2020-08-11 q2 Report Rbi PDF

Semi-Annual Financial Report
as at 30 June 2020
2
Overview
Raiffeisen Bank International (RBI)
Monetary values in € million 2020 2019 Change
1
Income statement 1/1-30/6 1/1-30/6
Net interest income 1,706 1,664 2.5%
Net fee and commission income 840 839 0.0%
General administrative expenses (1,474) (1,497) (1.6)%
Operating result 1,216 1,009 20.6%
Impairment losses on financial assets (312) (12) >500.0%
Profit/loss before tax 566 834 (32.2)%
Profit/loss after tax 420 643 (34.6)%
Consolidated profit/loss 368 571 (35.5)%
Statement of financial position 30/6 31/12
Loans to banks 9,202 9,435 (2.5)%
Loans to customers 93,876 91,204 2.9%
Deposits from banks 30,720 23,607 30.1%
Deposits from customers 98,686 96,214 2.6%
Equity 13,655 13,765 (0.8)%
Total assets 163,761 152,200 7.6%
1
Key ratios 1/1-30/6 1/1-30/6
Return on equity before tax 8.4% 13.5% (5.0) PP
Return on equity after tax 6.3% 10.3% (4.0) PP
Consolidated return on equity 5.9% 10.1% (4.3) PP
Cost/income ratio 54.8% 59.7% (5.0) PP
Return on assets before tax 0.72% 1.14% (0.42) PP
Net interest margin (average interest-bearing assets) 2.31% 2.42% (0.11) PP
Provisioning ratio (average loans to customers) 0.67% 0.02% 0.65 PP
Bank-specific information 30/6 31/12
NPE ratio 1.9% 2.1% (0.2) PP
NPE coverage ratio 63.3% 61.0% 2.4 PP
Total risk-weighted assets (RWA) 80,490 77,966 3.2%
Common equity tier 1 ratio2 13.2% 13.9% (0.7) PP
Tier 1 ratio2 14.6% 15.4% (0.7) PP
Total capital ratio2 17.5% 17.9% (0.4) PP
Stock data 1/1-30/6 1/1-30/6
Earnings per share in € 1.03 1.64 (37.6)%
Closing price in € (30/6) 15.86 20.63 (23.1)%
High (closing price) in € 22.92 24.31 (5.7)%
Low (closing price) in € 11.25 18.69 (39.8)%
Number of shares in million (30/6) 328.94 328.94 0.0%
Market capitalization in € million (30/6) 5,217 6,786 (23.1)%
Resources 30/6 31/12
Employees as at reporting date (full-time equivalents) 46,386 46,873 (1.0)%
Business outlets 1,982 2,040 (2.8)%
Customers in million 16.7 16.7 0.0%
1 Previous-year figures adapted due to changed allocation. Further details can be found in the notes under changes to the income statement.
2 Fully loaded - including result
In this report RBI denotes the RBI Group. If RBI AG is used it denotes Raiffeisen Bank International AG.
Adding and subtracting rounded amounts in tables and charts may lead to minor discrepancies. Changes in tables are not based
on rounded amounts. The ratios referenced in this report are defined in the consolidated financial statements under key figures.
Raiffeisen Bank International | Semi-Annual Financial Report 2020

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Content
RBI in the capital markets ...................................................................................................................................................................................................................................... 4

Group management report.................................................................................................................................................................................................................................. 7
Market development ........................................................................................................................................................................................................................................ 7
Significant events in the reporting period................................................................................................................................................................................................... 9
Earnings and financial performance ........................................................................................................................................................................................................ 10
Statement of financial position.................................................................................................................................................................................................................... 15
Total capital pursuant to the CRR/Austrian Banking Act (BWG).................................................................................................................................................. 16
Risk management ............................................................................................................................................................................................................................................ 17
Events after the reporting date.................................................................................................................................................................................................................... 17
Outlook............................................................................................................................................................................................................................................................... 17
Segment report ...................................................................................................................................................................................................................................................... 18
Segmentation principles ............................................................................................................................................................................................................................... 18
Central Europe ................................................................................................................................................................................................................................................. 19
Southeastern Europe...................................................................................................................................................................................................................................... 24
Eastern Europe ................................................................................................................................................................................................................................................. 29
Group Corporates & Markets ................................................................................................................................................................................................................... 33
Corporate Center ........................................................................................................................................................................................................................................... 36
Interim consolidated financial statements ..................................................................................................................................................................................................... 38
Statement of comprehensive income ....................................................................................................................................................................................................... 39
Statement of financial position.................................................................................................................................................................................................................... 41
Statement of changes in equity.................................................................................................................................................................................................................. 42
Statement of cash flows ................................................................................................................................................................................................................................ 43
Segment reporting .......................................................................................................................................................................................................................................... 45
Notes................................................................................................................................................................................................................................................................... 50
Notes to the income statement .................................................................................................................................................................................................................. 55
Notes to the statement of financial position........................................................................................................................................................................................... 65
Notes to financial instruments ..................................................................................................................................................................................................................... 76
Risk report........................................................................................................................................................................................................................................................ 106
Other disclosures.......................................................................................................................................................................................................................................... 123
Regulatory information................................................................................................................................................................................................................................ 131
Key figures....................................................................................................................................................................................................................................................... 135
Events after the reporting date................................................................................................................................................................................................................. 137
Statement of all legal representatives ......................................................................................................................................................................................................... 138
Report on the Review of the condensed Interim Consolidated Financial Statements............................................................................................................... 139
Publication details/Disclaimer....................................................................................................................................................................................................................... 141

RBI in the capital markets 4
RBI in the capital markets

Performance of RBI stock
Following historic declines in equity markets in the first quarter in the wake of the rapid spread of the COVID-19 pandemic, a
broadly-based recovery began in the middle of March which continued until the end of the second quarter. While stock prices did
not reach the same levels as prior to the outbreak, losses which had been incurred in the interim were significantly reduced. Key
factors included the marked reduction in the growth rate of new COVID-19 cases and the subsequent gradual easing of economic
lockdown restrictions. Extensive fiscal support and assistance programs, as well as expansionary monetary policy measures on the
part of central banks worldwide, also contributed to increases in the prices of many asset classes in the second quarter that were
the strongest seen for several decades. Although the negative economic repercussions from the lockdown will not be fully pre-
vented as a result, these actions nevertheless led to a reduction in volatility and reassured market participants.
Against this backdrop, RBI stock increased 19 per cent over the second quarter of 2020 and closed at € 15.86 on 30 June
2020. The EURO STOXX Banks index and the Austrian ATX stock index rose by 16 per cent and 12 per cent respectively over the
same period.
From the end of the quarter until the editorial deadline for this report on 5 August, RBI’s stock declined 3.5 per cent and closed at
€ 15.31.
Price performance since 1 January 2019 compared to ATX and EURO STOXX Banks
Active capital market communication

On 14 May 2020, RBI reported the results for the first quarter and hosted a conference call with around 330 participants. As
restrictions continued to apply to gatherings in Austria at that point, the usual meetings in which the quarterly results are discussed
in person with members of the press, investors and analysts in Vienna, were also conducted through conference calls or web con-
ferences.
Conference calls and investor presentations are available online at www.rbinternational.com → Investors → Presentations &
Webcasts.
The aim of RBI’s Investor Relations activities is to ensure a high level of transparency for market participants, through use of flexible
and innovative formats, in what is a new situation for all stakeholders. The normally numerous opportunities to obtain information in
personal meetings during roadshows and conferences were impacted by measures related to the COVID-19 pandemic. All meet-
ings in the second quarter, including the otherwise usual international bank conferences with analysts and equity and debt inves-
tors, were therefore again conducted through conference calls or web conferences. This practice has been employed since the
publication of the 2019 Annual Report in mid-March and will be maintained until further notice for the protection of employees
and other meeting participants.
RBI in the capital markets 5
The major topics covered in the discussions were the impact of COVID-19 on RBI’s business as well as on risk costs in particular.
However, questions relating to the capital position and planned dividend distribution were also discussed.
At the end of the second quarter of 2020, a total of 21 equity analysts and 22 debt analysts provided investment recommenda-
tions on RBI. Consequently, RBI remained the Austrian company with the largest number of analyst teams regularly reporting on it.
Tier 2 capital issuance

On 9 June 2020, RBI issued a € 500 million subordinated tier 2 benchmark bond with a maturity of 12 years (non-callable for the
first 7 years) and a coupon of 2.875 per cent, corresponding to a spread of 315 basis points over mid-swaps.
Strong demand from institutional investors led to a significant level of over-subscription, with an order volume in excess of € 1 bil-
lion. The successful transaction has a positive impact on RBI’s tier 2 and total capital ratio in terms of the regulatory capital require-
ments.
Shareholder structure
The regional Raiffeisen banks continue to hold approximately 58.8 per cent of RBI’s shares, with 41.2 per cent in free float. The
shareholder base is well diversified due to the broad geographic spread and various investment objectives. The institutional inves-
tors are primarily from North America and Europe and increasingly from Asia and Australia. These include sovereign wealth funds
and supranational organizations, which offer stability due to their preferred long-term investment strategies. RBI’s shareholders also
include a large number of Austrian private investors.
Stock data and details

RBI stock has been listed on the Vienna Stock Exchange since 25 April 2005.
Share price (closing) as at 30 June 2020 € 15.86

High/low (closing share prices) in the second quarter 2020 € 18.64/€ 12.93
Earnings per share from 1 January to 30 June 2020 € 1.03
Book value per share as at 30 June 2020 € 35.59
Market capitalization as at 30 June 2020 € 5.2 billion
Average daily trading volume (single count) in the second quarter 2020 803,407 shares
Free float as at 30 June 2020 approximately 41.2%
ISIN AT0000606306
Ticker symbols RBI (Vienna Stock Exchange)
RBI AV (Bloomberg)
RBIV.VI (Reuters)
Market segment Prime Market
Number of shares issued as at 30 June 2020 328,939,621

6 RBI in the capital markets
Rating details
Rating Moody’s Investors Service Standard & Poor’s

Long-term rating A3 A-
Outlook stable negative
Short-term rating P- 2 A- 2
Subordinated (Tier 2) Baa3 BBB
Additional Tier 1 Ba3(hyb) BB+
Junior Subordinated (Legacy Tier 1) Ba3 BB+
Financial Calendar 2020

9 October 2020* Record Date Annual General Meeting
20 October 2020* Annual General Meeting
28 October 2020* Ex-Dividend Date
29 October 2020* Record Date Dividends
29 October 2020 Start of Quiet Period
30 October 2020* Dividend Payment Date
12 November 2020 Third Quarter Report, Conference Call
* The postponement of the Annual General Meeting was also referenced in the ad hoc announcement on 8 April
Contact for equity and debt investors

Email: ir@rbinternational.com Raiffeisen Bank International AG
Internet: www.rbinternational.com → Investors Group Investor Relations
Telephone: +43 1 71 707 2089 Am Stadtpark 9
1030 Vienna, Austria

Group management report 7
Group management report

Market development
Economic and financial market developments in 2020 are being shaped by the global spread of COVID-19 and the accompany-
ing restrictions to contain the pandemic. The constraints placed on business activities have led to an unprecedented recession. The
reduction in Gross Domestic Product (GDP) was more immediate and larger than in past economic downturns and was concen-
trated in the first half of the year in Europe, North America and Asia. In addition to a sharp decline in investment and export de-
mand, there was also a steep drop in private consumption. In contrast to previous recessions, a strong contraction was also seen
on the supply side in the provision of services across a large part of the service sector, primarily in travel and leisure activities, as
well as services involving personal contact. The easing of business restrictions led to a bounce in economic activity. However,
given the ongoing spread of COVID-19, the speed and scale of the expected recovery in the second half of the year and going
into next year are subject to a high degree of uncertainty. In Western Europe in particular, after an initial bounce there was a
marked levelling off of growth which should continue until a medical solution becomes available (expected from the second quar-
ter of 2021). Additionally, the COVID-19 crisis could also have medium-term negative consequences. GDP in most countries af-
fected is expected to still not have reached pre-crisis levels by the end of 2021.
For the euro area, a reduction in GDP of around 8.1 per cent compared to the prior year is forecast for 2020 (2021: increase of
4.3 per cent). State support programs are mitigating the rise in the unemployment rate and loss of income. The extensive fiscal
countermeasures are leading to high budget deficits in all countries. Price volatility in the oil market will impact the inflation rate in
2020. The decline in energy prices reduced the inflation rate in the first half of the year, with the low point likely to have been
reached in May. In the second half of the year, the inflation rate is expected to trend upwards and average around 0.5 per cent
for the year as a whole.
The ECB has taken extensive measures in response to the COVID-19 crisis. The existing Asset Purchase Program (APP) of € 20
billion per month was increased by a total amount of € 120 billion until the end of 2020. As part of an additional purchase pro-
gram, the Pandemic Emergency Purchase Programme (PEPP), it is planned to purchase bonds in an amount of € 1,350 billion by
June 2021. Furthermore, new refinancing operations were put in place and the conditions of the existing ones were improved. All
in all, it was possible to avoid disruptions in the financial system and secure a supply of credit on favorable terms to both the pub-
lic and private sectors.
In the US, the Fed is signaling a long period of supportive monetary policy in order to accelerate the economic recovery. In re-
sponse to the COVID-19 crisis, key rates were rapidly reduced to just above zero per cent, an unlimited asset purchase program
was initiated, and numerous loan and purchase programs were established to provide liquidity to the real economy and financial
sector. Although economic indicators in the US have occasionally surprised on the upside to date, the renewed rapid increase in
the number of COVID-19 cases increases the risks to the recovery, which is still in its early stages.
After the economic trough was reached in Austria around the beginning of April, economic activity began to pick up with the im-
plementation of easing measures. However, following an initial rebound, the process of further economic normalization is ex-
pected to level off, with GDP not recovering to the end-2019 level until the beginning of 2023. For 2020 as a whole, it is
anticipated that the economic freefall in the first half of the year along with the expected turnaround in the third quarter and subse-
quent levelling off will result in a 7.2 per cent reduction in GDP (2021: increase of 3.5 per cent).
The countries in the Central Europe (CE) region, in particular Hungary, Slovakia and the Czech Republic, were able to effectively
contain the spread of COVID-19 in the spring. There have been rising cases observed from the middle of July, but these are being
addressed with lighter or more targeted restrictions. It is nevertheless expected that GDP in the region will contract by 4.8 per cent
in 2020, due to the restrictions implemented in spring, compared to growth of 3.7 per cent in 2019 (2021: increase of 4.2 per
cent). The Czech Republic (6.0 per cent reduction) and Slovakia (6.0 per cent reduction) are likely to be more strongly affected,
while the recessions in Hungary (3.5 per cent reduction) and Poland (4.5 per cent reduction) are expected to be milder than the
average for the region. In contrast to Western Europe, the anticipated GDP contractions in CE are not historically unprecedented
but are comparable with the downturn seen in the financial crisis (2009), with the exception of Poland. The demand-side composi-
tion of the expected recession (sharp fall in private consumption) is also not a new experience in CE, unlike in Western Europe.
In the Southeastern Europe (SEE) region, it is anticipated that real GDP will decline 5.6 per cent in 2020. The recession will be
deeper than average in Croatia. A decline of approximately 8.5 per cent is forecast for the country due to the greater signifi-
cance of the tourism sector. The SEE region has also seen rising cases since the beginning of July, however a return to the severe
restrictions seen in spring should be avoided. Inflation should lose some momentum and is expected to be at an average of
2.1 per cent for 2020 as a whole. The countries in the region will receive assistance and loans from the EU Next Generation pro-
gram.

8 Group management report
In particular, Bulgaria, Croatia and Romania should receive relatively extensive support. Additionally, participation in the Exchange
Rate Mechanism II and the potential future introduction of the euro is a positive development for Bulgaria and Croatia.
The Eastern Europe (EE) region comprises Russia, Ukraine and Belarus. With the COVID-19 pandemic and a combined oil price
shock, a deep recession estimated at 5.0 per cent is expected in 2020, with a recovery of 2.8 per cent in 2021. The Russian gov-
ernment decided on comparatively limited supportive measures for the economy by international standards. Russia is however in
the favorable position of having a sound budgetary policy with low levels of government debt and substantial fiscal reserves from
surpluses in prior years. Additionally, the oil price and the ruble partially recovered in the second quarter and the COVID-19
cases are slowly declining again. However, imposition of further US sanctions still cannot be fully excluded. Ukraine is dependent
on external assistance from the IMF and other partners. An agreed support package from the IMF is having a stabilizing effect.
For Ukraine an economic downturn of 6.3 per cent is forecast for 2020, followed by a 3.8 per cent recovery in 2021. In Belarus
fewer lockdown measures were taken in comparison with other countries, which may result in a lower direct economic impact from
the pandemic. Furthermore, the COVID-19 rate of infection has eased considerably. However, Belarus is negatively affected by
the recession in Russia. These factors, together with fiscal and external trade weakness, lead to the expectation of a recession in
Belarus of 4.5 per cent in 2020.
Annual real GDP growth compared to the previous year

Region/country 2018 2019 2020e 2021f
Czech Republic 2.9 2.3 (6.0) 4.1
Hungary 5.1 4.9 (3.5) 4.0
Poland 5.4 4.2 (4.5) 4.2
Slovakia 4.0 2.3 (6.0) 5.0
Central Europe 4.5 3.7 (4.8) 4.2
Albania 4.1 2.2 (6.5) 5.0
Bosnia and Herzegovina 3.7 2.6 (5.2) 3.0
Bulgaria 3.1 3.4 (6.0) 4.0
Croatia 2.7 2.9 (8.5) 3.0
Kosovo 3.8 4.2 (5.5) 5.0
Romania 4.0 4.1 (5.0) 4.2
Serbia 4.4 4.2 (4.0) 4.5
Southeastern Europe 3.7 3.7 (5.6) 4.0
Belarus 3.1 1.2 (4.5) 1.5
Russia 2.3 1.3 (4.9) 2.8
Ukraine 3.3 3.2 (6.3) 3.8
Eastern Europe 2.4 1.5 (5.0) 2.8
Austria 2.4 1.6 (7.2) 3.5
Germany 1.5 0.6 (5.9) 3.7
Euro area 1.9 1.3 (8.1) 4.3
Source: Raiffeisen Research - the above data is based on the analysts’ estimates (base case scenario) from the beginning of August 2020; subsequent revisions may be made for prior years
(e: estimate; f: forecast)

Significant events in the reporting period
Severe impact from the COVID-19 pandemic

The economic shutdown caused by the COVID-19 pandemic in March 2020 has caused unprecedented economic repercussions
to date. In rapid succession, countries where RBI is active imposed restrictions to limit the transmission of COVID-19. In order to
alleviate the economic consequences caused by such restrictions, policy interventions were enacted to assist individuals, house-
holds and businesses, as well as provide temporary supervisory relief measures for banks. Stabilization measures which affect RBI
include payment moratoriums, direct government assistance programs and subsidies to mitigate the economic impact, as well as
restrictions on cross-border capital movements and dividend payments.
The measures introduced by many governments in March 2020 in order to restrict contact led to a lockdown of national econo-
mies. Around the middle of May 2020, most of the countries in which RBI operates began a gradual, controlled reopening.
Due to the large-scale global recession, RBI anticipates a significant decline in profit for the current financial year. As a direct con-
sequence in the first half of the year, additional expected impairment losses of around € 158 million were posted in excess of the
ECL model. These were post-model adjustments to estimates of the expected credit losses. The adjustments were necessary as the
models do not fully capture the speed of the changes and the severity of the pandemic’s economic effects. Individual sectors such
as tourism (including leisure facilities), aviation (including freight traffic), extraction and processing of oil and natural gas, as well as
the automotive industry, have been hardest hit. Further information on the development in net provisioning for impairment losses can
be found in the notes to the interim consolidated financial statements.
In addition to the significantly higher net provisioning for impairment losses, impairments on equity investments and goodwill
amounting to approximately € 106 million were recognized due to changed medium-term planning parameters. Loan modifica-
tions due to payment moratoriums in an amount of minus € 16 million were recorded through profit/loss. Further information can
be found in the notes to the interim consolidated financial statements.
Payment moratoriums
Many of RBI’s markets saw the introduction of various moratoriums that can essentially be summarized as payment moratoriums.
Borrowers are granted a temporary deferral of obligations to make principal repayments as well as payments for interest and fees.
The payment moratoriums are structured differently depending on local legislation or the regulatory guidelines in the respective
banking sector. Borrowers in some countries (such as Austria, Croatia and Romania) can choose whether to make use of a pay-
ment moratorium, while those in other countries (such as Hungary and Serbia) are automatically granted payment moratoriums.
Countries have implemented different approaches to both the duration of the payment moratorium (between three and nine
months), and to the capitalization of interest during the moratorium period (with or without compound interest). At the end of the
first half of the year, € 8.5 billion of loans were subject to a moratorium.
A change in payment plans may lead to a net present value loss on an individual loan contract, which is generally recognized in
the other result of RBI as a one-off adjustment to the gross carrying amount resulting from an immaterial modification of the con-
tract. At the end of the first half of the year, minus € 16 million was reflected in the result in this respect. Further effects can be ex-
pected in subsequent reporting periods.
Direct government programs
To counter the economic downturn caused by the COVID-19 pandemic, many countries adopted various support measures for the
economy and to protect jobs. The measures include various forms of direct financial support for individuals, households and busi-
nesses, as well as bridge loans extended by banks and guaranteed by governments to ensure that companies have sufficient li-
quidity during the COVID-19 pandemic.
Restrictions on capital movements and dividend payments
In order to strengthen the capital base of banks and financial institutions during the COVID-19 pandemic, many countries have
introduced restrictions on dividend payments for the financial years 2019 and 2020, either through recommendations from super-
visory authorities or through enacted legislation for the duration of the COVID-19 pandemic.

Regulatory relief
In the context of the COVID-19 pandemic, both the ECB and the EBA enacted regulatory relief measures to enable banks super-
vised by the ECB to continue to play their central role in providing financing to households and businesses. The ECB will explicitly
allow banks under its supervision to operate below the levels defined by the Pillar 2 guidance, the capital conservation buffer and
the liquidity coverage ratio. Banks will also be allowed to use other capital instruments in addition to common equity tier 1 capital
to meet capital requirements. This particular measure would originally not have come into force until the beginning of 2021 as part
of the implementation of CRD V (Capital Requirements Directive). Furthermore, the ECB is of the opinion that these measures
should be supported by an appropriate relaxation of the countercyclical capital buffer by the national supervisory authorities. The
EBA also expects consistent application of the rules regarding the definition of default, forbearance and IFRS 9, and calls for the
use of the full flexibility provided for in the regulations. In its view, the moratoriums introduced by the different countries do not auto-
matically lead to a classification as forborne or defaulted, nor to a stage migration in the IFRS 9 ECL model.
Bank levy in Slovakia

In June 2020, the Slovakian government decided to abolish the bank levy for the second half of 2020. In 2020, RBI paid
€ 26 million in bank levies in Slovakia (previous year’s period: € 12 million).
Earnings and financial performance

The COVID-19 pandemic has caused turmoil on the financial markets since the end of February and led to restrictions in both the
private domain and the economic environment. The pandemic has also weighed on the business activities of RBI and its customers,
with direct and indirect consequences for the performance of the bank’s business. Governments and central banks have reacted
by taking various measures to mitigate the adverse effects on companies and consumers.
Overall, it was a highly dynamic start to the 2020 financial year for RBI. The expansion of business volumes in previous periods
also led to continued growth in core revenues. However, declines in fee and commission income were recorded in the second
quarter as a result of the lockdown measures, while interest income also suffered on account of key rate cuts in some markets.
Operating income improved, posting an increase of € 184 million. This was primarily attributable to the net trading income and
fair value result (up € 141 million due to valuation losses in the previous year), as well as a € 42 million rise in net interest income
stemming from higher volumes. The recession caused by the COVID-19 pandemic was most noticeably reflected by impairment
losses on financial assets, which reached € 312 million compared to a very modest level of € 12 million in the previous year.
Consolidated profit declined € 203 million year-on-year to € 368 million. The result was negatively impacted by direct and indi-
rect effects of the COVID-19 crisis. These are reflected in credit risk costs (particularly stage migration in the ECL calculation) as
well as modification results relating to payment moratoriums and impairments on investments and goodwill.

1
in € million 1/1-30/6/2020 1/1-30/6/2019 Change
Net interest income 1,706 1,664 42 2.5%
Dividend income 15 24 (9) (38.9)%
Current income from investments in associates 22 37 (15) (39.8)%
Net fee and commission income 840 839 0 0.0%
Net trading income and fair value result 62 (79) 141 –
Net gains/losses from hedge accounting 4 0 4 –
Other net operating income 42 21 21 96.9%
Operating income 2,690 2,506 184 7.3%
Staff expenses (808) (789) (19) 2.4%
Other administrative expenses (476) (524) 48 (9.2)%
Depreciation (190) (184) (6) 3.4%
General administrative expenses (1,474) (1,497) 23 (1.6)%
Operating result 1,216 1,009 207 20.6%
Other result (173) (33) (140) 425.9%
Levies and special governmental measures (166) (130) (36) 27.4%
Impairment losses on financial assets (312) (12) (300) >500.0%
Profit/loss before tax 566 834 (268) (32.2)%
Income taxes (145) (191) 45 (23.8)%
Profit/loss after tax 420 643 (223) (34.6)%
Profit attributable to non-controlling interests (52) (72) 20 (27.4)%
Consolidated profit/loss 368 571 (203) (35.5)%
Operating income
Operating income was up 7 per cent year-on-year, or € 184 million, to € 2,690 million. The Group’s average interest-bearing
assets also rose 7 per cent, reflecting increases in the lending business and short-term investments – especially at head office.
Overall, net interest income rose € 42 million to € 1,706 million. The net interest margin decreased 11 basis points to 2.31 per
cent. This decline was largely attributable to interest rate cuts related to COVID-19 in many of the Group’s countries and an in-
creased volume of short-term investments. Current income from investments in associates fell € 15 million year-on-year to € 22 mil-
lion, primarily as a result of proceeds realized from a disposal at Raiffeisen Informatik GmbH & Co KG in the same period of the
previous year. Net fee and commission income was more or less unchanged at € 840 million, with reductions in volumes due to
COVID-19, above all in clearing, settlement and payment services, offset by growth in asset management. The net trading income
and fair value result improved € 141 million to € 62 million. The main factors behind the increase were valuation results from certifi-
cates issued (up € 57 million) due to changes in interest rates and credit spreads, which had led to valuation losses in the previous
year. Valuation losses relating to a building society portfolio also influenced the same period of the previous year. Other net oper-
ating income increased € 21 million year-on-year, primarily due to the release of an € 18 million provision for litigation in Slovakia.
General administrative expenses
General administrative expenses declined € 23 million year-on-year to € 1,474 million. At the same time, staff expenses posted a
slight increase of 2 per cent, or € 19 million, to € 808 million, largely as a result of salary adjustments (primarily in Russia, Ukraine
and Romania). The average headcount decreased by 392 full-time equivalents year-on-year to 46,799. Other administrative ex-
penses were down € 48 million to € 476 million. This reduction was mainly driven by a decrease in IT expenses at head office
(€ 9 million), as well as lower deposit insurance fees in Russia (€ 6 million) and Romania (€ 6 million). Other expense items also

declined. Depreciation of tangible and intangible fixed assets rose 3 per cent, or € 6 million. The number of business outlets fell
123 year-on-year to 1,982, mainly reflecting optimization measures in Ukraine (down 46), Russia (down 32) and Romania (down
25).
Other result
The other result came to minus € 173 million in the reporting period, down from minus € 33 million in the same period of the previ-
ous year. The decline was largely driven by impairments on investments in companies valued at equity in the amount of € 77 mil-
lion (up € 70 million). The impairments primarily related to investments in UNIQA Insurance Group AG, LEIPNIK-LUNDENBURGER
INVEST Beteiligungs AG and Prva stavebna sporitelna a.s. and were mainly attributable to deteriorating economic prospects as a
result of the pandemic. Moreover, a goodwill impairment of € 27 million was recorded for Raiffeisen Kapitalanlage-Gesellschaft
due to a revision of the medium-term plan in response to the pandemic. In addition, credit-linked and portfolio-based provisions for
litigation of € 42 million (up € 38 million) were allocated, thereof € 18 million in Poland, € 17 million in Romania and € 8 million
in Croatia. Net modification losses rose € 21 million to € 23 million, of which € 16 million was attributable to COVID-19
measures such as temporary payment moratoriums and restructuring in Romania, the Czech Republic, Hungary and Ukraine. In
contrast, a € 23 million provision for German property transfer tax was recorded in the same period of the previous year.
Levies and special governmental measures
The expenses for levies and special governmental measures increased € 36 million to € 166 million. Bank levies rose € 15 million
mainly as a result of the bank levy in Slovakia being doubled, while contributions to the bank resolution fund also increased at
head office, in Bulgaria and Romania.
Impairment losses on financial assets
There was a significant increase of € 300 million in impairment losses on financial assets to € 312 million in the reporting period,
compared to a very low level of € 12 million in the comparable period of the previous year. This included additional expected risk
costs beyond the ECL model of around € 158 million, of which € 123 million related to non-financial corporations and € 35 mil-
lion to households.
Impairments of € 202 million (increase of € 168 million) were allocated in the first half of 2020 due to migration from stage 1 to
stage 2. This mainly impacted the following industries as well as customers working in these industries: tourism, automotive, air
travel, oil & gas, real estate and consumer goods. This resulted in impairments of € 115 million on loans to households, mainly in
Russia (€ 27 million), Romania (€ 24 million) and Poland (€ 12 million), and of € 82 million on loans to non-financial corporations,
particularly in Slovakia (€ 13 million) and Austria (€ 12 million).
In stage 3 (defaulted loans), net impairments of € 141 million were allocated (previous year: net release of € 13 million). This in-
cluded € 88 million for households, mainly in Russia (€ 36 million) and Romania (€ 16 million), as well as € 55 million for non-
financial corporations, predominantly in Austria (€ 28 million), Russia (€ 16 million) and Slovakia (€ 16 million).
At 1.9 per cent, the NPE ratio was down 0.2 percentage points from the year-end level, mainly due to the increased lending vol-
ume. The NPE coverage ratio improved 2.4 percentage points to 63.3 per cent as a result of the additional impairments.
Income taxes
Income taxes fell € 45 million to € 145 million, primarily on account of lower net income. The tax rate increased 3 percentage
points to 26 per cent, driven largely by the negative profit contribution from head office due to the aforementioned impairments.

Quarterly results
1 1
in € million Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020
Net interest income 840 866 881 881 825
Dividend income 14 2 5 6 8
Current income from investments in
associates 13 14 120 (9) 31
Net fee and commission income 437 468 489 448 392
Net trading income and fair value result (27) (8) 70 37 25
Net gains/losses from hedge
accounting (6) (7) 10 12 (8)
Other net operating income 21 (8) 65 29 12
Operating income 1,293 1,327 1,642 1,405 1,286
Staff expenses (410) (392) (429) (402) (405)
Other administrative expenses (267) (260) (310) (259) (218)
Depreciation (95) (96) (109) (94) (96)
General administrative expenses (773) (748) (848) (755) (719)
Operating result 520 580 794 650 567
Other result (7) (35) (151) (82) (91)
Levies and special governmental measures (17) (11) (21) (128) (38)
Impairment losses on financial assets (2) (68) (154) (153) (158)
Profit/loss before tax 494 465 468 286 279
Income taxes (110) (124) (88) (79) (66)
Profit/loss after tax 384 341 380 207 213
Profit attributable to non-controlling
interests (39) (38) (27) (31) (21)
Consolidated profit/loss 345 303 353 177 192
Development of the second quarter of 2020 compared to the first quarter of 2020
Operating income
Net interest income declined € 57 million quarter-on-quarter to € 825 million. The development in the second quarter was heavily
influenced by the COVID-19 pandemic. The sharpest decline was recorded in the Czech Republic at € 20 million. This was
largely attributable to lower interest income from repo business and customer loans due to key interest rate reductions. In Russia,
net interest income decreased € 14 million as a result of slightly lower volumes and interest rate adjustments. Reduced interest in-
come from repo business also led to a decline of € 9 million at head office. Net interest income was down € 3 million in both
Ukraine and Belarus, primarily as a result of lower market interest rates. In Romania, lower loan volumes led to a € 3 million de-
crease in net interest income. The net interest margin was down 22 basis points to 2.21 per cent, mainly as a result of negative
margin developments in many of the Group’s countries due to rate cuts relating to COVID-19.
In the first quarter of 2020, current income from investments in associates was negative at minus € 9 million owing to the valuation
of a listed equity interest (SoftwareOne) at Raiffeisen Informatik GmbH & Co KG. However, the share price recovery and partial
disposal of shares in SoftwareOne generated a positive result in the second quarter.
Net fee and commission income declined 13 per cent compared to the first quarter, or € 56 million, to € 392 million as a result of
the lockdown measures. This was mainly driven by a € 21 million decrease to € 77 million in the foreign exchange business due
to volume and margin-related falls in revenues, particularly in Russia, the Czech Republic, Romania, Hungary, Belarus and Croatia.

Net income from the loan and guarantee business declined € 8 million to € 44 million, mainly due to higher income at head of-
fice in the first quarter. Net income from clearing, settlement and payment services was also down € 7 million to € 161 million as
a result of the COVID-19 pandemic in almost all countries. Net income from custody, from the securities business and from cus-
tomer resources distributed but not managed each posted a decrease of € 4 million quarter-on-quarter.
The net trading income and fair value result fell € 12 million quarter-on-quarter to € 25 million. The previous quarter was signifi-
cantly impacted by market volatility relating to the spread of COVID-19, leading to gains on certificates issued, largely due to
credit spread changes, and losses on the valuation of debt securities. Most market values recovered in the second quarter, with
offsetting effects in the form of a € 79 million decrease in the valuation of certificates issued and a € 91 million increase in debt
securities held for trading. This was also associated with negative changes in the valuation of derivatives. Net gains/losses from
hedge accounting amounted to minus € 8 million in the second quarter (first quarter: € 12 million). Despite the dynamic interest
rate environment, there continues to be a high level of hedge efficiency.
Other net operating income fell € 17 million quarter-on-quarter to € 12 million, largely due to the release of a provision for litiga-
tion in Slovakia (€ 18 million) in the first quarter.
General administrative expenses declined € 36 million quarter-on-quarter to € 719 million. Other administrative expenses de-
creased € 41 million compared to the previous quarter to € 218 million. These declines mainly stemmed from lower deposit insur-
ance fees (€ 25 million). While deposit insurance fees must be booked in the first quarter for the entire year (€ 18 million) in some
countries, the amount booked quarterly in Russia fell € 8 million due to governmental support measures relating to the COVID-19
pandemic.
Other result
The other result declined € 9 million quarter-on-quarter to minus € 91 million. This was primarily driven by a further € 27 million rise
in credit-linked and portfolio-based provisions for litigation in the second quarter (previous quarter: € 16 million). The correspond-
ing provisions increased € 17 million in Romania and € 10 million in Poland in the second quarter. In the first quarter, these rose
€ 8 million in Croatia and € 8 million in Poland. Impairments on investments in associates also rose € 21 million to € 49 million in
the second quarter and primarily related to investments in UNIQA Insurance Group AG. Net modification losses increased € 4
million. This is in contrast to a partial goodwill impairment in the amount of € 27 million recorded for Raiffeisen Kapitalanlage-Ge-
sellschaft in the first quarter.
The expenses for levies and special governmental measures are largely recorded in the first quarter for the full year (€ 106 mil-
lion), which resulted in a decline of € 90 million to € 38 million. Bank levies amounted to € 19 million in the second quarter of
2020 (previous quarter: € 73 million). A one-off payment of € 41 million was booked at head office in the first quarter. This was
the fourth and last of the annual payments that were required to be posted in their entirety in the first quarter in accordance with
the applicable regulations (IFRIC 21). In Hungary, the bank levy for the full year of € 13 million was also recognized in the first
quarter of 2020. Similarly, contributions to the bank resolution fund in the amount of € 55 million for the full year were reported in
the first quarter. A further payment of € 20 million was booked in the second quarter due to an adjustment to contributions, primar-
ily at head office as well as in Bulgaria.
Impairment losses on financial assets were € 5 million above the level of the previous quarter at € 158 million. In the first quarter
of 2020, this included additional expected risk costs beyond the ECL model amounting to € 96 million, in the second quarter this
was € 62 million, of which € 55 million related to non-financial corporations (previous quarter: € 67 million) and € 7 million re-
lated to households (previous quarter: € 29 million).

