Reuters - Financials

Raiffeisen Bank CEO confident on disposals -Kurier

Austria’s Raiffeisen Bank International (RBI) is confident it can deliver on asset disposals which it plans as part of a wide-ranging group overhaul, its chief executive told the newspaper Kurier.

“I assume that it will work out and that our capital ratio will rise to 12 percent by the end of 2017 as a result,” Karl Sevelda told the Austrian paper in an interview. “I don’t want to talk about alternatives at all.”

RBI, emerging Europe’s second-biggest lender, last week said the sale of its Polish unit might be delayed due to complications over its mortgages being denominated in Swiss francs.

RBI’s revamp, first announced in February, will involve the Austrian bank selling operations in Poland and Slovenia and cutting back in Russia in a drive to boost a key capital target to 12 percent of risk-weighted assets (RWAs) by the end of 2017 from 10 percent now.

RBI’s Polish business, Raiffeisen Polbank, is Poland’s eighth biggest bank by assets, with a book value of 6 billion zlotys ($ 1.62 billion).

Sevelda also said that business in Ukraine, where RBI lost 82 million euros ($ 91 million) in the first quarter, was going “surprisingly well”, adding the bank had sold off branches in Crimea and closed those in territory controlled by pro-Russian separatists. ($ 1 = 0.9016 euros) ($ 1 = 3.7135 zlotys) (Reporting by Christoph Steitz, editing by David Evans)

Reuters: Financials

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