Unicredit is considering an exit from Russia as part of an urgent review of its operations in the country. “Obviously we need to seriously consider the impact and consequences and complexity of the detachment of a complete bank from the country,” explained CEO Andrea Orcel at a conference organized by Morgan Stanley. On the stock market, the stock drops 1.81% Last week, summarizing its exposure in Russia, the institution indicated that in the extreme scenario, i.e. in the event that the exposure cannot be recovered and is eliminated, the impact on capital ratios would be 200 basis points. The full write-down, including cross-border exposure, would cost approximately $ 7.5 billion.
In detail, direct exposure to UniCredit Bank Russia is approximately € 1.9 billion. The cross-border one towards Russian customers is, on the other hand, currently equal to approximately 4.5 billion euros. Finally, the mark-to-market exposure in derivatives to Russian banks is around 300 million euros, net of collateral. The maximum potential loss in the event that the value of the ruble approaches zero is around 1 billion euros.
UniCredit offers banking services to companies and individuals in Russia (where it has been present since 2005) through 4,000 employees and 70 branches.
Source: Ansa
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