Raiffeisen Bank International : RBI Pillar 3 Report 31.12.2022

0

Publication details

With this document, Raiffeisen Bank International Aktiengesellschaft (RBI AG) fulfills its disclosure requirements under Part 8 of the Capital Requirements Regulation (CRR, EU 575/2013). Pursuant to Article 11 of the CRR, RBI AG is subject to the CRR provisions not only as an individual credit institution but also a consolidated group.

RBI has opted for the Internet as the medium for publishing its disclosures (www.rbinternational.com). The disclosure report as a main document is published once a year in conjunction with the publication of RBI's Annual Report whereby certain information regarding Article 450 CRR will not be available until July 2023 and will be reported at that time. Furthermore, specific information is published more often pursuant to Articles 432(1), 432(2) and 433 CRR and Guidelines EBA/GL/2014/14. Relevant disclosures are either published as separate documents in the section "Regulatory Disclosures" or included in the annual/quarterly reports in the section "Reports" on RBI's homepage.

The information is based on the valid regulations on a consolidated basis for the RBI CRR Group at the time this document was published.

In this report, Raiffeisen Bank International (RBI) refers to the RBI Group, and RBI AG is used wherever statements refer solely to Raif- feisen Bank International AG.

© 2023

Media owner and publisher:	Editorial deadline: 17 March 2023
Raiffeisen Bank International AG	Cover image: Getty Images
Am Stadtpark 9, 1030 Vienna	Chapter pages: Adobe stock
Telephone [phone]	Place of publishing and production: Vienna
www.rbinternational.com/

Editor

HO Regulatory Data Processing (Editor) supported by Group ESG & Sustainability Management, Active Credit Management, Balance Sheet Risk Management, Bank & FI Subsidiaries, Group Capital Markets Business Management, Group Collateral Management & HO Credit Control, Group Consolidation, Group IRB Coordination, Group Peaple and Organisational Innovation, Group Special Exposures Management, Group Supervisory Affairs & Regulatory Governance, Integrated Risk Management, Market Risk Management, Operational Risk Controlling and Reward and Recognition Strategy

Supervisory Authorities

As a credit institution, RBI AG is subject to supervision by the Austrian Federal Ministry of Finance, European Central Bank (ECB), Aus- trian National Bank (OeNB) and the Austrian Financial Market Authority (FMA) and must comply with pertinent legal regulations, in particular the EU regulations (CRR), Austrian Banking Act (Bankwesengesetz, BWG) and the Austrian Securities Supervision Act (Wertpapieraufsichtsgesetz, WAG).

Exclusion of liability:

We have taken the utmost care in gathering the data and other information contained in this Report. Nevertheless, we cannot completely rule out the possibility of errors. Statements on future developments are based on information and forecasts which were available to us at the time this Report was published. The latter were also written with care. Notwithstanding the above, there are many factors and developments that can lead to discrepancies. We therefore ask for your understanding that we do not assume liability for data and other information contained in this Report. This Report is based on RBI's current business policy. Changes to this business policy are reserved. If this Report contains rules, these shall apply solely to companies of RBI and their board members and employees. Other parties are not addressed by these rules and are neither authorized nor obligated by them. Nobody may derive or assert any type of claims or other rights arising from or relating to this Report against RBI companies or their board members and employ- ees; any liability of these companies, board members and employees arising from or relating to this Report shall be excluded. This Report has been prepared and the data checked with the greatest possible care. Nonetheless, rounding, transmission, typesetting 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 English. This Report is subject to substantive Austrian law. The Bezirksgericht Innere Stadt (Local Court Vienna - Innere Stadt, Austria) is solely responsible for reaching a decision on all possible disputes arising from or relating to this Report. Editorial deadline: 03 March 2023 Cover image: Getty Images Chapter pages: Adobe Stock, Place of publishing and production: Vienna

1

Content

Article 435 CRR	4
Risk management objectives and policies
Article 436 CRR	9
Scope of application
Article 437 CRR	14
Own Funds
Article 438 CRR	18
Own funds requirements and risk-weighted exposure amounts
Article 439 CRR	21
Exposures to counterparty credit risk
Article 440 CRR	26
Countercyclical capital buffers
Article 441 CRR	27
Indicators of global systemic importance
Article 442 CRR	28
Exposures to credit risk and dilution risk
Article 443 CRR	36
Encumbered and unencumbered assets
Article 444 CRR	38
Use of the standardized approach
Article 445 CRR	41
Exposure to market risk
Article 446 CRR	42
Operational risk management
Article 447 CRR	43
Key Metrics
Article 448 CRR	44
Exposure to interest rate risk on positions not held in the trading book
Article 449 CRR	48
Exposure to securitization positions
	2

Article 450 CRR	55
Remuneration policy
Article 451 CRR	63
Leverage ratio
Article 451a CRR	67
Liquidity requirements
Article 452 CRR	73
Use of the IRB approach to credit risk
Article 453 CRR	105
Use of credit risk mitigation techniques
Article 454 CRR	113
Use of the advanced measurement approaches to operational risk
Article 455 CRR	114
Use of internal market risk models
Article 473a CRR	120
Introduction of IFRS 9
Article 449a CRR	121
Environmental, social and governance risks (ESG risks)
Quantitative disclosure
Annex 1	160
Management Board
Supervisory Board
Annex 2	164
Scope of consolidation
Annex 3	180
Capital instruments

3

Article 435 CRR

Risk management objectives and policies

For a detailed description of RBI's risk strategies and processes, the structure and organization of the relevant risk management functions, as well as risk identification and risk management objectives and policies for each separate category of risk, please refer to the Risk Report in RBI's Annual Report.

Declaration by the management body on the adequacy of risk management arrangements

We hereby confirm that the risk management systems established at RBI and set out in the Functional Regulation "RBI Risk Strategy and Group Risk Manual - Risk-Oriented Bank Management" and its Supporting Documents are adequate in view of RBI's profile and strategy.

RBI is a universal banking group with international operations that focuses its business activities on Austria and the geographic region Central and Eastern Europe. The regional composition of economic capital, which is one of the main elements of risk steering in RBI, is shown in the table below (by Group unit domicile). This also illustrates the broadly balanced distribution of risk between Austria and the sub-regions in CEE, despite effects resulting from the military confrontation in Ukraine and the sanctions against Russia and Belarus.

in € thousand	2022	Share
Eastern Europe	2,633,572	30%
Austria	2,207,523	26%
Central Europe	1,952,001	23%
Southeastern Europe	1,838,860	21%
Total	8,631,956	100%

RBI's main business activities are within corporate banking, retail banking and other banking services. Investment banking and other market risk taking activities are limited in scope, with a substantial part of market risk stemming from foreign currency denominated equity of subsidiaries. The composition of economic capital by risk type in the table below shows the prevalence of credit risk in the Group's overall risk profile, as well as a balanced distribution between corporate and retail credit risk.

in € thousand	2022	Share
Credit risk corporate customers	1,652,567	19%
Credit risk retail customers	1,610,083	19%
FX risk capital position	1,311,632	15%
Market risk	929,141	11%
Operational risk	799,468	9%
Participation risk	645,742	7%
Credit risk sovereigns	595,182	7%
Credit risk financial institutions	348,093	4%
Owned Property Risk	306,140	4%
CVA risk	22,396	0%
Liquidity risk	467	0%
Risk buffer	411,046	5%
Total	8,631,956	100%

4