17 19 ~19

PolandBank levy of 0.44%, based on balance sheet total less 4 bn PLN flat amount, own funds and treasury securities

– 25 ~34

Slovakia Bank levy of 0.2 % on total liabilities less own funds and subordinated debt 18 15 ~19

Total Bank levies 119 115 ~148

Austria 24 27 ~27

Croatia 2 3 ~3

Czech Republic - 7 ~7

Bulgaria 4 3 ~3

Hungary 3 3 ~3

Slovakia 8 6 ~6

Total Resolution fund 41 51 ~51

Romania 0 2 ~2

FY 2017eRBI

~43

~13

~35

~20

~111

~26

~3

~8

~3

~6

~2

~6

~54

FY 2017eCombined Bank

~59

~13

~126

~55

~20

~35

1) RBI EUR 120 mn, Combined Bank EUR 163 mn

~3

~8

~3

~6

~2

~6

~27

16 November 2016

Overview Raiffeisen Banking Group

42

Raiffeisen Banking Group (RBG) structure

1.7 million members

474 Raiffeisen Banks

8 Raiffeisen Landesbanks

Central institutionand specialized

subsidiaries

Other equityparticipations39.2% free float1

RZB Contributed Business

Other shareholders

90.4% 9.6%

Note: Data as of 12/20151) Based on shares outstanding (which exclude 509,977 treasury shares as of 30 September 2016)


16 November 2016

Overview of RZB Contributed Business

43

Central Institution

RZB is the lead institution ofRBG

Key responsibilities include Raiffeisen Group business and liquidity management

Centralized management of RBG wide projects and participation management

Centralized service functions provided for RBG (e.g. management of the Raiffeisen brand)

EUR 8.5 bn liquidity reserve pool

Specialized SubsidiariesCentral Institution

RZB – business areas

Note: All figures per 30 September 2016

Savings products and credit facilitation for housing, educational and care purposes in Austria, Czech Republic, Slovakia and Romania

EUR 7.7 bn customer loans / EUR 8.8 bn customer deposits

100.0% stake

Umbrella brand for RBG asset management activities

Present in Austria and in Western and Eastern Europe

EUR 29 bn AuM

100.0% stake

Specialist provider of factoringsolutions and receivables financing

EUR 164 mn total assets

100.0% stake

Vehicle, movable asset, aircraft and real estate leasing; vehicle fleet management and real estate development

EUR 1.9 bn customer loans

100.0% stake

Issuer of residential construction bonds with favorable tax treatment for distribution via Austrian Raiffeisen Banks

EUR 1.7 bn total assets

100.0% stake

Employee retirement benefits provider (employee benefits, pension funds, corporate advisory services for employee retirement plans)

EUR 8.8 bn AuM

57.4% stake



16 November 2016

Overview of RZB Contributed Business

44

Selected other (% stake)1

UNIQA is one of the leading insurance groups in its core markets of Austria and CEE

Market capitalization of approx. EUR 1.8 bn as of beginning of November 2016;ca. 10 mn customers in 19 countries

EUR 6.3 bn group gross written premiums and EUR 423 mnpre-tax profit in FY 2015

10.9% stake will be contributed into Combined Bank (post closing of planned transactions)

Preferred partnership with RBI in CEE and RBG in Austria remains unaffected

Leipnik-Lundenburger Invest is a holding company,comprising the main segments Flour & Milling and Vending

Other activities includeminority holdings in variousindustries (e.g. sugar, agricultural products, energy, construction and casinos)

EUR 1.0 bn group revenuesand EUR 37.2 mn group profit after tax in FY 2014/15

33.1% stake

Raiffeisen Informatik offers expert IT services to large customers domestically and overseas, with a focus on provision of services to companies within the RBG

The portfolio ranges from high availability IT operations to outsourcing, security services, consulting, licence management and full support at work station level

EUR 2.1 bn group revenues and EUR 36.6 mn post-taxgroup profit in FY 2015

47.0% stake

card complete: payment services provider (25.0%)

Medicur: Austrian media holding company (25.0%)

NOTARTREUHANDBANK: fiduciary transactions for notaries (26.0%)

Österreichische Hotel- und Tourismusbank: finance for tourism business (27.5%)

Oesterreichische Kontrollbank: provider of financial and information services to the export industry and the capital market (8.1%)

Specialized SubsidiariesCentral Institution

RZB – business areas


1) Other Equity Participations selected based on size/relevance for RZB Group


16 November 2016

RZB Contributed Business Overview

45

Balance SheetIncome Statement & Key Ratios

Risk typeCountry

Total: EUR 8.0 bn

in EUR mn 1-9/2016 1-9/2015 Change FY/2015Net interest income 152 175 (12.8)% 252

Net fee and commission income 83 56 47.6% 75

Net trading income 4 0 – (1)

Recurring other net operating income 28 1 – 33

Operating income 268 233 15.1% 359

Net provisioning for impairment losses 2 1 80.5% 5

General administrative expenses (194) (164) 18.6% (256)

Profit/loss before tax 35 111 (68.0)% 66

Profit/loss after tax 44 118 (62.8)% 71

Consolidated profit/loss 40 102 (61.1)% 58

Return on equity before tax 6.2% – – 9.2%

Consolidated return on equity – – – –

Cost/income ratio 72.6% 70.5% 2.1PP 71.3%

Return on assets before tax – – – –

Net interest margin 0.90% 1.04% (0.14)PP 1.11%

Provisioning ratio (0.11)% (0.26)% 0.15PP (0.19)%

NPL ratio 4.8% – – 4.8%

NPL coverage ratio 70.6% – – 70.4%

Risk-weighted assets (total RWA) 8,022 – – 7,846

Common equity tier 1 ratio (fully loaded) – – – –

Common equity tier 1 ratio (transitional) – – – –

Total capital ratio (fully loaded) – – – –

Total capital ratio (transitional) – – – –

in EUR mn 1-9/2016 FY/2015

Total assets 23,474 23,728

Loans and advances to banks 1,974 1,838

Loans and advances to customers 9,404 9,536

Deposits from banks 11,733 11,744

Deposits from customers 8,515 9,188

Equity 491 424


Total RWA (30/09/2016) by


Austria84%

Czech Republic

11%

Italy4%

Other1%

Corporate Customers

36%

Retail31%

FI & Sovereigns

19%

Op Risk9%

Other5%

16 November 2016

Combined Bank Pro Forma Financials

46

Balance SheetIncome Statement & Key Ratios

Total: EUR 70.1 bn

in EUR mn 1-9/2016 1-9/2015 Change FY/2015Net interest income 2,340 2,669 (12.4)% 3,578

Net fee and commission income 1,180 1,185 (0.4)% 1,594

Net trading income 140 (12) – 16

Recurring other net operating income 77 87 (11.9)% 100

Operating income 3,737 3,975 (6.0)% 5,288

Net provisioning for impairment losses (501) (793) (36.9)% (1,259)

General administrative expenses (2,294) (2,265) 1.3% (3,170)

Profit/loss before tax 781 819 (4.6)% 777

Profit/loss after tax 524 633 (17.3)% 506

Consolidated profit/loss 433 563 (23.1)% 437

Return on equity before tax 11.7% 12.2% (0.5) PP 8.6%

Consolidated return on equity – – – –

Earnings per share – – – –

Cost/income ratio 61.4% 57.0% 4.4PP 60.0%

Return on assets before tax – – – –

Net interest margin 2.41% 2.66% (0.26)PP 2.69%

Provisioning ratio 0.82% 1.09% (0.27)PP 1.45%

NPL ratio 9.6% 11.4% (1.80)PP 11.1%

NPL coverage ratio – – – 71.2%

Risk-weighted assets (total RWA) 70,100 – – 71,072

Common equity tier 1 ratio (fully loaded) 11.3% – – 10.5%

Common equity tier 1 ratio (transitional) 11.6% – – 11.2%

Total capital ratio (fully loaded) 16.0% – – 15.3%

Total capital ratio (transitional) 16.2% – – 15.8%

in EUR mn 1-9/2016 FY/2015

Total assets 137,313 138,155

Loans and advances to banks 14,666 12,675

Loans and advances to customers 79,195 79,458

Deposits from banks 26,274 28,113

Deposits from customers 78,969 78,179

Equity 9,513 8,925

Risk typeEntity


Total RWA (30/09/2016) by


Corporate Customers

47%

Retail21%

FI & Sovereigns

10%

Op Risk14%

Market Risk4%

CVA Risk0% Other

4%

RBI89%

RZB Contributed

Business11%

16 November 2016

The Institutional Protection Scheme (IPS)


Legal Background

IPS regulations are defined in the CRR Art. 113 (7); the IPS is subject to regulatory supervision incl. regular reporting requirements

