06 Country Overview - Raiffeisen Bank Internationalinvestor.rbinternational.com/.../country_overview_and_strategy.pdf · Capital Markets Day, September 2008 Slide 7 Raiffeisen in

Capital Markets Day, September 2008 Slide 1

Country Overviewand Strategy

byHerbert StepicCEO RI Group


Central Europe (CE)


Raiffeisen in Czech Republic

Merger of Raiffeisenbank a.s. and eBanka a.s. (acquired in 2006) completed in July 2008

Re-branding of eBanka to be finished in the course of the next few months

Raiffeisenbank a.s. ranks among the top five banks in the Czech Republic

Mortgage focus – In terms of total volume Raiffeisenbank is ranked No. 4 and getting closer to No. 3

Key strategic goals:Implementation of affluent modelExpand branch network Enhance corporate and treasury sales management Simplify IT architecture of merged banks

32.032.1Profit after tax

45.540.7Profit before tax

1-12/20071-6/2008(in € mn)

31/12/200730/06/2008(in € mn)

4,149

5,799

6,947

3,531Deposits fromcustomers

4,351Loans and advances to customers

5,670Balance sheet total

371,221

108

2,566

30/06/2008 31/12/2007

347,441Total customers

105Business outlets

2,495Number of employees

Country Financials


Raiffeisenbank, Czech Republic

72.2%

11.2%

15.3%

1-6/2007*

68.7%

11.3%

16.4%

1-12/2007*1-6/2008*

60.6%

17.8%

22.8%

Cost/income ratio

ROE after tax

ROE before tax

13.1

17.9

1-6/2007*

27.2

39.8

1-12/2007*

29.7Profit after tax

38.0Profit before tax

1-6/2008*(in € mn)

3,520

4,073

5,396

31/12/2007*

2,948

3,232

4,471

30/06/2007*30/06/2008*(in € mn)

4,135

5,459

7,073

Deposits from customers

Loans and advances to customers

Balance sheet total

Network Bank Financials

*Aggregation of Raiffeisenbank Czech Republic and eBanka (not consolidated).


Raiffeisen in Hungary

Ranked No. 5 in terms of total assets and top positions in corporate lending (No. 3) and liabilities (No. 2)

Continuing strong push into the retail segment with strong branch network supported by a network of 515 direct sales agents



1-12/20071-6/2008(in € mn)

31/12/200730/06/2008(in € mn)

5,410

7,081

9,421




Country Financials

For further details please see the presentation “Hungary – Mastering The Challenges”.

619,099

148

3,690

30/06/2008 31/12/2007


140Business outlets



Raiffeisen Bank, Hungary

50.7%

30.6%

37.5%

1-6/2007

55.9%

23.8%

28.2%

1-12/20071-6/2008

51.0%

29.2%

35.0%

Cost/income ratio

ROE after tax

ROE before tax


4,881

6,369

8,056

31/12/2007

4,454

5,677

7,072

30/06/200730/06/2008(in € mn)

5,435

7,205

9,400



Balance sheet total

71.2

87.4

1-6/2007

111.7

132.2

1-12/2007



1-6/2008(in € mn)


Raiffeisen in Poland

Clear focus on middle corporate and affluent/upper mass customers

Leading bank in factoring with 25 % market share

One of the largest distributors of foreign investment funds in Poland

Leading provider in leasing services

Pioneer in servicing micro companies

Key strategic goals:

Develop retail banking and become a player in affluent banking

Maintain and increase leadership position in corporate banking

Leverage leading positions in leasing, factoring and treasury business



1-12/20071-6/2008(in € mn)

31/12/200730/06/2008(in € mn)

3,946

5,687

7,041




Country Financials

294,550

115

3,158

30/06/2008 31/12/2007


116Business outlets



Raiffeisen Bank, Poland

58.0%

22.7%

27.6%

1-6/2007

59.2%

24.5%

28.0%

1-12/20071-6/2008

57.0%

20.9%

25.9%

Cost/income ratio

ROE after tax

ROE before tax


3,302

3,587

4,815

31/12/2007

2,622

3,079

3,720

30/06/200730/06/2008(in € mn)

