In an attempt to calm the markets Raiffeisen spread Wednesday night statement, stating that the adequacy of Tier Core Tier 1, which is one of the key measures of financial stability, is at levels of "approximately 10%" at the end of Since 2014 the group emphasized that "not planned capital increase," writes FT.
"In order to increase capital buffers foresees a reduction of risk-weighted assets by at least 20%. In this process, RBI will actively take a course focused on strategically important and sustainable profitable business areas," the statement said.
Russian division will not be sold
By Raiffeisen commented that despite the escalating financial crisis in Russia have led calls for the sale of the local unit and that the net profit generated in the country in 2014, was "significantly above 300 million. Euro." The Bank expects positive results from its Russian business and in 2015, although it acknowledges that it will have to increase provisioning against non-performing loans. The contraction of assets will "affect exposures in Russia," the more the group.
Raiffeisen exposure to Russia is 22 billion. Euros, or three times the value of its tangible assets. According to Eleni Papua, an analyst at Berenberg, if the exposure is damaged, it could erase the equity of the bank. In its assessment Raiffeisen will have to write off another 4 billion. Euros from Russia.