IPS is required to ensure solvency and liquidity of members and must therefore implement a comprehensive risk oversight system

Business between IPS members is treated similarly to business between members of the same credit institution group e.g. benefits from zero risk-weighting

IPS is in addition to statutory deposit insurance protection Each individual member institution, and the IPS as a whole, must have a

recovery plan; the plan for the IPS as a whole is subject to regulatory approval

IPS in Raiffeisen Austria

There are regional IPS in place. Members are regional banks and Landesbanks. There is also a federal IPS with RZB (currently) and Landesbanks as members

IPS is governed by a Risk Council, which decides on measures if an institution triggers early warning indicators

At end-2015 the regional ex ante IPS fund aggregate target volume was EUR 225 mn and EUR 133 mn had been paid in. The federal IPS fund current target volume is EUR 826 mn, to be reached by end-2022; it is based on the results of an annual stress test and confirmed by the regulator. The fund size is currently EUR 200 mn

The maximum liability for an individual IPS member for provision of support to other IPS members is limited to 25% of the member’s total capital in excess of the currently applicable minimum regulatory requirement (including any regulatory buffers) plus a cushion of 10%

Support Mechanism

In case of need, IPS must support members to ensure solvency and liquidity In the first instance, the regional IPS is required to provide support; if there is

insufficient capacity on regional level, the federal IPS steps in. Legal deposit insurance only applies in the event that IPS coverage is insufficient. In this event, the Raiffeisen cross-guarantee scheme would also step in.

All IPS members are obliged to contribute to an ex ante fund and to make ex post contributions if necessary

Financial support may take various forms, incl. loans, liquidity support, guarantees and capital injections

All financial support is subject to conditions determined by the Risk Council on a case by case basis

Impact on Combined Bank

RZB is currently a member of the federal IPS. It is planned that the Combined Bank will become a member of the federal IPS, subject to regulatory approval

RZB’s 2016 contribution to the IPS is approx. EUR 75 mn. In 2015, the contribution was EUR 62.5 mn, equating to ca. two thirds of total 2015 contributions to the fund; Regional Raiffeisen Banks additionally contribute to the regional IPS

The contribution is booked as an asset, reflecting the participation in the IPS fund. CRR requires the asset to be deducted from regulatory capital

RZB and RBI are members of the Raiffeisen cross-guarantee scheme and are subject to statutory legal deposit insurance requirements. It is planned that the Combined Bank will also be a member of the Raiffeisen cross-guarantee scheme

16 November 2016

Country and Segment Overview

1-9/2016 Total Assets(EUR mn)

Share of Total Assets1

Loan/depositratio

LLSFR2

(network banks)Net Interest

Margin Provisioning Ratio NPL Ratio NPL Coverage Ratio

Czech Republic 11,550 10.1% 95.8% 83.5% 2.42% 0.54% 4.6% 64.0%Hungary 6,552 5.8% 66.0% 64.0% 1.73% (0.30)% 19.1% 74.9%Slovakia 11,158 9.8% 94.0% 84.3% 2.54% 0.13% 3.6% 70.7%Central Europe 29,054 25.5% 88.8% – 2.32% 0.21% 6.7% 70.9%

Albania 1,932 1.7% 40.7% 40.7% 3.14% 7.59% 23.5% 73.6%Bosnia & Herzegovina 2,003 1.8% 69.8% 66.4% 3.59% 0.40% 10.2% 63.5%Bulgaria 3,342 2.9% 83.3% 76.5% 3.42% (0.56)% 8.6% 71.1%Croatia 4,600 4.0% 77.4% 70.7% 3.18% 0.05% 16.5% 79.0%Kosovo 878 0.8% 72.3% 70.0% 4.41% 0.66% 6.3% 53.5%Romania 7,333 6.4% 82.3% 76.9% 3.69% 1.66% 8.0% 73.4%Serbia 2,095 1.8% 64.7% 64.7% 4.24% (0.66)% 11.0% 84.0%Southeastern Europe 22,182 19.5% 74.1% – 3.57% 0.98% 11.2% 74.5%

Belarus 1,434 1.3% 98.0% 80.0% 9.74% 2.49% 11.0% 62.8%Russia 11,306 9.9% 87.6% 87.5% 5.64% 1.38% 7.8% 71.0%Ukraine 1,845 1.6% 64.6% 58.6% 9.62% 0.09% 54.3% 92.9%Eastern Europe3 14,589 12.8% 85.3% – 6.60% 1.23% 16.4% 83.7%

Asia 935 0.8% – – 3.08% 14.35% 90.5% 69.1%Poland 13,960 12.3% 105.8% 88.4% 1.96% 0.40% 7.7% 66.8%Slovenia 121 0.1% – – 1.58% (1.29)% 26.2% 45.0%USA 326 0.3% – – 3.41% 11.75% 20.0% 78.7%Non-Core 16,130 14.2% 101.0% – 2.10% 2.21% 16.5% 68.3%Group Corporates 14,822 13.0% 124.5% – 2.08% 0.53% 5.0% 61.1%Group Markets 14,027 12.3% 85.3% – 0.56% 1.45% 1.3% 73.5%Corporate Center 22,249 19.5% – – – – – –Total RBI Group 113,838 100.0% 91.5% – 2.76% 0.93% 10.2% 72.0%

48

1) Excludes reconciliation of EUR 19.2 bn 2) Loans to local stable funding ratio for network banks in respective countries 3) Includes Kazakhstan


16 November 2016

In EUR mn Q3/2016 Q2/2016 Change Q1/2016 Q4/2015 Q3/2015 1 – 9/2016 1 – 9/2015 Change 1 – 12/2015

Total assets 11,550 10,652 8.4% 10,080 9,265 9,178 11,550 9,178 25.9% 9,265 Equity 957 933 2.5% 967 946 911 957 911 5.0% 946 Loans and advances to customers 7,902 7,602 3.9% 7,413 7,095 6,956 7,902 6,956 13.6% 7,095 - Hereof corporate %1 43.8% 43.3% 0.5PP 43.6% 44.7% 44.7% 43.8% 44.7% (0.8)PP 44.7% - Hereof retail %1 55.7% 56.1% (0.5)PP 55.8% 54.7% 54.7% 55.7% 54.7% 1.0PP 54.7% - Hereof FCY % 15.7% 13.5% 2.2PP 13.4% 14.8% 13.8% 15.7% 13.8% 2.0PP 14.8% Deposits from customers 7,995 7,750 3.2% 7,355 6,807 6,255 7,995 6,255 27.8% 6,807 Operating income 93 99 (5.7)% 91 91 82 284 272 4.3% 363 - Net interest income 62 63 (0.8)% 59 57 59 184 178 3.5% 235 - Net fee and commission income 27 31 (14.3)% 25 27 25 83 76 8.9% 103 - Net trading income 2 3 (31.5)% (1) 4 (8) 3 8 (60.2)% 12 - Recurring other net operating income 3 3 8.8% 8 3 6 13 10 40.3% 13 Net provisioning for impairment losses (4) (21) (82.8)% (6) (16) (6) (31) (25) 22.7% (41)General administrative expenses (57) (54) 6.0% (61) (51) (51) (171) (144) 19.3% (194)Other results (1) 19 – 7 (0) 9 25 (1) – (1)Profit/loss before tax 32 43 (26.3)% 31 24 34 106 103 3.6% 127 Profit/loss after tax 25 34 (27.1)% 26 20 27 86 82 5.0% 102 Return on equity before tax2 14.3% 18.8% (4.5)PP 13.5% 11.3% 16.2% 15.5% 16.3% (0.7)PP 15.0% Return on equity after tax2 11.2% 14.9% (3.7)PP 11.3% 9.4% 12.9% 12.5% 12.9% (0.4)PP 12.0% Net interest margin 2.29% 2.48% (19)BP 2.52% 2.55% 2.80% 2.42% 2.89% (47)BP 2.80% Loan/deposit ratio 95.8% 94.9% 0.9PP 97.5% 100.7% 107.1% 95.8% 107.1% (11.3)PP 100.7% Cost/income ratio 60.9% 54.2% 6.7PP 66.6% 55.7% 62.2% 60.4% 52.8% 7.6PP 53.5% Business outlets 140 135 3.7% 134 128 126 140 126 11.1% 128 Number of employees 3,176 3,172 0.1% 3,129 2,753 2,740 3,176 2,740 15.9% 2,753 Number of customers 607,773 601,281 1.1% 620,729 408,129 400,257 607,773 400,257 51.8% 408,129 Provisioning ratio 0.19% 1.13% (94)BP 0.26% 0.89% 0.33% 0.54% 0.50% 4BP 0.60% NPL ratio 4.6% 5.3% (67)BP 5.5% 4.7% 5.0% 4.6% 5.0% (36)BP 4.7% NPL coverage ratio 64.0% 59.4% 4.6PP 59.0% 71.5% 71.6% 64.0% 71.6% (7.6)PP 71.5%

