Raiffeisen Bank Faces Significant Profit Loss from Belarus Exit

Raiffeisen Bank International's recent agreement to sell its stake in Priorbank JSC marks a major exit from the Belarusian market. However, the deal is projected to inflict a substantial combined profit loss of approximately 800 million euros on the banking group.

Date: 20-09-2024

AI Rating: 4

Raiffeisen Bank International's decision to sell its 87.74 percent stake in Priorbank JSC comes with serious financial implications. The transaction is expected to incur an estimated negative impact of about 300 million euros on the consolidated profit of the RBI Group due to the difference between the purchase price and the book value of Priorbank JSC.

Furthermore, the deal will have an additional negative effect of approximately 500 million euros at closing, bringing the total expected loss to around 800 million euros. This sizable financial burden could raise concerns among investors regarding the bank's financial stability and operations moving forward, potentially influencing stock prices adversely.

Stocks: RBS