Austrian RBI Bank Doubles Profits in 2022 Thanks to Russian Business

Austrian RBI Bank Doubles Profits in 2022 Thanks to Russian Business

Raiffeisen Bank International Records Substantial Profits in Russia amidst Sanctions and War

The Raiffeisen Bank International (RBI) recorded a net profit of 2,058 million euros for 2022, more than double that of the previous year, primarily due to business in Russia, despite an ongoing conflict with Ukraine and international sanctions imposed by Western countries.

At the end of 2022, the banks basic capital quota rose from 13.1% of assets to 16%, allowing it to endure a complete and immediate shutdown of its Russian operations.

To increase their Russian profits, the bank capitalized on currency exchange business as all Russian companies that enter foreign currency must exchange the capital to Russian rubles in the span of a few days.

RBI CEO Johann Strobl noted that they are obliged to not use the profits from Russia to pay out a dividend to shareholders. Additionally, the bank has opted to remain in Belarus and Ukraine, two countries under Western sanctions, despite a significant downturn in profits in the latter.

In Belarus, the bank reported a net profit of 113 million euros, a 130% rise from the previous year, whilst the benefit of the RBI in Ukraine stood at only 65 million euros, about half less than the previous year.

Finally, the sale of its business in Bulgaria yielded 453 million euro. Without these economic activities, the bank would have recorded a net profit of €982 million.

Strobl concluded that the bank is closely monitoring the situation in Russia and its allies and considers taking over its Russian subsidiary should the situation call for it.

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