3,951

4,377

5,602



Balance sheet total

36.3

44.0

1-6/2007

79.9

91.5

1-12/2007



1-6/2008(in € mn)


Raiffeisen in Slovakia

Successful corporate and retail service provider from the very beginning

3rd biggest bank in Slovakia (in terms of total assets) and 2nd largest lender in the country

Retail segment had higher than market growth despite being a rather expensive bank

Leading position in Slovakia in asset management with a market share of about one third


Enhance service excellence

Increase operational excellence (more effective processes equals more satisfied clients)

Optimisation of IT infrastructure to meetcontinuously developing business needs



1-12/20071-6/2008(in € mn)

31/12/200730/06/2008(in € mn)

5,940

5,677

8,768




Country Financials

717,221

159

3,787

30/06/2008 31/12/2007


156Business outlets



Tatra banka, Slovakia

53.0%

22.4%

26.9%

1-6/2007

56.2%

22.5%

28.8%

1-12/20071-6/2008

54.4%

22.7%

27.9%

Cost/income ratio

ROE after tax

ROE before tax

49.1

59.1

1-6/2007

94.0

120.7

1-12/2007



1-6/2008(in € mn)

5,555

4,172

7,508

31/12/2007

4,777

3,552

6,338

30/06/200730/06/2008(in € mn)

5,958

5,234

8,313



Balance sheet total



Country Financials

Raiffeisen in Slovenia

Leading market position in asset management despite increasing competition

Change of business mix - focus on affluent private clients and SMEs while maintaining cross-border corporate business with international clients

Ranked No. 10 in the market in terms of total assets


Continuous focus on upper mass individual clients

Staying a strong partner for corporate and international customers via the Ljubljana-located International Desk



1-12/20071-6/2008(in € mn)

31/12/200730/06/2008(in € mn)

463

1,209

1,565

442Deposits fromcustomers



81,841

15

350

30/06/2008 31/12/2007


15Business outlets

363Number of employees


Raiffeisen Banka, Slovenia

85.0%

19.7%

20.9%

1-6/2007

87.2%

16.7%

21.1%

1-12/20071-6/2008

87.8%

5.3%

7.0%

Cost/income ratio

ROE after tax

ROE before tax

4.9

5.3

1-6/2007

8.4

10.6

1-12/2007

1.5Profit after tax


1-6/2008(in € mn)

445

952

1,260

31/12/2007

427

714

984

30/06/200730/06/2008(in € mn)

466

1,076

1,403



Balance sheet total



Southeastern Europe (SEE)


Raiffeisen in Albania

Strengthened its leading lending position by loan book increase to over € 550 mn in 2008

Expansion of ATM network to 154; POS terminals exceeded 350; both the biggest networks by far in Albania

Leasing subsidiary - founded in mid 2006 -reached assets of € 10 mn in its first full operational year and ranks among the leading providers

Two key projects in HY 2008: launching credit cards and promoting VIP banking


Expansion of services for SME customers to regional center

Strengthening of VIP and affluent segments



1-12/20071-6/2008(in € mn)

31/12/200730/06/2008(in € mn)

1,804

563

2,038


515Loans and advances to customers


Country Financials

561,514

100

1,385

30/06/2008 31/12/2007


98Business outlets



Raiffeisen Bank, Albania

45.0%

40.3%

50.1%

1-6/2007

40.3%

46.6%

58.1%

1-12/20071-6/2008

40.3%

33.9%

37.6%

Cost/income ratio

ROE after tax

ROE before tax

17.0

21.1

1-6/2007

39.5

49.3

1-12/2007



1-6/2008(in € mn)

1,795

511

1,947

31/12/2007

1,663

383

1,834

30/06/200730/06/2008(in € mn)

1,804

556

2,019



Balance sheet total



Raiffeisen in Bosnia & Herzegovina

Ranked 2nd banking group at HY 2008

Launch of the sales force efficiency project in Q3 2007 boosted new retail loan volumes by 60 %

Increased attention was put on centralization of mid and back office functions as well as on further streamlining application management