Country Financials (CE) – Czech Republic

49

Note: All data, except P/L, are dated to the end of the period 1) Sovereign as remaining share 2) Annualized


16 November 2016

Country Financials (CE) – Hungary

50



Total assets 6,552 6,406 2.3% 6,347 6,394 6,263 6,552 6,263 4.6% 6,394 Equity 563 525 7.3% 512 487 483 563 483 16.5% 487 Loans and advances to customers 3,416 3,349 2.0% 3,553 3,481 3,541 3,416 3,541 (3.5)% 3,481 - Hereof corporate %1 70.5% 70.1% 0.5PP 68.0% 66.3% 65.0% 70.5% 65.0% 5.5PP 66.3% - Hereof retail %1 27.9% 28.3% (0.4)PP 27.7% 29.1% 30.5% 27.9% 30.5% (2.7)PP 29.1% - Hereof FCY % 41.6% 42.4% (0.8)PP 38.7% 37.5% 41.5% 41.6% 41.5% 0.2PP 37.5% Deposits from customers 4,418 4,299 2.8% 4,119 4,233 3,955 4,418 3,955 11.7% 4,233 Operating income 41 59 (30.9)% 56 51 56 156 169 (7.7)% 220 - Net interest income 17 29 (40.7)% 30 28 30 77 93 (16.7)% 121 - Net fee and commission income 31 31 1.3% 27 31 30 89 93 (4.6)% 124 - Net trading income 3 4 (43.0)% 4 5 3 11 9 33.3% 13 - Recurring other net operating income (10) (6) 83.8% (6) (13) (7) (22) (25) (15.4)% (38)Net provisioning for impairment losses 9 (8) – 6 (12) (7) 8 (44) – (56)General administrative expenses (36) (37) (2.4)% (35) (61) (44) (108) (134) (19.2)% (195)Other results 6 5 33.4% (17) 27 13 (7) 22 – 49 Profit/loss before tax 20 19 7.5% 10 6 18 48 13 266.0% 19 Profit/loss after tax 20 19 7.3% 10 5 18 48 13 266.2% 18 Return on equity before tax2 15.9% 14.9% 1.0PP 7.8% 4.7% 15.2% 12.8% 4.3% 8.6PP 4.4% Return on equity after tax2 15.9% 14.9% 0.9PP 7.8% 4.2% 15.2% 12.8% 4.3% 8.6PP 4.3% Net interest margin 1.14% 1.99% (85)BP 2.09% 1.89% 2.05% 1.73% 2.06% (33)BP 2.01% Loan/deposit ratio 66.0% 66.0% (0.0)PP 73.4% 69.5% 74.4% 66.0% 74.4% (8.4)PP 69.5% Cost/income ratio 78.1% 61.1% 17.1PP 63.0% 75.6% 78.7% 69.6% 79.5% (9.9)PP 88.5% Business outlets 72 72 0.0% 72 72 72 72 72 0.0% 72 Number of employees 1,988 2,012 (1.2)% 2,016 2,016 2,037 1,988 2,037 (2.4)% 2,016 Number of customers 542,292 548,348 (1.1)% 545,122 533,010 536,817 542,292 536,817 1.0% 533,010 Provisioning ratio (1.10)% 0.91% (201)BP (0.56)% 1.37% 0.72% (0.30)% 1.35% (165)BP 1.34% NPL ratio 19.1% 19.7% (62)BP 20.2% 19.7% 23.1% 19.1% 23.1% (407)BP 19.7% NPL coverage ratio 74.9% 75.6% (0.6)PP 73.1% 77.3% 72.4% 74.9% 72.4% 2.5PP 77.3%


16 November 2016

Country Financials (CE) – Slovakia


51


Total assets 11,158 11,053 0.9% 11,257 11,223 10,759 11,158 10,759 3.7% 11,223 Equity 985 952 3.4% 1,021 995 983 985 983 0.2% 995 Loans and advances to customers 8,419 8,326 1.1% 8,247 8,189 8,098 8,419 8,098 4.0% 8,189 - Hereof corporate %1 44.4% 45.2% (0.8)PP 46.1% 46.8% 47.2% 44.4% 47.2% (2.8)PP 46.8% - Hereof retail %1 55.5% 54.7% 0.8PP 53.7% 53.0% 52.7% 55.5% 52.7% 2.8PP 53.0% - Hereof FCY % 0.8% 0.8% 0.0PP 0.8% 0.6% 0.9% 0.8% 0.9% (0.1)PP 0.6% Deposits from customers 8,733 8,586 1.7% 8,760 8,728 8,262 8,733 8,262 5.7% 8,728 Operating income 108 108 (0.3)% 111 119 117 328 346 (5.4)% 466 - Net interest income 67 69 (2.7)% 71 75 75 208 223 (6.9)% 298 - Net fee and commission income 38 38 0.9% 37 40 39 112 121 (7.5)% 162 - Net trading income 1 1 54.5% 2 1 1 4 5 (24.2)% 6 - Recurring other net operating income 2 1 84.4% 1 3 2 4 (3) – (0)Net provisioning for impairment losses (4) (0) >500,0% (4) (16) (13) (8) (21) (62.9)% (37)General administrative expenses (58) (58) 0.8% (69) (74) (61) (185) (173) 7.3% (247)Other results (5) 25 – (5) (5) (4) 16 (13) – (18)Profit/loss before tax 41 76 (45.6)% 34 24 39 150 140 7.7% 164 Profit/loss after tax 33 57 (42.3)% 26 18 30 116 106 9.4% 124 Return on equity before tax2 18.5% 32.0% (13.5)PP 13.9% 10.8% 17.5% 21.2% 19.4% 1.8PP 17.4% Return on equity after tax2 14.9% 24.3% (9.4)PP 10.5% 8.0% 13.3% 16.4% 14.7% 1.6PP 13.1% Net interest margin 2.48% 2.53% (5)BP 2.61% 2.84% 2.92% 2.54% 2.99% (45)BP 2.95% Loan/deposit ratio 94.0% 94.5% (0.6)PP 91.5% 91.1% 95.0% 94.0% 95.0% (1.0)PP 91.1% Cost/income ratio 53.9% 53.2% 0.6PP 62.2% 62.5% 52.1% 56.5% 49.8% 6.7PP 53.1% Business outlets 200 200 0.0% 199 195 188 200 188 6.4% 195 Number of employees 3,938 3,929 0.2% 3,872 3,854 3,823 3,938 3,823 3.0% 3,854 Number of customers 846,434 835,559 1.3% 821,057 819,336 815,096 846,434 815,096 3.8% 819,336 Provisioning ratio 0.18% 0.02% 16BP 0.14% 0.77% 0.64% 0.13% 0.36% (24)BP 0.47% NPL ratio 3.6% 3.7% (11)BP 3.9% 3.8% 4.2% 3.6% 4.2% (58)BP 3.8% NPL coverage ratio 70.7% 68.3% 2.4PP 73.7% 75.0% 73.6% 70.7% 73.6% (2.9)PP 75.0%


