Raiffeisen Bank International reported its first quarterly net loss in nine years after allocating $867 million for an adverse court ruling in Russia, Bloomberg reported on Feb. 4.
Raiffeisen is the largest Western bank still operating in Russia. While it initially hesitated to withdraw from the Russian market, the bank announced in July 2024 that it would "drastically" scale down its business in the country.
The Austrian lender reported a net loss of 926 million euros ($955 million) in the fourth quarter of 2024, primarily due to provisions in its Russian subsidiary. "The business reduction in Russia is making good progress," CEO Johann Strobl reportedly said.
Russian court rulings have complicated the bank's withdrawal. In September 2024, a court issued a preliminary decision blocking the transfer of Raiffeisen's shares, which the company said would "inevitably lead to further delays" in its exit.
Russian government restrictions also prevent Raiffeisen from transferring its Russian earnings to its parent company in Austria. As a result, the bank has accumulated 4.4 billion euros ($4.5 billion) in excess capital within Russia, Bloomberg reported.
Raiffeisen's Russian branch earned over $1 billion in the first three quarters of 2023 — about 50% of the group's total profits — and paid 277 million euros ($284 million) in taxes to Russia over the same period.
Bloomberg previously reported on Feb. 3 that Raiffeisen Bank's Russian subsidiary cooperates with companies supplying the Russian military.
David Kirichenko
(Updated: )