Income taxes
Income taxes fell € 13 million compared to the previous quarter to € 66 million. The tax rate decreased 4 percentage points to
24 per cent, primarily as a result of valuation losses relating to COVID-19 in the first quarter.
Consolidated profit
At € 192 million, consolidated profit was € 15 million above the previous quarter’s level. In contrast, the operating result declined
€ 83 million, driven by a significant reduction in core revenues. At the same time, expenses for bank levies and contributions to the
bank resolution fund fell € 90 million as these are largely booked in the first quarter.
Statement of financial position

Since the beginning of the year, total assets rose 8 per cent, or € 11,562 million, to € 163,761 million. In contrast, currency move-
ments – affected by depreciation pressure on many CEE currencies as a result of the crisis, especially the Belarusian ruble (down
15 per cent), the Russian ruble (down 14 per cent), the Ukrainian hryvnia (down 12 per cent), the Hungarian forint (down 8 per
cent) and the Czech koruna (down 5 per cent) – led to a decline in total assets of almost 2 per cent or € 3,008 million. On a
currency-adjusted basis, total assets grew € 14,570 million or more than 9 per cent.
Assets
in € million 30/6/2020 31/12/2019 Change

Loans to banks 9,202 9,435 (233) (2.5)%
Loans to customers 93,876 91,204 2,672 2.9%
Securities 22,309 19,538 2,771 14.2%
Cash and other assets 38,374 32,022 6,352 19.8%
Total 163,761 152,200 11,562 7.6%
Loans to customers grew 3 per cent, or € 2,672 million, to € 93,876 million, despite strong currency depreciation. The highest
growth was recorded at head office (up € 3,504 million, or 14 per cent, to € 28,799 million), primarily driven by loans to non-
financial corporations (€ 1,617 million growth, principally from standard loans and export financing), as well as project and real
estate financing (up € 863 million), with the remainder of the growth being attributable to other short-term lending. Russia and the
Czech Republic, on the other hand, saw a decline in loans to customers as a result of currency depreciation, but still experienced
lending growth on a local currency basis. In Russia, loans to customers fell € 869 million to € 10,475 million due to currency ef-
fects. In local currency, however, there was an increase of approximately 10 per cent in loans to non-financial corporations, while
loans to households fell slightly in local currency terms. Loans to customers in the Czech Republic declined € 316 million, or 3 per
cent, to € 11,556 million due to currency movements, but on a local currency basis growth was recorded in loans to both house-
holds and non-financial corporations.
Securities, which mainly consists of debt securities increased € 2,771 million to € 22,309 million, mostly at Group head office (up
€ 2,180 million), in Slovakia (up € 685 million) and in the Czech Republic (up € 672 million), while there was a € 650 million
decline in Russia.
Cash and other assets saw a marked increase of € 6,352 million to € 38,374 million since the beginning of the year. Cash bal-
ances increased € 6,192 million to € 30,481 million, primarily driven by head office, where cash holdings increased € 6,030
million mainly in the form of repo transactions, balances held at the Austrian National Bank and cash. The Group’s strong liquidity
position enables it to respond quickly in times of crisis, especially in the event that market-sensitive sources of refinancing become
unavailable.

Equity and liabilities
in € million 30/6/2020 31/12/2019 Change

Deposits from banks 30,720 23,607 7,113 30.1%
Deposits from customers 98,686 96,214 2,473 2.6%
Debt securities issued and other liabilities 20,700 18,614 2,086 11.2%
Equity 13,655 13,765 (110) (0.8)%
Total 163,761 152,200 11,562 7.6%
The Group’s funding from banks, which mainly relates to short-term deposits and repo transactions at head office, rose 30 per
cent, or € 7,113 million, to € 30,720 million.
Deposits from customers grew 3 per cent (€ 2,473 million) to € 98,686 million, despite strong currency depreciation. The largest
increases were at head office (up € 1,358 million or 6 per cent, mainly driven by short term deposits from non-financial corpora-
tions), in Romania (up € 455 million or 6 per cent, mainly driven by deposits from households) and in the Czech Republic (up
€ 377 million despite strong currency depreciation, primarily due to deposits from governments). In contrast, Russia experienced a
currency-related 8 per cent, or € 1,144 million, decline in deposits from customers.
The € 2,086 million increase in debt securities and other liabilities to € 20,700 million stemmed mainly from head office (up
€ 1,826 million) through the issuance of new bonds (increase of € 1,133 million) and higher negative market values of derivatives
(increase of € 469 million).
For information relating to funding, please refer to the risk report section in the interim consolidated financial statements.
Equity on the statement of financial position

Equity including capital attributable to non-controlling interests declined € 110 million to € 13,655 million since the beginning of
the year. The decline was primarily the result of total comprehensive income of minus € 99 million for the reporting period.
The total comprehensive income of € 99 million comprised profit after tax of € 420 million and other comprehensive income of
minus € 519 million. Currency movements since the beginning of the year led to a negative impact of € 591 million. The 14 per
cent depreciation of the Russian ruble with a negative impact of € 316 million, the 5 per cent depreciation of the Czech koruna
with a negative impact of € 83 million, the 12 per cent depreciation of the Ukrainian hryvnia with a negative impact of € 61 mil-
lion, the 8 per cent depreciation of the Hungarian forint with a negative impact of € 55 million and the 15 per cent depreciation
of the Belarusian ruble with a negative impact of € 51 million, were partially offset by a positive valuation result of € 72 million
primarily from the hedge against the net investment in the Russian subsidiary.
The Management Board passed a resolution on 4 February 2020 to propose a dividend payment of € 1.00 per share for the
2019 financial year to the Annual General Meeting. This would amount to a maximum total dividend payment of € 329 million. In
line with the European Central Bank’s recommendation on dividend payments issued at the end of March and given the uncertain-
ties caused by COVID-19, the dividend proposal for the 2019 financial year may be reviewed once visibility improves with re-
spect to the financial implications of COVID-19.
Total capital pursuant to the CRR/Austrian Banking Act (BWG)

As at 30 June 2020, common equity tier 1 (CET1) after deductions amounted to € 10,640 million, representing a € 222 million
reduction compared to the 2019 year-end figure. Material factors behind the reduction were currency movements directly recog-
nized in equity. Tier 1 capital after deductions declined € 212 million to € 11,879 million, mainly as a result of the reduction in
CET1. Tier 2 capital rose € 330 million to € 2,270 million. The increase was driven by the issuance of a bond in June, while the
regulatory amortization of outstanding issues had an offsetting effect. Total capital amounted to € 14,149 million, representing an
increase of € 118 million compared to the 2019 year-end figure.

Total risk-weighted assets (RWA) increased € 2,524 million from the end of 2019 to € 80,490 million. The major reasons for the
increase were new loan business, as well as business developments at head office, and in Russia, Serbia, and the Czech Repub-
lic. The (organic) growth was partly offset by negative currency effects, especially from the Russian ruble, the Ukrainian hryvnia,
and the Czech koruna. An increase in market risk, driven by the rise in volatility caused by the COVID-19 pandemic, as well as the
increase in operating risk due to ongoing legal disputes in connection with the CHF loans also contributed to an increase in RWA.
On a fully loaded basis and including the half-year result, this resulted in a CET1 ratio of 13.2 per cent, a tier 1 ratio of 14.6 per
cent and a total capital ratio of 17.5 per cent.
Risk management
For further information on risk management, please refer to the risk report in the interim consolidated financial statements.
Events after the reporting date
Issuance of € 500 million additional tier 1 capital in July

In July, RBI placed € 500 million of perpetual additional tier 1 capital (AT1). This marks RBI’s third AT1 issuance since 2017 and
further optimizes its capital structure and its compliance with Pillar 1 and Pillar 2 capital requirements. Furthermore, RBI’s buffer to
the MDA trigger level improves to 2.38 per cent (based on figures as at 31 March 2020 with inclusion of this AT1 issuance as
well as an RBI tier 2 issuance in June). It has a coupon of 6.00 per cent p.a. until December 2026, which will be reset thereafter.
Outlook
We expect modest loan growth in 2020.
The provisioning ratio for FY 2020 is currently expected to be around 75 basis points, depending on the length and severity of
disruption.
We aim to achieve a cost/income ratio of around 55 per cent in the medium term and are evaluating how the current circum-
stances will impact the ratio in 2021.
In the medium term we target a consolidated return on equity of approximately 11 per cent. As of today, and based on our best
estimates, we expect a consolidated return on equity in the mid-single digits for 2020.
We confirm our CET1 ratio target of around 13 per cent for the medium term.
Based on this target we intend to distribute between 20 and 50 per cent of consolidated profit.

18 Segment report
Segment report
Segmentation principles
Segment reporting at RBI is based on the current organizational structure pursuant to IFRS 8. A cash generating unit within the
Group is a country. The Group’s markets are thereby consolidated into regional segments comprising countries with comparable
economic profiles and similar long-term economic growth expectations.
This results in the following segments:
 Central Europe: Czech Republic, Hungary, Poland, Slovakia, and Slovenia

 Southeastern Europe: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Romania, and Serbia
 Eastern Europe: Belarus, Russia and Ukraine
 Group Corporates & Markets (business booked in Austria): operating business at head office divided into subsegments: Aus-
trian and international corporate customers, Markets, Financial Institutions & Sovereigns, business with the Raiffeisen Banking
Group (RBG), as well as specialized financial institution subsidiaries, e.g. Raiffeisen Centrobank AG, Kathrein Privatbank Ak-
tiengesellschaft, Raiffeisen Leasing Group, Raiffeisen Factor Bank AG, Raiffeisen Bausparkasse Österreich Gesellschaft mbH,
Valida Group (pension fund business) and Raiffeisen Kapitalanlage-Gesellschaft mit beschränkter Haftung. Furthermore, com-
panies valued at equity with banking activities are allocated to this segment.
 Corporate Center: central control functions at head office (e.g. Treasury) and other Group units (equity investments and joint
service providers), minority interests as well as non-banking companies valued at equity.
The following changes to the segmentation were applied from the first quarter 2020, in order to align the segments more closely
with internal management:
 Joint service providers have been allocated to the Corporate Center segment. These were previously allocated to
the regional segments.
 Furthermore, the following companies valued at equity have been allocated to the Group Corporates & Markets
segment: NOTARTREUHANDBANK AG, Oesterreichische Kontrollbank AG, EMCOM Beteiligungs GmbH,
Posojilnica Bank e-Gen. These were previously allocated to the Corporate Center segment.
These effects have not been adapted in the prior periods due to immateriality.
As of the first quarter 2020, the calculation of equity in the segments is based on the equity shown in the statement of financial
position. Previously, equity was calculated according to regulatory capital requirements. The prior periods (equity as well as return
on equity) have been adapted accordingly.

Segment report 19
Central Europe
1/1-30/6 1/1-30/6
1
in € million 2020 2019 Change Q2/2020 Q1/2020 Change
Net interest income 413 419 (1.4)% 196 217 (9.6)%
Dividend income 2 4 (40.6)% 2 0 >500.0%
associates 2 2 (37.1)% 0 1 (86.0)%
Net fee and commission income 203 218 (7.1)% 94 108 (12.7)%
Net trading income and fair value
result 7 0 – 9 (2) –
accounting 0 0 401.1% (3) 3 –
Other net operating income 14 (3) – (3) 17 –
Operating income 641 641 0.0% 296 344 (13.9)%
General administrative expenses (330) (351) (6.2)% (156) (174) (10.4)%
Operating result 311 289 7.6% 141 170 (17.5)%
Other result (25) 1 – (14) (12) 18.9%
Levies and special governmental
measures (61) (45) 36.6% (15) (46) (67.4)%
Impairment losses on financial assets (91) 33 – (41) (50) (18.3)%
Profit/loss before tax 133 278 (52.0)% 71 63 13.2%
Income taxes (29) (47) (38.1)% (13) (15) (13.8)%
Profit/loss after tax 105 231 (54.8)% 57 47 22.0%
Return on equity before tax 7.9% 17.4% (9.5) PP 8.4% 7.4% 1.0 PP
Return on equity after tax 6.2% 14.4% (8.3) PP 6.8% 5.6% 1.2 PP
Net interest margin (average interest-
bearing assets) 2.01% 2.14% (0.13) PP 1.91% 2.13% (0.22) PP
Cost/income ratio 51.4% 54.9% (3.4) PP 52.5% 50.5% 2.0 PP
Loan/deposit ratio 95.8% 102.9% (7.1) PP 95.8% 99.7% (3.9) PP
Provisioning ratio (average loans to
customers) 0.62% (0.23)% 0.85 PP 0.56% 0.68% (0.12) PP
NPE ratio 2.1% 2.5% (0.4) PP 2.1% 2.2% (0.1) PP
NPE coverage ratio 63.3% 57.2% 6.1 PP 63.3% 62.8% 0.6 PP
Assets 43,599 41,350 5.4% 43,599 41,422 5.3%
Total risk-weighted assets (RWA) 21,065 21,761 (3.2)% 21,065 21,505 (2.0)%
Equity 3,367 3,142 7.1% 3,367 3,336 0.9%
Loans to customers 29,615 29,022 2.0% 29,615 29,334 1.0%
Deposits from customers 32,617 30,399 7.3% 32,617 31,192 4.6%
Business outlets 378 391 (3.3)% 378 392 (3.6)%
Employees as at reporting date (full-
time equivalents) 9,299 9,895 (6.0)% 9,299 9,704 (4.2)%
Customers in million 2.8 2.6 6.1% 2.8 2.8 (0.2)%

20 Segment report
Segment performance
Profit after tax in the Central Europe segment fell € 127 million year-on-year to € 105 million, mainly due to higher impairment
losses resulting from COVID-19. The decrease in profit after tax amounted to € 67 million in the Czech Republic, € 31 million in
Hungary and € 21 million in Slovakia.
Operating income
Net interest income declined 1 per cent year-on-year, or € 6 million, to € 413 million. This mainly reflected a decrease of € 12
million in net interest income in the Czech Republic because of lower interest income from repo transactions and customer loans as
a result of changes in key interest rates. In contrast, in Hungary, higher lending volumes led to a € 4 million rise in net interest in-
come . In Slovakia, net interest income increased € 2 million, also due to higher volumes. The segment’s net interest margin de-
clined 13 basis points to 2.01 per cent, primarily driven by a reduction of 23 basis points in the margin in the Czech Republic.
Net fee and commission income decreased € 15 million year-on-year to € 203 million. Net fee and commission income in Slo-
vakia declined primarily as a result of a change in the segment allocation of a Group unit, while in Hungary ----- mainly as a result of
volume- and margin-related decreases in clearing, settlement and payment services and in the foreign exchange business ----- there
was a decline of € 6 million to € 68 million.
The net trading income and fair value result rose € 8 million year-on-year, mainly as a consequence of higher income from debt
securities and derivatives in Slovakia and Hungary.
Other net operating income improved € 17 million, largely due to the release of a provision for litigation in Slovakia (€ 18 million).
General administrative expenses decreased € 22 million year-on-year to € 330 million, primarily as a result of a change in the
segment allocation of a Group unit (down € 9 million) and lower staff and advertising expenses in Slovakia due to the COVID-19
pandemic.
The average number of employees in the segment fell 232 to 9,569, also due to a change in the segment allocation of a Group
unit (down 158) and developments in the Czech Republic (down 50). The cost/income ratio improved by 3.4 percentage points
year-on-year to 51.4 per cent.
Other result
The other result came to minus € 25 million, compared to a positive amount of € 1 million in the same period of the previous year.
The change was mainly driven by an increase of € 18 million in credit-linked and portfolio-based provisions for litigation related to
mortgage loans denominated in or linked to a foreign currency in Poland. The provision was adjusted in response to changes in
the statistical assumptions underlying the calculation model. In addition, net modification losses of € 8 million were booked in Hun-
gary and the Czech Republic due to COVID-19 measures. These related to customer loan payment holidays of six and nine
months decreed by government.
The expense for levies and special governmental measures rose € 16 million year-on-year to € 61 million. The increase of € 14
million in bank levies to € 41 million was caused by the doubling of the bank levy in Slovakia. At the end of June, the bank levy in
Slovakia was abolished for the second half of 2020. In Hungary, the € 13 million expense for the bank levy was booked in the
first quarter for the entire year, as in the previous year. Contributions to the resolution fund, which were largely recognized in full at
the start of the year, grew € 3 million to € 20 million. There were higher contributions in the Czech Republic, Slovakia and Hun-
gary.
Impairment losses on financial assets amounted to € 91 million in the reporting period, following a net release of € 33 million in
the comparable period of the previous year, with the majority of the allocations in the first half of the year being related to COVID-
19 impairments.
stage 2. The increase was mainly due to consideration of the worsening economic outlook resulting from the COVID-19 pandemic

Segment report 21
and the related impact on the respective industries and persons working within those industries among RBI customers. This included
impairments of € 28 million on loans to households, mainly in Poland (€ 12 million) and Slovakia (€ 7 million), as well as € 32 mil-
lion on loans to non-financial corporations, mainly in Slovakia (€ 13 million), Hungary (€ 9 million) and the Czech Republic
(€ 8 million). In stage 3 (defaulted loans), net impairments of € 34 million were allocated (previous year: net release of € 4 mil-
lion), of which € 26 million related to non-financial corporations, particularly in Slovakia (€ 16 million) and the Czech Republic
(€ 8 million), and € 8 million to households.
The NPE ratio was 2.1 per cent as at 30 June 2020 (down 0.4 percentage points year-on-year). The NPE coverage ratio im-
proved 6.1 percentage points to 63.3 per cent.
Income taxes
Income taxes decreased € 18 million year-on-year to € 29 million. Tax expense declined € 11 million in the Czech Republic and
€ 5 million in Slovakia due to lower earnings. The increase in the income tax rate of 5 percentage points to 22 per cent was
largely driven by Hungary.

22 Segment report
Detailed results of individual countries:
Poland Slovakia
1/1-30/6 1/1-30/6 1/1-30/6 1/1-30/6
1 1
in € million 2020 2019 2020 2019
Net interest income 8 7 147 145
Dividend income 0 0 0 0
Current income from investments in associates 0 0 2 2
Net fee and commission income 1 1 72 78
Net trading income and fair value result 0 1 9 2
Net gains/losses from hedge accounting 0 0 0 0
Other net operating income 0 (1) 20 1
Operating income 9 9 248 229
General administrative expenses (10) (10) (110) (126)
Operating result (1) (1) 138 102
Other result (18) (1) 0 0
Levies and special governmental measures (3) (3) (30) (16)
Impairment losses on financial assets (10) (15) (48) 0
Profit/loss before tax (31) (21) 60 86
Income taxes 0 (1) (12) (17)
Profit/loss after tax (31) (22) 48 68
Return on equity before tax – – 9.1% 14.2%

Return on equity after tax – – 7.3% 11.3%
Net interest margin (average interest-bearing assets) 0.53% 0.45% 2.10% 2.25%
Cost/income ratio – – 44.3% 55.2%
Loan/deposit ratio – – 96.7% 102.1%
Provisioning ratio (average loans to customers) 0.68% 0.99% 0.86% 0.01%
NPE ratio 7.4% 11.1% 1.7% 1.7%
NPE coverage ratio 70.7% 50.6% 68.9% 68.9%
Assets 2,920 3,197 14,939 13,930
Total risk-weighted assets (RWA) 3,491 3,872 6,271 6,158
Equity – – 1,355 1,277
Loans to customers 2,839 3,050 11,154 10,589
Deposits from customers 14 24 12,126 11,485
Business outlets 1 1 177 181
Employees as at reporting date (full-time equivalents) 232 218 3,728 4,034
Customers in million 0.0 0.0 1.0 0.9

Segment report 23
Czech Republic Hungary

1/1-30/6 1/1-30/6 1/1-30/6 1/1-30/6
in € million 2020 2019 2020 2019
Net trading income and fair value result (8) (3) 6 0
Net gains/losses from hedge accounting (1) 0 0 0
Other net operating income 11 16 (21) (24)
Operating result 110 137 58 46
Other result (4) 2 (4) 0
Levies and special governmental measures (11) (9) (17) (17)
Impairment losses on financial assets (26) 18 (8) 30
Profit/loss before tax 70 149 28 60
Income taxes (10) (21) (6) (7)
Profit/loss after tax 61 127 22 53
Return on equity before tax 9.7% 22.9% 8.4% 17.7%

Return on equity after tax 8.3% 19.6% 6.6% 15.7%
Cost/income ratio 55.4% 50.1% 55.6% 62.4%
Loan/deposit ratio 82.6% 89.1% 72.9% 76.8%
Provisioning ratio (average loans to customers) 0.45% (0.31)% 0.42% (1.72)%
NPE ratio 1.3% 1.3% 2.2% 2.5%
Assets 18,176 17,260 7,925 7,586
Equity 1,480 1,408 663 715
Deposits from customers 14,483 13,239 5,994 5,650
Employees as at reporting date (full-time equivalents) 3,252 3,434 2,078 2,199

24 Segment report
Southeastern Europe
1/1-30/6 1/1-30/6
1
Net interest income 430 425 1.2% 211 219 (3.4)%
Dividend income 3 7 (61.6)% 2 1 173.9%
Net fee and commission income 180 201 (10.8)% 83 97 (14.7)%
result 18 15 24.6% 10 8 32.2%
accounting 0 0 (90.0)% 0 0 –
Other net operating income 4 (5) – 2 2 (14.2)%
Operating income 634 642 (1.3)% 308 326 (5.5)%
Operating result 284 290 (2.0)% 136 148 (7.8)%
Other result (28) (6) 335.5% (17) (11) 50.6%
measures (18) (16) 12.3% (3) (15) (82.6)%
Impairment losses on financial assets (99) (12) >500.0% (48) (51) (6.2)%
Profit/loss before tax 139 256 (45.8)% 69 70 (2.0)%
Income taxes (24) (37) (35.8)% (13) (11) 17.1%
Profit/loss after tax 115 219 (47.4)% 56 59 (5.5)%
Return on equity before tax 8.4% 16.6% (8.2) PP 8.3% 8.5% (0.2) PP
Return on equity after tax 7.0% 14.2% (7.2) PP 6.8% 7.2% (0.4) PP
Cost/income ratio 55.3% 54.9% 0.3 PP 55.8% 54.7% 1.1 PP
customers) 1.24% 0.15% 1.09 PP 1.21% 1.27% (0.07) PP
NPE ratio 2.9% 3.3% (0.5) PP 2.9% 2.8% 0.1 PP
NPE coverage ratio 70.0% 64.5% 5.5 PP 70.0% 70.2% (0.2) PP
Assets 28,094 25,664 9.5% 28,094 28,000 0.3%
Total risk-weighted assets (RWA) 16,417 15,263 7.6% 16,417 16,521 (0.6)%
Equity 3,300 2,907 13.5% 3,300 3,276 0.8%
Loans to customers 15,998 15,091 6.0% 15,998 16,259 (1.6)%
Deposits from customers 22,582 20,288 11.3% 22,582 22,547 0.2%
Customers in million 5.4 5.3 1.7% 5.4 5.3 2.5%

Segment report 25
Segment performance
The Southeastern Europe segment’s profit after tax declined 47 per cent, or € 104 million, year-on-year to € 115 million. This was
principally due to an increase of € 87 million in risk costs, caused mainly by migration between Stage 1 and Stage 2 as a result
of COVID-19 (€ 78 million) and the increase of € 22 million in credit-related provisions for litigation on a portfolio basis in Roma-
nia and Croatia.
Operating income
Net interest income was up 1 per cent, or € 5 million, year-on-year to € 430 million. The strongest growth was seen in Romania,
which reported a volume-based increase of € 6 million. In Bulgaria, higher volumes were also responsible for a € 3 million rise in
net interest income. In Bosnia and Herzegovina, net interest income was down € 2 million, due to lower interest income from cus-
tomer loans. All other countries in the segment reported little change in net interest income. The segment’s net interest margin was
down 23 basis points to 3.38 per cent. This was attributable primarily to a reduction of 71 basis points in the margin in Serbia due
to changes in key interest rates.
Dividend income fell € 4 million to € 3 million due to lower payments in Bulgaria and Romania.
Net fee and commission income was down € 22 million year-on-year to € 180 million. Mainly as a result of COVID-19 measures,
Romania and Croatia reported reductions in fee and commission income of € 10 million and € 4 million, respectively, in clearing,
settlement and payment services, and foreign exchange business. Lower margins led to a fall of € 3 million in net fee and commis-
sion income in Bulgaria, primarily in clearing, settlement and payment services.
Net trading income and the fair value result increased € 4 million year-on-year to € 18 million. Decreases from bonds were more
than offset by higher income from derivatives and currency translation.
Other net operating income improved € 9 million to € 4 million, largely reflecting a provision recognized in the previous year for
litigation in connection with state subsidies for building society savings in Romania (€ 10 million).

General administrative expenses were down slightly by 1 per cent, or € 2 million, year-on-year to € 351 million. Staff expenses
were up 3 per cent, or € 4 million, to € 163 million, driven mainly by salary adjustments in Romania. Other administrative ex-
penses decreased € 9 million to € 129 million due to lower deposit insurance fees in Romania (down € 6 million). The average
number of employees fell 118 to 14,476, above all as a result of branch closures in Romania and optimization programs in Croa-
tia. The number of business outlets in the segment was down 28 year-on-year to 892, which primarily reflected closures in Roma-
nia. The cost/income ratio increased from 54.9 to 55.3 per cent.
Other result
The other result declined € 22 million to minus € 28 million. The main drivers were credit-linked and portfolio-based provisions for
litigation of € 25 million (up € 22 million). This included a further € 17 million added to the provision in Romania for proceedings
with the consumer protection authority regarding the alleged misuse of credit clauses. In Croatia, the provision recognized in con-
nection with Swiss franc loans was raised by € 8 million. In addition, net modification losses of € 3 million due to COVID-19
measures – a temporary deferral of payments until year-end 2020 – were recognized, above all in Romania.
Expenses for levies and special governmental measures rose € 2 million year-on-year to € 18 million. The increase resulted from
higher contributions to the resolution funds in Bulgaria and Romania.

26 Segment report
Impairment losses on financial assets amounted to € 99 million in the reporting period – predominantly COVID-19 related – com-
pared to € 12 million in the same period of the previous year.
Impairments of € 78 million were allocated in the first half of 2020 (increase of € 64 million) due to migration from stage 1 to
stage 2. Forward-looking information and forecasts relating to the COVID-19 pandemic impact on industries and persons working
in those industries in RBI’s customer portfolio were included. The impairments totaled € 53 million for loans to households, mainly in
Romania (€ 24 million), Bulgaria (€ 9 million) and Croatia (€ 8 million), as well as € 25 million for loans to non-financial corpora-
tions, again in Romania (€ 8 million) and Bulgaria (€ 6 million). In stage 3 (defaulted loans), there were net impairments of
€ 26 million allocated (previous year’s period: net release of € 8 million); of which € 41 million related to loans to households,
predominantly in Romania (€ 16 million), Croatia (€ 7 million), as well as in Bulgaria and Bosnia and Herzegovina (€ 6 million
each). In contrast, there was a net release totaling € 15 million for loans to non-financial corporations, of which € 5 million and
€ 4 million related to Romania and Bulgaria respectively.
The NPE ratio declined 0.5 percentage points year-on-year to 2.9 per cent. The NPE coverage ratio was up 5.5 percentage
points to 70.0 per cent.
Income taxes
Income taxes decreased € 13 million to € 24 million, mainly reflecting the lower result. In contrast, the tax rate increased 3 per-
centage points to 17 per cent as a result of non-deductible expenses in Romania and Bosnia and Herzegovina.

Segment report 27
Detailed results of individual countries:
Albania Bosnia and Herzegovina Bulgaria

1/1-30/6 1/1-30/6 1/1-30/6 1/1-30/6 1/1-30/6 1/1-30/6
in € million 2020 2019 2020 2019 2020 2019
Net interest income 27 29 32 34 58 55
Dividend income 0 0 1 1 2 3
Net fee and commission income 6 8 19 20 24 27
Net trading income and fair value result 4 1 1 1 1 1
Other net operating income (1) 1 0 0 0 2
Operating income 36 39 53 56 84 89
General administrative expenses (21) (22) (27) (27) (49) (47)
Operating result 15 18 26 29 34 42
Other result 0 0 0 0 0 0
measures (1) (1) 0 0 (9) (5)
Impairment losses on financial assets (5) 5 (11) (1) (19) 4
Profit/loss before tax 9 21 15 29 7 41
Income taxes (1) (3) (2) (2) (1) (4)
Profit/loss after tax 8 18 12 26 6 37
Return on equity before tax 7.9% 19.4% 9.9% 19.8% 3.0% 18.2%
Return on equity after tax 6.6% 16.6% 8.4% 18.2% 2.7% 16.5%
bearing assets) 3.10% 3.33% 3.02% 3.32% 2.56% 2.77%
Cost/income ratio 59.4% 54.9% 51.3% 48.0% 59.0% 52.8%
Loan/deposit ratio 49.0% 51.6% 73.6% 77.4% 76.4% 84.4%
customers) 1.28% (1.30)% 1.70% 0.09% 1.23% (0.33)%
NPE ratio 5.6% 6.1% 4.3% 3.5% 1.7% 1.9%
NPE coverage ratio 72.2% 74.1% 79.3% 81.7% 63.2% 69.3%
Assets 1,828 1,815 2,472 2,437 4,871 4,235
Total risk-weighted assets (RWA) 1,353 1,320 2,022 1,908 2,593 2,322
Equity 234 241 307 287 470 438
Loans to customers 741 753 1,338 1,351 3,003 2,781
Deposits from customers 1,561 1,517 1,960 1,856 3,982 3,337
Business outlets 78 78 103 103 147 147
Employees as at reporting date (full-time
equivalents) 1,238 1,248 1,296 1,376 2,612 2,622
Customers in million 0.5 0.4 0.4 0.4 0.6 0.6

28 Segment report
Croatia Romania Serbia

1/1-30/6 1/1-30/6 1/1-30/6 1/1-30/6 1/1-30/6 1/1-30/6
1 1
in € million 2020 2019 2020 2019 2020 2019
Net trading income and fair value result (3) 3 12 4 4 4
Other net operating income 2 2 (3) (13) 5 2
Other result (7) (5) (21) (2) 0 0
measures (2) (2) (6) (4) 0 (3)
Income taxes (2) (8) (12) (14) (4) (4)
bearing assets) 2.59% 2.73% 4.24% 4.42% 3.17% 3.88%
customers) 1.08% (0.25)% 1.28% 0.87% 0.91% (0.31)%
NPE ratio 3.1% 4.0% 2.9% 3.5% 1.7% 2.1%
Assets 5,082 4,820 9,695 8,762 3,096 2,609
Equity 664 655 1,052 889 552 496
Loans to customers 2,725 2,442 5,748 5,691 1,730 1,398
equivalents) 1,853 1,861 5,047 5,008 1,556 1,571

Segment report 29
Eastern Europe
1/1-30/6 1/1-30/6
Net interest income 576 531 8.5% 278 298 (6.8)%
Dividend income 0 1 (97.4)% 0 0 >500.0%
Net fee and commission income 247 240 2.9% 118 129 (8.7)%
result 38 28 35.3% 8 30 (74.3)%
accounting 0 0 – 0 0 –
Other net operating income (8) 3 – (5) (3) 100.7%
Operating income 852 803 6.1% 398 454 (12.5)%
General administrative expenses (329) (329) 0.0% (155) (174) (11.1)%
Operating result 523 474 10.3% 243 280 (13.4)%
Other result (10) 1 – (8) (2) 331.4%
Impairment losses on financial assets (85) (12) >500.0% (59) (26) 122.9%
Profit/loss before tax 428 462 (7.4)% 176 252 (30.1)%
Income taxes (90) (97) (7.7)% (37) (53) (29.2)%
Profit/loss after tax 338 365 (7.4)% 139 199 (30.3)%
Return on equity before tax 28.1% 35.5% (7.4) PP 23.1% 32.6% (9.5) PP
Return on equity after tax 22.2% 28.0% (5.8) PP 18.2% 25.8% (7.6) PP
Cost/income ratio 38.6% 41.0% (2.4) PP 39.0% 38.4% 0.6 PP
Loan/deposit ratio 79.2% 84.9% (5.7) PP 79.2% 76.1% 3.1 PP
customers) 1.25% 0.18% 1.07 PP 1.83% 0.75% 1.08 PP
NPE ratio 2.4% 2.5% 0.0 PP 2.4% 2.1% 0.3 PP
NPE coverage ratio 57.5% 58.7% (1.2) PP 57.5% 55.6% 1.9 PP
Assets 21,625 20,996 3.0% 21,625 21,987 (1.6)%
Total risk-weighted assets (RWA) 14,326 14,003 2.3% 14,326 13,489 6.2%
Equity 2,961 2,603 13.8% 2,961 2,772 6.8%
Loans to customers 13,219 13,261 (0.3)% 13,219 12,756 3.6%
Deposits from customers 16,779 15,843 5.9% 16,779 17,105 (1.9)%

30 Segment report
Segment performance
The segment’s profit after tax declined € 27 million, or 7 per cent, year-on-year to € 338 million. While operating income was up,
largely as a result of a volume-related increase in interest income, the other result was lower and increased impairment losses on
financial assets were recognized due to COVID-19. As in the previous year, the Eastern Europe segment was affected by currency
volatility in the reporting period. The average exchange rate of the Ukrainian hryvnia appreciated 6 per cent, while the Belarusian
ruble and Russian ruble depreciated 7 per cent and 4 per cent respectively. In contrast, the reporting date exchange rates were
down compared to the beginning of 2020 due to reductions in key interest rates and oil price volatility (Belarusian ruble
15 per cent, Russian ruble 14 per cent, Ukrainian hryvnia 12 per cent).
Operating income
Net interest income in the Eastern Europe segment increased 8 per cent, or € 45 million, year-on-year to € 576 million. The largest
rise was reported in Russia (up € 34 million), reflecting lower interest rate expenses for the refinancing of the trading portfolio and
higher lending volumes. In Ukraine, net interest income was also up € 13 million as a result of higher volumes of loans to house-
holds, as well as currency movements. In Belarus, net interest income fell € 2 million due to higher refinancing costs in local cur-
rency. The segment’s net interest margin declined 24 basis points year-on-year to 5.52 per cent, reflecting the negative margin
development in Ukraine as a result of numerous interest rate cuts.
Net fee and commission income was likewise up 3 per cent, or € 7 million, to € 247 million. In Russia, higher volumes in asset
management were largely responsible for the increase of € 9 million to € 175 million. Belarus also reported a volume-based rise
of € 2 million in foreign exchange business to € 29 million, while Ukraine posted a decline, largely as a result of a change in the
segment allocation of a Group unit.
The net trading income and fair value result also rose from € 28 million in the comparable period of the previous year to € 38 mil-
lion in the reporting period. Belarus and Ukraine reported increases of € 5 million and € 3 million, respectively, above all due to a
higher net gain on currency translation.
Other net operating income was down € 11 million to minus € 8 million, reflecting provisions for litigation in Russia and derecogni-
tion of financial assets in the comparable period of the previous year.
The segment’s general administrative expenses were unchanged year-on-year at € 329 million. The average number of employees
decreased 734 to 18,028, which was driven mainly by branch closures in Ukraine (down 46) and Russia (down 32). In addition,
the change in the segment allocation of a Group unit led to a decline in the average number of employees (down 276). Staff
expenses were up 6 per cent, or € 12 million, to € 194 million due to salary adjustments in Russia and Ukraine. Other administra-
tive expenses declined 8 per cent, or € 8 million, to € 94 million. Lower deposit insurance fees in Russia (€ 6 million) as a conse-
quence of governmental support measures in connection with the COVID-19 pandemic were mainly responsible for the decrease.
Depreciation was down from € 45 million to € 41 million. The cost/income ratio improved from 41.0 per cent to 38.6 per cent.
Other result
The other result was minus € 10 million in the reporting period (comparable period of the prior year: € 1 million). This was due
primarily to the effects of modifications to contractual terms (€ 9 million), of which Ukraine accounted for € 7 million in connection
with COVID-19 measures (€ 3 million, mainly for households) and restructuring measures for several large corporate customers.
Impairment losses on financial assets amounted to € 85 million in the reporting period – predominantly COVID-19 related – com-
pared to a very low level of € 12 million in the previous year’s period.
stage 2. The increase was mainly due to consideration of the worsening macroeconomic outlook. Impairments on loans to house-
holds amounted to € 32 million, mainly in Russia (€ 27 million), and to € 13 million on loans to non-financial corporations, of
which € 6 million was in Russia and € 4 million in Belarus. In stage 3 (defaulted loans), there were net impairments of € 55 million
(previous year’s period: € 5 million), of which € 39 million related to loans to households, predominantly in Russia (€ 36 million),
and € 15 million related to loans to non-financial corporations, with Russia contributing € 16 million and Ukraine a net release of
€ 2 million.

Segment report 31
The NPE ratio was 2.4 per cent as at 30 June 2020. The NPE coverage ratio declined by 1.2 percentage points year-on-year to
57.5 per cent.
Income taxes
Income taxes were down € 7 million to € 90 million due to lower profit, while the tax rate remained constant at 21 per cent.