Raiffeisen Brokers d.o.o. (100% subsidiary) extended its services and started offering “investment advisory services” to customers

Key strategic goal:

Retain the leading position with a special focus on strengthening the presence of the bank in Republika Srepska and mortgage segment

Country Financials



1-12/20071-6/2008(in € mn)

31/12/200730/06/2008(in € mn)

1,307

1,653

2,293




751,948

96

1,672

30/06/2008 31/12/2007


93Business outlets



Raiffeisen Bank, Bosnia & Herzegovina

62.1%

21.3%

21.3%

1-6/2007

64.5%

17.8%

17.8%

1-12/20071-6/2008

61.4%

11.1%

18.2%

Cost/income ratio

ROE after tax

ROE before tax

12.9

12.9

1-6/2007

23.0

23.0

1-12/2007

9.8Profit after tax


1-6/2008(in € mn)

1,333

1,276

1,964

31/12/2007

1,275

1,100

1,839

30/06/200730/06/2008(in € mn)

1,307

1,487

2,113



Balance sheet total



Raiffeisen in Bulgaria

Excellent market position No. 4 in terms of total assets with No. 3 in reach

Cross-selling opportunities fostered by a comprehensive product portfolio i.e. leasing, asset management and insurance

Ongoing network expansion, complemented by a tight mobile banker network throughout the country

Despite substantial growth restrictions from the National Bank, positive development in all business segments


Strong focus towards retail and SME business

Enhancing distribution channels

Country Financials



1-12/20071-6/2008(in € mn)

31/12/200730/06/2008(in € mn)

2,143

3,097

4,668




616,265

179

3,484

30/06/2008 31/12/2007


152Business outlets



Raiffeisenbank, Bulgaria

52.0%

50.5%

56.1%

1-6/2007

53.2%

34.5%

38.2%

1-12/20071-6/2008

44.7%

30.2%

33.6%

Cost/income ratio

ROE after tax

ROE before tax

30.6

34.0

1-6/2007

55.5

61.6

1-12/2007



1-6/2008(in € mn)

1,873

1,655

3,066

31/12/2007

1,428

1,344

2,370

30/06/200730/06/2008(in € mn)

2,194

2,005

3,572



Balance sheet total



Raiffeisen in Croatia

Market share of 11% in total assets (No. 4)

As rigid growth restrictions were lifted for a few days at year-end 2007 – the bank managed to increase lending to corporate and small enterprise customers by 16 %, totaling € 1.5 bnat the end of 2007

Short and medium-term financing of accounts receivable offered – providing support especially to young and start-up companies –via subsidiary Raiffeisen Factoring d.o.o.

Key strategic goal:

Enlargement of network due to under-representation in some of the regions of Croatia

Country Financials



1-12/20071-6/2008(in € mn)

31/12/200730/06/2008(in € mn)

3,236

3,716

5,889




568,771

67

2,244

30/06/2008 31/12/2007


65Business outlets



Raiffeisenbank, Croatia

52.8%

17.4%

21.6%

1-6/2007

54.1%

16.6%

21.5%

1-12/20071-6/2008

50.1%

12.8%

15.6%

Cost/income ratio

ROE after tax

ROE before tax

39.0

48.2

1-6/2007

77.2

96.4

1-12/2007



1-6/2008(in € mn)

3,246

3,223

5,268

31/12/2007

2,912

2,977

4,916

30/06/200730/06/2008(in € mn)

3,219

3,446

5,451



Balance sheet total



Raiffeisen in Kosovo

Ranked No. 2 in terms of profitability and total assets

Positioning especially strong in the area of small and medium-sized enterprises (market share of 35 %)

Majority of large corporate customers bank with us (market share of 60 %)

Mobile bankers complement the branch distribution network of the bank

Leasing company is being established


Aims to become No. 1 bank in the country

Corporate market share of 60 % should be maintained whereas a strong focus on retail business is seen as major chance for the next few years



1-12/20071-6/2008(in € mn)

31/12/200730/06/2008(in € mn)

