Hungary Mastering the Challenges by Krisztina Horváth CFO/CRO Hungary

Transcription

1 Hungary Mastering the Challenges by Krisztina Horváth CFO/CRO Hungary Capital Markets Day, September 2008 Slide 1 Challenging Macro Environment in Hungary 1 1 Real GDP Development % 1.3% Currency Appreciation The Forint appreciated to a record high against the Euro in July The main drivers of the forint strengthening were speculation, positive regional market sentiment and monetary tightening Forint appreciation was faster than the economic fundamentals would explain therefore a slight weakening is expected by year end Monetary Policy Average CPI Development A monetary tightening cycle started this year as the inflation outlook and the international market sentiment has not improved The National Bank of Hungary hiked the base rate by 100 basis points to 8.5% so far We expect that monetary easing will start in 2009 after inflation has abated % % Capital Markets Day, September 2008 Slide 2 Investor Handbook Hungary - Mastering the Challenges Page 35

2 5th in the Market Starting From Scratch Market Share of Hungarian Banks in 2007 Others; 25. Raiffeisen Bank; 7. 1 Market Share Development of Assets OTP Bank*; 23.1% % % 7. BB; 2.9% MFB; 3.3% K&H Bank (KBC); 8. UniCredit; 5. Erste; 7.3% CIB (Intesa); 8.3% MKB (Bay. LB); 8.3% Market Share Development of Loans Market Share Development of Deposits % % % 7.9% 9.3% 9.9% Capital Markets Day, September 2008 Slide 3 Raiffeisen in Hungary Power of Organic Growth Strategic Goal Segments Products Distribution Aim to be ranked among top 3 banks in Hungary with minimum market share of 1 in target market segments Attain sustainable, high profitability by delivery of excellent service quality and preserve outstanding corporate culture Retail: strengthening of existing private and affluent segment Corporate: focus on mid-market corporates Treasury and Investment Banking: build on excellent reputation and advanced know-how Provide universal banking products with increasing focus on more advanced products (asset management, insurance and investment banking) Further expansion of the network across Hungary Strengthen alternative distribution channels: internet banking, self-service terminals, mobile banking, call center and direct sales agents Operations Increasing efficiency and quality with an adequate level of operational risks Ongoing centralization, specialization, automation of standard processes and continuous implementation of business process management methods Capital Markets Day, September 2008 Slide 4 Investor Handbook Hungary - Mastering the Challenges Page 36

3 Corporate Banking: At the Top For 20 Years No. 3 in corporate lending Market Share Development of Corporate Loans Above market growth continued in 2007 Sophisticated multicurrency lending structures contributed significantly to the portfolio increase Market Share Development of Corporate Deposits % 10.7% 10.9% % 11.3% 11.9% % The bank retained its leading position in the structured and trade finance market The bank retained its No. 2 position in corporate deposits Cash management services continued to grow as the bank offers flexible solutions Capital Markets Day, September 2008 Slide 5 Retail Banking: No.1 For Services No. 4 in retail lending Retail loan portfolio has increased substantially above the market growth In 2007 a series of new products were launched e.g.: housing loans with flexible instalments 1 1 Market Share Development of Retail Loans % 4.3% 1 Market Share Development of Retail Deposits No. 4 in retail deposits 1 4.7% 6.3% % 7. Increased spending on image campaigns (focus on reliability, security, proximity of branches) Increase in deposit rates (Note: Brand name and security allows the bank to pay less interest on deposits) Capital Markets Day, September 2008 Slide 6 Investor Handbook Hungary - Mastering the Challenges Page 37

4 FX Lending: A Racehorse Under Control Why does the market demand FX Lending? Development of Forint vs Swiss Franc Swiss Franc lending has been traditionally strong in Hungary Interest rate differential makes FX loans attractive (HUF key rate is currently 8.5% p.a. vs. CHF key rate 2.75% p.a.) % Avg. -5% Currency Structure of Retail Loans LCY 2 FCY Jul/07 Aug/07 Sep/07 Oct/07 Nov/07 Dec/07 Jan/08 Feb/08 Mar/08 Apr/08 May/08 Jun/08 Risk Mitigation Factors for FX Loans FX lending is mainly secured i.e. for own home mortgages (not speculative buy-tolet) and has low loan to value ratios Mortgage loans have a long maturity and this mitigates the risk of higher repayments in the event of a devaluation Regular stress testing takes place Capital Markets Day, September 2008 Slide 7 Country Financials I Revenues in mn Total Expenses in mn Cost/Income Ratio in % Risk/Earnings Ratio Profit Before Tax in mn ROE before tax* % * Based on NWB figures. Capital Markets Day, September 2008 Slide 8 Investor Handbook Hungary - Mastering the Challenges Page 38

5 Country Financials II Total Assets in mn Loans to Customers in mn Deposits from Customers in mn 9,421 6,343 7,081 4,857 5,410 8,079 Number of Employees Number of Branches Number of Customers 3, , ,099 3,454 Capital Markets Day, September 2008 Slide 9 Raiffeisen Bank Hungary - Management Team Péter Felcsuti, CEO During his 20 years as CEO, RBHU became one of the leading banks in Hungary Since April 2008 Chairman of the Hungarian Banking Association Has over 15 years of experience in Hungarian National Bank Csaba Soós, Deputy Managing Director, Retail Banking Since 2000 with Raiffeisen, before being member of management head of retail banking department More than 15 years experience in retail banking, in reputed international banks Krisztina Horváth, Deputy Managing Director, CFO/CRO Has over 20 years of experience in Raiffeisen Bank, since 1998 member of the management board Former president of Hungarian Marketing Association Péter Verő, Deputy Managing Director, COO More than 10 years experience with Raiffeisen as head of IT and operations Experience on the field of IT in international companies Róbert Huszár, Deputy Managing Director, Sales and Corporate Banking Since 1995 with the bank, member of the management since 2005 Experience both in retail and corporate banking Ferenc Szabó, Deputy Managing Director, Treasury and Private Banking More than 18 years of experience in treasury and capital markets Member of Hungarian Forex Association Capital Markets Day, September 2008 Slide 10 Investor Handbook Hungary - Mastering the Challenges Page 39