16 November 2016

Country Financials (SEE) – Albania


52


Total assets 1,932 2,007 (3.8)% 2,056 2,120 2,112 1,932 2,112 (8.5)% 2,120 Equity 207 210 (1.8)% 203 222 241 207 241 (14.3)% 222 Loans and advances to customers 799 849 (5.8)% 821 835 875 799 875 (8.7)% 835 - Hereof corporate %1 61.8% 65.4% (3.6)PP 65.7% 66.1% 69.3% 61.8% 69.3% (7.5)PP 66.1% - Hereof retail %1 38.2% 34.6% 3.6PP 34.3% 33.9% 30.7% 38.2% 30.7% 7.5PP 33.9% - Hereof FCY % 56.8% 58.3% (1.6)PP 60.0% 60.2% 62.6% 56.8% 62.6% (5.8)PP 60.2% Deposits from customers 1,626 1,676 (3.0)% 1,731 1,799 1,771 1,626 1,771 (8.2)% 1,799 Operating income 20 21 (4.7)% 23 18 22 63 72 (12.8)% 90 - Net interest income 13 16 (15.2)% 15 17 17 43 53 (18.5)% 70 - Net fee and commission income 4 3 30.8% 3 3 3 9 8 11.1% 11 - Net trading income 3 2 31.3% 6 4 3 12 11 5.8% 15 - Recurring other net operating income (0) (0) 197.9% (0) (6) (0) (1) (0) >500,0% (6)Net provisioning for impairment losses (12) (5) 147.1% (30) (18) (3) (47) (13) 260.8% (31)General administrative expenses (11) (12) (7.1)% (11) (13) (11) (34) (32) 6.3% (45)Other results (0) 1 – 1 0 0 2 0 457.6% 1 Profit/loss before tax (4) 5 – (17) (13) 8 (16) 28 – 15 Profit/loss after tax (4) 5 – (17) (12) 7 (16) 24 – 12 Return on equity before tax2 – 8.6% – – – 15.5% – 17.9% – 7.1% Return on equity after tax2 – 8.4% – – – 13.2% – 15.5% – 6.0% Net interest margin 2.93% 3.37% (44)BP 3.11% 3.46% 3.61% 3.14% 3.96% (82)BP 3.83% Loan/deposit ratio 40.7% 43.4% (2.7)PP 40.5% 40.8% 44.2% 40.7% 44.2% (3.5)PP 40.8% Cost/income ratio 56.1% 57.6% (1.4)PP 47.2% 74.3% 49.7% 53.4% 43.8% 9.6PP 49.9% Business outlets 87 89 (2.2)% 90 91 91 87 91 (4.4)% 91 Number of employees 1,323 1,342 (1.4)% 1,349 1,349 1,327 1,323 1,327 (0.3)% 1,349 Number of customers 749,567 751,790 (0.3)% 747,152 735,743 728,618 749,567 728,618 2.9% 735,743 Provisioning ratio 5.95% 2.38% 358BP 11.42% 8.48% 1.39% 7.59% 1.90% 569BP 3.44% NPL ratio 23.5% 20.7% 277BP 21.6% 19.5% 19.2% 23.5% 19.2% 431BP 19.5% NPL coverage ratio 73.6% 69.4% 4.2PP 68.1% 61.5% 55.2% 73.6% 55.2% 18.3PP 61.5%


16 November 2016

Country Financials (SEE) – Bosnia & Herz.


53


Total assets 2,003 1,990 0.6% 1,956 1,947 1,911 2,003 1,911 4.8% 1,947 Equity 270 259 4.3% 281 269 263 270 263 2.9% 269 Loans and advances to customers 1,187 1,178 0.8% 1,163 1,173 1,168 1,187 1,168 1.7% 1,173 - Hereof corporate %1 32.0% 31.7% 0.3PP 30.7% 31.4% 31.9% 32.0% 31.9% 0.1PP 31.4% - Hereof retail %1 67.3% 67.7% (0.4)PP 68.8% 68.1% 67.7% 67.3% 67.7% (0.4)PP 68.1% - Hereof FCY % 66.1% 67.6% (1.6)PP 69.0% 69.8% 71.0% 66.1% 71.0% (5.0)PP 69.8% Deposits from customers 1,591 1,560 2.0% 1,536 1,519 1,501 1,591 1,501 6.0% 1,519 Operating income 27 29 (6.8)% 25 26 26 81 78 3.5% 104 - Net interest income 16 18 (8.1)% 16 17 16 50 49 1.9% 66 - Net fee and commission income 10 10 (4.6)% 8 9 9 29 26 12.6% 35 - Net trading income 1 0 56.0% 0 0 1 1 1 (0.9)% 2 - Recurring other net operating income 0 1 (43.2)% (0) (1) 1 1 2 (67.4)% 1 Net provisioning for impairment losses 0 (5) – 1 0 (9) (3) (9) (59.9)% (8)General administrative expenses (14) (13) 6.2% (13) (19) (14) (40) (41) (1.9)% (59)Other results (2) (0) >500,0% 0 0 0 (2) (0) >500,0% 0 Profit/loss before tax 12 11 13.4% 13 8 3 36 29 24.4% 36 Profit/loss after tax 10 9 2.0% 12 6 3 31 26 20.1% 32 Return on equity before tax2 20.1% 16.7% 3.4PP 20.3% 12.7% 4.7% 18.8% 15.0% 3.8PP 14.4% Return on equity after tax2 16.1% 14.8% 1.2PP 18.1% 10.9% 4.3% 16.2% 13.4% 2.8PP 12.8% Net interest margin 3.44% 3.78% (34)BP 3.54% 3.65% 3.56% 3.59% 3.61% (2)BP 3.61% Loan/deposit ratio 69.8% 70.6% (0.8)PP 70.9% 72.1% 72.3% 69.8% 72.3% (2.5)PP 72.1% Cost/income ratio 51.6% 45.3% 6.3PP 51.5% 72.7% 55.6% 49.3% 52.0% (2.7)PP 57.1% Business outlets 98 97 1.0% 97 97 97 98 97 1.0% 97 Number of employees 1,294 1,298 (0.3)% 1,307 1,311 1,353 1,294 1,353 (4.4)% 1,311 Number of customers 448,724 445,292 0.8% 449,764 493,192 492,598 448,724 492,598 (8.9)% 493,192 Provisioning ratio (0.14)% 1.77% (191)BP (0.36)% (0.10)% 3.08% 0.40% 0.99% (59)BP 0.72% NPL ratio 10.2% 9.8% 31BP 10.1% 10.5% 11.7% 10.2% 11.7% (153)BP 10.5% NPL coverage ratio 63.5% 65.8% (2.4)PP 63.3% 63.4% 60.4% 63.5% 60.4% 3.1PP 63.4%


16 November 2016

Country Financials (SEE) – Bulgaria


54


Total assets 3,342 3,321 0.6% 3,407 3,440 3,401 3,342 3,401 (1.7)% 3,440 Equity 491 498 (1.3)% 519 495 493 491 493 (0.4)% 495 Loans and advances to customers 2,130 2,062 3.3% 2,069 2,083 2,100 2,130 2,100 1.4% 2,083 - Hereof corporate %1 41.4% 39.8% 1.6PP 41.2% 41.4% 40.9% 41.4% 40.9% 0.5PP 41.4% - Hereof retail %1 58.1% 59.7% (1.6)PP 58.2% 58.0% 58.6% 58.1% 58.6% (0.5)PP 58.0% - Hereof FCY % 50.7% 51.9% (1.2)PP 52.4% 54.5% 56.4% 50.7% 56.4% (5.7)PP 54.5% Deposits from customers 2,401 2,347 2.3% 2,390 2,444 2,362 2,401 2,362 1.7% 2,444 Operating income 39 41 (4.6)% 38 39 40 118 119 (0.8)% 158 - Net interest income 27 30 (8.8)% 28 28 29 85 88 (3.9)% 116 - Net fee and commission income 11 11 1.1% 10 11 11 31 30 4.1% 41 - Net trading income 1 0 130.4% 1 1 0 2 1 90.9% 2 - Recurring other net operating income 0 0 8.2% 0 (1) 0 0 0 44.8% (0)Net provisioning for impairment losses 6 (3) – 6 (15) 0 9 (17) – (32)General administrative expenses (19) (26) (28.0)% (18) (27) (21) (63) (62) 1.5% (90)Other results (0) 7 – (0) 0 0 7 (3) – (3)Profit/loss before tax 26 19 41.4% 26 (3) 19 71 37 91.3% 34 Profit/loss after tax 24 17 42.2% 24 (3) 17 64 34 92.1% 31 Return on equity before tax2 23.9% 15.7% 8.2PP 21.4% – 16.7% 20.5% 10.5% 9.9PP 7.3% Return on equity after tax2 21.7% 14.2% 7.5PP 19.4% – 15.1% 18.5% 9.5% 9.0PP 6.6% Net interest margin 3.33% 3.64% (31)BP 3.32% 3.37% 3.49% 3.42% 3.68% (25)BP 3.60% Loan/deposit ratio 83.3% 82.0% 1.4PP 80.3% 78.9% 81.8% 83.3% 81.8% 1.6PP 78.9% Cost/income ratio 48.6% 64.4% (15.8)PP 46.6% 70.3% 52.1% 53.4% 52.2% 1.2PP 56.7% Business outlets 149 148 0.7% 149 149 153 149 153 (2.6)% 149 Number of employees 2,595 2,569 1.0% 2,551 2,546 2,629 2,595 2,629 (1.3)% 2,546 Number of customers 642,366 641,214 0.2% 636,992 775,879 772,543 642,366 772,543 (16.9)% 775,879 Provisioning ratio (1.22)% 0.65% (186)BP (0.88)% 2.81% (0.01)% (0.56)% 1.08% (164)BP 1.51% NPL ratio 8.6% 9.5% (93)BP 10.5% 11.0% 13.0% 8.6% 13.0% (440)BP 11.0% NPL coverage ratio 71.1% 70.8% 0.3PP 68.7% 67.3% 61.9% 71.1% 61.9% 9.2PP 67.3%


