Reuters
Published Mar 17, 2022 04:45AM ET
Updated Mar 17, 2022 05:36AM ET
FRANKFURT (Reuters) -Austria's Raiffeisen Bank International, one of the European banks most exposed to Russia, said on Thursday that it was studying a possible withdrawal from the country.
The lender has operated in Russia since the collapse of the Soviet Union 30 years ago and its business there - Russia's No. 10 bank by assets - contributed almost a third to the group's net profit of 1.5 billion euros ($1.7 billion) last year.
Since Russia's invasion of Ukraine last month, banks with operations in Russia have been under pressure as investors fear writedowns, business interruption and slower economic growth.
"This unprecedented situation leads RBI to consider its position in Russia. We are therefore assessing all strategic options for the future of Raiffeisenbank Russia, up to and including a carefully managed exit from Raiffeisenbank in Russia," RBI chief executive Johann Strobl said in a statement.
Raiffeisenbank Russia said separately it will continue servicing its clients in Russia irrespective of a potential withdrawal by its Austrian parent. Such a move would be "a measure of last resort", it said.
Reuters reported this month that RBI was looking into leaving the country.
At the time the bank said it "does not have any plans to leave Russia".
The bank's shares are down 31% since the invasion, a move that Russia has called a "special operation". The shares were trading 2.4% higher on Thursday morning.
RBI said that its subsidiaries are self-funded and well-capitalized.
Numerous financial institutions have announced that they are winding down their Russia operations, including Deutsche Bank (DE:DBKGn), Goldman Sachs (NYSE:GS) and JPMorgan Chase (NYSE:JPM) .
($1 = 0.9046 euros)
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.