454

408

544



473Balance sheet total

Country Financials

199,908

44

666

30/06/2008 31/12/2007


38Business outlets



Raiffeisen Bank Kosovo, Kosovo

44.2%

35.3%

41.1%

1-6/2007

43.3%

33.3%

41.5%

1-12/20071-6/2008

42.5%

33.9%

43.9%

Cost/income ratio

ROE after tax

ROE before tax

7.8

9.1

1-6/2007

14.7

18.3

1-12/2007



1-6/2008(in € mn)

393

339

473

31/12/2007

344

279

415

30/06/200730/06/2008(in € mn)

454

408

544



Balance sheet total



Raiffeisen in Romania

Ranked No. 3 in terms of total assets

Continuous focus on expanding branch network up to 580 business outlets by YE 2008

Formula 1, a corporate project covering a comprehensive re-design of internal processes to further improve corporate sales management, drive acquisition through incentivization successfully piloted in HY 2008, full implementation to follow



1-12/20071-6/2008(in € mn)

31/12/200730/06/2008(in € mn)

3,407

4,188

5,803




Country Financials

For further details please see the presentation “Romania – Riding the Convergence Wave”.

2,136,271

472

6,608

30/06/2008 31/12/2007

2,168,026Total customers

435Business outlets



Raiffeisen Bank, Romania

64.1%

24.9%

28.3%

1-6/2007

63.5%

25.0%

30.8%

1-12/20071-6/2008

55.6%

35.5%

42.8%

Cost/income ratio

ROE after tax

ROE before tax

47.2

53.6

1-6/2007

94.1

116.0

1-12/2007



1-6/2008(in € mn)

3,589

2,341

4,403

31/12/2007

3,030

2,110

3,940

30/06/200730/06/2008(in € mn)

3,515

2,960

4,567



Balance sheet total



Raiffeisen in Serbia

Country's key bank for corporate, retail, treasury and investment banking customers

Bank’s broad product and service range is rounded out by Raiffeisen Leasing, Raiffeisen Voluntary Pension Fund and an investment fund management company

Serbia’s first bank offering internet based e-banking system to Western standards


Foster existing and further increase client base

Increase and diversify funding base

Expand distribution channels

Maintain leading position in product development



1-12/20071-6/2008(in € mn)

31/12/200730/06/2008(in € mn)

1,364

1,846

3,124




Country Financials

555,804

93

2,150

30/06/2008 31/12/2007


92Business outlets



Raiffeisen banka, Serbia

58.8%

19.9%

21.2%

1-6/2007

58.9%

20.3%

20.5%

1-12/20071-6/2008

48.4%

16.6%

18.3%

Cost/income ratio

ROE after tax

ROE before tax

26.5

28.2

1-6/2007

56.1

56.6

1-12/2007



1-6/2008(in € mn)

1,364

793

1,983

31/12/2007

1,114

784

1,665

30/06/200730/06/2008(in € mn)

1,391

824

2,067



Balance sheet total



Commonwealth of Independent States (CIS)


Raiffeisen in Belarus

Ranked No. 2 in terms of total profit and No. 3 in terms of total assets

Successful cooperation with the Belarusian Post Office opening a sales channel of wide network of post offices for deposit products

On average > 10,000 new customers were acquired/month in 2008

Leasing operations very successful with € 34.7 mn new financed leasing deals in 2007


Maintain 3rd position in terms of total assetsContinue to strengthen position in retail business with focus on lending and be the first bank in Belarus to implement private bankingRemain the first bank for international corporate clients who are entering the Belarusian market



1-12/20071-6/2008(in € mn)

31/12/200730/06/2008(in € mn)

613

985

1,205




Country Financials

790,473

90

2,039

30/06/2008 31/12/2007


83Business outlets



Priorbank, Belarus

52.8%

23.4%

33.4%

1-6/2007

50.5%

26.0%

37.4%

1-12/20071-6/2008

50.7%

24.0%

38.0%

Cost/income ratio

ROE after tax

ROE before tax

12.7

18.1

1-6/2007

26.9

38.7

1-12/2007



1-6/2008(in € mn)

557

815

1,054

31/12/2007

482

769

969

30/06/200730/06/2008(in € mn)

630

948

1,161



Balance sheet total



Raiffeisen in Russia

Ranked No. 8 in terms of total assets

One of the leading banks in retail business

Product focus on mortgages, unsecured customer loans and car loans

RBRU will continue:

To develop retail banking with focus on upper-mass segment

Expands its activities in Private and Affluent Banking segment

Focus on medium-sized companies



1-12/20071-6/2008(in € mn)

31/12/200730/06/2008(in € mn)

6,227

8,948

12,815




Country Financials

For further details please see the presentation “Russia – Leveraging Our Experience and Footprint”.