32 Segment report
Detailed results of the individual countries:
Belarus Russia Ukraine

1/1-30/6 1/1-30/6 1/1-30/6 1/1-30/6 1/1-30/6 1/1-30/6
in € million 2020 2019 2020 2019 2020 2019
Net trading income and fair value result 6 1 24 22 8 5
Net gains/losses from hedge accounting 0 0 0 0 0 0
Other net operating income (1) (2) (8) 3 1 2
Other result 0 0 (2) (1) (7) 2
Income taxes (8) (10) (66) (70) (16) (18)
bearing assets) 4.75% 5.65% 4.94% 5.00% 9.40% 11.11%
customers) 2.30% (0.14)% 1.16% 0.38% 1.02% (0.79)%
NPE ratio 1.6% 2.0% 2.2% 1.9% 4.1% 6.6%
Assets 2,133 1,986 16,243 16,434 3,251 2,579
Equity 343 390 2,451 2,193 506 384
Loans to customers 1,254 1,218 10,475 10,454 1,490 1,590
equivalents) 1,723 1,768 8,970 9,083 7,235 7,810

Segment report 33
Group Corporates & Markets

1/1-30/6 1/1-30/6
1
Net interest income 311 295 5.4% 160 151 5.7%
Dividend income 7 14 (51.4)% 5 2 134.7%
associates 2 0 >500.0% 1 2 (58.6)%
Net fee and commission income 200 180 11.0% 96 104 (8.3)%
result 46 0 – 59 (13) –
accounting (2) 1 – (1) (1) (30.5)%
Other net operating income 47 59 (20.5)% 20 27 (25.8)%
Operating income 611 549 11.3% 339 272 24.6%
Operating result 274 206 33.2% 172 102 68.3%
Other result (5) 3 – (3) (1) 159.4%
measures (13) (10) 20.1% (5) (7) (24.6)%
Impairment losses on financial assets (33) (21) 55.3% (8) (25) (67.6)%
Profit/loss before tax 225 178 26.5% 155 69 124.8%
Income taxes (51) (37) 39.0% (36) (15) 140.7%
Profit/loss after tax 174 141 23.3% 119 54 120.4%
Return on equity before tax 13.3% 12.5% 0.8 PP 18.4% 8.2% 10.2 PP
Return on equity after tax 10.3% 9.9% 0.4 PP 14.1% 6.5% 7.7 PP
bearing assets) 1.16% 1.28% (0.11) PP 1.16% 1.17% 0.00 PP
Cost/income ratio 55.1% 62.5% (7.4) PP 49.3% 62.5% (13.2) PP
customers) 0.21% 0.35% (0.14) PP 0.10% 0.32% (0.22) PP
NPE ratio 1.6% 1.9% (0.4) PP 1.6% 1.7% (0.1) PP
NPE coverage ratio 60.6% 55.9% 4.7 PP 60.6% 58.6% 2.0 PP
Assets 61,256 53,454 14.6% 61,256 56,228 8.9%
Total risk-weighted assets (RWA) 27,841 23,037 20.9% 27,841 26,215 6.2%
Equity 3,419 3,029 12.9% 3,419 3,413 0.2%
Loans to customers 33,611 28,841 16.5% 33,611 31,766 5.8%
Deposits from customers 28,192 23,466 20.1% 28,192 29,054 (3.0)%
Business outlets 22 23 (4.3)% 22 22 0.0%
time equivalents) 3,048 2,877 5.9% 3,048 2,995 1.8%
Customers in million 2.0 2.0 (1.7)% 2.0 2.0 (0.4)%

34 Segment report
Segment performance
Profit in the Group Corporates & Markets segment rose € 33 million year-on-year to € 174 million. Operating income was up
€ 62 million, while taxes increased € 14 million and impairment losses on financial assets rose € 12 million due to COVID-19.
The Group Corporates & Markets segment encompasses RBI’s operating business booked in Austria. The contributions to profit
come from the corporate customer and markets business of head office, with further significant contributions from the Austrian spe-
cialized financial institution subsidiaries.
Main profit contributions by sub-segment:
1/1-30/6 1/1-30/6
Corporates Vienna 89 75 18.8% 49 40 20.9%
Markets Vienna 45 41 10.3% 46 (1) –
Specialized financial institution
subsidiaries and other 40 25 57.9% 25 15 69.8%
Profit/loss after tax 174 141 23.3% 119 54 120.4%
Operating income
Net interest income was up 5 per cent, or € 16 million, year-on-year to € 311 million, mainly due to a volume-related increase in
long-term lending in the Corporates Vienna sub-segment. The segment’s net interest margin decreased 11 basis points to
1.16 per cent as a consequence of lower market interest rates combined with an increase in average interest-bearing assets.
Dividend income decreased € 7 million, mainly due to higher dividend payments in the previous year’s period from unconsoli-
dated subsidiaries and associates not valued at equity.
Net fee and commission income increased 11 per cent, or € 20 million, to € 200 million. Higher fee and commission income was
recorded at head office primarily in cash management and corporate lending, in the institutional investor business and in invest-
ment banking. There was also a volume-related increase in income from investment fund management.
The net trading income and fair value result improved € 47 million year-on-year. This included a € 41 million valuation gain from a
building society portfolio that had generated a loss in the comparable period. Results from fixed income securities trading also
increased. Improved results were generated in proprietary trading as a result of higher volatility because of COVID-19.
Other net operating income decreased € 12 million to € 47 million, partly due to higher income from residential construction in
the Raiffeisen Leasing Group and to the sale of Schuldschein loans in the previous year’s period.
General administrative expenses dropped 2 per cent, or € 6 million, to € 337 million, mainly as a result of lower IT expenses at
head office. It was also driven by lower advertising expenses, security expenses and travel expenses at head office, principally
because of the COVID-19 pandemic. Due to increased operating income, the segment’s cost/income ratio improved to
55.1 per cent.
Other result
The other result came to minus € 5 million in the reporting period, compared to a positive figure of € 3 million in the comparable
period. This was mainly due to a € 6 million positive result from the disposal of Group assets in the previous year’s period.

Segment report 35
Impairment losses on financial assets increased € 12 million year-on-year to € 33 million. The higher risk costs mainly occurred at
head office. Impairments of € 19 million were allocated in the first half of 2020 due to migration from stage 1 to stage 2. In stage
3, impairments totaling € 27 million resulted from the default of some corporate customers.
The NPE ratio was 1.6 per cent as at 30 June 2020; the NPE coverage ratio stood at 60.6 per cent.
Income taxes
Tax expense rose € 14 million in the reporting period to € 51 million. The tax rate was 23 per cent (comparable period: 21 per-
cent).

36 Segment report
Corporate Center
1/1-30/6 1/1-30/6
1
Net interest income (37) (30) 21.2% (29) (8) 260.8%
Dividend income 93 689 (86.5)% 75 18 317.0%
associates 17 34 (48.7)% 30 (12) –
Net fee and commission income 13 1 >500.0% 3 10 (72.9)%
result (37) (63) (41.5)% (21) (16) 29.9%
accounting 0 5 – (3) 3 –
Other net operating income 53 39 36.2% 32 21 55.1%
Operating income 103 674 (84.7)% 87 16 461.4%
General administrative expenses (194) (184) 5.9% (102) (92) 10.9%
Operating result (91) 491 – (15) (77) (80.8)%
Other result (122) 3 – (66) (56) 17.0%
measures (74) (59) 25.8% (15) (59) (74.4)%
Impairment losses on financial assets (2) (3) (25.4)% (1) (1) (11.3)%
Profit/loss before tax (291) 432 – (97) (194) (49.9)%
Income taxes 47 27 77.6% 32 16 102.0%
Profit/loss after tax (243) 458 – (65) (178) (63.2)%
Assets 36,141 33,375 8.3% 36,141 36,352 (0.6)%

Total risk-weighted assets (RWA) 13,143 14,455 (9.1)% 13,143 13,361 (1.6)%
Equity 6,790 6,481 4.8% 6,790 6,757 0.5%
Loans to customers 3,809 4,756 (19.9)% 3,809 4,537 (16.0)%
Deposits from customers 2,203 4,077 (46.0)% 2,203 1,317 67.3%
Business outlets – – – – – –
time equivalents) 1,663 1,206 37.9% 1,663 1,597 4.1%

Segment report 37
Segment performance
This segment essentially comprises net income from the Group head office’s management functions and other Group units. Its re-
sults are therefore generally more volatile, with the vast majority relating to intra-Group transactions and consequently having no
impact on consolidated profit. The € 712 million profit decrease in the reporting period mainly related to higher intra-Group divi-
dend income in the comparable period and to impairments on associates.
Operating income
The segment’s net interest income decreased € 6 million year-on-year to minus € 37 million. The reduction was due in particular to
lower investment income from excess liquidity and lower income from intra-Group lending.
Dividend income, which comes mainly from Group units belonging to other segments and which is therefore of an intra-Group na-
ture, decreased € 596 million to € 93 million. To strengthen the equity base of credit and financial institutions in connection with
COVID-19, restrictions on dividend distributions have been introduced in many countries either through recommendations issued
by supervisory authorities or by law.
Current income from investments in associates was down € 16 million to € 17 million. The decrease mainly relates to proceeds
from a sale at Raiffeisen Informatik GmbH & Co KG in the previous year’s period.
Net fee and commission income improved € 12 million to € 13 million, primarily because of a change in the segment allocation
of several Group units.
Net trading income and the fair value result likewise improved € 26 million year-on-year to minus € 37 million, mostly driven by
changes in the valuation of derivatives.
Other net operating income increased € 14 million to € 53 million due to the change in the segment allocation of several Group
units.
General administrative expenses increased 6 per cent, or € 11 million, to € 194 million. This was mainly attributable to a € 7 mil-
lion increase in other administrative expenses and a € 3 million increase in staff expenses, primarily caused by the change in the
segment allocation of several Group units.
Other result
The other result declined € 136 million year-on-year to minus € 122 million. This was mainly due to impairments on associates in
the amount of € 78 million (an increase of € 71 million), largely relating to the investments in UNIQA Insurance Group AG,
LEIPNIK-LUNDENBURGER INVEST Beteiligungs AG and Prva stavebna sporitelna a.s., mainly because of the poorer economic
outlook due to COVID-19. In addition, it was necessary to recognize a € 27 million goodwill impairment on Raiffeisen Kapitalan-
lage-Gesellschaft, with the revision of the medium-term plan due to the COVID-19 pandemic leading to a partial reduction in
goodwill.
Levies and expenses from special governmental measures
The expense for levies and special governmental measures reported in the segment increased € 15 million to € 74 million. At
€ 44 million, the expenses for bank levies remained almost unchanged compared to the same period of the previous year. The
last installment of the € 163 million one-off payment for the Austrian bank levy, which was spread over four years, was paid in the
reporting period. The one-off payment (€ 41 million in the reporting period) is allocated to the Corporate Center segment. In ac-
cordance with accounting standards, the expenses for bank levies for the entire year were booked in the first quarter. The head
office contributions to the resolution fund allocated to the segment amounted to € 30 million.
Income taxes
Tax income of € 47 million was posted in the reporting period, compared to income of € 27 million in the same period of the pre-
vious year.

38 Interim consolidated financial statements
Interim consolidated financial

statements
(Condensed interim report as at 30 June 2020)
Company
Raiffeisen Bank International AG (RBI AG) is registered in the commercial register of the Commercial Court of Vienna under FN
122119m. Its address is Am Stadtpark 9, 1030 Vienna.
RBI’s home market consists of Austria, where it does business as a leading commercial and investment bank, as well as Central
and Eastern Europe (CEE). Subsidiary banks cover 13 markets in the region. The Group also contains many other financial service
companies specializing in sectors such as leasing, clearing, settlement and payment services and asset management. In total, RBI’s
46,386 employees serve about 16.7 million clients at 1,982 business outlets located mostly in CEE.
Since the company’s shares are traded on a regulated market as defined in Section 1 (2) of the Austrian Stock Market Act
(BörseG) (prime market of the Vienna Stock Exchange) and numerous RBI AG issues are listed on a regulated market in the EU,
RBI AG is required by Section 59a of the Austrian Banking Act (BWG) to prepare consolidated financial statements in accord-
ance with the International Financial Reporting Standards (IFRSs). The eight regional Raiffeisen banks are core shareholders that
collectively hold approximately 58.8 per cent of the shares, with the remaining shares in free float.
As a credit institution within the meaning of Section 1 of the Austrian Banking Act, RBI AG is subject to regulatory supervision by
the Financial Market Authority located at Otto-Wagner-Platz 5, A-1090 Vienna (www.fma.gv.at) and the European Central Bank
located at Sonnemannstraße 22, D-60314 Frankfurt am Main (www.bankingsupervision.europa.eu).
The condensed interim report as at 30 June 2020 was reviewed by the certified auditor KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft.

Interim consolidated financial statements 39
Statement of comprehensive income

Income statement
1
in € million Notes 1/1-30/6/2020 1/1-30/6/2019
Net interest income [1] 1,706 1,664
Interest income according to effective interest method 2,079 2,148
Interest income other 335 324
Interest expenses (707) (807)
Dividend income [2] 15 24
Current income from investments in associates [3] 22 37
Net fee and commission income [4] 840 839
Fee and commission income 1,222 1,220
Fee and commission expenses (382) (381)
Net trading income and fair value result [5] 62 (79)
Net gains/losses from hedge accounting [6] 4 0
Other net operating income [7] 42 21
Operating income 2,690 2,506
Staff expenses (808) (789)
Other administrative expenses (476) (524)
Depreciation (190) (184)
General administrative expenses [8] (1,474) (1,497)
Operating result 1,216 1,009
Other result [9] (173) (33)
Levies and special governmental measures [10] (166) (130)
Impairment losses on financial assets [11] (312) (12)
Profit/loss before tax 566 834
Income taxes [12] (145) (191)
Profit/loss after tax 420 643
Profit attributable to non-controlling interests (52) (72)
Consolidated profit/loss 368 571
Earnings per share
in € million 1/1-30/6/2020 1/1-30/6/2019

Consolidated profit/loss 368 571
Dividend claim on additional tier 1 (31) (31)
Profit/loss attributable to ordinary shares 337 540
Average number of ordinary shares outstanding in million 329 329
Earnings per share in € 1.03 1.64
As there were no conversion rights or options outstanding, a dilution of earnings per share did not occur. The dividend on addi-
tional tier 1 capital is calculated; the effective payment is based on the decision of the Board at the respective payment date.

Other comprehensive income and total comprehensive income
in € million Notes 1/1-30/6/2020 1/1-30/6/2019

Profit/loss after tax 420 643
Items which are not reclassified to profit or loss 16 (10)
Remeasurements of defined benefit plans [28] 7 (11)
Fair value changes of equity instruments [15] (11) 14
Fair value changes due to changes in credit risk of financial liabilities [25] 33 (18)
Share of other comprehensive income from companies valued at equity [20] (13) 8
Deferred taxes on items which are not reclassified to profit or loss [22, 29] 1 (3)
Items that may be reclassified subsequently to profit or loss (535) 248
Exchange differences (591) 250
Hedge of net investments in foreign operations [19, 27] 72 (40)
Adaptions to the cash flow hedge reserve [19, 27] 2 5
Fair value changes of financial assets [15] (19) 36
Share of other comprehensive income from companies valued at equity [20] (1) 1
Deferred taxes on items which may be reclassified to profit or loss [22, 29] 1 (5)
Other comprehensive income (519) 238
Total comprehensive income (99) 881
Profit attributable to non-controlling interests (13) (86)
hereof income statement (52) (72)
hereof other comprehensive income 39 (14)
Profit/loss attributable to owners of the parent (112) 795
Currency developments have had a negative effect of € 591 million on total comprehensive income since the beginning of the
year. The devaluation of the Russian ruble of 14 per cent led to a negative contribution of € 316 million, the Czech koruna of
5 per cent led to minus € 83 million, the Ukrainian hryvnia of 12 per cent to minus € 61 million, the Hungarian forint of 8 per cent
to minus € 55 million and the Belarusian ruble of 15 per cent to minus € 51 million. Set against this was a hedge of net invest-
ments mostly in the Russian subsidiary bank, which resulted in a positive valuation result of € 72 million.

Statement of financial position

Assets
in € million Notes 30/6/2020 31/12/2019
Cash, cash balances at central banks and other demand deposits [13] 30,481 24,289
Financial assets - amortized cost [14] 116,328 110,285
Financial assets - fair value through other comprehensive income [15, 32] 5,233 4,781
Non-trading financial assets - mandatorily fair value through profit/loss [16, 32] 810 776
Financial assets - designated fair value through profit/loss [17, 32] 941 2,276
Financial assets - held for trading [18, 32] 4,675 4,182
Hedge accounting [19] 565 397
Investments in subsidiaries and associates [20] 936 1,107
Tangible fixed assets [21] 1,782 1,829
Intangible fixed assets [21] 719 757
Current tax assets [22] 130 61
Deferred tax assets [22] 90 144
Other assets [23] 1,071 1,315
Total 163,761 152,200
Equity and liabilities

in € million Notes 30/6/2020 31/12/2019
Financial liabilities - amortized cost [24] 139,641 128,764
Financial liabilities - designated fair value through profit/loss [25, 32] 1,655 1,843
Financial liabilities - held for trading [26, 32] 6,042 5,789
Hedge accounting [27] 519 246
Provisions for liabilities and charges [28] 1,013 1,083
Current tax liabilities [29] 28 31
Deferred tax liabilities [29] 44 38
Other liabilities [30] 1,164 641
Equity [31] 13,655 13,765
Consolidated equity 11,708 11,817
Non-controlling interests 816 811
Additional tier 1 1,131 1,137
Total 163,761 152,200

Statement of changes in equity

Cumulative
Sub- other Consoli- Non-
scribed Capital Retained comprehensive dated controlling Additional
in € million capital reserves earnings income equity interests tier 1 Total
Equity as at 1/1/2020 1,002 4,992 8,443 (2,620) 11,817 811 1,137 13,765
Allocation dividend - AT1 0 0 (31) 0 (31) 0 31 0
Dividend payments 0 0 0 0 0 (6) (31) (37)
Own shares 0 0 0 0 0 0 (5) (5)
Other changes 0 0 33 0 33 (2) 0 31
Total comprehensive income 0 0 368 (480) (112) 13 0 (99)
Equity as at 30/6/2020 1,002 4,992 8,814 (3,100) 11,708 816 1,131 13,655
Cumulative
Sub- other Consoli- Non-
scribed Capital Retained comprehensive dated controlling Additional
in € million capital reserves earnings income equity interests tier 1 Total
Equity as at 1/1/2019 1,002 4,992 7,587 (2,994) 10,587 701 1,125 12,413
Allocation dividend - AT1 0 0 (31) 0 (31) 0 31 0
Dividend payments 0 0 (306) 0 (306) (56) (31) (394)
Own shares 0 0 0 0 0 0 11 11
Other changes 0 0 7 0 8 1 0 8
Total comprehensive income 0 0 571 224 795 86 0 881
Equity as at 30/6/2019 1,002 4,992 7,829 (2,770) 11,053 731 1,136 12,920

Statement of cash flows

2
in € million Notes 1/1-30/6/2020 1/1-30/6/2019
Cash, cash balances at central banks and other demand deposits as at 1/1 [13] 24,289 22,557
Operating activities:
Profit/loss before tax 566 834
Adjustments for the reconciliation of profit/loss after tax to the
cash flow from operating activities:
Depreciation, amortization, impairment and reversal of impairment
on non-financial assets [8, 9] 218 186
Net provisioning for liabilities and charges and impairment losses
on financial assets [7, 11] 342 24
Gains/losses from the measurement and derecognition of assets
and liabilities [9] (42) 350
Income from investments in associates [3] (22) (37)
Other adjustments (net) 1
(1,567) (1,560)
Subtotal (505) (202)
Changes in assets and liabilities arising from operating activities
after corrections for non-cash positions:
Financial assets - amortized cost [14] (4,689) (5,043)
Financial assets - fair value through other comprehensive income [15, 32] (555) 998
Non-trading financial assets - mandatorily fair value through
profit/loss [16, 32] (103) 28
Financial assets - designated fair value through profit/loss [17, 32] 1,315 (67)
Financial assets - held for trading [18, 32] (72) 87
Other assets [23] 198 (108)
Financial liabilities - amortized cost [24] 13,095 5,649
Financial liabilities - designated fair value through profit/loss [25, 32] (103) (51)
Financial liabilities - held for trading [26, 32] 181 198
Provisions for liabilities and charges [28] (122) (120)
Other liabilities [30] 112 (6)
Interest received [1] 2,368 2,151
Interest paid [1] (728) (722)
Dividends received [2] 72 64
Income taxes paid [12] (166) (216)
Net cash from operating activities 10,297 2,640
1 Other (net) adjustments mainly include the deduction of net interest income and dividend income; the corresponding cash flows are shown under the items interest received, interest
paid and dividends received.
2 Previous-year figures adapted due to changed allocation

1
in € million 1/1-30/6/2020 1/1-30/6/2019
Investing activities:
Cash and cash equivalents from disposal of subsidiaries (1) (26)
Payments for purchase of:
Investment securities and shares [14, 15, 16, 17, 20] (5,324) (3,082)
Tangible and intangible fixed assets [21] (156) (188)
Subsidiaries 0 0
Proceeds from sale of:
Investment securities and shares [14, 15, 16, 17, 20] 1,431 1,818
Tangible and intangible fixed assets [21] 61 38
Subsidiaries [9] 0 0
Net cash from investing activities (3,989) (1,440)
Financing activities:
Capital increases/decreases (5) 11
Inflows subordinated financial liabilities [24, 25] 496 8
Outflows subordinated financial liabilities [24, 25] (310) (225)
Dividend payments (37) (394)
Net cash from financing activities 144 (600)
Effect of exchange rate changes (261) 108
Cash, cash balances at central banks and other demand deposits as at 30/6 30,481 23,265
1 Previous-year figures adapted due to changed allocation

Segment reporting
As a rule, internal management reporting at RBI is based on the current organizational structure. This matrix structure means that
each member of the Management Board is responsible both for individual countries and for specific business activities (country
and functional responsibility model). A cash generating unit within the Group is a country. The presentation of the countries in-
cludes not only subsidiary banks, but all operating units of RBI in the respective countries (such as leasing companies). Accord-
ingly, the RBI management bodies – Management Board and Supervisory Board – make key decisions that determine the
resources allocated to any given segment based on its financial strength and profitability, which is why these reporting criteria are
an essential component in the decision-making process. Thus, the division into segments was also undertaken in accordance with
IFRS 8. The reconciliation contains mainly the amounts resulting from the elimination of intra-group results and consolidation be-
tween the segments.
This results in the following segments:
 Central Europe: Czech Republic, Hungary, Poland, Slovakia, and Slovenia

 Southeastern Europe: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Romania, and Serbia
 Eastern Europe: Belarus, Russia and Ukraine
 Group Corporates & Markets (business booked in Austria): Operating business at head office divided into subsegments: Aus-
trian and international corporate customers, Markets, Financial Institutions & Sovereigns, business with the Raiffeisen Banking
Group (RBG), as well as specialized financial institution subsidiaries, e.g. Raiffeisen Centrobank AG, Kathrein Privatbank Ak-
tiengesellschaft, Raiffeisen Leasing Group, Raiffeisen Factor Bank AG, Raiffeisen Bausparkasse Österreich Gesellschaft mbH,
Valida Group (pension fund business) and Raiffeisen Kapitalanlage-Gesellschaft mit beschränkter Haftung. Furthermore, com-
panies with banking activities valued at equity are allocated to this segment.
 Corporate Center: Central group management functions at head office (e.g. treasury) and other group units (participation com-
panies and joint service companies), minority interests as well as companies with non-banking activities valued at equity.
The following changes to the segmentation were applied from the first quarter 2020, in order to align the segments more closely
with internal management:
 Joint service providers have been allocated to the Corporate Center segment. These were previously allocated to
the regional segments.
 Furthermore, the following companies valued at equity have been allocated to the Group Corporates & Markets
segment: NOTARTREUHANDBANK AG, Oesterreichische Kontrollbank AG, EMCOM Beteiligungs GmbH,
Posojilnica Bank e-Gen. These were previously allocated to the Corporate Center segment.
These effects have not been adapted in the prior periods due to immateriality.
As of the first quarter 2020, the calculation of equity in the segments is based on the equity shown in the statement of financial
position. Previously, equity was calculated according to regulatory capital requirements. The prior periods (equity as well as return
on equity) have been adapted accordingly.

Segment performance
1/1-30/6/2020 Central Southeastern Eastern Group Corporates

in € million Europe Europe Europe & Markets
Net gains/losses from hedge accounting 0 0 0 (2)
Other net operating income 14 4 (8) 47
Other result (25) (28) (10) (5)
Levies and special governmental measures (61) (18) 0 (13)
Impairment losses on financial assets (91) (99) (85) (33)
Income taxes (29) (24) (90) (51)
Profit attributable to non-controlling interests (24) 0 (25) (4)
Profit/loss after deduction of non-controlling interests 81 115 313 170

Provisioning ratio (average loans to customers) 0.62% 1.24% 1.25% 0.21%
NPE ratio 2.1% 2.9% 2.4% 1.6%
Assets 43,599 28,094 21,625 61,256
Equity 3,367 3,300 2,961 3,419

1/1-30/6/2020
in € million Corporate Center Reconciliation Total
Net interest income (37) 12 1,706
Dividend income 93 (91) 15
Current income from investments in associates 17 1 22
Net fee and commission income 13 (1) 840
Net trading income and fair value result (37) (10) 62
Net gains/losses from hedge accounting 0 7 4
Other net operating income 53 (68) 42
Operating income 103 (151) 2,690
General administrative expenses (194) 67 (1,474)
Operating result (91) (84) 1,216
Other result (122) 17 (173)
Levies and special governmental measures (74) 0 (166)
Impairment losses on financial assets (2) (1) (312)
Profit/loss before tax (291) (68) 566
Income taxes 47 1 (145)
Profit/loss after tax (243) (67) 420
Profit attributable to non-controlling interests 0 0 (52)
Profit/loss after deduction of non-controlling interests (243) (67) 368
Return on equity before tax – – 8.4%

Return on equity after tax – – 6.3%
Net interest margin (average interest-bearing assets) – – 2.31%
Cost/income ratio – – 54.8%
Loan/deposit ratio – – 94.9%
Provisioning ratio (average loans to customers) – – 0.67%
NPE ratio – – 1.9%
NPE coverage ratio – – 63.3%
Assets 36,141 (26,953) 163,761
Total risk-weighted assets (RWA) 13,143 (12,302) 80,490
Equity 6,790 (6,182) 13,655
Loans to customers 3,809 (2,376) 93,876
Deposits from customers 2,203 (3,687) 98,686
Business outlets – – 1,982
Employees as at reporting date (full-time equivalents) 1,663 – 46,386
Customers in million 0.0 – 16.7

1/1-30/6/2019 Central Southeastern Eastern Group Corporates

Net gains/losses from hedge accounting 0 0 0 1
Other net operating income (3) (5) 3 59
Other result 1 (6) 1 3
Levies and special governmental measures (45) (16) 0 (10)
Impairment losses on financial assets 33 (12) (12) (21)
Income taxes (47) (37) (97) (37)
Profit attributable to non-controlling interests (39) 4 (28) (2)
Profit/loss after deduction of non-controlling interests 192 223 337 139

Provisioning ratio (average loans to customers) (0.23)% 0.15% 0.18% 0.35%
NPE ratio 2.5% 3.3% 2.5% 1.9%
Assets 41,350 25,664 20,996 53,454
Equity 3,142 2,907 2,603 3,029
Previous-year figures adapted due to changed allocation. Further details can be found in the notes under changes to the income statement.

1/1-30/6/2019
in € million Corporate Center Reconciliation Total
Net interest income (30) 24 1,664
Dividend income 689 (692) 24
Current income from investments in associates 34 0 37
Net fee and commission income 1 0 839
Net trading income and fair value result (63) (58) (79)
Net gains/losses from hedge accounting 5 (5) 0
Other net operating income 39 (72) 21
Operating income 674 (804) 2,506
General administrative expenses (184) 63 (1,497)
Operating result 491 (741) 1,009
Other result 3 (34) (33)
Levies and special governmental measures (59) 0 (130)
Impairment losses on financial assets (3) 4 (12)
Profit/loss before tax 432 (771) 834
Income taxes 27 0 (191)
Profit/loss after tax 458 (771) 643
Profit attributable to non-controlling interests 0 (6) (72)
Profit/loss after deduction of non-controlling interests 458 (777) 571
Return on equity before tax – – 13.5%

Return on equity after tax – – 10.3%
Net interest margin (average interest-bearing assets) – – 2.42%
Cost/income ratio – – 59.7%
Loan/deposit ratio – – 102.9%
Provisioning ratio (average loans to customers) – – 0.02%
NPE ratio – – 2.3%
NPE coverage ratio – – 59.0%
Assets 33,375 (26,210) 148,630
Total risk-weighted assets (RWA) 14,455 (12,900) 75,620
Equity 6,481 (5,242) 12,920
Loans to customers 4,756 (2,461) 88,508
Deposits from customers 4,077 (3,912) 90,161
Business outlets – – 2,105
Employees as at reporting date (full-time equivalents) 1,206 – 47,181
Customers in million 0.0 – 16.4
Previous-year figures adapted due to changed allocation. Further details can be found in the notes under changes to the income statement.

Notes
Principles underlying the consolidated financial statements
The condensed interim consolidated financial statements are prepared in accordance with the International Financial Reporting
Standards (IFRS) published by the International Accounting Standards Board (IASB) and the international accounting standards
adopted by the EU on the basis of IAS Regulation (EC) 1606/2002 including the applicable interpretations of the International
Financial Reporting Interpretations Committee (IFRIC/SIC).
Some IFRS disclosures made outside the notes form an integral part of the consolidated financial statements. These are mainly
explanations on net income from segments, which are included in the notes on segment reporting. In addition to the disclosures
pursuant to IFRS 7 which are included in the notes, the risk report section especially contains detailed information on credit risk,
concentration risk, market risk and liquidity risk. This information is presented in accordance with IFRS 8 Operating Segments and
IFRS 7 Financial Instruments Disclosures.
Changes to the income statement
The current income from investments in associates of € 22 million (previous-year period: € 37 million), which was previously in-
cluded in the other result, is now presented as a separate item. The credit-linked and portfolio-based provisions for litigation of mi-
nus € 42 million (previous-year period: minus € 4 million), which were previously reported under other net operating income, are
now included in the other result.
Critical accounting judgments and key sources of estimation uncertainty
If estimates or assessments are necessary for accounting and measurement under IAS/IFRS, they are made in accordance with the
respective standards. They are based on past experience and other factors, such as planning and expectations or forecasts of
future events that appear likely from the current perspective. This primarily affects impairment losses in the credit business, the fair
value and impairment of financial instruments, deferred taxes, provisions for pensions and pension-related liabilities, provisions for
litigations as well as the calculations used to determine the recoverability of goodwill and the intangible assets capitalized in the
course of the initial consolidation. The actual amount recognized may differ from the estimated values.
Accounting policies related to COVID-19

Payment moratoriums
Many of RBI’s markets saw the introduction of various moratoriums that can essentially be described as payment moratoriums. Bor-
rowers receive temporary extensions to make payments toward principal, interest and fees. The payment moratoriums are struc-
tured differently depending on local legislation. Borrowers in some countries can choose whether to make use of a payment
moratorium, while those in other countries are automatically granted payment moratoriums. There are also differences in how the
various countries regulate the payment extensions (between three and nine months) and the capitalization of interest (compound
interest) during the payment-free periods.
According to IFRS 9, changes in payment plans may result in a loss in present value under an individual loan contract, which can
generally be accounted for in RBI’s income statement by making a one-time adjustment to the gross carrying amount as a non-
substantial modification to the contract. This was done in the first half-year by including minus € 16 million in the income statement.
The modification gain or loss is equal to the difference between the gross carrying amount prior to the modification and the net
present value of the cash flows of the modified asset, discounted at the original effective interest rate. The income statement shows
the modification gain or loss under (9) Other result in the row entitled net modification gains/losses.
Payment moratoriums are not considered to automatically trigger a significant increase in credit risk (SICR). RBI will instead con-
tinue to apply its defined assessment criteria consisting of qualitative information and quantitative thresholds. More details on the
estimation of expected credit losses (ECL) related to the COVID-19 pandemic are described in the notes to financial instruments
and the risk report.

Country Moratorium Type Description

Albania until end of August 2020 opt-in principal, interest
Belarus no moratorium – –
Bosnia and Herzegovina 6 months opt-in principal, interest
Bulgaria 6 months or until year-end 2020 opt-in principal, interest
Kosovo until 31 August 2021 opt-out principal, interest
Croatia 3 to 6 months, up to 12 months for tourismn – principal, interest
Austria 3 months opt-in principal, interest
Romania until year-end 2020 opt-in principal, interest
Russia 6 months for affected industries opt-in principal, interest
Serbia 3 months opt-out principal, interest
Slovakia up to 9 months opt-in principal, interest
Czech Republic 3 months or 6 months opt-in principal, interest
Ukraine no moratorium – –
Hungary until year-end 2020 opt-out principal, interest, fees
Direct government programs
To counter the economic downturn caused by the COVID-19 pandemic, many countries have prepared and, in some cases, al-
ready adopted various economic support measures to protect jobs. The measures include various forms of direct financial support
for individuals, households and companies as well as bridge loans extended by banks and guaranteed by governments to ensure
that companies have sufficient liquidity during the COVID-19 pandemic. These measures are also in preparation in several coun-
tries where RBI operates.
It is RBI’s view that the recognition of a financial guarantee generally depends on whether or not the financial guarantee is an
integral contractual component of the financial asset. RBI considers guarantees assumed at the start of the guaranteed financial
assets to be integral contractual components of the financial asset. The financial guarantees granted under direct government pro-
grams generally apply to new bridge financing and are therefore treated as integral contractual components.
None of the circumstances covered by IAS 20 in this connection occurred at RBI since all government grants benefited the cus-
tomer directly.
In addition to the aforementioned support measures, RBI also took part in the European Central Bank’s TLTRO II and III programs
(Targeted Longer-Term Refinancing Operations) in order to build up an additional liquidity buffer.
Goodwill impairment test
All goodwill is tested each year with respect to its future economic benefits based on cash-generating units. An impairment test is
conducted as of the balance sheet date if indications of possible impairment arise in the course of the financial year. In the first
quarter of 2020, the COVID-19 pandemic produced a significant negative change in the economic environment in which the sub-
sidiaries operate. This indication triggered an impairment test on 31 March 2020 for goodwill that arose on first consolidation.
Raiffeisen Kapitalanlage-Gesellschaft’s medium-term plan was revised in response to the pandemic, resulting in a goodwill impair-
ment of € 27 million. Also see (9) Other result and (21) Tangible fixed assets and intangible fixed assets in the notes.

Application of new and revised standards

Amendment to IFRS Conceptual Framework (effective date: 1 January 2020)
The new Conceptual Framework includes revised definitions of assets and liabilities as well as new guidance on measurement,
derecognition, presentation and disclosures. The new Conceptual Framework does not constitute a substantial revision of the docu-
ment, as was originally intended when the project was first taken up in 2004. Instead, the IASB focused on topics that were not
yet covered or that showed obvious shortcomings that needed to be dealt with. The revised Conceptual Framework is not the sub-
ject of an endorsement process.
Amendment to IFRS 3 (Definition of a Business; effective date: 1 January 2020)
The narrow scope amendments to IFRS 3 aim to resolve the difficulties that arise when an entity determines whether it has ac-
quired a business or a group of assets. The issue arose from the fact that the accounting requirements for goodwill, acquisition
costs and deferred tax differ on the acquisition of a business and on the acquisition of a group of assets. The application of these
amendments did not have any impact on the consolidated financial statements of RBI.
Amendments to IAS 1 and IAS 8 (Definition of Materiality; effective date: 1 January 2020)
The International Accounting Standards Board (IASB) issued a revised definition of materiality (Amendments to IAS 1 and IAS 8)
to align the various definitions used in the Conceptual Framework and the standards themselves. The application of these amend-
ments did not have any impact on the consolidated financial statements of RBI.
Amendments to IFRS 9, IAS 39 and IFRS 7 (Interest Rate Benchmark Reform; effective date: 1 January 2020)
The amendments primarily relate to certain simplifications regarding hedge accounting requirements and are mandatory for all
hedging relationships affected by the interest rate benchmark reform. They also require additional disclosures about the extent to
which the entities’ hedging relationships are affected by the amendments. The changes are effective for reporting periods begin-
ning on or after 1 January 2020.
Standards and interpretations issued but not yet effective
Amendment to IAS 1 (Classification of Liabilities as Current or Non-current; effective date: 1 January 2022)
The amendments to IAS 1 aim to clarify the criteria used to classify liabilities as current or non-current. In the future, the classifica-
tion of liabilities should be solely based on rights that are in existence at the end of the reporting period. The amendments also
contain additional guidance for interpreting the right to defer settlement by at least twelve months and make clear what constitutes
settlement.
Amendment to IAS 16 (Property, Plant and Equipment — Proceeds before Intended Use; effective date: 1 January
2022)
The amendment prohibits deducting from the cost of an item of property, plant and equipment any proceeds from selling items
produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner in-
tended by management. Instead, an entity recognizes the proceeds from selling such items, and the cost of producing those items,
in profit or loss. Directly attributable costs include the costs of testing whether an asset is functioning properly.
Amendment to IAS 37 (Onerous Contracts — Cost of Fulfilling a Contract; effective date: 1 January 2022)
The changes specify that the cost of fulfilling a contract comprises the costs that relate directly to the contract. Costs that relate
directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labor, materials) or an
allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge
for an item of property, plant and equipment used in fulfilling the contract).
Amendment to IFRS 3 (Reference to the Conceptual Framework; effective 1 January 2022)
The amendments update IFRS 3 so that it refers to the 2018 Conceptual Framework instead of the 1989 Framework. The amend-
ments also include two additions: For transactions and other events within the scope of IAS 37 or IFRIC 21, an acquirer is required
to apply IAS 37 or IFRIC 21 (instead of the Conceptual Framework) to identify the liabilities it has assumed in a business combina-
tion. The amendments also add an explicit statement that an acquirer does not recognize contingent assets acquired in a business
combination.