16 November 2016

Country Financials (SEE) – Croatia


55


Total assets 4,600 4,493 2.4% 4,420 4,616 4,675 4,600 4,675 (1.6)% 4,616 Equity 679 657 3.4% 644 616 598 679 598 13.5% 616 Loans and advances to customers 2,816 2,917 (3.5)% 3,040 2,939 3,019 2,816 3,019 (6.7)% 2,939 - Hereof corporate %1 41.3% 42.1% (0.8)PP 43.6% 39.1% 38.8% 41.3% 38.8% 2.6PP 39.1% - Hereof retail %1 56.9% 55.6% 1.3PP 53.6% 57.9% 57.2% 56.9% 57.2% (0.3)PP 57.9% - Hereof FCY % 55.3% 56.6% (1.4)PP 58.4% 61.1% 61.0% 55.3% 61.0% (5.8)PP 61.1% Deposits from customers 3,181 3,078 3.3% 3,046 3,191 3,132 3,181 3,132 1.6% 3,191 Operating income 59 57 3.4% 57 57 61 173 176 (1.8)% 232 - Net interest income 32 33 (2.7)% 31 33 34 95 103 (7.5)% 136 - Net fee and commission income 18 16 11.9% 16 17 20 50 51 (0.8)% 68 - Net trading income 4 4 21.3% 6 3 2 14 7 94.0% 11 - Recurring other net operating income 4 4 2.9% 5 3 5 13 15 (11.3)% 18 Net provisioning for impairment losses 8 (13) – 4 (6) (13) (1) (30) (96.0)% (36)General administrative expenses (32) (30) 6.3% (34) (35) (34) (96) (96) 0.6% (130)Other results (3) 11 – (4) (1) (76) 4 (79) – (80)Profit/loss before tax 31 25 26.0% 23 15 (62) 79 (29) – (14)Profit/loss after tax 25 20 27.9% 18 10 (48) 63 (21) – (11)Return on equity before tax2 20.1% 15.9% 4.3PP 14.9% 9.4% – 16.9% – – –Return on equity after tax2 16.2% 12.6% 3.6PP 11.5% 6.4% – 13.4% – – –Net interest margin 3.17% 3.29% (12)BP 3.10% 3.19% 3.27% 3.18% 3.32% (14)BP 3.29% Loan/deposit ratio 77.4% 83.2% (5.8)PP 86.6% 81.4% 84.7% 77.4% 84.7% (7.3)PP 81.4% Cost/income ratio 54.5% 53.0% 1.5PP 59.5% 61.4% 56.2% 55.7% 54.3% 1.3PP 56.1% Business outlets 78 78 0.0% 78 78 78 78 78 0.0% 78 Number of employees 2,130 2,125 0.2% 2,133 2,133 2,145 2,130 2,145 (0.7)% 2,133 Number of customers 450,021 449,654 0.1% 449,598 455,912 453,469 450,021 453,469 (0.8)% 455,912 Provisioning ratio (1.05)% 1.69% (274)BP (0.42)% 0.85% 1.77% 0.05% 1.27% (121)BP 1.17% NPL ratio 16.5% 16.3% 20BP 16.3% 17.4% 17.7% 16.5% 17.7% (126)BP 17.4% NPL coverage ratio 79.0% 79.5% (0.5)PP 74.4% 72.1% 70.6% 79.0% 70.6% 8.5PP 72.1%


16 November 2016

Country Financials (SEE) – Kosovo


56


Total assets 878 873 0.5% 862 848 830 878 830 5.8% 848 Equity 119 115 3.1% 111 128 125 119 125 (4.8)% 128 Loans and advances to customers 532 522 2.0% 510 488 490 532 490 8.6% 488 - Hereof corporate %1 38.1% 37.2% 1.0PP 38.7% 37.7% 38.7% 38.1% 38.7% (0.5)PP 37.7% - Hereof retail %1 61.9% 62.8% (1.0)PP 61.3% 62.3% 61.3% 61.9% 61.3% 0.5PP 62.3% - Hereof FCY % 0.0% 0.0% 0.0PP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0PP 0.0% Deposits from customers 711 694 2.5% 682 675 657 711 657 8.2% 675 Operating income 13 12 13.0% 11 12 12 36 37 (4.4)% 49 - Net interest income 9 10 (2.7)% 9 10 10 28 30 (6.3)% 40 - Net fee and commission income 4 2 69.2% 1 2 2 7 7 (1.4)% 9 - Net trading income 0 (0) – 0 0 0 1 0 83.1% 0 - Recurring other net operating income 0 0 85.3% (0) (0) 0 0 0 79.9% 0 Net provisioning for impairment losses (1) (1) 7.5% (1) (1) (1) (3) (1) 166.3% (2)General administrative expenses (6) (6) (1.4)% (6) (8) (6) (19) (18) 7.2% (26)Other results 0 0 >500,0% (0) (0) (0) 0 0 81.0% 0 Profit/loss before tax 6 4 44.6% 4 3 5 14 19 (23.2)% 22 Profit/loss after tax 5 4 36.9% 3 3 4 13 17 (24.1)% 19 Return on equity before tax2 23.8% 16.3% 7.5PP 12.4% 10.7% 16.6% 17.2% 20.7% (3.5)PP 18.4% Return on equity after tax2 20.5% 14.8% 5.6PP 10.9% 9.9% 14.9% 15.2% 18.5% (3.3)PP 16.5% Net interest margin 4.32% 4.53% (21)BP 4.37% 4.62% 4.68% 4.41% 5.02% (61)BP 4.91% Loan/deposit ratio 72.3% 72.7% (0.4)PP 71.5% 69.1% 71.0% 72.3% 71.0% 1.3PP 69.1% Cost/income ratio 47.8% 54.7% (7.0)PP 59.2% 69.7% 51.9% 53.4% 47.6% 5.8PP 53.0% Business outlets 52 52 0.0% 52 52 53 52 53 (1.9)% 52 Number of employees 735 729 0.8% 721 715 718 735 718 2.4% 715 Number of customers 308,321 300,536 2.6% 291,125 283,552 281,154 308,321 281,154 9.7% 283,552 Provisioning ratio 0.79% 0.75% 4BP 0.35% 0.55% 0.70% 0.66% 0.26% 40BP 0.33% NPL ratio 6.3% 6.8% (45)BP 7.1% 7.5% 9.1% 6.3% 9.1% (277)BP 7.5% NPL coverage ratio 53.5% 49.3% 4.2PP 61.4% 59.5% 52.6% 53.5% 52.6% 0.8PP 59.5%


16 November 2016

Country Financials (SEE) – Romania


57


Total assets 7,333 7,122 3.0% 7,028 7,232 6,958 7,333 6,958 5.4% 7,232 Equity 745 781 (4.5)% 792 753 730 745 730 2.1% 753 Loans and advances to customers 4,762 4,627 2.9% 4,569 4,472 4,441 4,762 4,441 7.2% 4,472 - Hereof corporate %1 33.1% 33.8% (0.7)PP 32.9% 32.6% 31.7% 33.1% 31.7% 1.4PP 32.6% - Hereof retail %1 64.7% 64.3% 0.4PP 64.9% 65.1% 66.0% 64.7% 66.0% (1.3)PP 65.1% - Hereof FCY % 39.8% 41.8% (2.0)PP 43.2% 43.1% 44.0% 39.8% 44.0% (4.2)PP 43.1% Deposits from customers 5,392 5,189 3.9% 5,051 5,238 4,841 5,392 4,841 11.4% 5,238 Operating income 119 108 10.0% 110 111 115 337 336 0.4% 447 - Net interest income 65 66 (1.5)% 61 65 66 192 199 (3.5)% 264 - Net fee and commission income 47 46 1.3% 44 47 48 137 132 3.3% 179 - Net trading income 3 4 (21.9)% 5 4 5 13 12 5.9% 17 - Recurring other net operating income 4 (8) – (1) (6) (4) (5) (8) (38.6)% (14)Net provisioning for impairment losses (32) (18) 79.1% (8) (27) (10) (57) (46) 23.3% (74)General administrative expenses (62) (59) 4.4% (70) (67) (65) (190) (190) (0.1)% (257)Other results 4 (20) – 1 2 1 (14) 1 – 3 Profit/loss before tax 30 12 149.4% 33 18 41 75 101 (25.0)% 119 Profit/loss after tax 26 10 164.1% 28 14 34 64 86 (25.3)% 100 Return on equity before tax2 17.1% 6.5% 10.6PP 17.7% 11.3% 25.4% 13.6% 20.2% (6.6)PP 18.0% Return on equity after tax2 14.7% 5.3% 9.4PP 15.1% 8.7% 21.3% 11.5% 17.2% (5.7)PP 15.1% Net interest margin 3.71% 3.86% (15)BP 3.53% 3.83% 3.96% 3.69% 4.00% (31)BP 3.95% Loan/deposit ratio 82.3% 83.7% (1.4)PP 84.9% 79.2% 85.6% 82.3% 85.6% (3.4)PP 79.2% Cost/income ratio 51.7% 54.5% (2.8)PP 64.0% 60.5% 57.0% 56.4% 56.7% (0.3)PP 57.6% Business outlets 487 505 (3.6)% 506 512 515 487 515 (5.4)% 512 Number of employees 5,323 5,397 (1.4)% 5,450 5,437 5,477 5,323 5,477 (2.8)% 5,437 Number of customers 2,110,921 2,109,326 0.1% 2,124,663 2,130,125 2,118,255 2,110,921 2,118,255 (0.3)% 2,130,125 Provisioning ratio 2.69% 1.53% 116BP 0.57% 2.44% 0.87% 1.66% 1.41% 25BP 1.67% NPL ratio 8.0% 8.0% 1BP 8.3% 8.7% 9.2% 8.0% 9.2% (126)BP 8.7% NPL coverage ratio 73.4% 67.6% 5.8PP 73.5% 77.0% 71.9% 73.4% 71.9% 1.5PP 77.0%