1,595,966

246

9,592

30/06/2008 31/12/2007


240Business outlets



Raiffeisenbank, Russia

47.1%

19.6%

25.5%

1-6/2007*

49.1%

20.2%

26.6%

1-12/2007*1-6/2008

51.4%

24.4%

32.4%

Cost/income ratio

ROE after tax

ROE before tax

90.7

119.3

1-6/2007*

199.3

260.0

1-12/2007*



1-6/2008(in € mn)

5,668

8,127

11,663

31/12/2007*

5,281

7,278

9,933

30/06/2007*30/06/2008(in € mn)

6,376

8,521

12,574



Balance sheet total


*Aggregation of Raiffeisenbank Russia and Impexbank (not consolidated).


Raiffeisen in Ukraine

Ranked No. 2 in a fast growing market

Main sales focus in 2007 on mortgages 1.3 % market share was gained and market leadership with 16.4 % was maintained

Optimization of branch network ongoing, closing inefficient branches and opening branches in prime areas

Plan is to strengthen market position and visibility in prime areas and thereby focusing on the mid and upper-mid private individual segment

Very successful development of leasing business - managing to break even in first year and No. 1 leasing company in the market with 13 % market share

Country Financials



1-12/20071-6/2008(in € mn)

31/12/200730/06/2008(in € mn)

3,146

5,649

6,696




4,503,734

1,144

18,121

30/06/2008 31/12/2007


1,186Business outlets



Raiffeisen Bank Aval, Ukraine

64.1%

14.0%

19.5%

1-6/2007

62.0%

13.8%

19.3%

1-12/20071-6/2008

53.0%

20.0%

28.1%

Cost/income ratio

ROE after tax

ROE before tax

43.6

60.7

1-6/2007

96.6

135.3

1-12/2007



1-6/2008(in € mn)

3,024

5,046

6,079

31/12/2007

2,921

4,311

5,299

30/06/200730/06/2008(in € mn)

3,142

5,523

6,551



Balance sheet total



Raiffeisen Bank Aval, Ukraine

Key Strategic Goals

Roll out of new branch design for all branches–the new model was developed recently and is currently being implemented

Completion of centralization projects in collections and underwriting

Fully functioning operational centre in Kherson dealing with centralized soft collections

Network restructuring – analysis phase started in order to specify centralization steps and areas in regional directorates

Branch service excellence project started

Basic IT-restructuring process and analysis to determine front and back office requirement being finalised

RI standardRisk

Management

Legal stepsLegal

Re-brandingBrand

Ops/IT Group operations standardization ( )

Completed/Implemented ( ) On Track

Transformation Milestones


Raiffeisen in Kazakhstan

Today we run one of the largest leasing companies in the country

Raiffeisen International has decided on starting a greenfield banking operation

Applying for a banking licence

Raiffeisen Bank Russia to be the shareholder and render strategic support

Focus on corporate banking in the beginning

Retail to be built at a later stage

Country Financials

(0.7)(1.4)Profit after tax

(0.4)(1.1)Profit before tax

1-12/20071-6/2008(in € mn)

31/12/200730/06/2008(in € mn)

-

45

99

-Deposits fromcustomers


118Balance sheet total

12

1

26

30/06/2008 31/12/2007

12Total customers

1Business outlets


Documents

06 Country Overview - Raiffeisen Bank Internationalinvestor.rbinternational.com/.../country_overview_and_strategy.pdf · Capital Markets Day, September 2008 Slide 7 Raiffeisen in