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ECB has pressed bank to unwind Russia business
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RBI says still pursuing sale or spin-off
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Figures disclosed in better-than-expected earnings
(Updates with CEO comment on Russian exit, share price)
By Alexandra Schwarz-Goerlich and Tom Sims
VIENNA, May 5 (Reuters) - Austria's Raiffeisen Bank
International , one of the banks in Europe most exposed
to Russia, said on Friday that its profit in the country more
than tripled in the first quarter, partly due to higher interest
income.
The European Central Bank has pressed RBI to unwind its
highly profitable Russian business, people have told Reuters,
and the Austrian bank says it has been working on a solution.
"The group will continue to progress potential transactions
which would result in the sale or spin-off of Raiffeisenbank
Russia," RBI said as it released better-than-expected earnings.
Johann Strobl, the bank's chief executive, told analysts
that he was working "at full steam" on both options and could
not say which alternative would be favoured.
In Russia, profit after tax was 301 million euros ($332
million), up from 96 million euros a year earlier.
The higher interest income came despite a 24% fall in loan
volumes, RBI said. A stronger rouble also helped lift earnings.
Overall, the Russia business generated more than 40% of
RBI's in the quarter. Last year, it generated more than half.
RBI has been studying strategic options for the business
since Russia's invasion of Ukraine last year but has warned that
its effort may take some time.
Shares in RBI were 2.2% higher during mid-afternoon trading.
The Austrian bank has operated in Russia since the collapse
of the Soviet Union and is Russia's 10th-largest bank by assets.
Even though its business there has contributed significantly
to the group's profit, because of sanctions what it earns in
Russia stays with its subsidiary there.
The number of Raiffeisen staff in Russia rose in the quarter
by 2.3% to 9,890, while customers dropped 13% to 3.2 million.
($1 = 0.9056 euros)
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RBI share decline ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Alexandra Schwarz-Goerlich and Tom Sims, Editing
by Friederike Heine and Alexander Smith)