16 November 2016

Country Financials (SEE) – Serbia


58


Total assets 2,095 1,986 5.5% 1,966 1,948 1,962 2,095 1,962 6.8% 1,948 Equity 499 483 3.4% 474 463 504 499 504 (1.0)% 463 Loans and advances to customers 1,104 1,126 (2.0)% 1,070 1,098 1,065 1,104 1,065 3.6% 1,098 - Hereof corporate %1 49.9% 51.9% (2.0)PP 49.8% 50.7% 49.5% 49.9% 49.5% 0.5PP 50.7% - Hereof retail %1 49.8% 47.8% 2.0PP 49.9% 49.0% 49.5% 49.8% 49.5% 0.2PP 49.0% - Hereof FCY % 60.5% 61.9% (1.5)PP 62.6% 64.1% 64.3% 60.5% 64.3% (3.8)PP 64.1% Deposits from customers 1,547 1,462 5.8% 1,456 1,455 1,378 1,547 1,378 12.3% 1,455 Operating income 32 32 (0.0)% 31 31 36 96 103 (7.1)% 133 - Net interest income 20 21 (4.2)% 20 19 24 60 69 (12.7)% 89 - Net fee and commission income 9 9 (0.0)% 9 10 9 28 27 2.2% 37 - Net trading income 1 1 64.8% 0 0 1 2 3 (39.6)% 4 - Recurring other net operating income 2 2 23.4% 1 1 1 5 3 80.3% 4 Net provisioning for impairment losses 5 (4) – 4 0 (6) 5 (9) – (8)General administrative expenses (17) (18) (2.3)% (18) (20) (18) (53) (53) (0.1)% (73)Other results 0 (0) – (0) 0 0 (0) (4) (95.2)% (4)Profit/loss before tax 20 11 87.3% 17 11 12 48 37 29.3% 48 Profit/loss after tax 18 10 84.5% 16 11 11 43 33 28.7% 44 Return on equity before tax2 17.5% 9.3% 8.2PP 15.5% 9.8% 10.3% 14.1% 10.7% 3.4PP 10.4% Return on equity after tax2 15.4% 8.4% 7.1PP 13.9% 9.6% 9.3% 12.6% 9.6% 3.0PP 9.5% Net interest margin 4.04% 4.36% (32)BP 4.34% 4.13% 5.08% 4.24% 5.05% (81)BP 4.81% Loan/deposit ratio 64.7% 69.6% (4.9)PP 65.9% 67.6% 68.6% 64.7% 68.6% (3.9)PP 67.6% Cost/income ratio 53.7% 55.0% (1.3)PP 57.1% 65.9% 50.6% 55.2% 51.4% 3.8PP 54.7% Business outlets 86 85 1.2% 84 85 85 86 85 1.2% 85 Number of employees 1,538 1,536 0.1% 1,538 1,550 1,558 1,538 1,558 (1.3)% 1,550 Number of customers 691,098 681,032 1.5% 671,451 665,946 654,498 691,098 654,498 5.6% 665,946 Provisioning ratio (1.79)% 1.36% (315)BP (1.26)% (0.18)% 2.09% (0.66)% 1.08% (174)BP 0.77% NPL ratio 11.0% 11.4% (38)BP 12.9% 12.3% 13.5% 11.0% 13.5% (243)BP 12.3% NPL coverage ratio 84.0% 84.2% (0.2)PP 80.3% 84.3% 83.2% 84.0% 83.2% 0.8PP 84.3%


16 November 2016

Country Financials (EE) – Belarus


59


Total assets 1,434 1,384 3.6% 1,336 1,449 1,564 1,434 1,564 (8.3)% 1,449 Equity 337 310 8.6% 288 321 310 337 310 8.6% 321 Loans and advances to customers 878 877 0.1% 914 915 1,003 878 1,003 (12.5)% 915 - Hereof corporate %1 72.3% 73.6% (1.3)PP 74.6% 72.3% 74.6% 72.3% 74.6% (2.3)PP 72.3% - Hereof retail %1 27.7% 26.4% 1.3PP 25.4% 27.7% 25.4% 27.7% 25.4% 2.3PP 27.7% - Hereof FCY % 66.3% 69.0% (2.6)PP 69.5% 70.7% 76.0% 66.3% 76.0% (9.7)PP 70.7% Deposits from customers 834 817 2.1% 738 815 873 834 873 (4.5)% 815 Operating income 43 45 (5.3)% 52 49 78 140 208 (32.4)% 256 - Net interest income 31 32 (3.3)% 32 31 31 96 94 2.6% 125 - Net fee and commission income 12 13 (1.6)% 13 14 16 38 49 (22.2)% 63 - Net trading income (1) 1 – 7 4 32 7 66 (90.0)% 70 - Recurring other net operating income (0) (1) (65.0)% 0 (1) (1) (1) (1) (33.8)% (2)Net provisioning for impairment losses (7) (3) 145.0% (7) (8) (6) (17) (18) (7.2)% (26)General administrative expenses (17) (17) (0.7)% (17) (17) (18) (51) (55) (6.9)% (73)Other results (0) (0) 50.9% (0) 0 0 (0) (1) (100.0)% (1)Profit/loss before tax 19 25 (25.8)% 28 23 55 72 134 (46.0)% 157 Profit/loss after tax 14 19 (27.1)% 23 16 41 55 102 (46.2)% 119 Return on equity before tax2 26.9% 37.3% (10.4)PP 44.4% 42.8% 91.5% 35.9% 68.8% (32.9)PP 63.0% Return on equity after tax2 19.7% 27.8% (8.1)PP 35.5% 30.1% 68.9% 27.4% 52.7% (25.3)PP 47.7% Net interest margin 9.31% 10.03% (72)BP 10.05% 9.09% 8.31% 9.74% 8.59% 115BP 8.63% Loan/deposit ratio 98.0% 100.8% (2.8)PP 116.7% 106.1% 110.0% 98.0% 110.0% (12.1)PP 106.1% Cost/income ratio 40.0% 38.2% 1.9PP 32.4% 35.9% 22.8% 36.6% 26.5% 10.0PP 28.3% Business outlets 93 94 (1.1)% 95 97 97 93 97 (4.1)% 97 Number of employees 2,021 2,039 (0.9)% 2,067 2,086 2,111 2,021 2,111 (4.3)% 2,086 Number of customers 761,969 760,534 0.2% 756,252 752,363 723,937 761,969 723,937 5.3% 752,363 Provisioning ratio 3.24% 1.30% 194BP 2.38% 3.39% 2.31% 2.49% 2.33% 16BP 2.56% NPL ratio 11.0% 8.3% 274BP 6.9% 6.0% 5.1% 11.0% 5.1% 596BP 6.0% NPL coverage ratio 62.8% 74.4% (11.6)PP 84.1% 89.7% 82.9% 62.8% 82.9% (20.1)PP 89.7%