Amendment to IFRS 16 (Covid-19-Related Rent Concessions; effective date: 1 June 2020)
The amendment provides lessees with an exemption from assessing whether a COVID-19-related rent concession (e.g. rent-free
periods or temporary rent reductions) is a lease modification. Lessees that apply the exemption must account for COVID-19-related
rent concessions as if they were not lease modifications. The amendment applies to rent concessions that reduce rent payments
due on or before 30 June 2021. This amendment is still in the endorsement process. It is expected to be adopted into European
law in the third quarter of 2020.
IFRS 17 (Insurance Contracts; effective date: 1 January 2023)
IFRS 17 establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts within the
scope of the standard. The objective of IFRS 17 is to ensure that entities provide relevant information that faithfully represents those
contracts. This information gives a basis for users of financial statements to assess the effect of insurance contracts on an entity’s
financial position, financial performance and cash flows. IFRS 17 was issued in May 2017 and applies to annual reporting peri-
ods beginning on or after 1 January 2023. The impact on the Group is still being analyzed and exclusively relates to UNIQA
Insurance Group AG, Vienna, which is measured and accounted for using the equity method in the RBI consolidated financial
statements. The standard has not yet been incorporated by the EU into European law.
IFRS 4 (Insurance Contracts; effective date: 1 January 2023)
The amendments also published on 25 June 2020 extend the period during which certain insurance companies are temporarily
exempted from IFRS 9 so that these entities can apply IAS 39 for annual periods beginning before 1 January 2023.
Annual improvements to IFRS – 2018-2020 cycle (effective date: 1 January 2022)
Improvements to IFRS 1, IFRS 9, IFRS 16 and IAS 41.
Currencies
2020 2019
As at Average As at Average
Rates in units per € 30/6 1/1-30/6 31/12 1/1-30/6
Albanian lek (ALL) 124.210 123.981 121.710 123.914
Belarusian ruble (BYN) 2.712 2.577 2.368 2.397
Bosnian marka (BAM) 1.956 1.956 1.956 1.956
Bulgarian lev (BGN) 1.956 1.956 1.956 1.956
Croatian kuna (HRK) 7.571 7.531 7.440 7.418
Czech koruna (CZK) 26.740 26.297 25.408 25.687
Hungarian forint (HUF) 356.580 346.171 330.530 320.653
Polish zloty (PLN) 4.456 4.410 4.257 4.286
Romanian leu (RON) 4.840 4.819 4.783 4.733
Russian ruble (RUB) 79.630 76.831 69.956 74.212
Serbian dinar (RSD) 117.500 117.500 117.430 118.010
Ukrainian hryvnia (UAH) 29.882 28.670 26.592 30.570
US dollar (USD) 1.120 1.106 1.123 1.133

Consolidated group
Fully consolidated
Number of units 30/6/2020 31/12/2019
As at beginning of period 209 226
Included for the first time in the financial period 5 4
Merged in the financial period (1) (4)
Excluded in the financial period (3) (17)
As at end of period 210 209
A holding company, a company operating in the payment transfer business, a company active in providing IT services and two
asset management companies were included for the first time. In the reporting period, two companies engaged in leasing and
insurance broker business were excluded from the consolidated group due to immateriality. One leasing company was sold, one
leasing company was merged into another.

Notes to the income statement
(1) Net interest income
in € million 1/1-30/6/2020 1/1-30/6/2019

Interest income according to effective interest method 2,079 2,148
Financial assets - fair value through other comprehensive income 39 85
Financial assets - amortized cost 2,040 2,063
Interest income other 335 324
Financial assets - held for trading 169 207
Non-trading financial assets - mandatorily fair value through profit/loss 15 7
Financial assets - designated fair value through profit/loss 11 17
Derivatives – hedge accounting, interest rate risk 93 60
Other assets 5 7
Interest income on financial liabilities 41 25
Interest expenses (707) (807)
Financial liabilities - amortized cost (455) (474)
Financial liabilities - held for trading (131) (233)
Financial liabilities - designated fair value through profit/loss (27) (32)
Derivatives – hedge accounting, interest rate risk (71) (37)
Other liabilities (4) (2)
Interest expenses on financial assets (19) (30)
Total 1,706 1,664
Net interest income included interest income of € 235 million (previous-year period: € 316 million) from marked-to-market financial
assets, and interest expenses of € 158 million (previous-year period: € 265 million) from marked-to-market financial liabilities.
in € million 1/1-30/6/2020 1/1-30/6/2019

Net interest income 1,706 1,664
Average interest-bearing assets 147,735 137,835
Net interest margin in per cent 2.31% 2.42%
Net interest income increased € 42 million to € 1,706 million. Russia posted the largest increase at € 34 million due to lower inter-
est expenses on trading portfolio and higher customer loan volumes. In Ukraine, the appreciation of the Ukrainian hryvnia and
higher loan volumes to households led to an increase in net interest income of € 13 million. At head office, net interest income was
up € 10 million mainly due to increased income from negative interest rates. In Romania, higher loan volumes to households led to
an increase in net interest income of € 6 million. The Czech Republic reported the largest decrease with net interest income down
€ 12 million due to lower interest income from repo transactions and customer loans.

(2) Dividend income
in € million 1/1-30/6/2020 1/1-30/6/2019

Financial assets - held for trading 0 1
Financial assets - fair value through other comprehensive income 8 11
Investments in subsidiaries and associates 6 12
Total 15 24
Dividend income fell € 9 million to € 15 million. The largest drop was seen in the item investments in subsidiaries and associates,
which includes dividend income from subsidiaries not fully consolidated and associates not valued at equity. Lower income from
Bulgaria and Raiffeisen Kapitalanlage-Gesellschaft were mainly responsible for the decrease. In the Czech Republic and Russia,
there were no dividends for financial assets - fair value through other comprehensive income in the reporting year. In the previous
year, distributions were made.
(3) Current income from investments in associates
in € million 1/1-30/6/2020 1/1-30/6/2019

Current income from investments in associates 22 37
The decrease resulted from Raiffeisen Informatik GmbH & Co KG, whose current income (plus € 3 million, decrease of € 16 mil-
lion) was impacted by the performance of a listed investment (SoftwareOne) in the previous year. UNIQA Insurance Group AG
also contributed to the reduced profit (plus € 6 million, decrease of € 6 million). In contrast, LEIPNIK-LUNDENBURGER INVEST
Beteiligungs AG made a positive contribution of € 7 million (comparable period: € 1 million).
(4) Net fee and commission income
in € million 1/1-30/6/2020 1/1-30/6/2019

Clearing, settlement and payment services 329 344
Loan and guarantee business 97 101
Securities 34 31
Asset management 127 107
Custody 29 25
Customer resources distributed but not managed 20 24
Foreign exchange business 175 178
Other 29 29
Total 840 839
Net fee and commission income remained almost unchanged at € 840 million compared with the same period last year. Thereby
net income from asset management increased € 20 million to € 127 million due to higher volumes in Russia, at Raiffeisen Kapita-
lanlage-Gesellschaft as well as in Valida Group. In contrast net income from clearing, settlement and payment services reduced by
€ 15 million to € 329 million largely due to the COVID-19 measures imposed and the resulting lower level of customer activity in
almost all countries, most notably in Romania, Hungary and Croatia. In addition, the change of legal regulations led to a decline
in income in the Czech Republic, while Bulgaria recorded a margin-driven decline. Net income from customer resources distrib-
uted but not managed decreased € 4 million to € 20 million due to lower volumes in Russia, Croatia and Romania.

in € million 1/1-30/6/2020 1/1-30/6/2019

Fee and commission income 1,222 1,220
Clearing, settlement and payment services 542 572
Clearing and settlement 137 126
Credit cards 53 54
Debit cards and other card payments 116 125
Other payment services 235 267
Loan and guarantee business 111 116
Securities 63 54
Asset management 191 160
Custody 37 32
Customer resources distributed but not managed 34 38
Foreign exchange business 189 193
Other 55 54
Fee and commission expenses (382) (381)
Clearing, settlement and payment services (213) (228)
Clearing and settlement (65) (57)
Credit cards (31) (32)
Debit cards and other card payments (55) (54)
Other payment services (62) (84)
Loan and guarantee business (13) (14)
Securities (29) (23)
Asset management (64) (54)
Custody (8) (7)
Customer resources distributed but not managed (14) (14)
Foreign exchange business (14) (16)
Other (27) (25)
Total 840 839

(5) Net trading income and fair value result
in € million 1/1-30/6/2020 1/1-30/6/2019

Net gains/losses on financial assets and liabilities - held for trading 149 (388)
Derivatives 279 (391)
Equity instruments (117) (2)
Debt securities 24 22
Loans and advances 5 5
Short positions (5) (6)
Deposits (40) (19)
Debt securities issued 0 0
Other financial liabilities 2 3
Net gains/losses on non-trading financial assets - mandatorily fair value through
profit or loss 3 5
Equity instruments 0 0
Debt securities (4) 6
Net gain/losses on financial assets and liabilities - designated fair value through
profit/loss (9) 32
Deposits (2) (2)
Debt securities issued (5) (6)
Exchange differences, net (80) 272
Total 62 (79)
Net trading income was up € 141 million year-on-year. This was mainly due to positive valuation effects in the item derivatives. In
the comparable period of the previous year, valuation losses on the interest rate risk of certificates issued had a direct effect on net
gains/losses from derivatives. In that connection, economic hedges for interest rate risk were entered into in the second half of
2019. As a result, valuation losses in the reporting period were almost entirely neutralized. Together with a rise in credit spreads in
the wake of the spread of COVID-19, this resulted in an increase of € 57 million. A further positive change of € 41 million related
to the valuation of a building society portfolio, as it created a loss in the comparable period of the previous year, but was embed-
ded into a hedge accounting relationship according to IAS 39 in the second quarter of 2019, which led to the valuation changes
being largely neutralized from then on. In addition, head office reported a positive change of € 38 million, mainly in connection
with the valuation of derivatives and loans and advances valued at fair value.
In total, gains of € 279 million were recognized on derivatives in the reporting period in net gains/losses on financial assets and
liabilities – held for trading (prior-year period: losses of € 391 million). Derivatives are used above all to hedge interest rate and
currency risks. These losses were partly offset by (net) currency translation losses of € 80 million (prior-year period: gain of € 272
million), mostly relating to changes in the Russian ruble exchange rate.
Negative changes of € 115 million were reported in equity instruments held for trading. This was mainly caused by market distor-
tion in the wake of the spread of COVID-19. The equity instruments are mostly embedded in hedging relationships, resulting in the
loss being offset by a profit in the derivatives item.
The deposits held for trading were mainly affected by losses on spot transactions in Russia. The losses were incurred in connection
with the hedging of foreign currency transactions with customers; corresponding commission income is included in net fee and
commission income. Opposite valuations or realized net gains/losses on the foreign exchange derivatives that are used in this
connection and held for economic hedge purposes are included in the derivatives item.

The changes of minus € 42 million in debt securities issued – designated fair value through profit/loss were primarily caused by
interest-rate-induced valuation changes at head office. These changes are set against opposite valuations of derivatives held for
economic hedge purposes that are included in the net gains/losses on financial assets and liabilities – held for trading item.
(6) Net gains/losses from hedge accounting
in € million 1/1-30/6/2020 1/1-30/6/2019

Fair value changes of the hedging instruments (106) 25
Fair value changes of the hedged items attributable to the hedged risk 109 (25)
Ineffectiveness of cash flow hedge recognized in profit or loss 1 0
Total 4 0
Net gains/losses from hedge accounting amounted to € 4 million in the reporting period (comparable period: € 0 million). De-
spite the dynamic interest environment, there is still a high level of hedge efficiency.
The fair value changes of hedging instruments (minus € 106 million compared to €25 million in the comparable period) and the
fair value changes of the hedged items attributable to the hedged risk (€ 109 million compared to minus € 25 million in the com-
parable period) were mainly attributable to Raiffeisen Bausparkasse Gesellschaft m.b.H., the Czech Republic and Russia.
At Raiffeisen Bausparkasse Gesellschaft m.b.H., portfolio hedge accounting was introduced in the second quarter of 2019. The
fair value changes of hedging instruments covered two quarters of minus € 63 million in 2020 and on quarter of minus € 43 mil-
lion in 2019. The negative valuation effects of the hedging instruments were recognized in net trading income of Raiffeisen Baus-
parkasse m.b.H in the first quarter of 2019, as hedging at the start of the year was still economic and not under IAS 39 hedge
accounting. The further devaluation of the hedging instruments in the first half of 2020 was attributable to the negative trend in
long-term interest rates.
Key interest rates in the Czech Republic, which had risen in 2019 against the backdrop of strong economic activity, fell as a result
of COVID-19. The fair value changes of the hedging instruments therefore amounted to minus € 44 million in the reporting year
(comparable period: € 11 million).
In addition, the fair value change of a portfolio hedge, which was introduced in Russia in the first quarter of 2020, amounted to
minus € 12 million.

(7) Other net operating income

1
in € million 1/1-30/6/2020 1/1-30/6/2019
Gains/losses on derecognition of financial assets and liabilities - not measured
at fair value through profit/loss 1 7
Gains/losses on derecognition of non-financial assets held for sale 1 0
Net income arising from non-banking activities 15 14
Net income from additional leasing services 8 0
Net income from insurance contracts 0 (3)
Net rental income from investment property incl. operating lease (real estate) 25 35
Net expense from allocation and release of other provisions 12 (6)
Other non-income related taxes (31) (33)
Sundry operating income/expenses 11 9
Total 42 21
Other net operating income increased € 21 million year-on-year mainly relating to a provision release for a legal case in Slovakia
(€ 18 million).
(8) General administrative expenses
in € million 1/1-30/6/2020 1/1-30/6/2019

Staff expenses (808) (789)
Other administrative expenses (476) (524)
Depreciation of tangible and intangible fixed assets (190) (184)
Total (1,474) (1,497)
General administrative expenses decreased € 23 million year-on-year to € 1,474 million. Exchange rate developments led to an
€ 18 million reduction in general administrative expenses in the reporting period, mainly due to a 4 per cent depreciation of the
Russian ruble and an 8 per cent depreciation of the Hungarian forint (on average over the period).
Staff expenses
in € million 1/1-30/6/2020 1/1-30/6/2019

Wages and salaries (615) (600)
Social security costs and staff-related taxes (141) (137)
Other voluntary social expenses (21) (21)
Sundry staff expenses (31) (30)
Total (808) (789)
Staff expenses were up 2 per cent, or € 19 million, to € 808 million, while the average headcount fell slightly year-on-year by
392 full-time equivalents to 46,799 employees. The increase in staff expenses resulted mainly from the salary adjustments made in
the previous year, above all in Russia, Ukraine and Romania.

Other administrative expenses
1
in € million 1/1-30/6/2020 1/1-30/6/2019
Office space expenses (52) (58)
IT expenses (150) (157)
Legal, advisory and consulting expenses (48) (52)
Advertising, PR and promotional expenses (46) (58)
Communication expenses (31) (27)
Office supplies (12) (13)
Car expenses (5) (6)
Deposit insurance fees (54) (66)
Security expenses (18) (23)
Traveling expenses (3) (8)
Training expenses for staff (6) (10)
Sundry administrative expenses (50) (48)
Total (476) (524)
1 Previous-year figures adapted due to changed allocation.
Other administrative expenses were down € 48 million to € 476 million. The reduction was driven primarily by lower IT expenses
at head office (€ 9 million) and lower deposit insurance fees in Russia (€ 6 million) and Romania (€ 6 million). Advertising ex-
penses decreased at head office (€ 6 million) and in Slovakia (€ 3 million) mainly as a result of the COVID-19 pandemic. De-
creases were also reported in office space expenses (€ 5 million), security expenses (€ 5 million) and traveling expenses (€ 4
million).
Other administrative expenses included € 7 million for short-term leases and € 2 million for leases of low-value assets in accord-
ance with IFRS 16.
Deposit insurance fees decreased € 12 million, whereby the reduction in Russia is from a temporary measure in support of finan-
cial institutions during the pandemic. Due to the compensation payout for Commerzialbank Mattersburg im Burgenland AG and
Anglo Austrian AAB AG depositors from the deposit insurance scheme (Einlagensicherung AUSTRIA Ges.m.b.H.) and the resulting
reduction in scheme funds, RBI expects higher contribution payments to ensure the statutory target level for the deposit insurance
scheme. The amount will be distributed over the period until 2024.
Depreciation of tangible and intangible fixed assets
in € million 1/1-30/6/2020 1/1-30/6/2019

Tangible fixed assets (113) (109)
hereof right-of-use assets (41) (41)
Intangible fixed assets (77) (75)
Total (190) (184)
Depreciation of tangible and intangible fixed assets rose 3 per cent or € 6 million. Head office and the Czech Republic reported
the largest increases (€ 3 million each).

(9) Other result

1
in € million 1/1-30/6/2020 1/1-30/6/2019
Net modification gains/losses (23) (2)
Financial assets - amortized cost (23) (2)
Impairment or reversal of impairment on investments in subsidiaries and
associates (79) (6)
Impairment on non-financial assets (28) (2)
Goodwill (27) 0
Other (1) (2)
Result from non-current assets and disposal groups classified as held for sale
and deconsolidation (1) 5
Net income from non-current assets and disposal groups classified as held
for sale 0 2
Result of deconsolidations (1) 3
Tax expenses not attributable to the business activity 0 (23)
Credit-linked and portfolio-based provisions for litigation (42) (4)
Total (173) (33)
In the reporting period, losses from modification of contract conditions amounted to € 23 million, of which € 16 million resulted
from COVID-19 measures (payment moratoriums, i.e. the borrowers are granted a deferred payment for up to nine months or until
end of year, and restructuring measures), mainly in Hungary, Romania, in the Czech Republic and in Ukraine.
Impairment on investments in subsidiaries and associates increased € 72 million to € 79 million. The increase of € 70 million con-
cerned impairment on investments in associates, especially on shares in UNIQA Insurance Group AG, LEIPNIK-LUNDENBURGER
INVEST Beteiligungs AG and Prva stavebna sporitelna a.s., mainly caused by the worse economic outlook due to the pandemic.
Impairment on non-financial assets were up € 26 million to € 28 million. In the reporting period, the goodwill of Raiffeisen Kapita-
lanlage-Gesellschaft was impaired by € 27 million. The impairment was related to the poorer economic outlook caused by the
COVID-19 pandemic, which on the statement of financial position side reduced the expected volume growth of Raiffeisen Kapita-
lanlage-Gesellschaft in future years and thus the profit expectations due to the associated decline in the achievable fee and com-
mission income. Raiffeisen Kapitalanlage-Gesellschaft's reduced growth and profit prospects were accompanied by a reduction in
the return on equity expected in the future.
In the previous year, a provision of € 23 million for property transfer taxes in Germany was created. This resulted from changes in
the ownership structures in previous years. These are connected with the merger between Raiffeisen Zentralbank and Raiffeisen
Bank International in 2017 and purchases of shares in Raiffeisen Leasing Group in 2012 and 2013.
In the reporting period, credit-linked and portfolio-based provisions for litigation were increased by € 42 million. The provision in
Romania regarding proceedings with the Consumer Protection Authority related to an alleged misuse of credit terms was in-
creased by further € 17 million. In Poland and Croatia, provisions for pending legal issues relating to mortgage loans denomi-
nated or linked to foreign currencies of € 18 million and € 8 million, respectively, were built. The increase in Poland was driven by
a deterioration in the Swiss franc/Polish zloty exchange rate, a decrease in the discount rate used to calculate the provision and
changes in the statistical assumptions of the model.

(10) Levies and special governmental measures
in € million 1/1-30/6/2020 1/1-30/6/2019

Bank levies (92) (77)
Profit/loss from banking business due to governmental measures 0 (4)
Resolution fund (74) (50)
Total (166) (130)
Most of the expense for bank levies was already booked in the first quarter for the entire year. This affects head office with a one-
off payment of € 41 million and Hungary with € 13 million. Current payments affect Slovakia in the amount of € 26 million (com-
parable period: € 12 million), Austria and Poland. The increase in Slovakia was due to a doubling of bank levies (increase from
0.2 per cent to 0.4 per cent of the assessment basis). The bank levy in Slovakia for the second half of 2020 was abolished at the
end of June.
Contributions to the resolution fund, most of which were recognized at the beginning of the year, increased € 24 million to
€ 74 million. The increase resulted from higher contributions primarily at head office, in Bulgaria, Romania and in the Czech Re-
public.
(11) Impairment losses on financial assets
in € million 1/1-30/6/2020 1/1-30/6/2019

Loans and advances (327) (4)
Loan commitments, financial guarantees and other commitments given 20 (8)
Total (312) (12)
Impairments on loans and advances and debt securities amounted to € 332 million in the first half-year (up € 329 million), includ-
ing loans to non-financial corporations in the amount of € 167 million and to households (€ 150 million). This was offset by a re-
versal of loan commitments, financial guarantees and other commitments of € 20 million (decrease of € 28 million).
In the first half of 2020, COVID-19 caused impairments of € 158 million, with non-financial corporations accounting for € 123
million and households for € 35 million. The increase in net provisioning was primarily due to post-model adjustments (€ 90 mil-
lion) and adjustments to forward looking information (€ 68 million).
Additional impairments in the amount of € 202 million (up € 168 million) were allocated in the first half-year due to the migration
from stage 1 to stage 2. The sectors most affected were tourism, automotive, air travel, oil & gas, real estate and consumer goods.
This resulted in higher impairments on loans to households (€ 115 million), predominantly in Russia (€ 27 million), Romania (€ 24
million) and Poland (€ 12 million), as well as on loans to non-financial corporations (€ 82 million), primarily in Austria (€ 12 mil-
lion) and Slovakia (€ 13 million).
In stage 3 (defaulted loans), net impairments of € 141 million were allocated (previous year: net release of € 13 million). This in-
cluded € 88 million for households, primarily in Russia (€ 36 million) and Romania (€ 16 million), as well as € 55 million for non-
financial corporations, predominantly in Austria (€ 28 million), Russia (€ 16 million) and Slovakia (€ 16 million).

(12) Income taxes
in € million 1/1-30/6/2020 1/1-30/6/2019

Current income taxes (85) (250)
Austria (1) (10)
Foreign (84) (240)
Deferred taxes (61) 59
Total (145) (191)
The € 45 million reduction in income taxes was attributable to lower profits in all countries, mainly to decreases of € 11 million in
the Czech Republic, € 6 million in Croatia, and € 5 million in Russia. In addition, withholding tax at head office was € 9 million
higher in the previous year due to dividend income from Russia and Ukraine.
The effective tax rate rose 2.8 percentage points to 25.7 per cent. The increase was the result of head office’s lower earnings
contribution, primarily due to non-deductible impairments on companies valued at equity and an impairment on the goodwill of
Raiffeisen Kapitalanlage-Gesellschaft.

Notes to the statement of financial position
(13) Cash, cash balances at central banks and other demand deposits
in € million 30/6/2020 31/12/2019

Cash in hand 5,858 4,528
Balances at central banks 15,436 14,395
Other demand deposits at banks 9,187 5,366
Total 30,481 24,289
The increase in balances at central banks was primarily due to deposits made for liquidity management purposes and the mini-
mum reserve. The minimum reserve, which is not freely available, amounted to € 226 million on the reporting date (31/12/2019:
€ 283 million).
The large increase in the item other demand deposits at banks was largely driven by head office, which experienced a short-term
rise in cash holdings following the increase in long-term funding and utilization of the TLTRO III program.
This item also included € 342 million (31/12/2019: € 157 million) in cash securities, mainly for borrowed securities.
(14) Financial assets - amortized cost
30/6/2020 31/12/2019
Gross Accumulated Carrying Gross Accumulated Carrying
in € million carrying amount impairment amount carrying amount impairment amount
Debt securities 13,641 (12) 13,630 9,981 (8) 9,973
Central banks 461 0 461 1,497 0 1,497
General governments 10,432 (5) 10,427 6,454 (2) 6,452
Banks 1,871 0 1,871 1,097 0 1,097
Other financial corporations 666 (5) 661 558 (3) 555
Non-financial corporations 211 (1) 210 376 (3) 373
Loans and advances 105,241 (2,542) 102,698 102,626 (2,314) 100,312
Central banks 5,205 0 5,205 4,602 0 4,602
Banks 4,000 (3) 3,997 4,837 (4) 4,833
Other financial corporations 11,329 (47) 11,282 9,838 (43) 9,795
Non-financial corporations 48,232 (1,321) 46,912 46,470 (1,179) 45,291
Households 34,856 (1,169) 33,688 35,682 (1,082) 34,600
Total 118,882 (2,554) 116,328 112,607 (2,322) 110,285
The carrying amount of financial assets - amortized cost rose € 6,043 million compared to year-end 2019. The increase in debt
securities (up € 3,657 million) mainly resulted from purchases of government bonds at head office and in Slovakia and the Czech
Republic, while there were sales of central bank debt securities in Russia. The loan book increased € 2,387 million as well despite
large currency depreciations. The rise in non-financial corporations (up € 1,621 million) was primarily attributable to head office
and was largely the result of standard loans, export finance, project finance and real estate finance.

This increase and the rise in short-term lending (up € 1,678 million) made up for the decrease in loans and advances to house-
holds (down € 912 million). Loans and advances declined the most in Russia (down € 566 million), largely due to currency fac-
tors, and in the Czech Republic (down € 231 million), although the Czech Republic recorded an increase in local currency terms.
(15) Financial assets - fair value through other comprehensive income
30/6/2020 31/12/2019
Gross Accumulated Carrying Gross Accumulated Carrying
1 1
in € million carrying amount impairment amount carrying amount impairment amount
Equity instruments 204 − 204 229 − 229
Banks 16 − 16 26 − 26
Other financial corporations 113 − 113 130 − 130
Non-financial corporations 75 − 75 72 − 72
Debt securities 5,032 (3) 5,028 4,555 (3) 4,553
Banks 1,048 0 1,048 1,176 0 1,176
Other financial corporations 88 0 88 142 0 142
Non-financial corporations 146 0 146 145 0 145
Total 5,236 (3) 5,233 4,784 (3) 4,781
1 Gross carrying amount is defined according to FINREP Annex V 1.34(b).
The carrying amount of financial assets – fair value through other comprehensive income increased € 452 million compared to
year-end 2019. The increase was mainly due to a rise in debt securities in Romania, at head office and in Russia, although offset-
ting effects arose from the sale of a portion of the portfolio in Slovakia and sales of debt securities in Hungary and Croatia.
Changes in the measurements of equity instruments due to COVID-19 had a negative impact.
(16) Non-trading financial assets - mandatorily fair value through profit/loss
in € million 30/6/2020 31/12/2019

Other financial corporations 3 1
General governments 281 239
Banks 19 20
Non-financial corporations 6 1
General governments 2 3
Households 232 193
Total 810 776

The increase of € 34 million in the item non-trading financial assets - mandatorily fair value through profit/loss was largely due to
an increase in the government-sponsored lending program for young families in Hungary and in debt securities in Russia. The in-
crease was reduced by fund sales of Valida Group and Raiffeisen Bausparkasse.
(17) Financial assets - designated fair value through profit/loss
in € million 30/6/2020 31/12/2019

Debt securities 941 2,276
General governments 731 1,903
Banks 93 259
Total 941 2,276
The decline in the item financial assets - designated fair value through profit/loss resulted from the optimization of the securities
portfolio at head office.
(18) Financial assets - held for trading
in € million 30/6/2020 31/12/2019

Derivatives 2,395 1,894
Interest rate contracts 1,603 1,245
Equity contracts 130 180
Foreign exchange rate and gold contracts 650 458
Credit contracts 10 5
Commodities 2 5
Other 1 1
Banks 20 104
Debt securities 2,080 1,861
Central banks 0 7
General governments 1,473 1,049
Banks 338 511
Total 4,675 4,182
Securities under financial assets - held for trading provided as collateral, which the recipient is entitled to sell or pledge, amounted
to € 98 million (31/12/2019: € 126 million).
Details on derivatives are shown under (44) Derivative financial instruments.

(19) Hedge accounting
in € million 30/6/2020 31/12/2019

Positive fair values of derivatives in micro fair value hedge 168 278
Interest rate contracts 163 270
Positive fair values of derivatives in micro cash flow hedge 1 5
Positive fair values of derivatives in net investment hedge 3 0
Positive fair values of derivatives in portfolio hedge 168 119
Cash flow hedge 36 7
Fair value hedge 131 112
Fair value adjustments of the hedged items in portfolio hedge of interest rate risk 226 (5)
Total 565 397
The positive fair values of derivative financial instruments in micro fair value hedge decreased to € 168 million (31/12/2019:
€ 278 million). This change was mainly driven by the loss in value of interest rate contracts at head office caused by the reduction
in long-term interest rates.
The carrying amount of the item fair value adjustments of the hedged items in portfolio hedge of interest rate risk increased € 231
million compared to year-end 2019. This increase was primarily the result of the further increase in value of the loans and ad-
vances in the portfolio hedge of Raiffeisen Bausparkasse Gesellschaft m.b.H., the decrease in interest rates in the Czech Republic
for fixed-rate loans in portfolio fair value hedges and the introduction of a portfolio hedge at the Russian subsidiary bank.
(20) Investments in subsidiaries and associates
in € million 30/6/2020 31/12/2019

Investments in affiliated companies 227 270
Investments in associates valued at equity 709 836
Total 936 1,107

Investments in associates valued at equity are as follows:
Share in % Carrying amount Carrying amount

in € million 30/6/2020 30/6/2020 31/12/2019
card complete Service Bank AG, Vienna (AT) 25.0% 13 14
EMCOM Beteiligungs GmbH, Vienna (AT) 33.6% 7 7
LEIPNIK-LUNDENBURGER INVEST Beteiligungs
Aktiengesellschaft, Vienna (AT) 33.1% 164 197
NOTARTREUHANDBANK AG, Vienna (AT) 26.0% 11 11
Oesterreichische Kontrollbank Aktiengesellschaft, Vienna (AT) 8.1% 48 48
Österreichische Hotel- und Tourismusbank Gesellschaft m.b.H.,
Vienna (AT) 31.3% 11 11
Posojilnica Bank eGen, Klagenfurt (AT) 49.5% 10 13
Prva stavebna sporitelna a.s., Bratislava (SK) 32.5% 34 44
Raiffeisen Informatik GmbH & Co KG, Vienna (AT) 47.6% 117 147
Raiffeisen-Leasing Management GmbH, Vienna (AT) 50.0% 14 13
UNIQA Insurance Group AG, Vienna (AT) 10.9% 280 331
Total 709 836
Significant influence over UNIQA Insurance Group AG, Vienna, exists as a result of a syndicate agreement with the other core
shareholders that governs the right to appoint members of the Supervisory Board, among other things. Significant influence over
Oesterreichische Kontrollbank AG, Vienna, exists as a result of two permanent positions on the Supervisory Board.
(21) Tangible and intangible fixed assets
in € million 30/6/2020 31/12/2019

Tangible fixed assets 1,782 1,829
Land and buildings used by the group for own purpose 578 609
Office furniture, equipment and other tangible fixed assets 321 330
Investment property 314 301
Other leased assets (operating lease) 95 133
Right-of-use assets 476 456
Intangible fixed assets 719 757
Software 629 636
Goodwill 72 101
Brand 9 10
Customer relationships 2 3
Other intangible fixed assets 7 7
Total 2,502 2,586
The decline in tangible fixed assets is primarily the result of exchange rate effects, particularly with respect to the Russian ruble,
Ukrainian hyrvnia and Czech koruna. In the reporting period, € 90 million was invested in software (30/6/2019: € 79 million).
In 2020, the COVID-19 pandemic produced a major negative change in the economic environment in which our subsidiaries op-
erate. Raiffeisen Kapitalanlage-Gesellschaft’s medium-range plan was revised in response to the pandemic, which resulted in a
goodwill impairment of € 27 million. The goodwill of Raiffeisenbank a.s., Prague, was also tested for impairment. The fair value
was found to be above the carrying amount.

(22) Tax assets
in € million 30/6/2020 31/12/2019

Current tax assets 130 61
Deferred tax assets 90 144
Temporary tax claims 77 127
Loss carry forwards 14 17
Total 220 205
(23) Other assets
in € million 30/6/2020 31/12/2019

Prepayments and other deferrals 436 459
Merchandise inventory and suspense accounts for services rendered not yet charged out 271 287
Non-current assets and disposal groups classified as held for sale 4 21
Other assets 360 549
Total 1,071 1,315
Merchandise inventory and suspense accounts for services rendered not yet charged out included property under construction or
not yet sold of Raiffeisen Leasing Group in Austria and Italy of € 155 million (31/12/2019: € 137 million).

(24) Financial liabilities - amortized cost

The following table provides a breakdown of deposits from banks and customers by product and a breakdown of debt securities
issued:
in € million 30/6/2020 31/12/2019

Deposits from banks 30,686 23,582
Current accounts/overnight deposits 12,929 10,864
Deposits with agreed maturity 14,678 11,731
Repurchase agreements 3,080 987
Deposits from customers 98,391 95,911
Current accounts/overnight deposits 69,601 64,760
Deposits with agreed maturity 28,674 31,071
Repurchase agreements 117 79
Debt securities issued 10,018 8,780
Certificates of deposits 0 1
Covered bonds 1,256 1,321
Other debt securities issued 8,762 7,457
hereof convertible compound financial instruments 996 1,070
hereof non-convertible 7,766 6,387
Other financial liabilities 545 492
Total 139,641 128,764
hereof subordinated financial liabilities 3,022 2,726
hereof lease liabilities 480 453
The total change in deposits from banks is largely concentrated at head office. Current accounts/overnight deposits rose € 2,294
million, including € 894 million that were attributable to higher deposits at the regional Raiffeisen banks. The exact opposite trend
was experienced in Russia, where this position decreased € 229 million due mainly to smaller volumes. Deposits with agreed ma-
turity rose € 2,536 million at head office. The increase was largely driven by participation in the TLTRO III program (Targeted
Longer-Term Refinancing Operations) that the European Central Bank has employed to help companies and households maintain
long-term access to bank loans amid the current economic turmoil and heightened uncertainty. Sale and repurchase agreements
at head office increased € 2,312 million compared to year-end.
As in the first quarter, deposits from customers revealed a clear preference for short-term deposits. Current accounts/overnight de-
posits recorded particularly steep rises in Russia (up € 1,468 million) and the Czech Republic (up € 1,243 million). However, the
overall volume-driven increase was diminished by countervailing exchange rate effects. Other large increases in current ac-
counts/overnight deposits were booked in Slovakia (up € 429 million), Romania (up € 385 million) and Ukraine (up € 320 mil-
lion).
The situation for deposits with agreed maturity is more complex. Increases at head office (up € 1,849 million) were offset by de-
clines, particularly in Russia (down € 2,612 million) and the Czech Republic (down € 866 million).

Deposits from banks and customers by asset classes:
in € million 30/6/2020 31/12/2019

Central banks 5,458 2,462
General governments 3,284 3,171
Banks 25,228 21,120
Other financial corporations 9,862 10,929
Non-financial corporations 37,171 34,849
Households 48,075 46,961
Total 129,077 119,493
Deposits from central banks rose at head office in particular (up € 2,487 million) due to participation in TLTRO III (Targeted
Longer-Term Refinancing Operations). Deposits from general governments rose € 274 million at head office and € 293 million in
the Czech Republic. In contrast, Russia recorded a decline of € 368 million because, among other reasons, a Federal Treasury
deposit matured in February 2020.
The change in deposits from banks mainly resulted from an increase in overnight deposits and sale and repurchase agreements at
head office (up € 4,654 million) and volume- and exchange rate-related declines in Russia (down € 601 million). This shift was
amplified by declines in deposits with agreed maturity.
The story was very different for deposits from non-financial corporations. In this case, head office contributed heavily to the in-
crease (up € 2,323 million). Russia, in contrast, recorded a decrease of € 732 million due to currency effects.
Deposits from households (up € 1,114 million) carried on the trend from the first quarter. The largest gains were reported in Roma-
nia (up € 536 million) and Slovakia (up € 283 million). In Russia, large gains in local currency terms were offset by exchange rate
effects, resulting in stagnation.
(25) Financial liabilities - designated fair value through profit/loss
in € million 30/6/2020 31/12/2019

Deposits from banks 34 25
Deposits with agreed maturity 34 25
Deposits from customers 295 303
Deposits with agreed maturity 295 303
Other debt securities issued 1,327 1,515
hereof convertible compound financial instruments 9 10
hereof non-convertible 1,317 1,505
Total 1,655 1,843
hereof subordinated financial liabilities 303 405
The carrying amount of the designated liabilities was € 327 million (31/12/2019: € 395 million) higher than the amount con-
tractually required to be paid at maturity. There have been no significant transfers within equity or derecognition of liabilities desig-
nated at fair value in the reporting period.

(26) Financial liabilities - held for trading
in € million 30/6/2020 31/12/2019

Derivatives 2,365 1,934
Interest rate contracts 1,251 1,060
Equity contracts 404 185
Credit contracts 17 18
Commodities 2 0
Other 82 86
Short positions 458 361
Hybrid contracts 3,077 3,210
Other debt securities issued 142 285
hereof convertible compound financial instruments 142 285
Total 6,042 5,789
Details on derivatives are shown under (44) Derivative financial instruments.
(27) Hedge accounting
in € million 30/6/2020 31/12/2019

Negative fair values of derivatives in micro fair value hedge 46 41
Negative fair values of derivatives in micro cash flow hedge 1 4
Negative fair values of derivatives in net investment hedge 5 7
Negative fair values of derivatives in portfolio hedge 384 231
Cash flow hedge 6 2
Fair value hedge 378 228
Fair value adjustments of the hedged items in portfolio hedge of interest rate risk 83 (36)
Total 519 246
Negative fair values of derivatives in portfolio hedge amounted to € 384 million (31/12/2019: € 231 million). The increase is
largely due to a portfolio hedge at Raiffeisen Bausparkasse Gesellschaft m.b.H. due to falling interest rates, higher volumes and a
drastic reduction in interest rates in the Czech Republic.
The item fair value adjustments of the hedged items in portfolio hedge of interest rate risk increased € 119 million from year-end
2019, from minus € 36 million to € 83 million. This was mainly due to the fair value development of the hedged liabilities in portfo-
lio hedges of Raiffeisenbank a.s., Prague, amid a decline in interest rates, particularly for hedged customer deposits in Czech ko-
runa.

