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

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 -0.43% earned 35% of 2021 pretax profits from Russia.

OTP HU:OTP +0.52% earned 7% of profits from Russia, with Unicredit /zigman2/quotes/200769686/delayed IT:UCG -1.65% earning 6% and Societe Generale /zigman2/quotes/206663756/delayed FR:GLE +1.97% 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 +0.42% 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 -0.15% rose 0.6% to 459.18, with Ericsson /zigman2/quotes/207544813/delayed SE:ERIC.B +0.30% and Logitech /zigman2/quotes/204771595/delayed CH:LOGN +0.14% rallying after well-received results.

Of the major regional indexes, the German DAX /zigman2/quotes/210597999/delayed DX:DAX -0.25% gained 0.4%, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -0.12% increased 0.9% and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.49% increased 0.9%.

Orpea /zigman2/quotes/204431094/delayed FR:ORP -0.19% 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

Add to watchlist AT:RBI

Raiffeisen Bank International AG

AT : Austria: Vienna

€ 13.80

-0.06 -0.43%

Volume: 126,144

June 9, 2023 5:35p

P/E Ratio

1.21

Dividend Yield

0.00%

Market Cap

€4.53 billion

Rev. per Employee

€317,625

Add to watchlist HU:OTP

OTP Bank Nyrt.

HU : Hungary: Budapest

Ft 11,580.00

+60.00 +0.52%

Volume: 937,485

June 9, 2023 12:00a

P/E Ratio

5.61

Dividend Yield

2.59%

Market Cap

Ft3116.58 billion

Rev. per Employee

Ft92.94M

/zigman2/quotes/200769686/delayed

Add to watchlist IT:UCG

UniCredit S.p.A.

IT : Italy: Milan

€ 18.35

-0.31 -1.65%

Volume: 10.54M

June 9, 2023 5:45p

P/E Ratio

6.02

Dividend Yield

5.38%

Market Cap

€35.29 billion

Rev. per Employee

€337,044

/zigman2/quotes/206663756/delayed

Add to watchlist FR:GLE

Societe Generale S.A.

FR : France: Euronext Paris

€ 23.33

+0.45 +1.97%

Volume: 4.30M

June 9, 2023 5:55p

P/E Ratio

10.92

Dividend Yield

7.29%

Market Cap

€17.13 billion

Rev. per Employee

€292,973

/zigman2/quotes/207741460/composite

Add to watchlist C

Citigroup Inc.

US : U.S.: NYSE

$ 48.30

+0.20 +0.42%

Volume: 11.75M

June 9, 2023 4:03p

P/E Ratio

6.74

Dividend Yield

4.22%

Market Cap

$94.03 billion

Rev. per Employee

$501,742

/zigman2/quotes/210599654/delayed

Add to watchlist XX:SXXP

STOXX Europe 600 Index

XX : STOXX

460.01

-0.69 -0.15%

Volume: 0.00

June 9, 2023 11:03p

/zigman2/quotes/207544813/delayed

Add to watchlist SE:ERIC.B

Telefon AB L.M. Ericsson Series B

SE : Sweden: Stockholm

kr 56.61

+0.17 +0.30%

Volume: 6.08M

June 9, 2023 5:29p

P/E Ratio

10.91

Dividend Yield

4.77%

Market Cap

kr190.63 billion

Rev. per Employee

kr2.64M

/zigman2/quotes/204771595/delayed

Add to watchlist CH:LOGN

Logitech International S.A.

CH : Switzerland: SWX

CHF 57.00

+0.08 +0.14%

Volume: 531,348

June 9, 2023 5:31p

P/E Ratio

26.63

Dividend Yield

1.69%

Market Cap

CHF9.56 billion

Rev. per Employee

CHF586,002

/zigman2/quotes/210597999/delayed

Add to watchlist DX:DAX

DAX

DX : Xetra Indices

15,949.84

-40.12 -0.25%

Volume: 58,242

June 9, 2023 6:30p

/zigman2/quotes/210597958/delayed

Add to watchlist FR:PX1

CAC 40 Index

FR : France: Euronext Paris

7,213.14

-9.01 -0.12%

Volume: 57,292

June 9, 2023 6:05p

/zigman2/quotes/210598409/delayed

Add to watchlist UK:UKX

FTSE 100 Index

UK : FTSE UK

7,562.36

-37.38 -0.49%

Volume: 433,875

June 9, 2023 4:59p

/zigman2/quotes/204431094/delayed

Add to watchlist FR:ORP

Orpea S.A.

FR : France: Euronext Paris

€ 1.82

-0.0035 -0.19%

Volume: 284,290

June 9, 2023 5:55p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

€117.40 million

Rev. per Employee

€61,461