VIENNA, Might 5 (Reuters) – Austria’s Raiffeisen Financial institution Worldwide (RBIV.VI), one of many banks in Europe most uncovered to Russia, mentioned on Friday that its revenue within the nation greater than tripled within the first quarter, partly on account of larger curiosity revenue.
The European Central Financial institution has pressed RBI to unwind its extremely worthwhile Russian enterprise, folks have advised Reuters, and the Austrian financial institution says it has been engaged on an answer.
“The group will proceed to progress potential transactions which might consequence within the sale or spin-off of Raiffeisenbank Russia,” RBI mentioned because it launched better-than-expected earnings.
Johann Strobl, the financial institution’s chief government, advised analysts that he was working “at full steam” on each choices and couldn’t say which various can be favoured.
In Russia, revenue after tax was 301 million euros ($332 million), up from 96 million euros a yr earlier.
The upper curiosity revenue got here regardless of a 24% fall in mortgage volumes, RBI mentioned. A stronger rouble additionally helped raise earnings.
General, the Russia enterprise generated greater than 40% of RBI’s within the quarter. Final yr, it generated greater than half.
RBI has been learning strategic choices for the enterprise since Russia’s invasion of Ukraine final yr however has warned that its effort could take a while.
Shares in RBI had been 2.2% larger throughout mid-afternoon buying and selling.
The Austrian financial institution has operated in Russia because the collapse of the Soviet Union and is Russia’s Tenth-largest financial institution by belongings.
Though its enterprise there has contributed considerably to the group’s revenue, due to sanctions what it earns in Russia stays with its subsidiary there.
The variety of Raiffeisen workers in Russia rose within the quarter by 2.3% to 9,890, whereas prospects dropped 13% to three.2 million.
($1 = 0.9056 euros)
Reporting by Alexandra Schwarz-Goerlich and Tom Sims, Enhancing by Friederike Heine
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