(28) Provisions for liabilities and charges
in € million 30/6/2020 31/12/2019

Provisions for off-balance sheet items 147 173
Other commitments and guarantees according to IFRS 9 143 161
Other commitments and guarantees according to IAS 37 4 12
Provisions for staff 454 500
Pensions and other post employment defined benefit obligations 197 204
Other long-term employee benefits 54 42
Bonus payments 132 192
Provisions for overdue vacations 67 56
Termination benefits 4 6
Other provisions 413 410
Pending legal issues and tax litigation 232 222
Restructuring 20 26
Onerous contracts 67 66
Other provisions 94 96
Total 1,013 1,083
Provisions decreased € 70 million to € 1,013 million. This decline was primarily attributable to bonus payments of € 60 million.
Provisions for pending legal issues and tax litigation decreased following the release of a provision of € 18 million in Slovakia. In
contrast, increases were recorded in connection with pending proceedings regarding Swiss franc loans in Poland (up € 17 million
to € 65 million) and Croatia (up € 7 million to € 29 million) and for the pending proceedings with the consumer protection
agency in Romania (up € 17 million to € 38 million).
(29) Tax liabilities
in € million 30/6/2020 31/12/2019

Current tax liabilities 28 31
Deferred tax liabilities 44 38
Total 72 69
(30) Other liabilities
in € million 30/6/2020 31/12/2019

Liabilities from insurance activities 131 0
Deferred income and accrued expenses 427 440
Sundry liabilities 606 201
Total 1,164 641
The increase in sundry liabilities was mainly attributable to transactions related to clearing, settlement and payment services that
had not cleared as at the reporting date.

(31) Equity
in € million 30/6/2020 31/12/2019

Consolidated equity 11,708 11,817
Subscribed capital 1,002 1,002
Capital reserves 4,992 4,992
Retained earnings 8,814 8,443
hereof consolidated profit/loss 368 1,227
Cumulative other comprehensive income (3,100) (2,620)
Non-controlling interests 816 811
Additional tier 1 1,131 1,137
Total 13,655 13,765
As at 30 June 2020, subscribed capital of RBI AG as defined by the articles of incorporation amounted to € 1,003 million. After
deduction of 322,204 own shares, the stated subscribed capital totaled € 1,002 million.
RBI’s equity including capital attributable to non-controlling interests declined € 110 million to € 13,655 million from the beginning
of the year. The decrease was chiefly the result of the total comprehensive income for the period of minus € 99 million.
The Management Board decided on 4 February 2020 to propose a dividend of € 1.00 per share for the 2019 financial year to
the Annual General Meeting. This would correspond to a maximum dividend payout of € 329 million. Given the recommendation
that the European Central Bank made at the end of March regarding dividend distributions and the uncertainties produced by
COVID-19, the dividend proposal for the 2019 financial year could be revisited as soon as the financial impacts of COVID-19
have become clearer.

Notes to financial instruments
(32) Fair value of financial instruments

Fair value of financial instruments reported at fair value:
Assets 30/6/2020 31/12/2019

in € million Level I Level II Level III Level I Level II Level III
Financial assets - held for trading 1,882 2,793 0 1,910 2,272 0
Derivatives 55 2,340 0 29 1,866 0
Equity instruments 199 0 0 420 7 0
Debt securities 1,627 453 0 1,462 399 0
Non-trading financial assets - mandatorily fair
value through profit/loss 331 98 381 394 54 328
Debt securities 328 98 1 393 54 1
Loans and advances 0 0 380 0 0 327
Financial assets - designated fair value through
profit/loss 899 42 0 2,231 45 0
Debt securities 899 42 0 2,231 45 0
Financial assets - fair value through other
comprehensive income 4,310 783 140 3,912 681 188
Debt securities 4,309 720 0 3,911 600 42
Hedge accounting 0 339 0 0 402 0
Liabilities 30/6/2020 31/12/2019

in € million Level I Level II Level III Level I Level II Level III
Financial liabilities - held for trading 500 5,542 0 405 5,377 7
Derivatives 47 2,318 0 17 1,916 0
Short positions 453 4 0 359 2 0
Debt securities issued 0 3,220 0 29 3,458 7
Financial liabilities - designated fair value
through profit/loss 0 1,655 0 0 1,843 0
Deposits 0 329 0 0 328 0
Debt securities issued 0 1,327 0 0 1,515 0
Hedge accounting 0 436 0 0 282 0
Fair value hierarchy
Level I
Level I inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access on the
measurement date (IFRS 13.76).

Level II
Level II financial instruments are financial instruments measured using valuation techniques based on observable market data, the
fair value of which can be determined from similar financial instruments traded on active markets or valuation techniques whose
input parameters are directly or indirectly observable (IFRS 13.81 ff).
Level III
Level III inputs are input factors which are unobservable for the asset or liability (IFRS 13.86). The fair value is calculated using
valuation techniques.
Movements between Level I and Level II
There were no material transfers between Level I and Level II compared to the end of the year.
Movements in Level III of financial instruments at fair value
The following tables show the changes in the fair value of financial instruments whose fair value cannot be calculated based on
observable market data and are therefore subject to a measurement model that is based on inputs that are not observable on a
market. Financial instruments in this category have a value component which is unobservable directly or indirectly on the market
and which has a material impact on the fair value.
Assets As at Change in Exchange

in € million 1/1/2020 consolidated group differences Additions Disposals
Financial assets - held for trading 0 0 0 33 (32)
Non-trading financial assets -
mandatorily fair value through profit/loss 328 0 (12) 76 (16)
Financial assets - designated fair value
through profit/loss 0 0 0 0 0
comprehensive income 188 0 (1) 13 (59)
Total 516 0 (13) 122 (107)
Assets Gains/loss Gain/loss in other Transfer to Transfer from As at

in € million in P/L comprehensive income Level III Level III 30/6/2020
Financial assets - held for trading 0 0 0 0 0
mandatorily fair value through profit/loss 4 0 0 0 381
through profit/loss 0 0 0 0 0
Financial assets - fair value through
other comprehensive income 0 (1) 0 0 140
Total 5 (1) 0 0 521
Liabilities As at Change in Exchange

in € million 1/1/2020 consolidated group differences Additions Disposals
Financial liabilities - held for trading 7 0 0 0 0
Total 7 0 0 0 0
Liabilities Gains/loss Gain/loss in other Transfer to Transfer from As at

in € million in P/L comprehensive income Level III Level III 30/6/2020
Financial liabilities - held for trading 0 0 0 (7) 0
Total 0 0 0 (7) 0

Qualitative information for the valuation of financial instruments in Level III
Assets Fair value in Significant Range of unobservable

1
30/6/2020 € million Valuation technique unobservable inputs inputs
Financial assets - held for
trading 0
All base rate of last
Treasury bills, fixed coupon Discounted cash flow auction (interest rate
bonds 0 method curve) 0.69 - 1.86%
Forward foreign exchange Discounted cash flow
contracts 0 method Interest rate curve 10 - 30%
Discount spread,
Discounted cash flow credit spread range
Loans 0 method (CDS curves) –
mandatorily fair value through
profit/loss 381
Simplified net present
value method
Other interests 0 Expert opinion – –
Bonds, notes and
other non fixed-interest Net Asset Value Haircuts 20 - 50%
securities 1 Expert opinion Price
Retail: Discounted cash Discount spread (new 1.44 - 3.74% over all
flow method (incl. business) currencies
prepayment option,
withdrawal option etc.) Funding curves (for (0.25) - 2.82% over all
Non Retail: Discounted liquidity costs) currencies
cash flow
method/Financial option
pricing (Black-Scholes Credit risk premium 0.03 -18.29%
(shifted) model; Hull- (CDS curves) (depending on the rating:
Loans 380 White model) from AA to CCC)
Financial assets - designated

fair value through profit/loss 0
Discounted cash flow
method (incl. expert Price cap
Fixed coupon bonds 0 opinion) Price –
Financial assets - fair value
through other comprehensive
income 140
Credit spread
Dividend discount model Cash flow
Simplified income Discount rate
approach Dividends
Other interests 39 DCF method Beta factor –
Other interests 49 Adjusted net asset value Adjusted equity –
Market comparable
companies
Transaction price EV/Sales
Valuation report (expert EV/EBIT
judgement) P/E
Other interests 51 Cost minus impairment P/B –
Total 521
1 Values stated at 0 contain fair values of less than half a million euros.

Liabilities Fair value in Significant Range of

1
30/6/2020 € million Valuation technique unobservable inputs unobservable inputs
Financial liabilities - held for trading 0
Discounted cash flow
Forward foreign exchange contracts 0 method Interest rate curve 10 - 30%
Total 0
1 Values stated at 0 contain fair values of less than half a million euros.
Fair value of financial instruments not reported at fair value
The financial instruments in the following table are not managed on a fair value basis and are therefore not measured at fair value
in the statement of financial position. For these instruments the fair value is calculated only for the purposes of providing information
in the notes, and has no impact on the consolidated statement of financial position or on the consolidated income statement.
30/6/2020
in € million Level I Level II Level III Fair value Carrying amount Difference
Assets
Cash, cash balances at central banks
and other demand deposits 0 30,481 0 30,481 30,481 0
Financial assets - amortized cost 11,661 1,371 106,779 119,812 116,328 3,484
Debt securities 11,661 1,371 867 13,900 13,630 270
Loans and advances 0 0 105,912 105,912 102,698 3,214
Liabilities
Financial liabilities - amortized cost 0 9,653 129,810 139,464 139,160 303
Deposits from banks and customers 1
0 0 128,832 128,832 128,597 235
Debt securities issued 0 9,653 433 10,087 10,018 69
Other financial liabilities 0 0 545 545 545 0
1 Not including lease liabilities in accordance with IFRS 7
Level I Quoted market prices
Level II Valuation techniques based on market data
Level III Valuation techniques not based on market data
31/12/2019
in € million Level I Level II Level III Fair value Carrying amount Difference
Assets
Cash, cash balances at central banks
and other demand deposits 0 24,289 0 24,289 24,289 0
Financial assets - amortized cost 8,123 1,147 104,807 114,077 110,285 3,792
Debt securities 8,123 1,147 878 10,148 9,973 174
Loans and advances 0 0 103,930 103,930 100,312 3,618
Liabilities
Financial liabilities - amortized cost 0 8,645 120,445 129,090 128,311 779
Deposits from banks and customers 1
0 0 119,544 119,544 119,040 505
Debt securities issued 0 8,645 409 9,054 8,780 274
Other financial liabilities 0 0 492 492 492 0
1 Not including lease liabilities in accordance with IFRS 7
Level I Quoted market prices
Level II Valuation techniques based on market data
Level III Valuation techniques not based on market data

(33) Loan commitments, financial guarantees and other commitments
in € million 30/6/2020 31/12/2019

Loan commitments given 33,391 35,136
Financial guarantees given 7,384 7,909
Other commitments given 3,116 3,298
Total 43,892 46,342
Provisions for off-balance sheet items according to IFRS 9 (143) (161)
In addition to the provisions for off-balance sheet items according to IFRS 9 shown here, provisions for other commitments and
guarantees in accordance with IAS 37 were allocated in the amount of € 4 million (31/12/2019: € 12 million).
(34) Credit quality analysis

The credit quality analysis of financial assets is a point in time assessment of the probability of default of the assets. It should be
noted that for financial assets in stages 1 and 2, due to the relative nature of significant increase in credit risk it is not necessarily
the case that Stage 2 assets have a lower credit rating than Stage 1 assets, although this is normally the case. The following list
provides a description of the grouping of assets by probability of default:
 Excellent are exposures which demonstrate a strong capacity to meet financial commitments, with negligible or no probability
of default (PD range 0.0000 - 0.0300 per cent).
 Strong are exposures which demonstrate a strong capacity to meet financial commitments, with negligible or low probability of
default (PD range 0.0300 - 0.1878 per cent).
 Good are exposures which demonstrate a good capacity to meet financial commitments, with low default risk (PD range
0.1878 - 1.1735 per cent).
 Satisfactory are exposures which require closer monitoring and demonstrate an average to fair capacity to meet financial com-
mitments, with moderate default risk (PD range 1.1735 - 7.3344 per cent).
 Substandard are exposures which require varying degrees of special attention and default risk is of greater concern (PD range
7.3344 - 100.0 per cent).
 Credit-impaired are exposures which have been assessed as impaired (PD range 100.0 per cent).

Carrying amounts of financial assets – amortized cost by rating categories and stages:
30/6/2020 Stage 1 Stage 2 Stage 3 Total

in € million 12 month ECL Lifetime ECL Lifetime ECL
Excellent 21,627 1,265 0 22,892
Strong 27,008 5,134 0 32,142
Good 24,269 10,673 0 34,942
Satisfactory 11,908 8,648 0 20,556
Substandard 831 1,951 0 2,782
Credit impaired 0 0 2,848 2,848
Unrated 2,308 407 5 2,720
Gross carrying amount 87,952 28,078 2,853 118,882
Accumulated impairment (161) (543) (1,851) (2,554)
Carrying amount 87,791 27,535 1,002 116,328

Excellent 12,748 507 0 13,255
Strong 30,092 3,807 0 33,899
Good 32,970 3,487 0 36,456
Satisfactory 17,851 3,199 0 21,050
Substandard 1,006 1,276 0 2,282
Credit impaired 0 0 2,864 2,864
Unrated 2,573 227 0 2,801
Gross carrying amount 97,240 12,504 2,864 112,607
Accumulated impairment (183) (342) (1,798) (2,322)
Carrying amount 97,057 12,162 1,066 110,285
The category unrated includes financial assets for households for whom no ratings are available. The rating is therefore based on
qualitative factors. These are mainly a portfolio of mortgage loans to households in the Czech Republic.

Carrying amounts of financial assets – fair value through other comprehensive income, excluding equity instruments, by rating cate-
gories and stages:

Excellent 1,736 0 0 1,736
Strong 2,799 57 0 2,855
Good 204 35 0 240
Satisfactory 146 14 0 160
Substandard 0 0 0 0
Credit impaired 0 0 0 0
Unrated 40 0 0 40
1
Gross carrying amount 4,925 106 0 5,032
Accumulated impairment (3) (1) 0 (3)
Carrying amount 4,923 106 0 5,028

Excellent 1,122 0 0 1,122
Strong 3,030 0 0 3,030
Good 125 94 0 219
Satisfactory 139 13 0 152
Substandard 0 0 0 0
Unrated 31 0 0 31
1
Gross carrying amount 4,448 107 0 4,555
Accumulated impairment (1) (1) 0 (3)
Carrying amount 4,447 106 0 4,553

Nominal values of off-balance-sheet commitments by rating categories and stages:

Excellent 1,700 299 0 1,999
Strong 15,320 2,158 0 17,478
Good 12,684 4,381 0 17,065
Satisfactory 4,076 2,143 0 6,219
Substandard 136 324 0 461
Unrated 368 52 0 420
Nominal amount 34,285 9,357 250 43,892
Provisions for off-balance sheet
items according to IFRS 9 (37) (50) (55) (143)
Nominal amount after provisions 34,247 9,307 194 43,749

Excellent 2,971 185 0 3,155
Strong 16,688 1,301 0 17,989
Good 15,371 1,280 0 16,651
Satisfactory 6,869 548 0 7,418
Substandard 185 154 0 339
Unrated 427 37 0 464
Nominal amount 42,511 3,505 326 46,342
Provisions for off-balance sheet
items according to IFRS 9 (44) (30) (87) (161)
Nominal amount after provisions 42,467 3,475 239 46,182
The category unrated includes off-balance sheet commitments for households for whom no ratings are available. The rating is
therefore based on qualitative factors.

The following table shows an analysis of the default risk from derivative transactions, most of which are OTC contracts. Default risk
can be minimized by the use of settlement houses and collateral in most cases.
30/6/2020 Nominal amount Fair value

in € million Assets Liabilities
OTC products 228,094 2,655 (2,652)
Interest rate contracts 174,695 1,934 (1,683)
Equity contracts 3,316 77 (357)
Foreign exchange rate and gold contracts 50,083 643 (612)
Products traded on stock exchange 2,228 67 (48)
Interest rate contracts 96 0 0
Equity contracts 901 53 (47)
Other - Credit contracts, commodities and other contracts 2,608 13 (100)
Total 232,929 2,735 (2,801)
31/12/2019 Nominal amount Fair value

in € million Assets Liabilities
OTC products 220,664 2,258 (2,089)
Interest rate contracts 206 0 0
Other - Credit contracts, commodities and other contracts 2,286 12 (104)
Total 226,077 2,297 (2,216)

(35) Collateral and maximum exposure to credit risk

The following table contains details of the maximum exposure from financial assets not subject to impairment and the financial as-
sets subject to impairment and reconciles these with the loans and advances not held for trading which are the basis of the collat-
eral disclosures below:
30/6/2020 Maximum exposure to credit risk

hereof loans and advances non-
trading as well as loan
Not subject to Subject to commitments, financial guarantees
in € million impairment impairment and other commitments
Financial assets - amortized cost 0 118,882 105,241
comprehensive income1 0 5,032 0
value through profit/loss 807 0 380
profit/loss 941 0 0
Financial assets - held for trading 4,476 0 0
On-balance 6,224 123,914 105,621
Loan commitments, financial guarantees and
other commitments 0 43,892 43,892
Total 6,224 167,805 149,512
31/12/2019 Maximum exposure to credit risk

hereof loans and advances non-
trading as well as loan
Not subject to Subject to commitments, financial guarantees
in € million impairment impairment and other commitments
Financial assets - amortized cost 0 112,607 102,626
comprehensive income1 0 4,555 0
value through profit/loss 775 0 327
profit/loss 2,276 0 0
Financial assets - held for trading 3,756 0 0
On-balance 6,806 117,162 102,953
Loan commitments, financial guarantees and
other commitments 0 46,342 46,342
Total 6,806 163,505 149,295

RBI employs a range of policies to mitigate credit risk, the most common of which is the acceptance of collateral for loans and
advances provided. The eligibility of collateral is defined on a RBI Group basis to ensure uniform standards of collateral evalua-
tion. A valuation of collateral is performed during the credit approval process. This is then reviewed periodically using various vali-
dation processes. The main types of collateral which are accepted in RBI Group are residential and commercial real estate
collateral, financial collateral, guarantees and moveable goods. Long-term financing is generally secured, while revolving credit
facilities are generally unsecured. Debt securities are mainly unsecured, and derivatives can be secured by cash or master netting
agreements.
RBI Group’s policies regarding obtaining collateral have not been significantly changed during the reporting period; however,
they are updated on a yearly basis. In some countries, governments have announced measures to guarantee the borrowing of
otherwise financially healthy companies and households which are impacted by the COVID-19 pandemic. Government guaran-
tees relating to COVID-19 are reflected in the calculation of expected credit losses for loans to the extent that legislation has been
substantively enacted and it is clear that the individual borrowers have a claim to the guarantees.
It should be noted that the collateral values shown in the tables are capped at the maximum value of the gross carrying amount of
the financial asset. The following table shows loans and receivables categorized as financial assets at amortized cost and as fi-
nancial assets at fair value through other comprehensive income:
30/6/2020 Maximum exposure to Credit risk exposure net of

in € million credit risk Fair value of collateral collateral
Central banks 5,205 165 5,040
General governments 1,621 655 966
Banks 4,000 2,179 1,821
Other financial corporations 11,367 5,435 5,932
Non-financial corporations 48,340 21,822 26,518
Households 35,088 21,998 13,091
Commitments/guarantees issued 43,892 7,741 36,150
Total 149,512 59,994 89,518
31/12/2019 Maximum exposure to Credit risk exposure net

in € million credit risk Fair value of collateral of collateral
Central banks 4,602 172 4,430
General governments 1,199 531 668
Banks 4,837 2,356 2,481
Other financial corporations 9,887 4,813 5,073
Non-financial corporations 46,553 22,461 24,093
Households 35,874 22,407 13,468
Commitments/guarantees issued 46,342 8,114 38,228
Total 149,295 60,854 88,442

(36) Forward looking information

The following table shows the change in the full year macro-economic estimates for the years 2020, 2021 and 2022 from one
quarter to the next. Due to the current high degree of uncertainty, caused by the COVID 19 pandemic, the short-term negative
estimates are considered reasonable and supportable. Long-term estimates assume economic recovery as a result of the economic
support and relief measures on a national and supranational level. The macro-economic forecasts are used either directly in the
calculation of expected credit losses or as guidance for post-model adjustments. The estimates were based on the latest infor-
mation available when the expected credit losses were calculated (Source: Raiffeisen Research). As a result, the assumptions for
the key countries and ratios are presented below.
Real GDP Full-Year 2020f Full-Year 2021f Full-Year 2022f

Q4 Q2 Q4 Q2 Q4 Q2
Scenario 2019 2020 Change 2019 2020 Change 2019 2020 Change
Optimistic 3.6% (4.1)% (7.7) PP 4.2% 5.1% 0.9 PP 3.6% 3.8% 0.1 PP
Bulgaria Base 2.5% (6.0)% (8.5) PP 2.9% 4.0% 1.1 PP 2.5% 3.0% 0.5 PP
Pessimistic 0.7% (8.6)% (9.2) PP 0.7% 2.5% 1.7 PP 0.7% 2.0% 1.3 PP
Croatia Base 2.5% (8.5)% (11.0) PP 1.8% 3.0% 1.2 PP 1.8% 2.5% 0.7 PP
Pessimistic 0.0% (11.9)% (11.8) PP (1.2)% 1.0% 2.2 PP (0.7)% 1.2% 1.9 PP
Austria Base 0.8% (7.2)% (8.0) PP 1.4% 5.9% 4.5 PP 1.2% 1.4% 0.2 PP
Pessimistic (0.5)% (8.8)% (8.4) PP (0.1)% 4.9% 5.0 PP (0.1)% 0.7% 0.8 PP
Optimistic 3.7% (3.7)% (7.4) PP 3.6% 4.7% 1.0 PP 3.1% 2.2% (0.9) PP
Poland Base 3.3% (4.5)% (7.8) PP 3.2% 4.2% 1.0 PP 2.7% 1.9% (0.8) PP
Pessimistic 1.9% (6.4)% (8.3) PP 1.5% 3.1% 1.5 PP 1.3% 1.1% (0.2) PP
Russia Base 1.6% (4.9)% (6.5) PP 1.3% 2.8% 1.5 PP 1.3% 1.3% 0.0 PP
Pessimistic (1.3)% (9.3)% (8.0) PP (2.2)% 0.1% 2.3 PP (1.6)% (0.5)% 1.1 PP
Romania Base 3.0% (7.0)% (10.0) PP 2.0% 4.5% 2.5 PP 2.3% 3.5% 1.3 PP
Slovakia Base 2.0% (6.0)% (8.0) PP 2.5% 5.0% 2.5 PP 2.5% 2.5% 0.0 PP
Czech Republic Base 2.0% (7.6)% (9.6) PP 1.8% 6.6% 4.8 PP 2.2% 2.9% 0.8 PP
Pessimistic 0.1% (10.2)% (10.3) PP (0.6)% 5.0% 5.6 PP 0.2% 1.9% 1.7 PP
Hungary Base 2.8% (3.5)% (6.3) PP 3.2% 5.0% 1.8 PP 3.6% 3.6% 0.0 PP

Unemployment Full-Year 2020f Full-Year 2021f Full-Year 2022f

Q4 Q2 Q4 Q2 Q4 Q2
Optimistic 2.7% 3.3% 0.5 PP 2.7% 3.4% 0.7 PP 4.2% 3.3% (0.9) PP
Bulgaria Base 5.5% 7.5% 2.0 PP 6.0% 5.9% (0.1) PP 7.0% 5.0% (2.0) PP
Pessimistic 9.2% 12.9% 3.7 PP 10.4% 9.1% (1.3) PP 10.7% 7.2% (3.6) PP
Optimistic 5.5% 9.6% 4.1 PP 5.0% 9.4% 4.4 PP 5.6% 7.6% 2.0 PP
Croatia Base 6.6% 11.8% 5.2 PP 6.3% 10.7% 4.4 PP 6.7% 8.5% 1.8 PP
Pessimistic 9.9% 16.1% 6.3 PP 10.2% 13.3% 3.1 PP 10.0% 10.2% 0.3 PP
Austria Base 4.8% 6.4% 1.6 PP 4.8% 5.6% 0.8 PP 5.2% 5.5% 0.3 PP
Poland Base 5.7% 8.6% 2.9 PP 6.3% 7.7% 1.4 PP 6.5% 6.5% 0.0 PP
Pessimistic 9.2% 13.7% 4.5 PP 10.5% 10.7% 0.2 PP 10.0% 8.5% (1.5) PP
Russia Base 4.7% 6.5% 1.8 PP 4.7% 5.1% 0.4 PP 4.6% 5.0% 0.4 PP
Romania Base 4.1% 6.2% 2.2 PP 4.6% 7.4% 2.8 PP 5.3% 5.7% 0.4 PP
Slovakia Base 5.1% 7.5% 2.5 PP 5.0% 6.3% 1.3 PP 4.5% 6.0% 1.5 PP
Czech Republic Base 3.1% 4.8% 1.7 PP 3.5% 5.7% 2.2 PP 3.8% 4.3% 0.5 PP
Hungary Base 3.6% 6.2% 2.6 PP 3.7% 5.9% 2.2 PP 3.5% 5.2% 1.7 PP

Lifetime bond rate Full-Year 2020f Full-Year 2021f Full-Year 2022f

Q4 Q2 Q4 Q2 Q4 Q2
Optimistic 0.1% (0.5)% (0.7) PP 0.4% 0.2% (0.3) PP 0.5% 0.7% 0.1 PP
Bulgaria Base 0.7% 0.0% (0.7) PP 1.1% 0.5% (0.6) PP 1.1% 0.9% (0.2) PP
Croatia Base 0.4% 1.2% 0.8 PP 0.6% 1.1% 0.5 PP 1.1% 1.1% 0.0 PP
Optimistic (1.0)% (0.9)% 0.1 PP (0.7)% (0.5)% 0.1 PP 0.1% (0.3)% (0.4) PP
Austria Base (0.4)% (0.2)% 0.2 PP 0.1% (0.1)% (0.2) PP 0.8% 0.0% (0.8) PP
Optimistic 1.5% 1.1% (0.4) PP 1.7% 1.4% (0.3) PP 2.1% 2.2% 0.0 PP
Poland Base 2.2% 1.7% (0.5) PP 2.5% 1.7% (0.8) PP 2.8% 2.4% (0.4) PP
Optimistic 5.8% 4.8% (0.9) PP 5.7% 5.4% (0.2) PP 6.1% 5.5% (0.6) PP
Russia Base 6.9% 6.4% (0.5) PP 7.0% 6.4% (0.7) PP 7.3% 6.1% (1.1) PP
Romania Base 4.3% 5.0% 0.7 PP 4.5% 4.7% 0.2 PP 4.3% 4.7% 0.4 PP
Pessimistic 5.3% 6.6% 1.3 PP 5.7% 5.6% (0.1) PP 5.3% 5.3% 0.0 PP
Optimistic (0.8)% (0.4)% 0.4 PP (0.5)% (0.3)% 0.2 PP 0.3% (0.1)% (0.3) PP
Slovakia Base (0.1)% 0.3% 0.4 PP 0.3% 0.1% (0.2) PP 1.0% 0.2% (0.8) PP
Optimistic (0.1)% (0.4)% (0.3) PP 0.0% (0.2)% (0.2) PP 0.8% 0.3% (0.4) PP
Czech Republic Base 1.0% 1.0% 0.0 PP 1.3% 0.7% (0.6) PP 1.8% 0.9% (1.0) PP
Hungary Base 2.6% 2.7% 0.1 PP 2.7% 2.7% 0.0 PP 3.0% 2.8% (0.2) PP

Real estate prices Full-Year 2020f Full-Year 2021f Full-Year 2022f

Q4 Q2 Q4 Q2 Q4 Q2
Bulgaria Base 5.2% 1.0% (4.2) PP 4.8% 4.8% 0.0 PP 2.7% 2.7% 0.0 PP
Pessimistic 1.3% (6.8)% (8.1) PP 0.1% 0.1% 0.0 PP (1.2)% (0.4)% 0.8 PP
Croatia Base 6.2% 2.0% (4.2) PP 4.2% 4.2% 0.0 PP 1.7% 1.7% 0.0 PP
Pessimistic (1.6)% (2.7)% (1.1) PP (5.1)% 1.4% 6.5 PP (6.1)% (0.2)% 5.9 PP
Austria Base 2.2% 1.0% (1.2) PP 1.4% 1.4% 0.0 PP 1.2% 1.2% 0.0 PP
Pessimistic (0.9)% (0.9)% 0.1 PP (2.4)% 0.3% 2.6 PP (1.9)% 0.4% 2.4 PP
Poland Base 2.6% 2.0% (0.6) PP 1.5% 1.5% 0.0 PP 1.5% 1.5% 0.0 PP
Pessimistic (0.8)% 0.0% 0.7 PP (2.5)% 0.3% 2.8 PP (1.9)% 0.7% 2.6 PP
Russia Base 4.2% 2.0% (2.2) PP 3.5% 3.5% 0.0 PP 1.8% 1.8% 0.0 PP
Pessimistic 0.6% (3.4)% (4.0) PP (0.9)% 0.2% 1.1 PP (1.8)% (0.4)% 1.5 PP
Romania Base 3.3% 1.0% (2.3) PP 2.8% 2.8% 0.0 PP 2.4% 2.4% 0.0 PP
Slovakia Base 3.0% 0.0% (3.0) PP 2.0% 2.0% 0.0 PP 1.8% 1.8% 0.0 PP
Pessimistic (2.3)% (8.0)% (5.7) PP (4.4)% (2.8)% 1.6 PP (3.5)% (1.4)% 2.1 PP
Czech Republic Base 5.7% 1.0% (4.7) PP 3.8% 3.8% 0.0 PP 2.2% 2.2% 0.0 PP
Hungary Base 3.7% 1.0% (2.7) PP 3.5% 3.5% 0.0 PP 2.9% 2.9% 0.0 PP
Pessimistic (0.1)% (3.5)% (3.5) PP (1.0)% 0.8% 1.8 PP (0.9)% 1.1% 2.0 PP
The weightings assigned to each scenario at quarter end are as follows: 25 per cent optimistic, 50 per cent base and 25 per cent
pessimistic scenarios.
Post-model adjustments and collective staging
Post-model adjustments to expected credit loss allowance estimates are adjustments which are used in circumstances where exist-
ing inputs, assumptions and model techniques do not capture all relevant risk factors. Existing inputs, assumptions and model tech-
niques might not capture all relevant risk factors due to transient circumstances, insufficient time to appropriately incorporate
relevant new information into the rating or re-segmentation of portfolios and when individual lending exposures within a group of
lending exposures react to factors or events differently than initially expected. The emergence of new macroeconomic, microeco-
nomic or political events, along with expected changes to parameters, models or data that are not incorporated in current parame-
ters, internal risk rating migrations or forward-looking information are examples of such circumstances. In general RBI Group units
use post-model adjustments to allowances for expected credit losses only as an interim solution. In order to reduce the potential for
bias post-model adjustments are of a temporary nature and in general valid for no longer than one to two years. All material ad-
justments are authorized by the Group Risk Committee (GRC). From an accounting point of view all post-model adjustments are
based on collective assessment, but do not necessarily result in a change in expected credit losses between the stages.

Due to the complexity of the expected credit loss calculation, and the dependency of variables on one another, the table below
represents a best estimate of the included post-model-adjustments in the accumulated expected credit loss amounts in Stage 1 and
2 (balance sheet items and off-balance sheet items).
30/6/2020 Modelled ECL Post-model adjustments Total

in € million COVID-19 related Other Total
Central banks 0 0 0.0% 0 0.0% 0 0.0% 0
General governments 10 0 0.0% 0 (0.8)% 0 (0.8)% 10
Banks 1 0 0.0% 0 0.0% 0 0.0% 1
Other financial corporations 28 0 0.0% 0 0.0% 0 0.0% 28
Non-financial corporations 276 45 16.1% 45 16.5% 90 32.6% 366
Households 324 46 14.1% 20 6.2% 66 20.3% 389
Total 639 90 14.1% 65 10.2% 156 24.3% 794
The post-model adjustments resulted in additional Stage 1 and 2 provisions of € 156 million (31/12/2019: € 93 million), of
which € 90 million are COVID-19 related.
COVID-19 related post-model adjustments come from the collective impact on the tourism and related industries as well as auto-
mobile, air travel, oil and gas, real estate and some consumer goods industries as a result of the demand shock, supply chain dis-
ruptions and the containment measures. The adjustments were necessary as models cannot fully capture the speed of change and
the depth of the economic impact of the virus. Going forward it might take some time until a complete picture of the impact of
COVID-19 and subsequent measures on individual customers emerges. The related post-model adjustments involve qualitative as-
sessment of exposures for the expected significant increase in credit risk and their subsequent transfer from Stage 1 to Stage 2.
For retail customer exposure post-model adjustments are necessary in order to compensate for the reduced ability of the macro
models to cope with the drastic change of forecasts compared to pre-COVID-19 times, i.e. forecasts with a drastic decline and
subsequent recovery. The respective macro-economic models were mostly able to catch the recovery part of the forecast, without
fully taking into account the preceding worsening trend. This together with the impact of the public and private moratoriums on the
behavioral data used for determining the credit rating led to the conclusion that the current IFRS 9 model setup does not fully re-
flect the depth and speed of economic forecasts on loss expectations. The related post-model adjustments involve qualitative as-
sessment of exposures for expected significant increase in credit risk and their subsequent transfer from Stage 1 to Stage 2. The
criteria for the identification of such exposures were predominantly based on the above listed industries of activities (for SME) and
employment industries (for households) and further refined, where relevant, with information related to the application of the spe-
cific moratorium measures.
The majority of other post-model adjustments related to higher expected credit losses on Russian corporate exposures for covering
possible losses related to potential future sanctions. It also includes slightly higher expected defaults on mortgage loans due to
government-imposed interest rate clauses for retail customers in the Czech Republic and foreign-currency lending to retail custom-
ers due to consumer protection initiatives in Romania. In the reporting year, further model adjustments were made for Croatia as a
result of changed market expectations regarding the debt-to-income ratio.
Sensitivity analysis
The most significant assumptions affecting the sensitivity of the expected credit loss allowance are as follows:
 Gross domestic product (all portfolios)

 Unemployment rate (all portfolios)
 Long term government bond rate (non-retail portfolios especially)
 Real estate prices (retail portfolios especially)

The table below provides a comparison between the reported accumulated impairment for expected credit losses for financial
assets in stages 1 and 2 (weighted by 25 per cent optimistic, 50 per cent base and 25 per cent pessimistic scenarios) and then
each scenario weighted by 100 per cent on their own. The optimistic and pessimistic scenarios do not reflect extreme cases, but
the average of the scenarios which are distributed in these cases. This information is provided for illustrative purposes.
30/6/2020 30/6/2020 100% 100% 100%

in € million (25/50/25%) Optimistic Base Pessimistic
Austria 134 122 129 150
Russia 112 95 107 138
Romania 94 81 92 113
Czech Republic 76 72 75 81
Slovakia 67 59 66 79
Poland 66 64 66 70
Croatia 48 43 45 58
Bulgaria 46 42 45 53
Hungary 40 37 39 45
Other 112 95 106 140
Accumulated impairment (Stage 1 and 2) 794 708 769 925
31/12/2019 31/12/2019 100% 100% 100%

in € million (25/50/25%) Optimistic Base Pessimistic
Austria 103 93 99 112
Russia 102 86 101 119
Romania 71 61 72 81
Czech Republic 58 52 55 68
Slovakia 48 41 47 56
Poland 50 46 49 54
Croatia 38 35 39 38
Bulgaria 28 26 28 33
Hungary 26 22 26 30
Other 77 66 76 90
Accumulated impairment (Stage 1 and 2) 601 528 592 681

(37) Credit risk volume by stages

RBI’s credit portfolio is well diversified in terms of type of customer, geographical region and industry. Single name concentrations
are also actively managed (based on the concept of groups of connected customers) by limits and regular reporting. As a conse-
quence portfolio granularity is high. The following table shows the financial assets – amortized cost based on the respective coun-
terparties and stages. Here, RBI’s focus was on non-financial corporations and households:
30/6/2020 Gross carrying amount Accumulated impairment ECL Coverage Ratio

in € million Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Central banks 5,649 17 0 0 0 0 0.0% 0.3% −
General governments 11,236 813 2 (6) (1) (2) 0.0% 0.1% 98.4%
Banks 5,691 178 2 0 0 (2) 0.0% 0.1% 100.0%
Other financial corporations 10,276 1,661 58 (6) (19) (27) 0.1% 1.1% 47.2%
Non-financial corporations 29,658 17,117 1,669 (75) (220) (1,026) 0.3% 1.3% 61.5%
Households 25,443 8,291 1,122 (73) (303) (793) 0.3% 3.6% 70.7%
hereof mortgage 13,405 4,313 365 (15) (122) (223) 0.1% 2.8% 61.2%
Total 87,952 28,078 2,853 (161) (543) (1,851) 0.2% 1.9% 64.9%
31/12/2019 Gross carrying amount Accumulated impairment ECL Coverage Ratio

Central banks 6,095 4 0 0 0 0 0.0% 0.0% –
General governments 7,229 419 2 (2) (2) (2) 0.0% 0.5% 98.6%
Banks 5,873 57 4 0 0 (4) 0.0% 0.1% 100.0%
Other financial corporations 9,324 1,009 64 (7) (7) (33) 0.1% 0.7% 51.3%
Non-financial corporations 40,319 4,827 1,700 (87) (99) (996) 0.2% 2.1% 58.6%
Households 28,400 6,188 1,094 (86) (233) (763) 0.3% 3.8% 69.8%
hereof mortgage 13,984 3,823 437 (17) (109) (276) 0.1% 2.8% 63.3%
Total 97,240 12,504 2,864 (183) (342) (1,798) 0.2% 2.7% 62.8%
The following table shows the contingent liabilities and other off-balance sheet commitments by counterparties and stages. Here,
RBI’s focus was on non-financial corporations:
30/6/2020 Provisions for off-balance sheet

Nominal amount items according to IFRS 9 ECL Coverage Ratio
Central banks 0 0 0 0 0 0 0.2% − −
General governments 364 9 0 0 0 0 − 0.1% −
Banks 1,907 111 0 0 0 0 − 0.1% −
Other financial corporations 4,970 261 10 (2) (2) (1) 0.0% − 5.1%
Non-financial corporations 23,416 7,887 230 (28) (42) (48) 0.1% 0.5% 20.8%
Households 3,628 1,089 9 (7) (6) (7) 0.2% 0.6% 74.1%
Total 34,285 9,357 250 (37) (50) (55) 0.1% 0.5% 22.2%

31/12/2019 Provisions for off-balance sheet

Nominal amount items according to IFRS 9 ECL Coverage Ratio
Central banks 0 0 0 0 0 0 0.1% − −
General governments 369 18 0 0 0 0 0.0% 1.6% −
Banks 3,071 8 0 0 0 0 0.0% 0.1% −
Other financial corporations 4,068 215 9 (4) (1) (1) 0.1% 0.3% 6.5%
Non-financial corporations 31,235 2,262 307 (32) (25) (79) 0.1% 1.1% 25.8%
Households 3,769 1,003 10 (7) (5) (7) 0.2% 0.5% 70.5%
Total 42,511 3,505 326 (44) (30) (87) 0.1% 0.9% 26.6%
The following table shows the gross carrying amount and impairment of the financial assets – amortized cost and financial assets
– fair value through other comprehensive income that have moved in the reporting period from expected twelve-month losses
(Stage 1) to expected lifetime losses (Stages 2 and 3) or vice versa:
30/6/2020 Gross carrying amount Impairment ECL Coverage Ratio

in € million 12 month ECL Lifetime ECL 12 month ECL Lifetime ECL 12 month ECL Lifetime ECL
Movement from 12 month
ECL to lifetime ECL (15,775) 15,775 (53) 312 0.3% 2.0%
Central banks (13) 13 0 0 0.0% 0.0%
General governments (175) 175 0 0 0.0% 0.1%
Banks (69) 69 0 0 0.0% 0.1%
Other financial corporations (643) 643 (1) 8 0.2% 1.2%
Non-financial corporations (10,446) 10,446 (29) 118 0.3% 1.1%
Households (4,429) 4,429 (23) 186 0.5% 4.2%
Movement from lifetime ECL
to 12 month ECL 2,753 (2,753) 9 (65) 0.3% 2.4%
Central banks 0 0 0 0 − −
General governments 259 (259) 1 (2) 0.3% 0.6%
Banks 23 (23) 0 0 0.0% 0.0%
Other financial corporations 98 (98) 0 0 0.0% 0.2%
Non-financial corporations 833 (833) 3 (11) 0.4% 1.3%
Households 1,540 (1,540) 5 (52) 0.3% 3.4%
The increase in expected credit losses in the first half of 2020 arising from the movement from 12 month ECL to lifetime ECL was
€ 258 million (1/1-31/12/2019: € 270 million). The decrease in expected credit losses in the first half of 2020 arising from the
movement from lifetime ECL to 12 month ECL was € 56 million (1/1-31/12/2019: € 102 million).
Under IFRS 9, issuers must assess at each reporting date whether the credit risk on a financial instrument has significantly increased
since initial recognition. In response to the spread of COVID-19 on world markets, national governments have taken and continue
to take a wide range of measures to prevent transmission of the virus and have decided economic support and assistance
measures for households and businesses in order to surmount the economic impacts of the outbreak.

