The bank evaluates all the pros and cons of the potential sale of assets in Russia
Austrian bank management decides whether to sell assets in Russia / Photo: Getty Images, Collage: Today
The Austrian Raiffeisen Bank International (RBI), despite the crazy income, may exit the Russian market.
According to the head of the financial institution, Johann Strobl, the bank received offers from businesses for its assets in the Russian Federation, Reuters writes.
The RBI evaluates all strategic options, including the possible full or partial exit from the Russian market. This is a rather serious step, since the Austrian bank has been operating in Russia for last 30 years. During this time he became tenth largest in the country and brings the group almost a third of its net profit annually.
Bank estimates
According to Strobl, in order to make a decision it will take some timebut Raiffeisen Bank International will try to understand as soon as possible what are the ways out of the situation.
In the first quarter of 2022, according to the bank’s report, its profit doubled and amounted to 442 million euros (UAH 13.7 billion). However, loans have become smaller, and the risks have increased. Increasing fees contributed to the profit.
Besides, bank shares fell by 47% after the Russian invasion of Ukraine on 24 February. At the same time, RBI began to evaluate “all strategic options”, including a possible exit from the Russian market.
According to the bank’s official statement, they support Ukrainians whose lives have been tragically changed forever by the war. The unprecedented situation made the bankers think about their position in Russia.
Credit holidays in Ukraine
In connection with the war in Ukraine, many banks have introduced credit holidays for individuals on all credit cards. Maxim Oryshchak, an analyst at the Center for Exchange Technologies (CBT), said that thanks to this, credit organizations do not fine people and companies for late payments.
“The downside is that this is not an automatic condition. Each borrower must contact the bank and clarify whether this condition has been applied to him,” the expert noted.
Among the nuances – such that no one writes off the interest debt that is accrued for each month. Banks are not ready to “get into position” and cancel the agreements, even if the enterprise has closed or is not working due to the war.
Previously, we wrote why banks block money in the accounts of Ukrainians, and explained what tax breaks apply to Ukrainians during martial law.
Source: Segodnya
I have been working in the news industry for over 10 years now and I have worked for some of the biggest news websites in the world. My focus has always been on entertainment news, but I also cover a range of other topics. I am currently an author at Global happenings and I love writing about all things pop-culture related.
