Bulletin: Raiffeisen Bank International's 2024 Profits Hit By Russian Court Decision, But Group Capitalization Remains A Strength

FRANKFURT (S&P Global Ratings) Jan. 21, 2025--S&P Global Ratings said today that Raiffeisen Bank International AG (RBI; A-/Negative/A-2) will see a negative impact on its full-year 2024 profits because of a litigation risk provision in response to a Russian court ruling against AO Raiffeisenbank, the Russian-subsidiary of RBI. On Jan. 20, 2025, the Arbitration Court of the Kaliningrad Region ordered RBI to pay €2.044 billion to MKAO Rasperia Trading (MKAO) through AO Raiffeisenbank. MKAO is a sanctioned entity in the U.S. and EU. Importantly, we understand that RBI, in agreement with its auditors, will book a significantly lower net legal risk provision after considering what it sees as expected proceeds from legal recourse against the plaintiff's assets in Austria. We

...January 21, 2025 FRANKFURT (S&P Global Ratings) Jan. 21, 2025--S&P Global Ratings said today that Raiffeisen Bank International AG (RBI; A-/Negative/A-2) will see a negative impact on its full-year 2024 profits because of a litigation risk provision in response to a Russian court ruling against AO Raiffeisenbank, the Russian-subsidiary of RBI. On Jan. 20, 2025, the Arbitration Court of the Kaliningrad Region ordered RBI to pay 2.044 billion to MKAO Rasperia Trading (MKAO) through AO Raiffeisenbank. MKAO is a sanctioned entity in the U.S. and EU. Importantly, we understand that RBI, in agreement with its auditors, will book a significantly lower net legal risk provision after considering what it sees as expected proceeds from legal recourse against the plaintiff's assets in Austria. We understand RBI will appeal the Russian court decision and will file a claim against MKAO in Austria. We analyze RBI as part of the larger Raiffeisen Banking Group Austria (RBG) and think that RBG has sufficiently...

Bulletin