These assistance measures include payment holidays on loans, overdrafts and mortgages, loan guarantees and other forms of
support for individual businesses or specific industries. For the purposes of assessment, it is not automatically assumed that these
measures result in a significant increase in credit risk as the existing criteria are considered robust as indicators of a significant in-
crease in credit risk. In addition, the rebuttable presumption of 30 days past due has not been rebutted. The existing criteria for
assessment are set out in the 2019 Annual Report.
31/12/2019 Gross carrying amount Impairment ECL Coverage Ratio

in € million 12 month ECL Lifetime ECL 12 month ECL Lifetime ECL 12 month ECL Lifetime ECL
Movement from 12
month ECL to lifetime ECL (4,454) 4,454 (32) 301 0.7% 6.8%
General governments (86) 86 0 2 0.4% 2.4%
Banks (10) 10 0 0 0.0% 0.0%
Other financial
corporations (138) 138 0 1 0.0% 0.5%
Non-financial
corporations (1,690) 1,690 (8) 66 0.4% 3.9%
Households (2,530) 2,530 (24) 232 0.9% 9.2%
Movement from lifetime
ECL to 12 month ECL 3,249 (3,249) 44 (146) 1.3% 4.5%
General governments 175 (175) 0 0 0.0% 0.1%
Banks 159 (159) 0 0 0.0% 0.0%
Other financial
corporations 206 (206) 0 0 0.0% 0.2%
Non-financial
corporations 1,095 (1,095) 8 (27) 0.8% 2.5%
Households 1,613 (1,613) 35 (118) 2.2% 7.3%

(38) Development of impairments

Development of impairments on loans and bonds in the measurement categories of financial assets – amortized cost and financial
assets – fair value through other comprehensive income:
Stage 1 Stage 2 Stage 3 Total

As at 1/1/2020 184 343 1,798 2,325
Increases due to origination and acquisition 39 26 30 95
Decreases due to derecognition (14) (23) (95) (133)
Changes due to change in credit risk (net) (40) 208 225 392
Changes due to modifications without derecognition (net) 0 0 2 2
Decrease due to write-offs 0 0 (56) (56)
Changes due to model/risk parameters 0 2 (3) (2)
Change in consolidated group 0 0 0 0
Foreign exchange and other (6) (11) (48) (65)
As at 30/6/2020 163 543 1,851 2,557
The change in the reporting period amounted to € 232 million. It was largely due to migrations between Stage 1 and Stage 2
and additional net allocations in Stage 3.
The impairments are mainly assignable to Stage 2 and Stage 3 and result from loans to non-financial corporations and house-
holds, primarily in Central and Southeastern Europe.

As at 1/1/2019 171 333 1,986 2,490
Changes due to change in credit risk (net) (28) 15 123 99
Changes due to modifications without derecognition (net) 0 0 3 3
Decrease due to write-offs 0 (1) (111) (112)
Changes due to model/risk parameters 0 0 0 0
Foreign exchange and other 4 7 23 34
As at 30/6/2019 179 347 1,892 2,417

Development of provisions for loan commitments, financial guarantees and other commitments given:

As at 1/1/2020 44 30 87 161
Changes due to change in credit risk (net) (13) 17 (15) (11)
Decrease due to write-offs 0 0 0 0
Foreign exchange and other (3) (1) (2) (7)
As at 30/6/2020 37 50 55 143

As at 1/1/2019 37 32 57 126
Changes due to change in credit risk (net) (10) (3) 21 9
Decrease due to write-offs 0 0 0 0
Foreign exchange and other 2 1 0 3
As at 30/6/2019 37 31 71 139

Impairments and provisions by asset classes:

Loans and debt securities 163 543 1,851 2,557
Central banks 0 0 0 0
General governments 8 2 2 12
Banks 0 0 2 3
Other financial corporations 6 19 27 52
Non-financial corporations 75 220 1,026 1,322
Households 73 303 793 1,169
Loan commitments, financial guarantees and other
commitments given 37 50 55 143
Total 201 594 1,906 2,700

Loans and debt securities 184 343 1,798 2,325
Central banks 0 0 0 0
General governments 3 3 2 8
Banks 0 0 4 4
Other financial corporations 7 7 33 47
Non-financial corporations 87 99 996 1,183
Households 86 233 763 1,082
Total 228 373 1,885 2,485

(39) Past due status

Overdue claims and bonds in the measurement categories amortized cost and fair value through other comprehensive income:
30/6/2020 Carrying amount

Past due assets with significant
Past due assets without increase in credit risk since
significant increase in credit risk initial recognition but not credit- Past due credit-impaired
since initial recognition (Stage 1) impaired (Stage 2) assets (Stage 3)
≤ 30 > 30 > 90 ≤ 30 > 30 > 90 ≤ 30 > 30 > 90
in € million days days days days days days days days days
General governments 0 0 0 0 0 0 0 0 0
Banks 0 0 0 0 0 0 0 0 0
Other financial corporations 11 0 0 1 0 0 0 0 0
Non-financial corporations 307 1 1 266 121 42 26 33 191
Households 290 6 2 222 80 7 27 25 155
Total 608 6 3 489 201 49 53 58 345
The assets more than 90 days past due shown in Stage 1 and Stage 2 resulted from loans and advances and debt securities
viewed as immaterial under CRR 178 and thus still classified as performing exposure. Overdue loans have decreased since year
end due to several non-financial corporations, especially at head office, in the Czech Republic and Ukraine, becoming current
during the reporting year and the reset of days past due for customers affected by the moratoriums.
31/12/2019 Carrying amount

Past due assets with significant
Past due assets without increase in credit risk since
significant increase in credit risk initial recognition but not Past due credit-impaired
since initial recognition (Stage 1) credit-impaired (Stage 2) assets (Stage 3)
≤ 30 > 30 > 90 ≤ 30 > 30 > 90 ≤ 30 > 30 > 90
in € million days days days days days days days days days
General governments 0 0 0 2 0 0 0 0 0
Banks 0 0 0 0 0 0 0 0 0
Other financial corporations 4 0 0 0 0 0 0 0 0
Non-financial corporations 689 15 1 114 68 0 37 17 181
Households 380 7 0 405 83 2 37 35 147
Total 1,072 22 1 521 152 3 73 53 329

(40) Modified assets

Changes in contractual cashflows of financial assets are examined on the basis of qualitative and quantitative criteria to determine
whether the modifications are substantial or non-substantial.
If the modifications are substantial, the existing asset is derecognized and a new financial instrument is recognized (including new
classification and new stage allocation for impairment purposes). Non-substantial modifications do not lead to derecognition, but
to an adjustment to the gross carrying amount through profit and loss.
The year to date change from minus € 2 million to minus € 23 million is mainly due to the introduction of COVID-19 measures in
countries in which RBI operates as of the end of March 2020. Because interest unpaid due to payment holidays permitted under
the legislative measures is not allowed to result in compound interest, the gross carrying amount of the affected loans has been
reduced, and this led to net modification losses.
The share of modification losses relating to COVID-19 measures amounts to minus € 16 million.
30/6/2020
in € million Stage 1 Stage 2 Stage 3 Total
Net modifications gains/losses (12) (9) (2) (23)
Gross carrying amount before modifications of
financial assets 2,786 2,936 168 5,890
Gross carrying amount of modified assets, which
moved to Stage 1 during the year − 148 2 150
31/12/2019
in € million Stage 1 Stage 2 Stage 3 Total
Net modifications gains/losses (3) 0 1 (2)
Gross carrying amount before modifications of
financial assets 1,832 171 52 2,055
Gross carrying amount of modified assets, which
moved to Stage 1 during the year − 21 0 21

(41) Offsetting of financial assets and liabilities

The disclosures set out in the tables below include financial assets and financial liabilities that are offset in the Group’s statement of
financial position or are subject to an enforceable/unenforceable master netting arrangement or similar agreement that covers
similar financial instruments, irrespective of whether they are offset in the statement of financial position or not.
The similar agreements include derivative clearing agreements, global master repurchase agreements, and global master securi-
ties lending agreements. Similar financial instruments include derivatives, sales and repurchase agreements, reverse sale and repur-
chase agreements, and securities borrowing and lending agreements.
Some of the agreements are not set-off in the statement of financial position. This is because they create, for the parties to the
agreement, a right of set-off of recognized amounts that is enforceable only following an event of default, insolvency or bankruptcy
of the Group or the counterparties or following other predetermined events. In addition, the Group and its counterparties do not
intend to settle on a net basis or to realize the assets and settle the liabilities simultaneously. The Group receives and gives collat-
erals in the form of cash and marketable securities.
30/6/2020 Amounts from global

Gross amount Net amount netting agreements Net amount
recognized recognized financial recognized Financial Cash collateral
in € million financial assets liabilities set-off financial assets instruments received
Derivatives (enforceable) 5,101 2,685 2,416 1,506 111 798
Repurchase, securities
lending and similar
agreements (legally
enforceable) 14,850 0 14,850 14,751 0 99
Total 19,951 2,685 17,266 16,257 111 898

in € million financial liabilities assets set-off financial liabilities instruments received
Reverse repurchase,
securities lending and
similar agreements
(legally enforceable) 3,077 0 3,077 3,055 0 23
Total 8,303 2,685 5,618 4,471 330 817


in € million financial assets liabilities set-off financial assets instruments received
Repurchase, securities
lending and similar
agreements (legally
enforceable) 11,142 0 11,142 11,100 0 42
Total 15,105 1,866 13,239 12,347 139 753

in € million financial liabilities assets set-off financial liabilities instruments received
Reverse repurchase,
securities lending and
similar agreements
(legally enforceable) 795 0 795 780 0 15
Total 4,687 1,866 2,820 1,933 148 740
RBI Group has unissued covered bonds, for which its own loans have been pledged. In cases where these unissued covered
bonds are used as collateral at central banks, these assets are not listed in the transferred assets table. Currently € 2.5 billion of
these bonds are used as collateral at central banks.

(42) Transferred assets

Carrying amounts of financial assets which have been transferred but not derecognized:
30/6/2020 Transferred assets Associated liabilities

Carrying hereof hereof repurchase Carrying hereof hereof repurchase
in € million amount securitizations agreements amount securitizations agreements
Financial assets - held for trading 29 0 29 29 0 29
Non-trading financial
assets - mandatorily fair
Financial assets -
designated fair value
through profit/loss 0 0 0 0 0 0
Financial assets - fair value
through other
comprehensive income 97 0 97 94 0 94
Financial assets -
amortized cost 869 0 869 866 0 866
Total 995 0 995 988 0 988
31/12/2019 Transferred assets Associated liabilities

Carrying hereof hereof repurchase Carrying hereof hereof repurchase
in € million amount securitizations agreements amount securitizations agreements
Financial assets - held for trading 87 0 87 85 0 85
Non-trading financial
assets - mandatorily fair
Financial assets -
designated fair value
through profit/loss 0 0 0 0 0 0
Financial assets - fair
value through other
comprehensive income 45 0 45 48 0 48
Financial assets - amortized cost 109 0 109 99 0 99
Total 242 0 242 232 0 232

(43) Assets pledged as collateral and received financial assets

Significant restrictions regarding the access or use of assets:
30/6/2020 31/12/2019
Otherwise restricted Otherwise restricted
in € million Pledged with liabilities Pledged with liabilities
Financial assets - held for trading 101 0 129 0
Non-trading financial assets - mandatorily
fair value through profit/loss 18 0 2 0
through profit/loss 39 0 28 0
comprehensive income 330 4 218 5
Financial assets - amortized cost 11,780 945 11,027 782
Total 12,269 949 11,404 787
The Group received collaterals which can be sold or repledged if no default occurs within the framework of reverse repurchase
agreements, securities lending business, derivative and other transactions.
Securities and other financial assets accepted as collateral:
in € million 30/6/2020 31/12/2019

Securities and other financial assets accepted as collateral which can be sold or repledged 14,606 12,095
hereof which have been sold or repledged 3,860 2,365

(44) Derivative financial instruments

The following table shows an analysis of the counterparty credit exposures arising from derivative transactions which are mostly
OTC. Counterparty credit risk can be minimized by the use of settlement houses and the use of collateral in most cases.
30/6/2020 Nominal amount Fair values

in € million Positive Negative
Trading book 177,825 1,976 (2,200)
Credit contracts 1,114 8 (9)
Commodities 113 2 (2)
Other 1,183 1 (82)
Banking book 25,952 419 (164)
Interest rate contracts 21,602 334 (133)
Credit contracts 199 2 (8)
Hedging instruments 29,153 339 (436)
Total 232,929 2,735 (2,801)
OTC products 228,094 2,655 (2,652)
31/12/2019 Nominal amount Fair values

in € million Positive Negative
Trading book 176,548 1,664 (1,655)
Interest rate contracts 121,992 1,041 (874)
Commodities 105 5 0
Other 1,258 1 (86)
Banking book 22,882 230 (279)
Equity contracts 0 0 0
Hedging instruments 26,647 402 (282)
Foreign exchange rate and gold contracts 536 8 (7)
Total 226,077 2,297 (2,216)
OTC products 220,664 2,258 (2,089)

Risk report
Active risk management is a core competency of the RBI Group. In order to effectively identify, measure, and manage risks the
Group continues to develop its comprehensive risk management system. Risk management is an integral part of overall bank man-
agement. In particular, in addition to legal and regulatory requirements, it takes into account the nature, scale and complexity of
the Group’s business activities and the resulting risks. The figures below refer to the regulatory scope of consolidation pursuant to
CRR. In terms of risk, the companies in the IFRS scope of consolidation that are not included therein are covered by the participa-
tion risk.
The principles and organization of risk management are disclosed in the relevant sections of the 2019 Annual Report, pages
178 ff.
(45) Organization of risk management

Economic perspective – economic capital approach
Economic capital constitutes a fundamental aspect of overall bank risk management. It defines the internal capital requirement for
all material risk categories based on comparable models and thereby facilitates an aggregated view of the Group’s risk profile.
Economic capital is therefore an important instrument in Group risk management and is used for making risk-adjusted business de-
cisions and in performance measurement. For this purpose, a business unit’s profit is set in relation to the economic capital at-
tributed to the unit (Return on risk-adjusted capital, RORAC).
Risk contribution of individual risk types to economic capital:
in € million 30/6/2020 Share 31/12/2019 Share

Credit risk corporate customers 1,826 23.6% 1,749 24.8%
Credit risk retail customers 1,635 21.1% 1,751 24.8%
Market risk 1,086 14.0% 633 9.0%
Participation risk 649 8.4% 727 10.3%
Macroeconomic risk 535 6.9% 557 7.9%
Operational risk 504 6.5% 454 6.4%
FX risk capital position 431 5.6% 229 3.2%
Owned property risk 274 3.5% 252 3.6%
Credit risk sovereigns 243 3.1% 210 3.0%
Credit risk banks 168 2.2% 148 2.1%
CVA risk 17 0.2% 18 0.3%
Liquidity risk 1 0.0% 0 0.0%
Risk buffer 368 4.8% 336 4.8%
Total 7,738 100.0% 7,065 100.0%
The increase in market risk and FX risk capital position compared to the end of 2019 was largely due to heightened market volatil-
ity as a result of COVID-19.
Regional allocation of economic capital according to Group unit domicile:

Austria 3,079 39.8% 2,822 39.9%
Eastern Europe 1,721 22.2% 1,489 21.1%
Central Europe 1,494 19.3% 1,318 18.7%
Southeastern Europe 1,443 18.6% 1,436 20.3%
Rest of World 0 0.0% 0 0.0%
Total 7,738 100.0% 7,065 100.0%
Since the end of 2019, the Group has used a confidence level of 99.90 per cent to calculate economic capital. In compliance
with the ICAAP Directive published by the European Central Bank, the tier 2 capital will no longer be used to calculate the internal
capital as of the end of 2019.

(46) Credit risk

Credit risk is the largest risk for the Group’s business. Credit risk means the risk of suffering financial loss should any of the Group’s
customers or counterparties fail to fulfil their contractual obligations to the Group. Credit risk arises mainly from loans and ad-
vances to banks, loans and advances to customers, lending commitments and financial guarantees given. The Group is also ex-
posed to other credit risks arising from investments in debt securities and other exposures associated with trading activities,
derivatives, settlement agreements and reverse repo transactions.
Reconciliation of figures from IFRS consolidated financial statements to total credit exposure (according to CRR)
The following table shows the reconciliation of items on the statement of financial position to the credit exposure (banking and
trading book positions), which is used in portfolio management. It includes both exposures on and off the statement of financial
position before the application of credit-conversion factors, and thus represents the total credit exposure. It is not reduced by the
effects of credit risk mitigation such as guarantees or physical collateral, effects that are, however, considered in the total assess-
ment of credit risk. The total credit exposure is used – if not explicitly stated otherwise – for referring to exposures in all subsequent
tables in the risk report. The reasons for differences in the values used for internal portfolio management and for external financial
accounting are the different scopes of consolidation (regulatory versus accounting rules according to IFRS) and differences in the
classifications and presentation of exposure volumes.
in € million 30/6/2020 31/12/2019

Cash, cash balances at central banks and other demand deposits 24,623 19,761
Financial assets - amortized cost 118,882 112,607
Financial assets - fair value through other comprehensive income 5,032 4,555
Non-trading financial assets - mandatorily at fair value through profit / loss 810 776
Financial assets - designated fair value through profit/loss 941 2,276
Financial assets - held for trading 4,476 4,182
Hedge accounting 339 397
Current tax assets 130 61
Deferred tax assets 90 144
Other assets 800 1,028
Loan commitments given 33,391 35,136
Financial guarantees given 7,384 7,909
Other commitments given 3,116 3,298
Disclosure differences (1,285) (3,046)
1
Credit exposure 198,730 189,084
1 Items on the statement of financial position contain only credit risk amounts
The detailed credit portfolio analysis shows the breakdown by rating category. Customer rating assessments are performed sepa-
rately for different asset classes using internal risk classification models (rating and scoring models), which are validated by a cen-
tral organizational unit. The default probabilities assigned to individual rating grades are calculated separately for each asset
class. As a consequence, the default probabilities relating to the same ordinal rating grade (e.g. good credit standing 4 for corpo-
rates and banks and good credit standing A3 for sovereigns) are not directly comparable between these asset classes.
Rating models in the non-retail asset classes – corporates and banks – are uniform in all Group units and rank creditworthiness in
27 grades. The rating models for sovereigns generally comprise ten grades, the exception being Austrian customers with 27
grades. For retail asset classes, country specific scorecards are developed based on uniform Group standards. Tools are used to
produce and validate ratings (e.g. business valuation tools, rating and default database).

Credit exposure by asset classes (rating models):
in € million 30/6/2020 31/12/2019

Corporate customers 83,212 81,952
Project finance 7,323 7,212
Retail customers 41,209 42,185
Banks 26,472 21,978
Sovereigns 40,514 35,757
Total 198,730 189,084
RBI has implemented the corresponding regulatory requirements regarding moratoriums in the context of retail customers (private
individuals, small and medium-sized entities). The customer ratings that are in the moratorium were frozen accordingly. For non-
retail customers, in particular corporate customers, such regulations were not applied (even in the case of a moratorium). Rating
downgrades were carried out if necessary from an economic and financial perspective.
Credit portfolio – Corporate customers
The following table shows the credit exposure according to internal corporate ratings (large corporates, mid-market and small cor-
porates). For presentation purposes, the individual grades of the rating scale have been combined into nine main rating grades.

1 Minimal risk 5,110 6.1% 5,785 7.1%
2 Excellent credit standing 7,224 8.7% 11,877 14.5%
3 Very good credit standing 19,231 23.1% 13,834 16.9%
4 Good credit standing 18,281 22.0% 13,037 15.9%
5 Sound credit standing 14,850 17.8% 16,410 20.0%
6 Acceptable credit standing 11,250 13.5% 14,511 17.7%
7 Marginal credit standing 3,901 4.7% 3,853 4.7%
8 Weak credit standing/sub-standard 1,388 1.7% 766 0.9%
9 Very weak credit standing/doubtful 277 0.3% 316 0.4%
10 Default 1,422 1.7% 1,418 1.7%
NR Not rated 278 0.3% 145 0.2%
Total 83,212 100.0% 81,952 100.0%
The credit exposure to corporate customers increased € 1,260 million to € 83,212 million compared to year-end 2019.
Credit exposure in the rating grades from good credit standing to minimal risk increased € 5,313 million, corresponding to a share
of 59.9 per cent (31/12/2019: 54.4 per cent).
The € 675 million decline in rating grade 1 to € 5,110 million was due to a decline in credit financing in Russia and Great Britain,
and to rating downgrades of Austrian and Dutch corporate customers to rating grade 2. The decline was offset by an increase in
swap transactions in Great Britain. The € 4,653 million decline in rating grade 2 to € 7,224 million was attributable to facility and
credit financing, and also to guarantees issued. This decline was mainly due to the rating downgrade of Austrian, German, French
and Russian corporate customers to rating grade 3. Additionally, rating grade 3 recorded an increase in documentary credits in
Switzerland and in Great Britain, as well as an increase in repo business in Great Britain. The € 5,244 million increase in rating
grade 4 to € 18,281 million was due to credit and facility financing and also to rating downgrades in Bulgaria, Hungary, and
Russia from rating grade 3. In addition, Russian, German and Austrian corporate customers recorded rating upgrades from rating
grade 5. The € 3,261 million decline in rating grade 6 to € 11,250 million was mainly the result of rating shifts in the Czech Re-
public, Serbia, Austria and Germany, and of a decline in facility and credit financing.

The depreciation of the Russian ruble and the Ukrainian hryvnia also had a negative impact. The rating shift of German corporate
customers was the main reason for the € 622 million increase in rating grade 8 to € 1,388 million.
The rating model for project finance has five grades and takes both individual probabilities of default and available collateral into
account. The breakdown of the bank’s project finance exposure is shown in the table below:

6.1 Excellent project risk profile – very low risk 4,812 65.7% 5,367 74.4%
6.2 Good project risk profile – low risk 2,069 28.3% 1,310 18.2%
6.3 Acceptable project risk profile – average risk 81 1.1% 91 1.3%
6.4 Poor project risk profile – high risk 64 0.9% 82 1.1%
6.5 Default 298 4.1% 351 4.9%
NR Not rated 0 0.0% 11 0.2%
Total 7,323 100.0% 7,212 100.0%
Credit exposure to project finance increased € 111 million to € 7,323 million as at 30 June 2020. The main reason for the rating
shift from rating grade 6.1 to 6.2 was the introduction of a new rating model, which mainly affected Czech, Hungarian, Polish and
Serbian customers. The rating shift was not due to rating downgrades. The depreciation of the Czech koruna, Hungarian forint and
Polish zloty also had a negative impact.
At 94.0 per cent (31/12/2019: 92.6 per cent), the rating grades excellent project risk profile – very low risk and good project
risk profile – low risk accounted for the majority of the portfolio. This mainly reflected the high level of collateralization in special-
ized lending transactions.
Breakdown by country of risk of the credit exposure for corporate customers and project finance structured by region, taking into
account the guarantor:

Western Europe 22,488 24.8% 21,642 24.3%
Central Europe 19,701 21.8% 19,361 21.7%
Austria 17,824 19.7% 16,711 18.7%
Eastern Europe 14,726 16.3% 15,626 17.5%
Asia 1,130 1.2% 1,122 1.3%
Other 1,816 2.0% 1,883 2.1%
Total 90,535 100.0% 89,164 100.0%
Credit exposure stood at € 90,535 million, € 1,371 million higher than at year-end 2019. The increase in Western Europe of
€ 846 million to € 22,488 million was due to credit financing and to repo business and swap transactions. The increase was
partly offset by a decline in guarantees issued. Austria recorded a € 1,113 million increase to € 17,824 million as a result of
credit financing. The decrease in Eastern Europe of € 900 million to € 14,726 million was mainly due to the depreciation of the
Belarusian ruble, Russian ruble and Ukrainian hryvnia.

Credit exposure to corporates and project finance by industry of the original customer:

Manufacturing 22,497 24.8% 22,502 25.2%
Wholesale and retail trade 19,967 22.1% 20,083 22.5%
Financial intermediation 10,445 11.5% 9,775 11.0%
Real estate 10,808 11.9% 9,858 11.1%
Construction 5,735 6.3% 5,767 6.5%
Freelance/technical services 1,939 2.1% 2,047 2.3%
Transport, storage and communication 3,569 3.9% 3,602 4.0%
Electricity, gas, steam and hot water supply 3,375 3.7% 3,441 3.9%
Other industries 12,199 13.5% 12,089 13.6%
Total 90,535 100.0% 89,164 100.0%
Credit portfolio – Retail customers
Retail customers are subdivided into private individuals and small and medium-sized entities (SMEs). For retail customers a two-fold
scoring system is used, consisting of the initial and ad-hoc scoring based on customer data and of the behavioral scoring based
on account data.

Retail customers – private individuals 38,250 92.8% 38,990 92.4%
Retail customers – small and medium-sized entities 2,959 7.2% 3,194 7.6%
Total 41,209 100.0% 42,185 100.0%
Credit exposure to retail customers according to internal rating:

0.5 Minimal risk 12,250 29.7% 12,314 29.2%
1.0 Excellent credit standing 6,667 16.2% 7,066 16.7%
1.5 Very good credit standing 5,672 13.8% 6,159 14.6%
2.0 Good credit standing 4,662 11.3% 4,891 11.6%
2.5 Sound credit standing 3,748 9.1% 3,287 7.8%
3.0 Acceptable credit standing 1,946 4.7% 1,789 4.2%
3.5 Marginal credit standing 927 2.2% 927 2.2%
4.0 Weak credit standing/sub-standard 453 1.1% 428 1.0%
4.5 Very weak credit standing/doubtful 535 1.3% 382 0.9%
5.0 Default 1,359 3.3% 1,353 3.2%
NR Not rated 2,992 7.3% 3,588 8.5%
Total 41,209 100.0% 42,185 100.0%
As the customer ratings in the moratorium were frozen, there were minor rating shifts. As at 30 June 2020, about € 4 billion (total
approved moratoriums) were in the retail portfolio (households and small and medium-sized entities) in a payment moratorium that
meets EBA requirements. This corresponds to about 10 per cent of the total retail portfolio. In this regard, it should also be noted
that some countries (Hungary, Serbia) have a so-called opt-out rule. This means that customers have to refuse the payment morato-
rium on their own initiative. In most countries there is a so-called opt-in rule. This means that customers have to apply for a payment
moratorium.

It should also be noted that approximately 85 per cent of the moratoriums approved as at 30 June 2020 expire in the second half
of the year according to the current status. At least, in some countries a statutory extension is possible or not excluded.
The credit exposure to retail customers decreased € 975 million to € 41,209 million compared to year-end 2019. The deprecia-
tion of the Russian ruble and the Czech koruna were mainly responsible for this decline.
Credit exposure to retail customers by segments:
30/6/2020 Central Southeastern Eastern Group Corporates

Retail customers – private individuals 17,925 9,844 5,329 5,153
Retail customers – small and medium-sized entities 1,387 761 412 399
Total 19,312 10,605 5,741 5,551
hereof non-performing exposure 568 490 226 40
31.12.2019 Central Southeastern Eastern Group Corporates

Retail customers – private individuals 18,295 9,748 5,987 4,961
Retail customers – small and medium-sized entities 1,499 799 491 406
Total 19,793 10,546 6,478 5,367
hereof non-performing exposure 655 455 183 36
Volume-related increases in mortgage loans in Central and Eastern Europe were offset by currency depreciations (especially the
Russian ruble and Czech koruna), with the result that the credit exposure in Central Europe and Eastern Europe decreased
€ 481 million and € 737 million respectively. In addition, personal loans in Central and Eastern Europe declined due to the cur-
rency depreciations.
Breakdown of retail credit exposure by products:

Mortgage loans 24,501 59.5% 24,502 58.1%
Personal loans 8,976 21.8% 9,627 22.8%
Credit cards 3,450 8.4% 3,566 8.5%
SME financing 2,232 5.4% 2,290 5.4%
Overdraft 1,558 3.8% 1,676 4.0%
Car loans 491 1.2% 524 1.2%
Total 41,209 100.0% 42,185 100.0%

Credit portfolio – Banks
The following table shows the credit exposure by internal rating for banks (excluding central banks). Due to the small number of
customers (or observable defaults), the default probabilities of individual rating grades in this asset class are calculated based on
a combination of internal and external data.

1 Minimal risk 4,446 16.8% 3,484 15.9%
2 Excellent credit standing 7,421 28.0% 7,723 35.1%
3 Very good credit standing 7,349 27.8% 7,742 35.2%
4 Good credit standing 5,593 21.1% 1,913 8.7%
5 Sound credit standing 1,203 4.5% 658 3.0%
6 Acceptable credit standing 304 1.1% 267 1.2%
7 Marginal credit standing 118 0.4% 165 0.8%
8 Weak credit standing/sub-standard 11 0.0% 9 0.0%
9 Very weak credit standing/doubtful 18 0.1% 2 0.0%
10 Default 4 0.0% 4 0.0%
NR Not rated 5 0.0% 12 0.1%
Total 26,472 100.0% 21,978 100.0%
The credit exposure amounted to € 26,472 million. Compared to year-end 2019, this was an increase of € 4,494 million.
Rating grade 1 increased € 962 million to € 4,446 million, primarily as a result of the bond portfolio and money market transac-
tions of international organizations. The increase in rating grade 4 of € 3,680 million to € 5,593 million was due to an increase in
the bond portfolio as well as to repo business and swap transactions in France. In addition, repo business in Spain and Germany
increased, as did swap transactions in Germany. The increase in rating grade 4 was heightened by rating downgrades of French,
German, Spanish and Russian banks from rating grade 3. The decrease in rating grade 3 was partly offset by both rating down-
grades from rating grade 2 and an increase in credit and facility financing in Austria and the Czech Republic. The rating down-
grade for an Italian bank was mainly responsible for the € 545 million increase in rating grade 5 to € 1,203 million.
Credit exposure to banks (excluding central banks) by products:

Repo 10,118 38.2% 7,353 33.5%
Loans and advances 5,468 20.7% 5,104 23.2%
Bonds 3,689 13.9% 3,497 15.9%
Money market 3,090 11.7% 2,149 9.8%
Derivatives 2,700 10.2% 2,466 11.2%
Other 1,407 5.3% 1,409 6.4%
Total 26,472 100.0% 21,978 100.0%
The increase in repo business resulted from France, Germany and Great Britain. The increase in loans and advances was attributa-
ble to France, Austria and the Czech Republic. Austria and international organizations were mainly responsible for the increase in
money market transactions.

Credit portfolio – Sovereigns
Another asset class is formed by central governments, central banks, and regional municipalities as well as other public sector enti-
ties. The credit exposure to sovereigns includes Local and Regional Government (LRG). The allocation of LRG-related customers to
the respective internal rating category is based on the RBI Group’s internal rating model for LRG.
The table below provides a breakdown of the credit exposure to sovereigns (including central banks) by internal rating:

A1 Excellent credit standing 1,129 2.8% 898 2.5%
A2 Very good credit standing 16,279 40.2% 13,396 37.5%
A3 Good credit standing 9,911 24.5% 8,302 23.2%
B1 Sound credit standing 763 1.9% 532 1.5%
B2 Average credit standing 7,601 18.8% 7,826 21.9%
B3 Mediocre credit standing 2,478 6.1% 2,733 7.6%
B4 Weak credit standing 691 1.7% 665 1.9%
B5 Very weak credit standing 1,659 4.1% 1,392 3.9%
C Doubtful/high default risk 0 0.0% 3 0.0%
D Default 2 0.0% 2 0.0%
NR Not rated 1 0.0% 8 0.0%
Total 40,514 100.0% 35,757 100.0%
Compared to year-end 2019, the credit exposure to sovereigns rose € 4,757 million to € 40,514 million.
Rating grade A2 recorded an increase of € 2,883 million to € 16,279 million as a result of deposits at the Austrian National Bank
and the bond portfolio of Austria, Germany and France. Rating grade A3 recorded an increase of € 1,609 million to € 9,911 mil-
lion due to an increase in the bond portfolio in the Czech Republic and Slovakia, and to rating upgrades in Germany and Ireland
from rating grade B1. The increase was partly offset by a decline in the minimum reserve of the National Bank of Slovakia. Rating
grades B2 and B3 reported various rating shifts. Croatia and Italy recorded rating downgrades from B2 to B3, while Hungary’s
rating improved from B3 to B2. Spain’s rating improved from B2 to B1 and the bond portfolio of the Central Bank of Russia de-
clined to rating grade B2.
Credit exposure to sovereigns (including central banks) by products:

Loans and advances 17,906 44.2% 16,089 45.0%
Bonds 16,867 41.6% 14,350 40.1%
Repo 3,722 9.2% 3,628 10.1%
Money market 1,859 4.6% 1,513 4.2%
Derivatives 88 0.2% 57 0.2%
Other 72 0.2% 121 0.3%
Total 40,514 100.0% 35,757 100.0%
Loans and advances recorded a € 1,817 million increase to € 17,906 million, mainly due to deposits at the Austrian National
Bank. The increase was partly offset by reductions in the minimum reserve at the National Bank of Slovakia. Bonds recorded a
€ 2,517 million increase to € 16,867 million in France, Austria, the Czech Republic, Germany and Slovakia.

