Factbox-Global banks pay price of Russia retreat

div classBodysc17zpet90 cdBBJodivpBy Valentina Zap

pMILAN Reuters – Leading international banks exposed to Russia booked more than 11 billion euros 12 billion in provisions in the first quarter to brace for potential losses.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pFollowing are details on actions taken by the banks most exposed:p

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ppGraphic: RussiaUkraine hit at leading European banks – https:fingfx.thomsonreuters.comgfxmktegvbkwjyxpqrussiaukrainehitinmlneurosatleadingeuropeanbanks.pngp

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pEUROPEAN BANKSp

pRAIFFEISEN BANK INTERNATIONAL RBIp

pRBI is assessing interest from potential buyers of its Russia unit – the countrys 10thlargest bank. Options include a full or partial sale, as well as a spinoff, but any decision may take time.p

pImpairment losses more than quadrupled in the first quarter due to 301 million euros in provisions on its businesses in Russia and Ukraine. RBI has 2.3 billion euros of exposure to Russia in equity and other capital. It also had net crossborder exposure of 380 million euros as of April 29. p

pSOCIETE GENERALEp

pThe French bank has sold Russian unit Rosbank to Interros Capital, a company linked to Russian oligarch Vladimir Potanin.p

pThe sale, which entails a roughly 3.2 billion euro net loss on the income statement but has a negligible capital impact, rids SocGen of a 15.4 billion euro exposure to Russia.p

pSocGen is running down its crossborder exposure to Russia, which was 2.8 billion euros as of March 31. Provisions linked to Russia totalled 354 million euros in the first quarter.p

pRussia accounted for 2.7 of 2021 net income.p

pUNICREDITp

pThe Italian bank trimmed its Russia exposure in the first quarter to 7 billion euros, including by swapping assets with nonsanctioned Russian counterparts for operations in Europe.p

pEscalating international sanctions have thwarted attempts to swap its main local asset, AO UniCredit Bank, which is Russia‘s 14th largest bank, two people close to the matter said. Opportunities for a swap are now slim and UniCredit’s aim to generate value from a deal are complicating its exit, the people said.p

pWith a 1.2 billion euro first quarter provision, UniCredit has absorbed more than 70 of the capital hit from Russian losses it sees at up to 5.2 billion euros in a worstcase scenario. p

pINTESA SANPAOLOp

pThe Italian bank, which is conducting a strategic review of its Russian presence, set aside 800 million euros to cover potential losses on its Russian and Ukrainian businesses in the first quarter.p

pIntesa‘s crossborder exposure to Russia before the provisions totalled 3.9 billion euros as of March 31, net of guarantees. Local units Banca Intesa Russia and Ukraine’s Pravex Bank have a further 1.1 billion euros of exposure.p

pOverall exposure including offbalance sheet items, which CEO Carlo Messina has said carry “zero risk”, is 6.1 billion euros. p

pCREDIT AGRICOLEp

pThe French bank set aside 584 million euros against Russia and Ukraine in the first quarter.p

pIt has cut its Russia exposure by 1.1 billion euros since the fullscale invasion of Ukraine. As of March 31 it had 3.8 billion euros of exposure to Russia, with a further 600 million euro offbalance sheet, crossborder exposure. p

pINGp

pThe Dutch bank booked 834 million euros in Russiarelated provisions in the first quarter. Its exposure to Russia totalled 5.8 billion euros as of April 30, down from 6.7 billion on Feb. 28. Some 3.3 billion euros are affected by sanctions.p

pDEUTSCHE BANKp

pThe German bank had cut its overall Russia credit exposure including contingent risks to 2.3 billion euros as of March 31, down from 2.9 billion euros three months earlier. It has also unwound all major derivative exposure to Russia.p

pCOMMERZBANKp

pThe German lender cut its net exposure to Russia by more than a third from midFebruary to endApril, reducing it below 1.2 billion euros. The impact of the Ukraine war drove provisions in the first quarter to 464 million euros.p

pCREDIT SUISSEp

pThe Swiss bank booked 206 million Swiss francs 213.4 million in losses related to Russias invasion of Ukraine in the first quarter.p

pU.S. BANKSp

pCITIGROUPp

pCiti cut its total exposure to Russia by 2 billion to 7.8 billion in the first quarter and said it would lose no more than 3 billion in a severely adverse scenario, down from an initial estimate of the nearly 5 billion. p

pCiti set aside 1.9 billion in the period against possible losses from direct exposures to Russia and the economic impact of the war.p

pGOLDMAN SACHSp

pThe overall direct financial impact from Russia and Ukrainerelated instruments on first quarter revenues was a net loss of around 300 million.p

pJPMORGANp

pThe U.S. bank said provisions on Russiarelated individual names accounted for a third of a total 900 million reserve buildup in the first quarter.p

pJAPANESE BANKS p

pMIZUHO FINANCIAL GROUP, SUMITOMO MITSUI FINANCIAL GROUPp

pTwo of Japans largest banks have set aside a combined 1.3 billion to cover potential losses from their exposure to Russia. p

p1 0.9595 eurosp

p1 0.9654 Swiss francs p

p1 0.9337 eurosp

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pp Reporting by Valentina Za Editing by Mark Potterp

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