16 November 2016

Country Financials (EE) – Russia


60


Total assets 11,306 11,016 2.6% 10,414 10,676 12,178 11,306 12,178 (7.2)% 10,676 Equity 1,628 1,498 8.7% 1,331 1,198 1,399 1,628 1,399 16.3% 1,198 Loans and advances to customers 7,508 7,248 3.6% 7,000 6,956 7,815 7,508 7,815 (3.9)% 6,956 - Hereof corporate %1 62.5% 62.9% (0.4)PP 64.2% 64.8% 63.5% 62.5% 63.5% (1.0)PP 64.8% - Hereof retail %1 37.5% 37.1% 0.4PP 35.8% 35.2% 36.5% 37.5% 36.5% 1.0PP 35.2% - Hereof FCY % 37.6% 39.6% (2.1)PP 42.6% 46.2% 46.9% 37.6% 46.9% (9.4)PP 46.2% Deposits from customers 8,007 8,019 (0.1)% 7,296 7,175 7,919 8,007 7,919 1.1% 7,175 Operating income 220 209 4.9% 198 217 211 627 706 (11.3)% 923 - Net interest income 145 141 2.4% 130 144 149 416 502 (17.1)% 647 - Net fee and commission income 65 61 6.3% 56 75 63 182 184 (1.2)% 258 - Net trading income 11 9 24.5% 12 8 (1) 31 26 22.1% 34 - Recurring other net operating income (1) (2) (53.8)% (0) (10) 1 (3) (6) (53.3)% (15)Net provisioning for impairment losses (11) (13) (17.9)% (50) (35) (33) (74) (146) (49.4)% (181)General administrative expenses (76) (71) 8.3% (72) (100) (88) (220) (255) (14.0)% (356)Other results (0) 4 – 2 85 4 6 12 (52.2)% 97 Profit/loss before tax 132 129 2.2% 77 168 94 339 316 7.1% 484 Profit/loss after tax 104 102 2.5% 61 134 73 266 253 5.2% 387 Return on equity before tax2 39.1% 39.6% (0.5)PP 28.0% 68.7% 29.6% 36.5% 32.4% 4.1PP 39.5% Return on equity after tax2 30.8% 31.1% (0.3)PP 22.0% 55.0% 23.1% 28.8% 25.9% 2.8PP 31.6% Net interest margin 5.72% 5.75% (3)BP 5.48% 5.38% 5.13% 5.64% 5.44% 20BP 5.42% Loan/deposit ratio 87.6% 84.7% 2.9PP 89.0% 90.4% 92.0% 87.6% 92.0% (4.4)PP 90.4% Cost/income ratio 34.8% 33.7% 1.1PP 36.7% 46.2% 41.7% 35.1% 36.2% (1.1)PP 38.5% Business outlets 181 181 0.0% 183 186 197 181 197 (8.1)% 186 Number of employees 7,698 7,554 1.9% 7,678 7,635 7,818 7,698 7,818 (1.5)% 7,635 Number of customers 2,396,796 2,387,757 0.4% 3,036,238 3,001,811 2,974,672 2,396,796 2,974,672 (19.4)% 3,001,811 Provisioning ratio 0.58% 0.73% (15)BP 2.23% 1.88% 1.61% 1.38% 2.24% (86)BP 2.14% NPL ratio 7.8% 8.3% (48)BP 9.5% 8.0% 8.6% 7.8% 8.6% (82)BP 8.0% NPL coverage ratio 71.0% 70.0% 1.0PP 67.9% 75.6% 73.2% 71.0% 73.2% (2.2)PP 75.6%


16 November 2016

Country Financials (EE) – Ukraine


61


Total assets 1,845 1,992 (7.4)% 1,837 2,039 2,247 1,845 2,247 (17.9)% 2,039 Equity 269 242 11.2% 197 198 114 269 114 134.9% 198 Loans and advances to customers 1,840 1,915 (3.9)% 1,897 2,177 2,303 1,840 2,303 (20.1)% 2,177 - Hereof corporate %1 56.4% 54.8% 1.6PP 53.7% 52.6% 52.3% 56.4% 52.3% 4.1PP 52.6% - Hereof retail %1 43.6% 45.2% (1.6)PP 46.3% 47.4% 47.7% 43.6% 47.7% (4.1)PP 47.4% - Hereof FCY % 54.5% 55.5% (1.0)PP 59.8% 59.1% 59.3% 54.5% 59.3% (4.8)PP 59.1% Deposits from customers 1,411 1,531 (7.8)% 1,296 1,518 1,472 1,411 1,472 (4.1)% 1,518 Operating income 68 65 4.8% 57 57 66 191 121 57.6% 178 - Net interest income 42 42 0.5% 40 44 44 124 132 (6.0)% 176 - Net fee and commission income 22 19 15.2% 17 21 22 58 61 (4.8)% 82 - Net trading income 4 4 8.0% 2 (4) (0) 10 (70) – (75)- Recurring other net operating income (0) (0) 185.5% (1) (3) 0 (2) (2) (16.2)% (5)Net provisioning for impairment losses 5 3 56.0% (10) (58) (41) (1) (154) (99.1)% (212)General administrative expenses (28) (29) (4.2)% (29) (38) (32) (86) (97) (11.3)% (134)Other results 2 (1) – 7 6 5 8 71 (89.0)% 77 Profit/loss before tax 47 38 24.7% 26 (33) (2) 111 (59) – (91)Profit/loss after tax 38 29 29.9% 24 (29) 1 91 (55) – (85)Return on equity before tax2 102.7% 83.7% 19.0PP 50.9% – – 77.5% – – –Return on equity after tax2 82.9% 64.9% 18.1PP 46.1% – 3.4% 63.5% – – –Net interest margin 9.74% 10.00% (26)BP 9.12% 8.67% 8.62% 9.62% 8.49% 113BP 8.53% Loan/deposit ratio 64.6% 60.0% 4.6PP 66.8% 66.3% 77.1% 64.6% 77.1% (12.5)PP 66.3% Cost/income ratio 40.8% 44.6% (3.8)PP 50.3% 65.6% 48.6% 45.0% 80.0% (35.0)PP 75.4% Business outlets 533 571 (6.7)% 577 578 617 533 617 (13.6)% 578 Number of employees 8,750 9,122 (4.1)% 9,489 9,639 10,308 8,750 10,308 (15.1)% 9,639 Number of customers 2,557,057 2,654,145 (3.7)% 2,635,840 2,782,366 2,823,672 2,557,057 2,823,672 (9.4)% 2,782,366 Provisioning ratio (1.06)% (0.67)% (39)BP 1.46% 10.36% 6.95% 0.09% 8.30% (821)BP 8.76% NPL ratio 54.3% 56.3% (204)BP 59.0% 59.3% 56.2% 54.3% 56.2% (195)BP 59.3% NPL coverage ratio 92.9% 92.3% 0.6PP 92.1% 90.7% 90.2% 92.9% 90.2% 2.7PP 90.7%


16 November 2016

Country Financials (Non-Core) – Poland


62


Total assets 13,960 13,574 2.8% 13,863 14,504 14,693 13,960 14,693 (5.0)% 14,504 Equity 1,619 1,586 2.1% 1,645 1,481 1,481 1,619 1,481 9.3% 1,481 Loans and advances to customers 9,659 9,501 1.7% 9,699 9,671 10,204 9,659 10,204 (5.3)% 9,671 - Hereof corporate %1 31.7% 31.9% (0.2)PP 32.7% 32.3% 36.3% 31.7% 36.3% (4.6)PP 32.3% - Hereof retail %1 68.1% 68.0% 0.1PP 67.2% 67.7% 63.7% 68.1% 63.7% 4.4PP 67.7% - Hereof FCY % 52.8% 54.1% (1.3)PP 55.5% 57.5% 55.4% 52.8% 55.4% (2.6)PP 57.5% Deposits from customers 8,655 8,235 5.1% 8,378 8,888 9,361 8,655 9,361 (7.5)% 8,888 Operating income 113 106 7.0% 100 110 105 319 319 0.0% 429 - Net interest income 69 65 6.9% 62 62 62 196 191 2.7% 253 - Net fee and commission income 36 39 (6.3)% 34 39 38 110 108 1.8% 147 - Net trading income 1 4 (60.1)% 3 4 3 8 10 (23.3)% 14 - Recurring other net operating income 6 (1) – 0 5 2 5 10 (47.7)% 15 Net provisioning for impairment losses (13) (7) 79.0% (8) (6) (10) (29) (39) (26.3)% (45)General administrative expenses (88) (78) 12.9% (76) (117) (76) (243) (226) 7.3% (343)Other results (15) 9 – (7) (0) 0 (13) 1 – 1 Profit/loss before tax (3) 30 – 8 (12) 19 34 54 (36.3)% 42 Profit/loss after tax (8) 20 – (8) (14) 15 4 40 (90.3)% 25 Return on equity before tax2 – 7.3% – 2.2% – 5.3% 2.9% 4.9% (2.0)PP 2.8% Return on equity after tax2 – 5.0% – – – 4.2% 0.3% 3.6% (3.3)PP 1.7% Net interest margin 2.08% 1.98% 10BP 1.85% 1.76% 1.79% 1.96% 1.87% 10BP 1.84% Loan/deposit ratio 105.8% 109.5% (3.7)PP 110.0% 103.3% 103.5% 105.8% 103.5% 2.3PP 103.3% Cost/income ratio 77.9% 73.9% 4.0PP 76.6% 106.1% 71.9% 76.2% 71.0% 5.2PP 80.0% Business outlets 320 320 0.0% 322 357 358 320 358 (10.6)% 357 Number of employees 4,771 4,841 (1.4)% 5,016 5,128 5,331 4,771 5,331 (10.5)% 5,128 Number of customers 796,222 781,197 1.9% 794,292 733,392 726,514 796,222 726,514 9.6% 733,392 Provisioning ratio 0.55% 0.31% 24BP 0.27% 0.23% 0.40% 0.40% 0.51% (11)BP 0.44% NPL ratio 7.7% 7.6% 12BP 7.8% 7.6% 7.9% 7.7% 7.9% (21)BP 7.6% NPL coverage ratio 66.8% 66.5% 0.3PP 63.9% 65.4% 62.6% 66.8% 62.6% 4.2PP 65.4%


