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

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

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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 -1.20% earned 35% of 2021 pretax profits from Russia.

OTP HU:OTP -5.33% earned 7% of profits from Russia, with Unicredit /zigman2/quotes/200769686/delayed IT:UCG +0.45% earning 6% and Societe Generale /zigman2/quotes/206663756/delayed FR:GLE -0.10% 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 -0.87% 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 +1.42% rose 0.6% to 459.18, with Ericsson /zigman2/quotes/207544813/delayed SE:ERIC.B +4.75% and Logitech /zigman2/quotes/204771595/delayed CH:LOGN +3.48% rallying after well-received results.

Of the major regional indexes, the German DAX /zigman2/quotes/210597999/delayed DX:DAX +1.62% gained 0.4%, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +1.64% increased 0.9% and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.27% increased 0.9%.

Orpea /zigman2/quotes/204431094/delayed FR:ORP +1.95% 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
12.33
-0.15 -1.20%
Volume: 627,668
May 27, 2022 5:35p
P/E Ratio
2.69
Dividend Yield
0.00%
Market Cap
€4.05 billion
Rev. per Employee
€183,783
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HU : Hungary: Budapest
Ft 8,530.00
-480.00 -5.33%
Volume: 3.91M
May 27, 2022 12:00a
P/E Ratio
7.17
Dividend Yield
0.04%
Market Cap
Ft2295.72 billion
Rev. per Employee
Ft50.87M
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/zigman2/quotes/200769686/delayed
IT : Italy: Milan
10.82
+0.05 +0.45%
Volume: 18.61M
May 27, 2022 5:35p
P/E Ratio
16.11
Dividend Yield
4.97%
Market Cap
€23.44 billion
Rev. per Employee
€269,695
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/zigman2/quotes/206663756/delayed
FR : France: Euronext Paris
24.88
-0.03 -0.10%
Volume: 3.36M
May 27, 2022 5:37p
P/E Ratio
3.92
Dividend Yield
6.63%
Market Cap
€18.99 billion
Rev. per Employee
€371,419
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/zigman2/quotes/207741460/composite
US : U.S.: NYSE
$ 53.62
-0.47 -0.87%
Volume: 19.51M
May 27, 2022 4:03p
P/E Ratio
6.32
Dividend Yield
3.80%
Market Cap
$104.13 billion
Rev. per Employee
$357,498
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/zigman2/quotes/210599654/delayed
XX : STOXX
443.93
+6.22 +1.42%
Volume: 0.00
May 27, 2022 11:03p
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/zigman2/quotes/207544813/delayed
SE : Sweden: Stockholm
kr 81.40
+3.69 +4.75%
Volume: 7.96M
May 27, 2022 5:29p
P/E Ratio
12.08
Dividend Yield
3.07%
Market Cap
kr272.93 billion
Rev. per Employee
kr2.34M
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/zigman2/quotes/204771595/delayed
CH : Switzerland: SWX
CHF 57.06
+1.92 +3.48%
Volume: 937,155
May 27, 2022 5:31p
P/E Ratio
16.44
Dividend Yield
1.68%
Market Cap
CHF9.57 billion
Rev. per Employee
CHF614,029
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
14,462.19
+230.90 +1.62%
Volume: 71,341
May 27, 2022 6:30p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,515.75
+105.17 +1.64%
Volume: 70,892
May 27, 2022 6:05p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,585.46
+20.54 +0.27%
Volume: 579,898
May 27, 2022 4:57p
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/zigman2/quotes/204431094/delayed
FR : France: Euronext Paris
26.68
+0.51 +1.95%
Volume: 736,386
May 27, 2022 5:37p
P/E Ratio
9.63
Dividend Yield
0.00%
Market Cap
€1.72 billion
Rev. per Employee
€62,480
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