Due to an updating of the allocation between internal and external ratings, rating grade B4 and below was defined as non-invest-
ment grade. Non-investment grade credit exposure to sovereigns (rating B4 and below):

Ukraine 958 40.7% 696 33.7%
Albania 662 28.1% 638 30.8%
Bosnia and Herzegovina 416 17.7% 396 19.1%
Belarus 223 9.5% 245 11.8%
Other 94 4.0% 94 4.6%
Total 2,353 100.0% 2,069 100.0%
The non-investment grade credit exposure to sovereigns mainly comprised deposits of Group units at central banks in Central, East-
ern, and Southeastern Europe. The deposits serve to fulfil the respective minimum reserve requirements and act as a vehicle for
short-term investment of excess liquidity and are therefore inextricably linked with business activity in these countries.
The increase in Ukraine was attributable to the increase in money market transactions.
Non-performing exposure (NPE)
Since November 2019 RBI has been fully operating under the new default definition aligned with the CRR and the latest EBA
requirements (EBA/GL/2016/07). The new default definition leads to changes in the IRB approach, forcing banks to adapt their
models. These adjustments must be approved by the competent supervisory authorities before implementation (Delegated Regula-
tion EU 529/2014). RBI is currently in the process of adjusting the models based on the new default definition. Due to the recent
COVID-19 outbreak, RBI is also implementing the latest EBA guideline (EBA/GL/2020/02) on legislative and non-legislative
moratoriums for loan payments applied in light of the COVID-19 crisis. This should support the Group units in providing the neces-
sary relief measures to borrowers and mitigate the potential impact on the volumes of non-performing exposures with restructuring
measures, forborne and defaulted/non-performing exposures and the income statement.
Non-performing exposure pursuant to the applicable definition contained in the Implementing Technical Standard (ITS) on Supervi-
sory Reporting (Forbearance and non-performing exposures) issued by EBA:
NPE NPE ratio NPE coverage ratio

in € million 30/6/2020 31/12/2019 30/6/2020 31/12/2019 30/6/2020 31/12/2019
General governments 2 2 0.1% 0.2% 98.6% 98.8%
Banks 4 4 0.0% 0.0% 54.1% 100.0%
Other financial
corporations 56 56 0.4% 0.5% 48.9% 58.7%
Non-financial corporations 1,700 1,734 3.7% 3.9% 60.4% 57.4%
Households 1,150 1,141 3.3% 3.2% 69.0% 66.8%
Loans and advances 2,912 2,938 2.2% 2.4% 63.6% 61.2%
Bonds 11 11 0.1% 0.1% - -
Total 2,923 2,949 1.9% 2.1% 63.3% 61.0%

Development of non-performing exposure by asset classes (excluding items off the statement of financial position):
As at As at
in € million 1/1/2020 Exchange rate Additions Disposals 30/6/2020
General governments 2 0 2 (2) 2
Banks 4 0 0 0 4
Other financial corporations 56 0 0 0 56
Non-financial corporations 1,734 (29) 351 (357) 1,700
Households 1,141 (42) 275 (224) 1,150
Loans and advances (NPL) 2,938 (71) 628 (583) 2,912
Bonds 11 0 0 (1) 11
Total (NPE) 2,949 (71) 628 (584) 2,923
As at As at
in € million 1/1/2019 Exchange rate Additions Disposals 31/12/2019
General governments 2 0 0 0 2
Banks 8 0 0 (5) 4
Other financial corporations 81 (1) 33 (58) 56
Non-financial corporations 2,080 30 588 (963) 1,734
Households 1,228 33 559 (679) 1,141
Loans and advances (NPL) 3,400 62 1,181 (1,704) 2,938
Bonds 9 0 11 (9) 11
Total (NPE) 3,409 62 1,192 (1,713) 2,949
The volume of non-performing exposure fell € 26 million. In organic terms, the volume increased € 44 million. In contrast, general
currency movements led to a € 71 million reduction, primarily due to the depreciation of the Russian ruble and the Ukrainian hryv-
nia. Sales of non-performing loans worth € 51 million and the derecognition of commercially uncollectible loans in the amount of
€ 109 million were also recorded and mainly stemmed from Central Europe in the amount of € 82 million, Southeastern Europe in
the amount of € 43 million and Eastern Europe in the amount of € 25 million and RBI AG in the amount of € 6 million. The NPE
ratio based on total exposure decreased 0.2 percentage points to 1.9 per cent and the NPE coverage ratio increased 2.4 per-
centage points to 63.3 per cent.
Since the start of the year, non-financial corporations recorded a decline of € 34 million to € 1,700 million, mainly due to sales in
Eastern Europe in a total amount of € 15 million and in Central Europe in an amount of € 13 million, while Southeastern Europe
primarily recorded derecognitions in a total amount of € 14 million. The ratio of non-performing exposure to total credit exposure
decreased 0.2 percentage points to 3.7 per cent, and the coverage ratio increased 2.9 percentage points to 60.4 per cent.
In the households portfolio, non-performing exposure increased € 9 million to € 1,150 million, mainly due to increases in Eastern
Europe in an amount of € 41 million and in Southeastern Europe in an amount of € 30 million, offset by derecognitions in Central
Europe in an amount of € 59 million. The ratio of the non-performing exposure to total credit exposure increased 0.1 percentage
points to 3.3 per cent and the NPE coverage ratio increased 2.1 percentage points to 69.0 per cent. In the other financial corpo-
rations portfolio, the non-performing exposure was almost unchanged compared to the beginning of the year at € 56 million and
the NPE coverage ratio stood at 48.9 per cent.

Share of non-performing exposure (NPE) by segments (excluding items off the statement of financial position):
NPE NPE ratio NPE coverage ratio

in € million 30/6/2020 31/12/2019 30/6/2020 31/12/2019 30/6/2020 31/12/2019
Central Europe 881 989 2.1% 2.4% 63.3% 58.6%
Southeastern Europe 759 747 2.9% 3.0% 70.0% 69.9%
Eastern Europe 481 438 2.4% 2.0% 57.5% 60.0%
Group Corporates &
Markets 797 771 1.6% 1.7% 60.6% 55.9%
Corporate Center 5 5 0.0% 0.0% 50.5% 47.0%
Total 2,923 2,949 1.9% 2.1% 63.3% 61.0%
In Central Europe, the non-performing exposure declined € 108 million to € 881 million, primarily due to derecognitions in Poland
of € 41 million and in Hungary of € 11 million. The NPE ratio decreased 0.3 percentage points to 2.1 per cent, and the NPE
coverage ratio increased 4.7 percentage points to 63.3 per cent.
In Southeastern Europe, non-performing exposure increased € 13 million to € 759 million, mainly driven by increases in the house-
holds segment of € 30 million, offset by derecognitions primarily in Romania of € 25 million. The NPE ratio fell 0.1 percentage
points to 2.9 per cent, and the NPE coverage ratio remained almost unchanged since the start of the year at 70.0 per cent.
The Eastern Europe segment reported an increase in non-performing exposure of € 43 million to € 481 million due to Russia in a
total amount of € 66 million, the households segment in an amount of € 37 million and non-financial corporations in an amount of
€ 29 million, partly offset by the depreciation of the Russian ruble. In contrast, Ukraine recorded a total decrease of € 23 million,
primarily driven by the significant depreciation of the Ukrainian hryvnia and sales in the non-financial corporations segment of
€ 14 million. The ratio of non-performing exposure to credit exposure in Eastern Europe increased 0.4 percentage points to
2.4 per cent, and the NPE coverage ratio decreased 2.5 percentage points to 57.5 per cent.
The non-performing exposure in the Group Corporates & Markets segment increased € 26 million compared to the beginning of
the year to € 797 million. In the reporting period, the non-performing exposure at RBI AG rose € 16 million, while at Raiffeisen
Leasing Group it increased € 4 million. The NPE ratio remained almost unchanged compared to the beginning of the year at
1.6 per cent and the NPE coverage ratio increased 4.7 percentage points to 60.6 per cent compared to the start of the year.
Non-performing exposure with restructuring measures:
Instruments with modified time

Refinancing and modified conditions Total
in € million 30/6/2020 31/12/2019 30/6/2020 31/12/2019 30/6/2020 31/12/2019
General governments 0 0 2 0 2 0
Banks 0 0 0 0 0 0
Other financial
corporations 7 7 28 28 35 35
Non-financial corporations 33 35 844 864 876 899
Households1 11 16 249 254 259 271
Total 50 58 1,122 1,147 1,172 1,205
1 Adaptation of previous-year figures
The portfolio with accompanying restructuring measures reduced further in the first half of 2020.

Non-performing exposure with restructuring measures by segments:
1
Central Europe 244 20.8% 275 22.8%
Southeastern Europe 272 23.2% 271 22.5%
Eastern Europe 192 16.3% 213 17.7%
Group Corporates & Markets 465 39.6% 446 37.0%
Total 1,172 100.0% 1,205 100.0%
1 Adaptation of previous-year figures
Concentration risk
The credit portfolio of the Group is well diversified in terms of geographical region and industry. Single name concentrations are
also actively managed (based on the concept of groups of connected customers) by way of limits and regular reporting. As a
result, portfolio granularity is high.
The regional breakdown of the exposures reflects the broad diversification of credit business in the Group’s European markets.
Breakdown of credit exposure across all asset classes by the country of risk, grouped by regions:

Central Europe 51,946 26.1% 50,670 26.8%
Czech Republic 21,945 11.0% 21,539 11.4%
Slovakia 17,228 8.7% 16,672 8.8%
Hungary 7,865 4.0% 7,338 3.9%
Poland 4,455 2.2% 4,728 2.5%
Other 452 0.2% 393 0.2%
Austria 42,412 21.3% 38,381 20.3%
Other European Union 38,845 19.5% 32,837 17.4%
Germany 11,944 6.0% 10,454 5.5%
Great Britain 9,619 4.8% 8,192 4.3%
France 6,064 3.1% 4,191 2.2%
Luxembourg 2,313 1.2% 2,339 1.2%
Spain 2,061 1.0% 1,990 1.1%
Netherlands 2,042 1.0% 1,308 0.7%
Italy 1,245 0.6% 1,305 0.7%
Other 3,557 1.8% 3,058 1.6%
Romania 11,593 5.8% 11,581 6.1%
Croatia 5,335 2.7% 5,417 2.9%
Bulgaria 5,329 2.7% 5,247 2.8%
Serbia 3,710 1.9% 3,503 1.9%
Bosnia and Herzegovina 2,289 1.2% 2,262 1.2%
Albania 1,654 0.8% 1,600 0.8%
Other 966 0.5% 887 0.5%


Eastern Europe 24,719 12.4% 27,455 14.5%
Russia 19,050 9.6% 21,425 11.3%
Ukraine 3,407 1.7% 3,612 1.9%
Belarus 2,042 1.0% 2,184 1.2%
Other 220 0.1% 235 0.1%
North America 3,022 1.5% 2,740 1.4%
Switzerland 2,402 1.2% 2,691 1.4%
Asia 2,334 1.2% 2,269 1.2%
Rest of World 2,173 1.1% 1,543 0.8%
Total 198,730 100.0% 189,084 100.0%
Credit exposure across all asset classes increased € 9,646 million to € 198,730 million compared to year-end 2019. The
€ 1.276 million increase in Central Europe to € 51,946 million was mainly attributable to the bond portfolio and repo business in
the Czech Republic, the bond portfolio and credit financing in Slovakia, and to credit financing and money market transactions in
Hungary, The increase was offset by the depreciation of the Czech koruna, Hungarian forint, and the Polish zloty, and by the re-
duction in the minimum reserve of the National Bank of Slovakia. Austria recorded a € 4,031 million increase to € 42,412 million
as a result of deposits at the Austrian National Bank, the bond portfolio, as well as credit financing. The € 6,008 million increase
in the rest of the European Union to € 38,845 million was largely attributable to bonds and repo business in France, Germany
and the Netherlands. In addition, credit financing in Germany increased, as did repo business and swap transactions in Great
Britain. The decline in Russia was mainly responsible for the € 2,736 million decrease to € 24,719 million in Eastern Europe. In
addition to the depreciation of the Russian ruble, repo transactions and the bond portfolio declined. The decrease in Eastern Eu-
rope was also exacerbated by the depreciation of the Ukrainian hryvnia and the Belarusian ruble.
Credit exposure across all asset classes by currencies:

Euro (EUR) 110,797 55.8% 100,663 53.2%
Czech koruna (CZK) 19,680 9.9% 19,376 10.2%
US dollar (USD) 19,641 9.9% 18,008 9.5%
Russian ruble (RUB) 14,550 7.3% 17,261 9.1%
Romanian leu (RON) 7,483 3.8% 7,509 4.0%
Hungarian forint (HUF) 6,126 3.1% 5,805 3.1%
Bulgarian lev (BGN) 3,348 1.7% 3,256 1.7%
Croatian kuna (HRK) 3,128 1.6% 3,086 1.6%
Swiss franc (CHF) 2,824 1.4% 2,917 1.5%
Ukrainian hryvnia (UAH) 2,804 1.4% 2,806 1.5%
Bosnian marka (BAM) 2,286 1.2% 2,251 1.2%
Serbian dinar (RSD) 1,670 0.8% 1,549 0.8%
Albanian lek (ALL) 1,149 0.6% 1,121 0.6%
Belarusian ruble (BYN) 1,104 0.6% 1,179 0.6%
Other foreign currencies 2,140 1.1% 2,298 1.2%
Total 198,730 100.0% 189,084 100.0%
The increase in euro exposure of € 10,134 million to € 110,797 million was due to deposits at the Austrian National Bank, the
bond portfolio of the Republic of Austria and to credit financing. The decline in the Russian ruble was due to the currency depreci-
ation.

The depreciation of the Czech koruna was more than offset by an increase in the bond portfolio. Increasing credit financing and
repo business offset the depreciation of the US dollar. The depreciation of the Hungarian forint was more than offset by the in-
crease in money market transactions.
Group’s credit exposure based on original customer’s industry classification:

Banking and insurance 56,179 28.3% 50,884 26.9%
Private households 38,381 19.3% 39,134 20.7%
Public administration and defense and social
insurance institutions 17,740 8.9% 13,771 7.3%
Wholesale trade and commission trade (except car
trading) 14,101 7.1% 14,806 7.8%
Other manufacturing 17,005 8.6% 16,565 8.8%
Real estate activities 10,994 5.5% 10,183 5.4%
Construction 6,119 3.1% 6,169 3.3%
Other business activities 2,234 1.1% 2,313 1.2%
Retail trade except repair of motor vehicles 5,729 2.9% 5,099 2.7%
Electricity, gas, steam and hot water supply 3,552 1.8% 3,684 1.9%
Manufacture of basic metals 2,822 1.4% 2,788 1.5%
Other transport 1,779 0.9% 1,764 0.9%
Land transport, transport via pipelines 2,227 1.1% 2,233 1.2%
Manufacture of food products and beverages 2,204 1.1% 2,451 1.3%
Manufacture of machinery and equipment 1,802 0.9% 1,864 1.0%
Sale of motor vehicles 1,204 0.6% 1,301 0.7%
Extraction of crude petroleum and natural gas 1,007 0.5% 1,103 0.6%
Other industries 13,651 6.9% 12,971 6.9%
Total 198,730 100.0% 189,084 100.0%
The impact of the COVID-19 crisis was felt most strongly in the tourism, automotive, air travel, oil and gas, real estate and con-
sumer goods sectors.
(47) Market risk

Market risk management is based on figures from an internal model that calculates value-at-risk (VaR) for changes in the following
risk factors: foreign exchange, interest rate changes, credit spreads, implied volatility, equity indices and base spreads. The Aus-
trian Financial Market Authority approved this model so that it can be used for calculating total capital requirements for market
risks.

The following table shows the VaR for overall market risk in the trading and banking book for each risk type. The main drivers of
the VaR result are risks arising from equity positions held in foreign currencies, structural interest rate risks and credit spread risks in
the bond books (frequently held as a liquidity reserve).
Total VaR 99% 1d VaR as at Average VaR Minimum VaR Maximum VaR VaR as at
in € million 30/6/2020 31/12/2019
Currency risk 10 18 8 38 9
Interest rate risk 24 34 13 77 20
Credit spread risk 51 47 21 116 22
Share price risk 0 0 0 1 0
Vega risk 1 1 0 2 0
Basis risk 4 6 3 15 3
Total 52 62 27 138 31
The rise in the VaR is largely attributable to the significant increase in credit spread risk in the euro financial sector as a result of
COVID-19 and to the spread of Slovakian sovereign bonds. The increase in the interest rate risk was mainly driven by the yield
curve for the Russian ruble in the first quarter of 2020. The VaR was also impaired by the increased currency risk primarily stem-
ming from the negative trend in the Czech koruna.
The following measures are taken by market risk management in order to counter the COVID-19 crisis. Market trends and position
changes for RBI AG and the Group units are monitored more intensely. In addition, trends on local markets are updated daily and
risk management is actively controlled to be able to respond quickly to changes. The aim is to adapt limits to the risk appetite,
close positions where necessary, build up liquidity buffers where market conditions are more favorable, and adapt models to local
and global measures (moratoriums) where necessary.
(48) Liquidity management

Funding structure
The Group’s funding structure is highly focused on retail business in Central and Eastern Europe. In addition, as a result of the Aus-
trian Raiffeisen Banking Group’s strong local market presence, the Group also benefits from funding through the Raiffeisen Landes-
banken. Different funding sources are utilized in accordance with the principle of diversification. These include the issue of
international bonds by RBI AG, the issue of local bonds by the Group units and the use of third-party financing loans (including
supranationals). Partly due to tight country limits and partly due to beneficial pricing, the Group units also use interbank loans with
third-party banks.
Other assets
3% Non-financial Households
corporations Short-term
Cash reserve 29%
29% refinancing
19%
20%
94.9%
Loan/deposit ratio
(down 3.0 PP)
Long-term
assets
16% Long-term
Non-financial refinancing
corporations 18%
Households
23% Other
Short-term 21%
Equity liabilities
assets 8%
13% 2%
Assets Liabilities and equity

Liquidity position
The Going Concern report shows the structural liquidity position. It covers all material risk drivers which might affect the Group in a
business as usual scenario. The results of the going concern scenario are shown in the following table. It illustrates excess liquidity
and the ratio of expected cash inflows plus counterbalancing capacity to cash outflows (liquidity ratio) for selected maturities on a
cumulative basis. Based on assumptions employing expert opinions, statistical analyses and country specifics, this calculation also
incorporates estimates of the stability of customer deposits base, outflows from items off the statement of financial position and
downward market movements in relation to positions which influence the liquidity counterbalancing capacity.
in € million 30/6/2020 31/12/2019

Maturity 1 month 1 year 1 month 1 year
Liquidity gap 25,390 26,555 23,374 27,931
Liquidity ratio 150% 125% 146% 128%
Liquidity coverage ratio (LCR)
The short-term resilience of banks requires corresponding liquidity coverage in the form of a liquidity coverage ratio (LCR). They
must ensure that they have an adequate stock of unencumbered high-quality liquid assets (HQLA) to meet potential liability run offs
that might occur in a crisis, which can be converted into cash to meet liquidity needs for a minimum of 30 calendar days in a li-
quidity stress scenario.
The calculation of expected inflows and outflows of funds and the HQLAs is based on regulatory guidelines. The regulatory LCR
limit is 100 per cent.
in € million 30/6/2020 31/12/2019

Average liquid assets 31,447 29,168
Net outflows 19,633 20,777
Inflows 16,134 12,079
Outflows 35,767 32,856
Liquidity Coverage Ratio 160% 140%
Due to a significant increase in customer deposits within RBI, both the liquid assets and also the outflows of customer deposits
have increased. The growth in inflows was mainly attributable to reverse repo transactions of RBI AG.
Net Stable Funding Ratio
The NSFR is defined as the ratio of available stable funding to required stable funding. The new regulatory requirements will come
into force as of 28 June 2021 and the regulatory limit of 100 per cent must be met. Available stable funding is defined as the
portion of equity and debt which is expected to be a reliable source of funds over the time horizon of one year covered by the
NSFR. A bank’s required stable funding depends on the liquidity characteristics and residual maturities of the various assets and
off-balance sheet positions. The RBI Group targets a balanced funding position.
in € million 30/6/2020 31/12/2019

Required stable funding 114,716 109,882
Available stable funding 129,438 122,986
Net Stable Funding Ratio 113% 112%
During the COVID-19 crisis a stable liquidity situation was observed within RBI. Generally speaking, the crisis confirmed RBI’s
strong liquidity position and the ability to respond quickly in the event of a lack of market-sensitive refinancing sources. The report-
ing frequency for significant reports was massively increased within a few days.

This shows that the infrastructure can be quickly adapted in times of crisis. An increase of around 10 per cent in drawn loan com-
mitments was observed among corporate customers. No significant increase was recorded for drawn loan commitments among
financial customers. On account of the strong brand name, the Group units have observed a significant increase in customer de-
posits since the start of the COVID-19 crisis. Term deposits of corporate customers have proven a strong source of refinancing dur-
ing the crisis.
Other disclosures
(49) Pending legal issues

The RBI Group is involved in various legal, governmental or arbitration proceedings before various courts and governmental agen-
cies mainly arising in the ordinary course of business and involving contractual, labor and other matters.
A provision is only recognized if there is a legal or constructive obligation as a result of a past event, payment is likely and the
amount can be reliably estimated. A contingent liability that arises from a past event is disclosed unless payment is highly unlikely.
A contingent asset that arises from a past event is reported if there is high probability of occurrence. In no instance in the descrip-
tion that follows is an amount stated in which, in accordance with IAS 37, this would be severely detrimental. In some cases, provi-
sions are measured on a portfolio basis because this results in the obligation being estimated with greater reliability. RBI has
grouped its provisions, contingent assets and contingent liabilities under the headings of consumer protection, banking business,
regulatory enforcement and tax litigation.
Consumer protection
RBI faces customer lawsuits in connection with consumer protection matters. Most claims relate to terms of contract that are al-
leged to breach consumer protection or other laws. The legal risk associated with such claims is heightened by the danger of polit-
ically motivated legislation that increases the degree of unpredictability.
Croatia
In Croatia, following litigation initiated by a Croatian consumer association against Raiffeisenbank Austria, d.d., Croatia (RBHR)
and other Croatian banks, two contractual clauses used in consumer loan agreements between 2003/2004 and 2008 were
declared null and void: an interest change clause and a CHF index clause. The decision on the interest adjustment clause cannot
be challenged any more. The decision on the nullity of the CHF index clause was confirmed by the Croatian Supreme Court but
was challenged by RBHR at the Croatian Constitutional Court. A final decision by this court may have an impact on the relevant
CHF index clause. However, based on the decisions already rendered on the nullity of the interest change clause and/or the
CHF index clause, borrowers – subject to the statute of limitations – raise claims against RBHR already now. Given current legal
uncertainties relating to the statute of limitations, the validity of the CHF index clause, the appropriate further procedures, the final
outcome of the constitutional court challenge and the number of borrowers raising such claims, final quantification of the financial
impact and the possible damage is not possible at this point of time as the final legal assessment of the loan agreement clauses
has to be made in each individual case. In this connection, the provision recognized on a portfolio basis was increased to € 29
million based on updated parameters.
Poland
In Poland, a significant number of civil lawsuits are pending in relation to certain contractual stipulations connected with consumer
mortgage loans denominated in or indexed to foreign currencies. As at end June 2020, the total amount in controversy amounted
to approximately PLN 480 million (€ 108 million) and the number of such lawsuits is still increasing. In this connection, a Polish
court requested the European Court of Justice (ECJ) for clarification whether certain clauses in these agreements breach European
law and are unfair. The ECJ’s preliminary ruling of 3 October 2019 does not answer whether the loan agreements are invalid in
whole or part but merely gives interpretative guidance on the principles according to which the national courts must decide in
each individual case. According to this, a loan agreement without unfair terms should remain valid provided that it is in conformity
with national law.

If a loan agreement cannot remain valid without the unfair term, the entire contract would have to be annulled. If the annulment of
the entire contract triggers material negative consequences for the borrower, the Polish courts can replace the unfair term by a
valid term in accordance with national law. The consequences of the contract being annulled must be carefully examined so that
the borrower can consider all potential negative consequences of annulment. However, the consequences of canceling an an-
nulled loan agreement remain unclear and may be serious for the borrower, for example due to the obligation to repay the loan
immediately including the costs of using the loan amount. It remains to be seen how the principles developed by the ECJ will be
applied under national law on a case-by-case basis.
A significant increase of inflow of new cases has been observed since the beginning of 2020 which is caused by the ECJ prelimi-
nary ruling and intensified marketing activity of law firms acting on behalf of borrowers. Such increased inflow of new cases has
not only been observed by the Issuer’s Polish branch but by all banks handling currency loan portfolios in Poland.
Furthermore, Polish common courts decided to approach the ECJ with requests for a preliminary ruling in other three civil proceed-
ings which could lead to the provision on further ECJ’s clarifications and may influence on how court cases concerning currency
loans are decided by national Polish courts. However, proceedings before the ECJ are currently at a very early stage. RBI is di-
rectly involved in one of these proceedings.
The impact assessment may also be influenced in relation to affected FX-indexed or FX-denominated loan agreements by the out-
come of ongoing administrative proceedings concerning, inter alia, practice infringing the collective consumer interests and the
classification of clauses in standard agreements as unfair, carried out by the President of the Office of Competition and Consumer
Protection (UOKiK)against the Issuer’s Polish branch.
Apart from the above, a number of further administrative proceedings in connection with FX-indexed or FX-denominated credit or
loan agreements is currently carried out by the President of the UOKiK against the Issuer’s Polish branch based on the alleged
practice of infringement of collective consumer interests and the classification of clauses in standard agreements as unfair/abusive.
Such proceedings may result in administrative fines imposed on the Issuer’s Polish branch – and in case of appeals – in administra-
tive court proceedings.
As the lawsuits have been filed by a number of customers, the provision is based on a statistical approach that takes into account
both static data, where relevant, and expert opinions. Possible decision scenarios have been estimated together with the expected
loss rates per scenario. The expected impact is based on loans from customers who have filed or indicated that they will file a
lawsuit against the bank. To calculate the financial impact per scenario, the claim amount is multiplied by the estimated financial
outflow in the scenario and the probability that the bank will ultimately have to pay compensation to the customer. An appropriate
discount rate is applied to outflows that are not expected to arise within one year. The financial impacts of the individual scenarios
are weighted on the basis of expert opinions. The resulting provision has been increased to € 65 million based on updated pa-
rameters.
Romania
In October 2017, the consumer protection authority (ANPC) has issued an order for the Issuer's Romanian network bank
Raiffeisen Bank S.A., Bucharest, to stop its alleged practice of not informing its customers about future changes in the interest rate
charged to the customers. The order does not imply any monetary restitution or payment from Raiffeisen Bank S.A., Bucharest.
However, the possibility of any monetary restitution claims instigated by customers cannot be excluded. The Issuer's Romanian
network bank Raiffeisen Bank S.A., Bucharest, has disputed this order, having also obtained a final stay of its enforcement pending
a final solution. These proceedings are currently in the appeal phase, the first ruling on merits having been in favour of ANPC.
Given current uncertainties, an exact quantification of the negative financial impact is not possible, however, the estimation of
Raiffeisen Bank SA, Bucharest, based on the current known elements is that such impact is not expected to exceed € 20 million.
In July 2014, the ANCP had issued a decision applicable to Raiffeisen Bank S.A., Bucharest, asking the bank to stop the practice
of including the credit management commission in the interest margin on the occasion of the restructuring of consumer loans. Alt-
hough, provisions describing that method were included in the respective agreements, ANCP has the opinion that those provisions
were not clear enough. Initially, the way how the ANCP decision should be implemented was not clear, however, after a dispute
in court that was lost by Raiffeisen Bank S.A. in June 2020, it is now understood that the implementation would mean returning a
portion of the interest rate to all consumers to whom such practice had been applied, at least for the period starting from July
2014 until either the point of time such borrowers entered into a new agreement on the interest rate or the point of time Raiffeisen
Bank S.A. actually implements the court decision.

This also applies to originally affected loans that were repaid in the meantime. Given current uncertainties, at this stage, an exact
quantification of the negative financial impact is not possible. However, initial estimates would suggest that negative effects of ap-
proximately € 17 million can be expected, which led to the recognition of a € 17 million provision for this item in the second quar-
ter of 2020.
Banking business
RBI and its subsidiaries provide services for corporate customers that increase litigation risk at operating level. The most important
cases are as follows:
Following the insolvency of Alpine Holding GmbH (Alpine) in 2013, a number of lawsuits were filed by retail investors in Austria
against RBI and another bank in connection with a bond which had been issued by Alpine in 2012 in an aggregate principal
amount of € 100 million. The claims against RBI, filed either directly, by investors or in a class action, amount to approximately
€ 10 million of value in dispute. Among other things, it is claimed that the banks acted as joint lead managers of the bond issue
and were or at least should have been aware of the financial problems of Alpine at the time of the issue. Thus, they should have
known that Alpine was not able to redeem the bonds as set forth in the terms and conditions of the bonds. It is alleged that the
capital market prospectus in relation to the bond issue was misleading and incomplete and that the joint lead managers including
RBI, which were also involved in the preparation of the prospectus, were aware of that fact.
Legal action has been filed against Raiffeisen Zentralbank (prior to the merger with RBI in 2010) and Raiffeisen Investment AG
(RIAG) in New York. The claimant alleged that RBI, in its capacity as universal successor to Raiffeisen Zentralbank, had unlawfully
paid USD 150 thousand (€ 137 thousand) on a bid bond and that RIAG had been involved in a fraud committed by the Serbian
privatization agency resulting in a damage in the range of USD 31 million to USD 52 million (€ 28 million to € 47 million). At a
later point in time, the alleged damage was reduced to USD 30.5 million (€ 27 million). According to RBI’s assessment the claim
is unfounded and very unlikely to succeed. In February 2014, the action was dismissed, and the plaintiff filed a motion for recon-
sideration with the court which has been pending for several years. The case was assigned to a new judge in 2018 and is now
again pending in New York. RBI’s assessment of the claim remains unchanged.
RBI was served with a lawsuit by the Romanian Ministry of Traffic against RBI and Banca de Export Import a Romaniei Ex-
imbank SA (EximBank) regarding payment of € 10 million in May 2017. According to the lawsuit, in the year 2013, RBI issued a
letter of credit on the amount of € 10 million for the benefit of the Romanian Ministry of Traffic at the request of a Romanian cus-
tomer of Romanian Network Bank Raiffeisen Bank S.A., Bucharest, which is indirectly owned by RBI. EximBank acted as advising
bank of RBI in Romania. The Romanian Ministry of Traffic had sent a payment request under the mentioned letter of credit in
March 2014 which had been denied by RBI as having been received after termination date thereof. In April 2018, the lawsuit
was rejected as unfounded by the court of first instance, which was confirmed by the Bucharest Court of Appeal in October
2019.
In May 2017, a subsidiary of RBI was sued for an amount of approximately € 12 million in Austria for breach of warranties under
a share purchase agreement relating to a real estate company. The claimant, i.e. the purchaser under the share purchase agree-
ment, alleges the breach of a warranty. More precisely, it alleges the defendant warranted that the company sold under the share
purchase agreement had not waived potential rental payment increases to which it may have been entitled.
In December 2017, a French company filed a lawsuit at the commercial court in Warsaw against Raiffeisen Bank Polska S.A.
(RBPL), the former Polish subsidiary of RBI, and RBI. The French company claimed damages from both banks in the aggregate
amount of € 15.3 million alleging that RBPL failed to comply with duties of care when opening an account for a certain customer
and executing money transfers through this account, and that RBI acted as a correspondent bank in this context and failed to com-
ply with duties of care when doing so. As regards the lawsuit against RBI, the commercial court in Warsaw declined jurisdiction in
May 2019. The decision was appealed. In the course of the sale of the core banking operations of RBPL by way of demerger to
Bank BGZ BNP Paribas S.A. in 2018, the lawsuit against RBPL was allocated to Bank BGZ BNP Paribas S.A. However, RBI
agreed to fully indemnify Bank BGZ BNP Paribas S.A. for any negative financial consequences in connection with said proceed-
ings.
In June 2012, a client (the Slovak claimant) of Tatra banka, a.s. (Tatra banka) filed a petition for compensation of damage and
lost profits in the amount of approximately € 71 million. The lawsuit is connected with certain credit facilities entered into between
Tatra banka and the Slovak claimant. The Slovak claimant claims that Tatra banka breached its contractual obligations by refusing
to execute payment orders from the Slovak claimant’s accounts without cause and by not extending the maturity of facilities de-
spite a previous promise to do so, which led to non-payment of the Slovak claimant’s obligations towards its business partners and
the termination of the Slovak claimant’s business activities. In February 2016, the Slovak claimant filed a petition for increasing the
claimed amount by € 50 million but the court refused this petition. A constitutional appeal was filed regarding this court’s decision.
The constitutional court refused this appeal and rejected the proposed increase of the claimed amount.

In December 2017, Tatra banka was delivered a new claim amounting to € 50 million, based on the same grounds as the peti-
tion from February 2016. This new claim was joined to the original claim. Thus, the Slovak claimant in this lawsuit demanded com-
pensation of damage and lost profits in the amount of approximately € 121 million. In February 2018, the first-instance court
rejected the petition in its entirety. The Slovak claimant, which by law is now the trustee in the Slovak claimant’s bankruptcy pro-
ceedings, as the Slovak claimant has become bankrupt, launched an appeal against the rejection. In September 2018, the appel-
late court upheld the decision of the first-instance court and confirmed the rejection of the claim in full. In January 2019, the Slovak
claimant filed an extraordinary appeal with the Supreme Court of the Slovak Republic but the extraordinary appeal was refused
by the Supreme Court in April 2019. The Slovak claimant filed a constitutional appeal with respect to the Supreme Court ruling in
July 2019. However, the constitutional court dismissed the appeal and the lawsuit has been closed.
Furthermore, a Cypriot company (the Cypriot claimant) filed a separate action for damages in the amount of approximately
€ 43.1 million. In January 2016, the Cypriot claimant filed a petition for increasing the claimed amount by € 84 million and the
court approved this petition. It means that the total claimed amount in this lawsuit is approximately € 127 million. This lawsuit is
related to the proceeding of the Slovak claimant above because the Cypriot claimant having filed the action had acquired the
claim from a shareholder of the holding company of the Slovak claimant. The matter of the claim is the same as in the proceeding
above. According to the Cypriot claimant, this had caused damage to the Slovak claimant and, thus, also to the shareholder of
the holding company in the form of a loss of value of its shares. Subsequently, said shareholder assigned his claim to the Cypriot
claimant. The Cypriot claimant claims that Tatra banka acted contrary to the good morals as well as contrary to fair business con-
duct and requires Tatra banka to pay part of its claims corresponding to the loss in value of the holding company’s shares. In No-
vember 2019, the claim was rejected in its entirety. The Cypriot plaintiff appealed the judgement in January 2020.
Following an assignment of Tatra banka’s receivable (approximately € 3.5 million) against a corporate customer to an assignee,
two lawsuits in the total amount of approximately € 18.6 million were filed by the original shareholders of the corporate customer
against Tatra banka. Their shares in the corporate customer had been pledged as security for a financing provided by Tatra
banka to the corporate customer. The claims are claims for compensation of damages which were incurred by the original share-
holders as a consequence of an alleged late notification of the assignment to the original shareholders, the fact that the assignee
had realized the pledge over the shares and, thus, the original shareholders ceased to be the shareholders of the corporate cus-
tomer as well as the fact that the assignee had realized a mortgage over real estates of the corporate customer (which had also
been created as a security for the financing provided by Tatra banka to the corporate customer). The original shareholders
claimed that the value of the corporate customer was € 18.6 million and that this amount would represent the damage incurred by
them due to the assignment of Tatra banka’s claim against the corporate customer. Subsequently, the original shareholders as-
signed their claims under the lawsuits mentioned above to a Panamanian company which is now the plaintiff. The plaintiff claims
that Tatra banka had acted in contradiction of good faith principles and that it had breached an obligation arising from the Slovak
Civil Code. In June 2019, the court entirely rejected the claim. The Cypriot Claimant filed an appeal against this first-instance
judgement in January 2020.
In 2011, a client of Raiffeisenbank Austria, d.d., Croatia (RBHR) launched a claim for damages in the amount of approximately
HRK 143.5 million (€ 19 million), alleging damages caused by an unjustified termination of the loan. In February 2014, the com-
mercial court in Zagreb issued a judgment under which the claim was dismissed. The plaintiff launched an appeal, which remains
pending. In the meantime, the plaintiff went through bankruptcy proceedings and the bankruptcy trustee has filed to the Commer-
cial court a request for withdrawal of the claim. A ruling on the termination of the lawsuit against RBHR has not yet been issued by
the Commercial court in Zagreb.
In 2015, a former client of RBHR launched a claim for damages in the amount of approximately HRK 181 million (€ 24 million)
based on the allegation that RBHR had acted fraudulently by terminating loans, which had been granted for the financing of the
client’s hotel business, without justification. In previous court proceedings in respect of the termination of the loans as well as the
enforcement over the real estate, all final judgments were in favor of RBHR. Several hearings were held and submissions ex-
changed. To date, no ruling was passed.
From 2014 onwards, a group of former clients of RBHR launched several claims for damages in the amount of approximately
HRK 120.7 million (€ 16 million) based on the allegation that RBHR had acted fraudulently by terminating and collecting loans. In
some of the court proceedings the final court decisions dismissed the claims in the amount of approximately HRK 20 million (€ 3
million).
In 2015, a former client of the Raiffeisenbank a.s. (RBCZ), launched a lawsuit against RBCZ claiming damages in the amount of
approximately CZK 371 million (€ 14 million) based on the allegation that RBCZ caused damage to him by refusing to provide
further financing to him. Owing to the non-payment of court fees by the claimant, a court ruling on dismissal of the lawsuit was is-
sued but has been appealed by the claimant. In the meantime, the court has united two proceedings launched by the claimant
against RBCZ and therefore the sued amount has increased to approximately CZK 494 million (€ 18 million).

