Raiffeisen Bank to accelerate Russian business exit

Austria’s Raiffeisen Bank International AG is expediting its exit from the Russian market in response to a European Central Bank mandate.

The Viennese bank, which operates Russia’s largest foreign-owned bank, will reduce its Russian loan book by 65 per cent by 2026 and scale back payment services. CEO Johann Strobl announced that the bank has already begun implementing these cuts.

Raiffeisen, criticised for maintaining its Russian operations since the 2022 Ukraine invasion, faces challenges in repatriating approximately €1.5 billion in profits due to regulatory obstacles. Efforts to sell or spin off its Russian unit have been unsuccessful, but the bank plans to continue these initiatives.

In the second quarter, Raiffeisen reported a net income of €661 million, surpassing analysts’ estimates. The bank also raised its 2024 net interest income guidance for its core markets to €4.1 billion from €3.8 billion.

Attribution: Bloomberg.