Bulletin
Investor Alert

Europe Markets Archives | Email alerts

Jan. 25, 2022, 10:06 a.m. EST

Here’s the western bank most exposed to Russia and potential sanctions

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Raiffeisen Bank International AG (RBI)
  • X
    OTP Bank Nyrt. (OTP)
  • X
    UniCredit S.p.A. (UCG)

or Cancel Already have a watchlist? Log In

By Steve Goldstein

A Russian invasion of Ukraine could trigger sanctions from the U.S. and Europe, and there’s one Western bank particularly exposed.

According to an analysis from JPMorgan Cazeonve, Austria’s Raiffeisen /zigman2/quotes/209055420/delayed AT:RBI 0.00% earned 35% of 2021 pretax profits from Russia.

OTP HU:OTP +0.55% earned 7% of profits from Russia, with Unicredit /zigman2/quotes/200769686/delayed IT:UCG +0.12% earning 6% and Societe Generale /zigman2/quotes/206663756/delayed FR:GLE +2.27% earning 4%, according to the JPMorgan estimates.

The analysts said an exclusion from the SWIFT bank messaging system and disallowing conversions of ruble to hard currency could drive material further downside. Although Russia has developed an alternative payment system, the initial shock to the Russian economy would be large, the analysts said.

By market share, Citi /zigman2/quotes/207741460/composite C +3.26% is the only American bank with a sizeable presence, at 0.6% of the Russian market by assets.

Financials stocks more broadly helped European equities recover Tuesday in a choppy trading session.

The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +2.62% rose 0.6% to 459.18, with Ericsson /zigman2/quotes/207544813/delayed SE:ERIC.B -0.28% and Logitech /zigman2/quotes/204771595/delayed CH:LOGN +3.73% rallying after well-received results.

Of the major regional indexes, the German DAX /zigman2/quotes/210597999/delayed DX:DAX +1.59% gained 0.4%, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +3.23% increased 0.9% and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +2.68% increased 0.9%.

Orpea /zigman2/quotes/204431094/delayed FR:ORP +5.14% shares slumped for a second day, losing 19% after a 16% slide on Monday. Le Monde published extracts from a book alleging negligent practices at nursing homes run by the company, allegations the company denies.

/zigman2/quotes/209055420/delayed
AT : Austria: Vienna
10.52
0.00 0.00%
Volume: 475,536
June 24, 2022 5:35p
P/E Ratio
2.30
Dividend Yield
0.00%
Market Cap
€3.46 billion
Rev. per Employee
€183,783
loading...
HU : Hungary: Budapest
Ft 8,400.00
+46.00 +0.55%
Volume: 448,526
June 24, 2022 12:00a
P/E Ratio
7.06
Dividend Yield
0.04%
Market Cap
Ft2260.73 billion
Rev. per Employee
Ft50.87M
loading...
/zigman2/quotes/200769686/delayed
IT : Italy: Milan
9.82
+0.01 +0.12%
Volume: 23.86M
June 24, 2022 5:35p
P/E Ratio
14.63
Dividend Yield
5.48%
Market Cap
€21.29 billion
Rev. per Employee
€269,695
loading...
/zigman2/quotes/206663756/delayed
FR : France: Euronext Paris
22.80
+0.51 +2.27%
Volume: 3.61M
June 24, 2022 5:35p
P/E Ratio
3.59
Dividend Yield
7.24%
Market Cap
€17.40 billion
Rev. per Employee
€371,419
loading...
/zigman2/quotes/207741460/composite
US : U.S.: NYSE
$ 47.86
+1.51 +3.26%
Volume: 27.32M
June 24, 2022 4:03p
P/E Ratio
5.64
Dividend Yield
4.26%
Market Cap
$92.94 billion
Rev. per Employee
$358,868
loading...
/zigman2/quotes/210599654/delayed
XX : STOXX
412.93
+10.53 +2.62%
Volume: 0.00
June 24, 2022 11:03p
loading...
/zigman2/quotes/207544813/delayed
SE : Sweden: Stockholm
kr 78.19
-0.22 -0.28%
Volume: 0.00
June 23, 2022 5:29p
P/E Ratio
11.61
Dividend Yield
3.20%
Market Cap
kr261.72 billion
Rev. per Employee
kr2.34M
loading...
/zigman2/quotes/204771595/delayed
CH : Switzerland: SWX
CHF 53.38
+1.92 +3.73%
Volume: 710,883
June 24, 2022 5:30p
P/E Ratio
15.38
Dividend Yield
1.80%
Market Cap
CHF8.96 billion
Rev. per Employee
CHF614,029
loading...
/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
13,118.13
+205.54 +1.59%
Volume: 95,705
June 24, 2022 6:30p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,073.35
+190.02 +3.23%
Volume: 85,414
June 24, 2022 6:05p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,208.81
+188.36 +2.68%
Volume: 0.00
June 24, 2022 4:51p
loading...
/zigman2/quotes/204431094/delayed
FR : France: Euronext Paris
23.72
+1.16 +5.14%
Volume: 512,759
June 24, 2022 5:35p
P/E Ratio
8.56
Dividend Yield
0.00%
Market Cap
€1.53 billion
Rev. per Employee
€62,480
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.