16 November 2016

Country Financials (Non-Core) – Asia

Note: All data, except P/L, are dated to the end of the period 1) Sovereign as remaining share 2) Asian entities are operated as a branch; therefore no equity available

63


Total assets 935 1,521 (38.6)% 1,853 2,117 2,993 935 2,993 (68.8)% 2,117 Equity – – – – – – – – – –Loans and advances to customers 781 1,026 (23.9)% 1,212 1,477 2,205 781 2,205 (64.6)% 1,477 - Hereof corporate %1 100.0% 100.0% 0.0PP 100.0% 100.0% 100.0% 100.0% 100.0% 0.0PP 100.0% - Hereof retail %1 0.0% 0.0% 0.0PP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0PP 0.0% - Hereof FCY % 49.8% 61.2% (11.4)PP 65.5% 67.3% 62.6% 49.8% 62.6% (12.8)PP 67.3% Deposits from customers 21 59 (64.3)% 111 186 330 21 330 (93.7)% 186 Operating income 13 (3) – 20 5 18 30 77 (61.6)% 82 - Net interest income 14 4 247.8% 15 10 22 33 74 (55.6)% 84 - Net fee and commission income 1 2 (52.1)% 2 1 4 4 10 (58.6)% 11 - Net trading income (2) (8) (75.0)% 3 (6) (8) (7) (8) (9.4)% (14)- Recurring other net operating income (0) (0) (47.4)% 0 (0) 0 (1) 0 – 0 Net provisioning for impairment losses (17) (107) (84.4)% 1 (208) (34) (123) (89) 37.9% (297)General administrative expenses (13) (14) (7.9)% (9) (15) (12) (36) (37) (1.8)% (52)Other results (0) (0) 6.8% (0) (0) (0) (1) (3) (65.0)% (3)Profit/loss before tax (17) (124) (86.2)% 11 (218) (29) (130) (51) 153.4% (269)Profit/loss after tax (16) (125) (87.0)% 9 (224) (27) (132) (52) 154.6% (276)Return on equity before tax2 – – – – – – – – – –Return on equity after tax2 – – – – – – – – – –Net interest margin 6.37% 1.02% 534BP 3.08% 1.96% 3.35% 3.08% 2.93% 15BP 2.76% Loan/deposit ratio – – – – – – – – – –Cost/income ratio 100.9% – – 45.7% 289.4% 70.8% 121.4% 47.5% 73.9PP 63.0% Business outlets 4 4 0.0% 5 5 5 4 5 (20.0)% 5 Number of employees 144 175 (17.7)% 185 197 206 144 206 (30.1)% 197 Number of customers 47 47 0.0% 69 87 94 47 94 (50.0)% 87 Provisioning ratio 7.41% 38.31% – (0.16)% 45.11% 5.38% 14.35% 4.59% – 12.21% NPL ratio 90.5% 64.2% – 57.2% 46.8% 37.4% 90.5% 37.4% – 46.8% NPL coverage ratio 69.1% 74.0% (4.9)PP 65.3% 67.8% 53.0% 69.1% 53.0% 16.1PP 67.8%


16 November 2016

Country Financials (Non-Core) – USA


64


Total assets 326 426 (23.5)% 576 628 695 326 695 (53.1)% 628 Equity 6 15 (58.8)% 33 38 45 6 45 (86.2)% 38 Loans and advances to customers 218 331 (34.0)% 469 534 603 218 603 (63.8)% 534 - Hereof corporate %1 100.0% 100.0% 0.0PP 100.0% 100.0% 100.0% 100.0% 100.0% 0.0PP 100.0% - Hereof retail %1 0.0% 0.0% 0.0PP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0PP 0.0% - Hereof FCY % 1.9% 7.3% (5.4)PP 8.0% 6.1% 6.1% 1.9% 6.1% (4.2)PP 6.1% Deposits from customers 0 0 – 0 0 0 0 0 – 0 Operating income 4 4 (1.7)% 6 7 7 15 25 (41.7)% 32 - Net interest income 3 4 (2.2)% 5 5 6 12 20 (42.8)% 25 - Net fee and commission income 1 1 (9.4)% 1 1 1 3 5 (41.6)% 6 - Net trading income (0) (0) (70.6)% 0 (0) (0) (0) (0) (74.0)% (0)- Recurring other net operating income 0 0 41.7% 0 0 0 0 0 (6.1)% 1 Net provisioning for impairment losses (8) (21) (63.8)% (6) (6) (2) (35) (6) 470.7% (12)General administrative expenses (4) (4) 7.1% (4) (9) (4) (12) (14) (12.3)% (23)Other results (1) 3 – (0) 0 0 1 0 – 0 Profit/loss before tax (9) (18) (51.3)% (4) (9) 1 (31) 6 – (3)Profit/loss after tax (9) (18) (51.4)% (4) (8) 1 (31) 4 – (4)Return on equity before tax2 – – – – – 5.6% – 19.0% – –Return on equity after tax2 – – – – – 7.8% – 15.3% – –Net interest margin 4.38% 3.03% 136BP 3.16% 3.32% 3.53% 3.41% 3.63% (22)BP 3.56% Loan/deposit ratio – – – – – – – – – –Cost/income ratio 92.5% 84.9% 7.6PP 68.9% 137.6% 60.1% 80.7% 53.6% 27.1PP 71.2% Business outlets 1 1 0.0% 1 1 1 1 1 0.0% 1 Number of employees 38 44 (13.6)% 52 56 57 38 57 (33.3)% 56 Number of customers 118 118 0.0% 118 118 126 118 126 (6.3)% 118 Provisioning ratio 11.33% 21.51% – 3.36% 4.39% 1.54% 11.75% 1.19% – 1.87% NPL ratio 20.0% 17.7% 238BP 10.1% 9.5% 6.7% 20.0% 6.7% – 9.5% NPL coverage ratio 78.7% 85.5% (6.8)PP 57.5% 43.7% 50.8% 78.7% 50.8% 27.9PP 43.7%


16 November 2016

Shareholder Information Overview

65

Shareholder Structure1

Listed since 25-04-05 on the Vienna Stock Exchange Prime Market

Indices: ATX, ATX Prime, MSCI Standard Index Europe,EURO STOXX Banks

292,979,038 ordinary shares issued

ISIN: AT0000606306

Trading Symbols:

RBI RatingsLong-term Outlook Short-term

Moody's Baa2 Positive P-2

Standard & Poor's BBB+ Negative A-2

Vienna Stock Exchange: RBI

Bloomberg: RBI AV

Reuters: RBIV.VI

General Information

Free float39.3%

RZB60.7%


1) Based on shares issued

January/Februar 2017

16 November 2016

Contact and Financial Calendar

66

Financial CalendarContact Details

1) Quiet Period: Two-week period before the publication of the quarterly financial statements and a four-week period before the publication of the annual report. During this period we do not hold investor or analyst meetings

Susanne E. Langer

Head of Group Investor RelationsSpokesperson

Raiffeisen Bank International AG

Am Stadtpark 91030 ViennaAustria

Tel.: +43 1 71 707 2089Fax: +43 1 71 707 2138 +43 1 71 707 2138

[email protected]

www.rbinternational.com

15 February 2017 Start of Quiet Period1

15 March 2017 Annual Report 2016, Conference Call

16 March 2017 Investor Presentation, London

03 May 2017 Start of Quiet Period1

17 May 2017 First Quarter Report, Conference Call

12 June 2017 Record Date Annual General Meeting

22 June 2017 Annual General Meeting

28 June 2017 Ex-Dividend Date

29 June 2017 Record Date Dividends

30 June 2017 Dividend Payment Date

27 July 2017 Start of Quiet Period1

10 August 2017 Semi-Annual Report, Conference Call

31 October 2017 Start of Quiet Period1

14 November 2017 Third Quarter Report, Conference Call


Documents

Raiffeisen Bank International Q3/2016 Results · PDF file16 November 2016 Certain statements contained herein may be statements of future expectations and other forward-looking statements,