RAIFY Raiffeisen Bank International AG (PK)

   By Sarah Sloat 
 

Shares in Raiffeisen Bank International fell again Wednesday after the company suspended its 2021 dividend because of the invasion of Ukraine by Russia, where the bank has significant exposure.

The bank said late Tuesday it would propose carrying forward the entire net profit for 2021, suspending the previously proposed dividend of EUR1.15 ($1.28) a share.

Raiffeisen shares shed about 50% of their value in February, and traded 5.2% lower at EUR12.50 at 0856 GMT.

"The bank, which operates in Russia as well as Ukraine, could significantly miss its targets," LBBW analysts said. LBBW said some analysts expect a complete withdrawal from Russia, which could cost Raiffeisen an estimated maximum of around EUR2.5 billion euros.

The bank will reassess the possibility of paying a dividend from 2021 earnings "once the current critical geopolitical developments have subsided," it said Tuesday evening.

Raiffeisen made about a third of its pretax profit in Russia last year, while Ukraine accounted for 8.4%. On a conference call late Tuesday, the bank said it has suspended new lending in Russia and Ukraine, with exceptions on a case-by-case basis.

Write to Sarah Sloat at sarah.sloat@wsj.com

(END) Dow Jones Newswires

March 02, 2022 04:23 ET (09:23 GMT)

Raiffeisen Bank (PK) (USOTC:RAIFY)
Historical Stock Chart
Von Mai 2024 bis Jun 2024

Raiffeisen Bank (PK) (USOTC:RAIFY)
Historical Stock Chart
Von Jun 2023 bis Jun 2024