After the first-instance court decision was revoked by the High Court and the claimant finally paid the court fee, the first-instance
court was able to issue a verdict on the core matter of the dispute in which the court dismissed the claimant’s claims in September
2019. The claimant has appealed that decision. In June 2020, the claim was dismissed by the appellate court. The decision is in
legal force, however under certain circumstances, the plaintiff may still appeal to the Supreme Court.
In April 2018, Raiffeisen Bank Polska S.A. (RBPL), the former Polish subsidiary of RBI, obtained the lawsuit filed by a former client
claiming an amount of approximately PLN 203 million (€ 45 million). According to the plaintiff’s complaint, RBPL blocked the cli-
ent’s current overdraft credit account for six calendar days in 2014 without the formal justification. The plaintiff claimed that the
blocking of the account resulted in losses and lost profits due to a periodic disruption of the client’s financial liquidity, the inability
to replace loan-based funding sources with financing streams originating from other sources on the blocked account, a reduction in
inventory and merchant credits being made available and generally a resulting deterioration of the client’s financial results and
business reputation. RBPL contended that the blocking was legally justified and implemented upon the information obtained. In the
course of the sale of the core banking operations of RBPL to Bank BGZ BNP Paribas S.A.), the lawsuit against RBPL was allocated
to Bank BGZ BNP Paribas S.A. However, RBI remains commercially responsible for negative financial consequences in connec-
tion with said proceeding.
A German customer instructed RBI to issue guarantees in favor of a Polish legal entity and a Polish community (together the plain-
tiffs). RBI instructed RBPL to issue such guarantees in Poland and granted RBPL corresponding counter-guarantees. RBI itself had
received a declaration from the German customer regarding complete indemnity. The plaintiffs demanded payment under the
guarantees of Bank BGZ BNP Paribas SA (BNP), which is the legal successor to RBPL regarding those guarantees. BNP rejected
the application on the grounds of abusive exercise of rights. In March 2019, a claim for payment of PLN 50 million (€ 11 million)
plus interest was served on BNP by the plaintiffs through the Warsaw commercial court. RBI remains commercially responsible for
negative financial consequences in connection with said proceedings and was invited by BNP to join the lawsuit in November
2019.
In July 2019, a former corporate customer (claimant) of RBI filed a request for arbitration with the International Court of Arbitration
of the International Chamber of Commerce, claiming from RBI payment of USD 25 million (€ 23 million) plus damages, interest
and further costs. The dispute relates to a guarantee of a third party, which served as a security for a loan granted by RBI to the
claimant in 1998. The claimant fell into arrears, whereupon RBI called in the guarantee. In 2015 a settlement was reached be-
tween RBI and the guarantor as to the claims of RBI under the guarantee. RBI applied all monies received from the guarantor to-
wards payment by the claimant under the loan. In its request for arbitration, the claimant alleges (inter alia) that the settlement was
detrimental to it, and that RBI would be obliged to transfer the monies received from the guarantor to the claimant. RBI takes the
view that the claims raised by the claimant are baseless. In June 2020, the arbitral tribunal issued an award holding that it has no
jurisdiction over the claims and disputes raised by Claimant. This arbitral award and the question of jurisdiction could still be chal-
lenged before English courts.
In February 2020, Raiffeisen-Leasing GmbH (RL) was served with a lawsuit in Austria for an amount of approximately € 43 million.
The plaintiff claims damages alleging that RL had breached its obligations under a real estate development agreement. According
to the assessment of RL and its lawyers, this claim is very unlikely to succeed, in particular given the fact that a similar claim of the
plaintiff was rejected by the Austrian Supreme Court in a previous legal dispute. In this case already two applications for legal aid
filed by the plaintiff have been rejected by the Commercial Court of Vienna because of malicious abuse of right.
A claim against RBI Leasing GmbH (RBIL) for damages in the original provisional amount of some € 70 thousand plus interest in
August 2019 was increased in March 2020 to an amount of around € 16 million. The claimant argues that an object financed by
RBIL was sold below market value after termination of the finance agreement, while he would have been able to obtain a consid-
erably higher price. RBIL maintains that the financed property was offered to the claimant prior to conclusion of the final purchase
agreement with the third party.
Regulatory enforcement
RBI and its subsidiaries are subject to numerous national and international regulatory authorities.
Following an audit review of the Romanian Court of Auditors regarding the activity of Aedificium Banca Pentru Locuinte S.A. (prior
Raiffeisen Banca pentru Locuinte S.A. (RBL), a building society and subsidiary of Raiffeisen Bank S.A., Bucharest, the Romanian
Court of Auditors claimed that several deficiencies were identified and that conditions for payings of state premiums on savings by
RBL had not been met. Thus, allegedly, such premiums may have to be repaid. Should RBL not succeed in reclaiming said amounts
from its customers or providing satisfactory documentation, RBL may be held liable for the payment of such funds.

RBL has initiated a court dispute against the findings of the Romanian Court of Auditors and won over the most relevant alleged
deficencies. The case is in appeal at the High Court of Cassation and Justice. Given current uncertainties, an exact quantification
of the negative financial impact is not possible, however, repayment of premiums and potential penalty payments are not ex-
pected to exceed € 48 million. In this connection, a provision of € 10 million was recognized.
In March 2018, an administrative fine of € 2.7 million (which was calculated by reference to the annual consolidated turnover of
RBI and constitutes 0.06 per cent of the last available annual consolidated turnover) was imposed on RBI in the course of adminis-
trative proceedings based on alleged non-compliance with formal documentation requirements relating to the know-your-customer
principle. According to the interpretation of the Austrian Financial Market Authority (FMA), RBI had failed to comply with these
administrative obligations in a few individual cases. FMA did not allege that any money laundering or other crime had occurred,
or that there was any suspicion of, or any relation to, any criminal act. RBI took the view that it had duly complied with all due dili-
gence obligations regarding know-your-customer requirements and appealed against the fining order in its entirety. The administra-
tive court of first instance confirmed FMA’s decision and – again - RBI appealed against this decision in its entirety. In December
2019, the Austrian Supreme Administrative Court (Verwaltungsgerichtshof) revoked the decision of the lower administrative in-
stances and referred the case back to the administrative court of first instance.
In September 2018, two administrative fines of total PLN 55 million (€ 12 million) were imposed on RBPL in the course of adminis-
trative proceedings based on alleged non-performance of the duties as the depositary and liquidator of certain investment funds.
RBPL as custodian of investment funds assumed the role as liquidator of certain funds in spring 2018. According to the interpreta-
tion of the Polish Financial Supervision Authority (PFSA) RBPL failed to comply with certain obligations in its function as depository
bank and liquidator of the funds. In the course of the transactions related to the sale of RBPL, the responsibility for said administra-
tive proceedings and related fines was assumed by RBI. RBI filed appeals against these fines in their entirety. In September 2019,
in relation to the PLN 5 million (€ 1 million) fine regarding RBPL’s duties as depositary bank, the Voivodship Administrative Court
approved RBI’s appeal and overturned the PFSA’s decision entirely. However, the PFSA appealed such decision. In relation to the
PLN 50 million (€ 11 million) fine regarding RBPL’s function as liquidator, the Voivodship Administrative Court decided to dismiss
the appeal and uphold the PFSA decision entirely. RBI has raised appeal to the Supreme Administrative Court because it takes the
view that RBPL has duly complied with all its duties.
Tax litigation
RBI is or is expected to be involved in various tax audits, tax reviews and tax proceedings. RBI is involved in the following signifi-
cant tax proceedings, among others:
In Germany, a tax review and tax proceedings led to or may lead to an extraordinary tax burden of approximately € 27 million.
Additionally, late payment interest and penalty payments may be imposed.
In Romania, tax assessments by the Romanian tax authorities relating especially to loan sales could result in an extraordinary tax
burden of approximately € 30 million plus about € 22 million in penalty payments.
In the vast majority of the aforementioned amounts, the decision of the respective tax authorities is or will be disputed.

(50) Related parties

The main companies exercising a significant influence are Raiffeisenlandesbank Niederösterreich-Wien AG, Vienna, as the largest
single shareholder, and its parent company, Raiffeisen-Holding Niederösterreich-Wien registrierte Genossenschaft mit beschränkter
Haftung, Vienna. Affiliated companies that are not consolidated due to immateriality are shown under affiliated companies.
Transactions with related parties are limited to banking business transactions that are carried out at fair market conditions. Moreo-
ver, members of the Management Board hold shares of RBI AG. Detailed information regarding this is published on the homep-
age of Raiffeisen Bank International.
30/6/2020 Companies with Investments in

significant Affiliated associates Other
in € million influence companies valued at equity interests
Selected financial assets 23 507 1,088 585
Equity instruments 0 227 709 204
Debt securities 14 0 156 12
Loans and advances 9 281 223 368
Selected financial liabilities 2,159 83 4,764 567
Deposits 2,159 83 4,764 567
Debt securities issued 0 0 0 0
Other items 161 24 816 121
commitments received 13 0 30 0
31/12/2019 Companies with Investments in

Selected financial assets 9 558 1,146 669
Equity instruments 0 270 836 229
Debt securities 6 0 56 12
Loans and advances 3 288 254 428
Selected financial liabilities 2,134 94 4,375 528
Deposits 2,134 94 4,375 528
Debt securities issued 0 0 0 0
Other items 169 60 251 125
commitments received 7 0 30 0

1/1-30/6/2020 Companies with Investments in

Interest income 4 1 5 2
Interest expenses (8) 0 (13) (10)
Fee and commission income 3 3 6 3
Fee and commission expenses (2) 0 (4) (9)
1/1-30/6/2019 Companies with Investments in

Interest income 1 3 4 7
Interest expenses (3) (1) (13) (1)
Fee and commission income 2 3 5 3
Fee and commission expenses (1) (7) (3) (1)
(51) Average number of staff
Full-time equivalents 1/1-30/6/2020 1/1-30/6/2019

Salaried employees 46,171 46,583
Wage earners 628 608
Total 46,799 47,191

Regulatory information
Capital management and total capital according to CRR/CRD IV and Austrian Banking Act (BWG)
Based on an annually undertaken Supervisory Review and Evaluation Process (SREP), the ECB currently instructs RBI by way of an
official notification to hold additional capital to cover risks which are not or not adequately covered under Pillar I. In April 2020,
RBI received an official notification of a change in capital requirements that came into effect retroactively in March 2020. Accord-
ing to the changes, the Pillar 2 requirement, which previously consisted exclusively of common equity tier 1 capital (CET1), may
now be met through the use of additional tier 1 (AT1) and tier 2 (T2) capital instruments in addition to common equity tier 1 capital
(CET1).
The Pillar 2 requirement is calculated based on the bank’s business model, risk management or capital situation, for example. In
addition, the RBI Group is subject to the minimum requirements of the CRR and the combined buffer requirement. The combined
buffer requirement for the RBI Group currently contains a capital conservation buffer, a systemic risk buffer and a countercyclical
buffer. As at 30 June 2020, the CET1 requirement (including the combined buffer requirement) is 10.6 per cent for the RBI Group.
A breach of the combined buffer requirement would induce measures such as constraints on dividend payments and coupon pay-
ments on certain capital instruments. The capital requirements applicable during the year were complied with, including an ade-
quate buffer, on both a consolidated and individual basis.
As a rule, national supervisors are authorized to impose systemic risk buffers (up to 5 per cent) as well as additional capital add-
ons for systemic banks (up to 3.5 per cent). In the event that systemic risk buffers as well as add-ons for systemic banks are im-
posed on a particular institution, only the higher of the two values is applicable. In September 2015, the Financial Market Stability
Board (FMSB) of the FMA recommended a systemic risk buffer (SRB) for certain banks, including RBI. This came into force as of
the beginning of 2016 through the FMA via the Capital Buffer Regulation. Since 2019, after a progressive increase, for RBI the
SRB has been set at 2 per cent.
The establishment of a countercyclical buffer is also the responsibility of the national supervisors and results in a weighted average
at the level of the RBI Group in order to curb excessive lending growth. This buffer was set at 0 per cent in Austria for the present
time due to restrained lending growth. The buffer rates defined in other member states apply at the level of the RBI Group (based
on a weighted calculation of averages). Further expected regulatory changes and developments are monitored, and included
and analyzed in scenario calculations undertaken by Group Regulatory Affairs on an ongoing basis. Potential effects are taken
into account in planning and governance, insofar as the extent and implementation are foreseeable.
In the context of the COVID-19 pandemic, both the ECB and the EBA enacted regulatory relief measures to enable banks super-
vised by the ECB to continue to play their central role in providing financing to households and businesses. The ECB will explicitly
allow banks under its supervision to operate below the levels defined by the Pillar 2 guidance, the capital conservation buffer and
the liquidity coverage ratio (LCR). Banks will also be allowed to use other capital instruments in addition to common equity tier 1
capital to meet capital requirements. This particular measure would have otherwise come into force at the beginning of 2021 as
part of the implementation of CRD V (Capital Requirements Directive). Furthermore, the ECB is of the opinion that these measures
should be supported by an appropriate relaxation of the countercyclical capital buffer by the national supervisory authorities.
Total capital
The following consolidated figures have been calculated in accordance with the provisions of the Capital Requirements Regulation
(CRR) and other statutory provisions such as the Implementing Technical Standards (ITS) of the European Banking Authority (EBA).
As at 30 June 2020, common equity tier 1 (CET1) after deductions amounted to € 10,640 million, representing a € 222 million
reduction compared to the 2019 year-end figure. Material factors behind the reduction were currency movements directly recog-
nized in equity. Tier 1 capital after deductions declined € 212 million to € 11,879 million, mainly as a result of the reduction in
CET1. Tier 2 capital rose € 330 million to € 2,270 million. The increase was driven by the issuance of a bond in June, while the
regulatory amortization of outstanding issues had an offsetting effect. Total capital amounted to € 14,149 million, representing an
increase of € 118 million compared to the 2019 year-end figure.
Total risk-weighted assets (RWA) increased € 2,524 million from the end of 2019 to € 80,490 million. The major reasons for the
increase were new loan business, as well as business developments at head office, and in Russia, Serbia, and the Czech Repub-
lic. The (organic) growth was partly offset by negative currency effects, especially from the Russian ruble, the Ukrainian hryvnia,
and the Czech koruna. An increase in market risk, driven by the rise in volatility caused by the COVID-19 pandemic, as well as the
increase in operating risk due to ongoing legal disputes in connection with the CHF loans also contributed to an increase in RWA.

On a fully loaded basis and including the half-year result, this resulted in a CET1 ratio of 13.2 per cent, a tier 1 ratio of 14.6 per
cent and a total capital ratio of 17.5 per cent.
in € million 30/6/2020 31/12/2019

Capital instruments and the related share premium accounts 5,974 5,974
Retained earnings 8,286 7,986
Accumulated other comprehensive income (and other reserves) (3,358) (2,801)
Minority interests (amount allowed in consolidated CET1) 487 499
Common equity tier 1 (CET1) capital before regulatory adjustments 11,389 11,659
Additional value adjustments (negative amount) (59) (55)
Intangible assets (net of related tax liability) (negative amount) (722) (762)
Deferred tax assets that rely on future profitability excluding those arising from temporary
differences (net of related tax liability where the conditions in Article 38 (3) are met)
(negative amount) (13) (16)
Fair value reserves related to gains or losses on cash flow hedges (2) (1)
Gains or losses on liabilities valued at fair value resulting from changes in own credit
standing 61 56
Exposure amount of the following items which qualify for a risk weight of 1250%, where
the institution opts for the deduction alternative (13) (18)
hereof: securitization positions (negative amount) (13) (18)
Total regulatory adjustments to common equity tier 1 (CET1) (749) (797)
Common equity tier 1 (CET1) capital 10,640 10,862
Amount of qualifying items referred to in Article 484 (4) and the related share premium
accounts subject to phase out from AT1 88 90
Qualifying tier 1 capital included in consolidated AT1 capital (including minority interests
not included in row 5) issued by subsidiaries and held by third parties 1,151 1,139
Additional tier 1 (AT1) capital 1,239 1,230
Tier 1 capital (T1 = CET1 + AT1) 11,879 12,092
Capital instruments and the related share premium accounts 1,981 1,679
Qualifying own funds instruments included in consolidated T2 capital (including minority
interests and AT1 instruments not included in rows 5 or 34) issued by subsidiaries and
held by third parties 34 19
Credit risk adjustments 255 242
Tier 2 (T2) capital 2,270 1,940
Total capital (TC = T1 + T2) 14,149 14,032
Risk-weighted assets in respect of amounts subject to pre-CRR treatment and transitional
treatments subject to phase out as prescribed in Regulation (EU) No 575/2013 (i.e. CRR
residual amount) 80,490 77,966
Total risk-weighted assets (RWA) 80,490 77,966

Total capital requirement and risk-weighted assets
in € million 30/6/2020 31/12/2019

Risk-weighted Capital Risk-weighted Capital
exposure requirement exposure requirement
Risk-weighted exposure amounts for credit, counterparty
credit and dilution risks and free deliveries 66,639 5,331 65,851 5,268
Standardized approach (SA) 23,946 1,916 25,281 2,023
Exposure classes excluding securitization positions 23,946 1,916 25,281 2,023
Central governments or central banks 1,178 94 956 76
Regional governments or local authorities 104 8 101 8
Public sector entities 29 2 28 2
Institutions 235 19 227 18
Corporates 4,760 381 5,506 440
Retail 5,243 419 5,718 457
Secured by mortgages on immovable property 7,315 585 7,455 596
Exposure in default 430 34 479 38
Items associated with particular high risk 122 10 139 11
Covered bonds 13 1 13 1
Collective investments undertakings (CIU) 65 5 75 6
Equity 1,606 128 1,816 145
Other items 2,846 228 2,770 222
Internal ratings based approach (IRB) 42,693 3,415 40,570 3,246
IRB approaches when neither own estimates of LGD nor
conversion factors are used 35,645 2,852 33,561 2,685
Central governments or central banks 1,995 160 1,817 145
Institutions 2,073 166 1,457 117
Corporates - SME 4,086 327 5,086 407
Corporates - Specialized lending 3,126 250 3,261 261
Corporates - Other 24,366 1,949 21,940 1,755
IRB approaches when own estimates of LGD and/or
conversion factors are used 6,665 533 6,547 524
Retail - Secured by real estate SME 194 15 168 13
Retail - Secured by real estate non-SME 2,606 208 2,558 205
Retail - Qualifying revolving 282 23 296 24
Retail - Other SME 529 42 521 42
Retail - Other non-SME 3,055 244 3,004 240
Equity 383 31 462 37
Simple risk weight approach 0 0 0 0
Other equity exposure 0 0 0 0
PD/LGD approach 0 0 0 0

in € million 30/6/2020 31/12/2019

Risk-weighted Capital Risk-weighted Capital
exposure requirement exposure requirement
Total risk exposure amount for settlement/delivery 8 1 44 4
Settlement/delivery risk in the non-trading book 0 0 44 3
Settlement/delivery risk in the trading book 8 1 0 0
Total risk exposure amount for position, foreign exchange
and commodities risk 4,548 364 3,393 271
Risk exposure amount for position, foreign exchange and
commodities risks under standardized approaches (SA) 2,227 178 2,108 169
Traded debt instruments 1,757 141 1,651 132
Equity 178 14 158 13
Particular approach for position risk in CIUs 1 0 1 0
Foreign exchange 286 23 289 23
Commodities 5 0 8 1
Risk exposure amount for position, foreign exchange and
commodities risks under internal models (IM) 2,321 186 1,285 103
Total risk exposure amount for operational risk 8,516 681 7,802 624
OpR standardized (STA) /alternative standardized (ASA)
approaches 3,473 278 3,694 296
OpR advanced measurement approaches (AMA) 5,043 403 4,108 329
Total risk exposure amount for credit valuation adjustments 206 17 223 18
Standardized method 206 17 223 18
Other risk exposure amounts 573 46 653 52
of which risk-weighted exposure amounts for credit risk:
securitization positions (revised securitization framework) 573 46 653 52
Capital ratios1
in per cent 30/6/2020 31/12/2019

Common equity tier 1 13.2% 13.9%
Tier 1 ratio 14.6% 15.4%
Total capital ratio 17.5% 17.9%
1 Fully loaded
Leverage ratio
The leverage ratio is defined in Part 7 of the CRR and as at 30 June 2020 was not yet a mandatory quantitative requirement. Until
then it serves for information only.
in € million 30/6/2020 31/12/2019

Leverage exposure 192,203 178,226
Tier 1 11,879 12,092
1
Leverage ratio 6.1% 6.7%
1 Fully loaded

Key figures
Alternative Performance Measures (APM)
The Group uses alternative performance measures in its financial reporting, not defined by IFRS or CRR regulations, to describe
RBI Group's financial position and performance. These should not be viewed in isolation, but treated as supplementary infor-
mation.
For the purpose of the analysis and description of the performance and the financial position these ratios are commonly used
within the financial industry. The special items used below to calculate some alternative performance measures arise from the na-
ture of Group’s business, i.e. that of a universal banking group. However, it is to mention that the definitions mostly vary between
companies. Please find the definitions of these ratios below.
Consolidated return on equity – Consolidated profit less dividend on additional tier 1 capital in relation to average consolidated
equity ( i.e. the equity attributable to the shareholders of RBI). Average consolidated equity is based on month-end figures exclud-
ing non-controlling interests and does not include current year profit.
Cost/income ratio is an economic metric and shows the company’s costs in relation to its income. The ratio gives a clear view of
operational efficiency. Banks use the cost/income ratio as an efficiency measure for steering the bank and for easily comparing its
efficiency with other financial institutions. General administrative expenses in relation to operating income are calculated for the
cost/income ratio. General administrative expenses comprise staff expenses, other administrative expenses and deprecia-
tion/amortization of intangible and tangible fixed assets. Operating income comprises net interest income, dividend income, cur-
rent income from investments in associates, net fee and commission income, net trading income and fair value result, net
gains/losses from hedge accounting and other net operating income.
Effective tax rate (ETR) – Relation of income tax expense to profit before tax. The effective tax rate differs from the company´s
jurisdictional tax rate due to many accounting factors and enables a better comparison among companies. The effective tax rate
of a company is the average rate at which its pre-tax profits are taxed. It is calculated by dividing total tax expense (income taxes)
by profit before tax. Total tax expense includes current income taxes and deferred taxes.
Loan/deposit ratio indicates a bank's ability to refinance its loans by deposits rather than wholesale funding. It is calculated with
loans to non-financial corporations and households in relation to deposits from non-financial corporations and households.
Net interest margin is used for external comparison with other banks as well as an internal profitability measurement of products
and segments. It is calculated with net interest income set in relation to average interest-bearing assets (total assets less investments
in subsidiaries and associates, tangible fixed assets, intangible fixed assets, tax assets and other assets).
NPE – Non-performing exposure. It contains all non-performing loans and debt securities according to the applicable definition of
the EBA document Implementing Technical Standards (ITS) on Supervisory Reporting (Forbearance and non-performing expo-
sures).
NPL – Non-performing loans. It contains all non-performing loans according to the applicable definition of the EBA document
Implementing Technical Standards (ITS) on Supervisory Reporting (Forbearance and non-performing exposures).
NPE ratio is an economic ratio to demonstrate the proportion of non-performing loans and debt securities in relation to the entire
loan portfolio of customers and banks, and debt securities. The ratio reflects the quality of the loan portfolio of the bank and pro-
vides an indicator for the performance of the bank’s credit risk management.
NPL ratio is an economic ratio to demonstrate the proportion of non-performing loans in relation to the entire loan portfolio to cus-
tomers and banks. The ratio reflects the quality of the loan portfolio of the bank and provides an indicator for the performance of
the bank’s credit risk management.
NPE coverage ratio describes to which extent, non-performing loans and debt securities have been covered by impairments
(Stage 3) thus expressing also the ability of a bank to absorb losses from its NPE. It is calculated with impairment losses on loans
to customers and banks and on debt securities set in relation to non-performing loans to customers and banks and debt securities.
NPL coverage ratio describes to which extent non-performing loans have been covered by impairments (Stage 3) thus expressing
also the ability of a bank to absorb losses from its NPL. It is calculated with impairment losses on loans to customers and banks set
in relation to non-performing loans to customers and banks.
Operating result is used to describe the operative performance of a bank for the reporting period. It consists of operating income
less general administrative expenses.

Operating income – They are primarily income components of the ongoing business operations (before impairment). It comprises
net interest income, dividend income, current income from investments in associates, net fee and commission income, net trading
income and fair value result, net gains/losses from hedge accounting and other net operating income.
Provisioning ratio is an indicator for development of risk costs and provisioning policy of an enterprise. It is computed by dividing
impairment or reversal of impairment on financial assets (customer loans) by average customer loans (categories: financial assets
measured at amortized cost and financial assets at fair value through other comprehensive income).
Return on assets (ROA before/after tax) is a profitability ratio and measures how efficiently a company can manage its assets to
produce profits during a period. It is computed by dividing profit before tax/after tax by average assets (based on total assets,
average means the average of year-end figure and the relevant month´s figures).
Return on equity (ROE before/after tax) provides a profitability measure for both management and investors by expressing the
profit for the period as presented in the income statement as a percentage of the respective underlying (either equity related or
asset related). Return on equity demonstrates the profitability of the bank on the capital invested by its shareholders and thus the
success of their investment. Return on equity is a useful measure to easily compare the profitability of a bank with other financial
institutions. Return on the total equity including non-controlling interests, i.e. profit before tax respectively after tax in relation to aver-
age equity on the statement of financial position. Average equity is calculated on month-end figures including non-controlling inter-
ests and does not include current year profit.
Return on risk-adjusted capital (RORAC) is a ratio of a risk-adjusted performance management and shows the yield on the risk-
adjusted capital (economic capital). The return on risk-adjusted capital is computed by dividing consolidated profit by the risk-ad-
justed capital (i.e. average economic capital). This capital requirement is calculated within the economic capital model for credit,
market and operational risk.
Total capital specific key figures

Common equity tier 1 ratio – Common equity tier 1 as a percentage of total risk-weighted assets (RWA) according to CRR/CRD
IV regulation.
Leverage ratio – The ratio of tier 1 capital to specific exposures on and off the statement of financial position calculated in ac-
cordance with the methodology set out in CRD IV.
Total risk-weighted assets (RWA) – Risk-weighted assets (credit risk, CVA risk) including market risk and operational risk.
Tier 1 ratio – Tier 1 capital to total risk-weighted assets (RWA).
Total capital ratio – Total capital as a percentage of total risk-weighted assets (RWA).

Events after the reporting date
Issuance of € 500 million additional tier 1 capital in July

In July, RBI placed € 500 million of perpetual additional tier 1 capital (AT1). This marks RBI’s third AT1 issuance since 2017 and
further optimizes its capital structure and its compliance with Pillar 1 and Pillar 2 capital requirements. Furthermore, RBI’s buffer to
the MDA trigger level improves to 2.38 per cent (based on figures as at 31 March 2020 with inclusion of this AT1 issuance as
well as an RBI tier 2 issuance in June). It has a coupon of 6.00 per cent p.a. until December 2026, which will be reset thereafter.

138
Statement of all legal representatives

We confirm to the best of our knowledge that the condensed interim consolidated financial statements give a true and fair view of
the assets, liabilities, financial position and profit or loss of the group as required by the applicable accounting standards and that
the semi-annual group management report gives a true and fair view of important events that have occurred during the first six
months of the financial year and their impact on the condensed interim financial statements, of the principal risks and uncertainties
for the remaining six months of the financial year and of the major related party transactions.
Vienna, 5 August 2020
The Management Board
Johann Strobl Andreas Gschwenter
Chief Executive Officer responsible for Group Marketing, Active Credit Member of the Management Board responsible for Group Core IT,
Managment, Group Sustainability Management, Legal Services, Chair- Group Data, Group Efficiency Management, Group IT Delivery, Group
man’s Office, Group Communications, Group Executive Office, Group Procurement, Outsourcing & Cost Management, Group Security, Resili-
Human Resources & Organisational Innovation, Group Internal Audit, ence & Portfolio Governance and Head Office Operations
Group Investor Relations, Group Planning & Finance, Group Subsidiar-
ies & Equity Investments, Group Tax Management, Group Treasury and
Group Strategy & Innovation
Łukasz Januszewski Peter Lennkh
Member of the Management Board responsible for Group Capital Member of the Management Board responsible for Corporate
Markets Corporate & Retail Sales, Group Capital Markets Trading & Customers, Corporate Finance, Group Corporate Business Strategy &
Institutional Sales, Group Investment Banking, Group Investor Services, Steering, International Leasing Steering & Product Management and
Group MIB Business Management & IC Experience, Institutional Trade Finance & Transaction Banking
Clients and Raiffeisen Research
Hannes Mösenbacher Andrii Stepanenko
Member of the Management Board responsible for Financial Member of the Management Board responsible for International Retail
Institutions, Country & Portfolio Risk Management, Group Advanced Business Management & Steering, International Mass Banking, Sales &
Analytics, Group Compliance, Group Corporate Credit Management, Distribution, International Premium & Private Banking, International Retail
Group Regulatory Affairs & Data Governance, Group Risk CRM, International Retail Lending, International Retail Online Banking
Controlling, Group Special Exposures Management, International and International Small Business Banking
Retail Risk Management and Sector Risk Controlling Services

Report on the Review of the condensed Interim Consolidated Financial Statements 139
Report on the Review of the

condensed Interim Consolidated
Financial Statements
Introduction
We have reviewed the accompanying condensed interim consolidated financial statements of Raiffeisen Bank International AG,
Vienna, for the period from 1 January 2020 to 30 June 2020. These condensed interim consolidated financial statements com-
prise the consolidated statement of financial position as of 30 June 2020 and the consolidated statement of comprehensive in-
come, the consolidated statements of cash flows and consolidated statement of changes in equity for the period from 1 January
2020 to 30 June 2020 and the condensed notes, summarizing the significant accounting policies and other explanatory notes.
Management is responsible for the preparation of the condensed interim consolidated financial statements in accordance with
International Financial Reporting Standards (IFRS’s) for Interim Reporting as adopted by the EU.
Our responsibility is to express a conclusion on these condensed consolidated interim financial statements. Our liability towards
the Company and towards third parties is limited in accordance with § 125 par 3 Austrian Stock Exchange Act analog with §
275 par 2 of the Austrian Commerical Code (UGB).
Scope of review
We conducted our review in accordance with Austrian Standards for Chartered Accountants, in particular in compliance with
KFS/PG 11 "Principles of Engagements to Review Financial Statements", and with the International Standard on Review Engage-
ments (ISRE 2410) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity“. A review of in-
terim financial statements is limited primarily to making inquiries, primarily of Company personnel, responsible for financial and
accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit
conducted in accordance with Austrian Standards on Auditing and International Standards on Auditing and consequently does
not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Ac-
cordingly, we do not express an audit opinion.

140 Report on the Review of the condensed Interim Consolidated Financial Statements
Conclusion
Based on our review, nothing came to our attention that causes us to believe that the accompanying condensed interim consoli-
dated financial statements are not prepared, in all material respects, in accordance with International Financial Reporting Stand-
ards (IFRS’s) for Interim Reporting as adopted by the EU.
Statement on the consolidated interim management report for the 6 month period ended
30 June 2020 and on management’s statement in accordance with § 125 Austrian
Stock Exchange Act (BörseG)
We have read the consolidated interim management report and evaluated whether it does not contain any apparent inconsisten-
cies with the condensed interim consolidated financial statements. Based on our evaluation, the consolidated interim management
report does not contain any apparent inconsistencies with the condensed interim consolidated financial statements.
The interim financial information contains the statement by management in accordance with § 125 par. 1 subpar. 3 Austrian Stock
Exchange Act.
Vienna, 5 August 2020
KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
[signed]
Rainer Hassler
Wirtschaftsprüfer
(Austrian Chartered Accountant)
Note: This report is a translation of the original report in German, which is solely valid. The condensed interim consolidated finan-
cial statements together with our review report may be published or transmitted only as agreed by us.

Publication details/Disclaimer 141
Publication details/Disclaimer
Publication details
Publisher: Raiffeisen Bank International AG, Am Stadtpark 9, 1030 Vienna, Austria
Editorial team: Group Investor Relations
Editorial deadline: 5 August 2020
Production: In-house using Firesys financial reporting system
Internet: www.rbinternational.com
This report is also available in German.
Group Investor Relations inquiries: Group Communications inquiries:

E-mail: ir@rbinternational.com E-mail: communications@rbinternational.com
Internet: www.rbinternational.com → Investors Internet: www.rbinternational.com → Media
Phone: +43-1-71 707-2089 Phone: +43-1-71 707-1298
Disclaimer
The forecasts, plans and forward-looking statements contained in this report are based on the state of knowledge and assessments
of Raiffeisen Bank International AG at the time of its preparation. Like all statements addressing the future, they are subject to
known and unknown risks and uncertainties that could cause actual results to differ materially. No guarantees can therefore be
given that the forecasts and targeted values or the forward-looking statements will actually materialize.
This report is for information purposes only and contains neither a recommendation to buy or sell nor an offer of sale or subscrip-
tion to shares nor does it constitute an invitation to make an offer to sell shares.
This report has been prepared and the data checked with the greatest possible care. Nonetheless, rounding, transmission, typeset-
ting and printing errors cannot be ruled out. In the summing up of rounded amounts and percentages, rounding-off differences may
occur. This report was prepared in German. The report in English is a translation of the original German report. The only authentic
version is the German version. Raiffeisen Bank International AG is not liable for any losses or similar damages that may occur as a
result of or in connection with the use of this report.

www.rbinternational.com

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Semi-Annual Financial Report

Raiffeisen Bank International | Semi-Annual Financial Report 2020

RBI in the capital markets ...................................................................................................................................................................................................................................... 4

Raiffeisen Bank International | Semi-Annual Financial Report 2020

RBI in the capital markets

Active capital market communication

Tier 2 capital issuance

Stock data and details

Share price (closing) as at 30 June 2020 € 15.86

Raiffeisen Bank International | Semi-Annual Financial Report 2020

Rating Moody’s Investors Service Standard & Poor’s

Financial Calendar 2020

Contact for equity and debt investors

Raiffeisen Bank International | Semi-Annual Financial Report 2020

Group management report

Raiffeisen Bank International | Semi-Annual Financial Report 2020

Annual real GDP growth compared to the previous year

Raiffeisen Bank International | Semi-Annual Financial Report 2020

Significant events in the reporting period

Severe impact from the COVID-19 pandemic

Direct government programs

Restrictions on capital movements and dividend payments

Raiffeisen Bank International | Semi-Annual Financial Report 2020

Bank levy in Slovakia

Earnings and financial performance

Raiffeisen Bank International | Semi-Annual Financial Report 2020

General administrative expenses

Raiffeisen Bank International | Semi-Annual Financial Report 2020

Levies and special governmental measures

Impairment losses on financial assets

Raiffeisen Bank International | Semi-Annual Financial Report 2020

Raiffeisen Bank International | Semi-Annual Financial Report 2020

General administrative expenses

Levies and special governmental measures

Impairment losses on financial assets

Raiffeisen Bank International | Semi-Annual Financial Report 2020

Statement of financial position

in € million 30/6/2020 31/12/2019 Change

Raiffeisen Bank International | Semi-Annual Financial Report 2020

Equity and liabilities

in € million 30/6/2020 31/12/2019 Change

Equity on the statement of financial position

Total capital pursuant to the CRR/Austrian Banking Act (BWG)

Raiffeisen Bank International | Semi-Annual Financial Report 2020

Events after the reporting date

Issuance of € 500 million additional tier 1 capital in July

Raiffeisen Bank International | Semi-Annual Financial Report 2020

This results in the following segments:

 Central Europe: Czech Republic, Hungary, Poland, Slovakia, and Slovenia

Raiffeisen Bank International | Semi-Annual Financial Report 2020

Raiffeisen Bank International | Semi-Annual Financial Report 2020

General administrative expenses

Levies and special governmental measures

Impairment losses on financial assets

Raiffeisen Bank International | Semi-Annual Financial Report 2020

Raiffeisen Bank International | Semi-Annual Financial Report 2020

Detailed results of individual countries:

Return on equity before tax – – 9.1% 14.2%