Raiffeisenbank Russia Raiffeisen Bank

Main article: Foreign banks in Russia

The Raiffeisen Bank logo features two crossed horse heads. This symbol has been used by Western European peoples since ancient times. People attached this sign to the pediments of their homes to protect families from evil and misfortune. In some remote villages of Europe, the tradition is still alive.

CJSC Raiffeisen Bank"" is a 100% subsidiary bank of the Austrian banking group. Raiffeisen Bank International AG The bank has been operating Russia since 1996 and provides a full range of services to private and corporate clients, residents and non-residents, rubles in and foreign currency. The Moscow Main Territorial Directorate of the Bank of Russia (BIC OPERU of the Moscow Main Territorial Directorate of the Bank of Russia 044525700) oversees the activities of Raiffeisen Bank.

Aktivs

Among the bank's assets in Russia as of June 2018:

• Raiffeisen Capital Management Company - 100%
• Raiffeisen-Leasing - 100%
• Insurance company Raiffeisen Life - 25%

Russia leads in the number of employees in the bank's foreign business. Data at the end of 2018

Information Technology at Raiffeisen Bank

Main article Information technologies in Raiffeisen Bank

Performance indicators

2023

35% reduction in net profit to 1.3 billion euros and growth in the number of employees to 9942 people

Net profit of Raiffeisen Bank International (RBI) in Russia in 2023 decreased by 35% compared to 2022 and amounted to 1.3 billion euros. The Austrian financial group announced this in its statements published on January 31, 2024. In 2022, the company's net profit was measured at €2.05 billion.

European banks continue to make higher profits in Russia and pay more taxes than before the outbreak of the conflict in Ukraine

It also follows from the RBI materials that the net interest income of the group's Russian business for 2023 decreased by almost 8%, amounting to 1.4 billion euros. Net commission income decreased by 43% compared to 2022, to 1.15 billion euros. Operating income decreased by 30.3%, to 2.7 billion euros. Deductions to reserves decreased by 80% to 95 million euros.

source = Raiffeisen Bank

The volume of RBI client deposits in Russia in 2023 decreased by 27% compared to 2022, to 14.6 billion euros. The loan portfolio decreased over the year by 33.5%, to almost 6 billion euros "as part of an approach to risk reduction in Russia," the report says. At the same time, the number of customers increased by almost 2%, to 3.2 million. Administrative expenses increased by 5%, to 729 million euros. The number of RBI employees in Russia increased by 4%, to 9942.

In its reporting, the group also noted that at the end of 2023, "RBI significantly reduced its business on payment transactions with Russia." In particular, in May 2023, Raiffeisen announced the suspension of all correspondent bank accounts from Russia, with the exception of its Russian subsidiary. The RBI stressed that they will continue to implement transactions that could lead to the allocation of Russian business outside the group or the sale of Russian assets.

On January 31, 2024, the press service of Raiffeisen Bank denied information that appeared on Telegram channels about the plans of a credit institution to sell assets in the Russian Federation in the first quarter of 2024.

Preliminary Results 2023

Servicing half of Russia's external payments

Raiffeisen Bank serves about 40-50% of Russia's payments with other countries. On February 27, 2023, the Financial Times (FT) newspaper writes about this with reference to the top manager of the credit institution, whose name is not disclosed in the publication.

Raiffeisen CEO Johann Strobl said that the bank, on the one hand, has very good results, and on the other, huge problems associated with working in the country.

Raiffeisen is deeply integrated into the financial system of Russia

Strategically, we are completely torn, - a source in Raiffeisen complained to the publication.

Since the beginning of the military special operation of the Russian Federation in Ukraine, Raiffeisen Bank has severed ties with about 30 large Russian clients - businessmen and companies, and also reduced its corporate loan portfolio by 30% in 2022. But the management of the Austrian bank does not know how to proceed, the publication says.

Strobl, commenting on this situation, noted that the lack of open credit lines can interfere "if you want to sell the bank." He added that so far Raiffeisen has had only one negotiation on a possible sale of Russian business, but they have "reached an impasse."

The book value of the Russian Raiffeisen Bank is 4.1 billion euros.

The group estimates it at less than 1 billion euros. Two senior Western bankers who negotiated the sale of foreign banks in Russia argue that it is highly unlikely to sell the business for more than 0.2 book values.

No other Western bank [like Raiffeisen Bank - approx. TAdviser] is so deeply integrated into the Russian financial system, "Markus Howe, head of research at the Vienna-based consulting company VE Insight, told the publication.

In February 2023, it became known that the US Treasury was checking Raiffeisen in connection with its work in Russia. The agency did not report specific violations, but this is a signal: the bank is closely monitored by both regulators and politicians, the FT notes.^[1]

2022

Net profit - €2bn (54% of Raiffeisen group profits)

Raiffeisenbank's net profit in 2022 amounted to 2 billion euros, and its parent organization Raiffeisen Bank International - €3.8 billion. Thus, Russian business accounted for 54% of the net profit of the Austrian banking group. The latter announced its financial performance in early February 2023.

At the same time, the Russian Raiffeisen Bank increased profits by 4.3 times compared to 2021. Already in the second quarter of 2022, he sharply increased profits and showed the best quarterly result since 2011.

Raiffeisen Bank in 2022 earned more than 141 billion rubles of net profit against 38.7 billion in 2021, follows from the reporting under RAS. He increased commission income to 77.1 billion rubles and interest income to 81.7 billion.

Russia brought Raiffeisen 54% of annual profit

By the beginning of February 2023, no sanctions had yet been imposed on Raiffeisen Bank, so it can conduct international financial transactions without restrictions. In addition to him, only two more systemically important banks are still free from sanctions: YuniKredit Bank and Tinkoff Bank.

It was commission income that provided the main profit growth for Raiffeisen Bank: in 2022 it increased fivefold. At the same time, the bank's expenses on the reservation of possible losses increased almost six times. The loan portfolio shrank by more than 22% and amounted to 9 billion euros. Only loans to individuals showed an increase in the share in the portfolio.

According to reports in 2022, the net interest income of the Raiffeisen Bank amounted to €1.5 billion - over the year it doubled. Raiffeisen Bank also received €369 million in net income from trading operations and revaluation of securities on the balance sheet. In 2022, this article brought the bank a loss of €27 million. Earlier, the group noted that a positive revaluation of this asset class became possible due to the strengthening of the ruble.

In May 2022, Raiffeisen Bank International reported that it had received offers to sell its Russian subsidiary. The group still does not rule out a thoughtful withdrawal from the Russian market.^[2]

Record profit in the 2nd quarter - €534 million

Raiffeisen Bank made a record profit in Russia amid the crisis in Ukraine. In the second quarter alone, the Russian subsidiary Raiffeisen earned €534 million - more than the entire last year. The financial result can be considered the best in the entire history of the group's work in Russia.

2021: Raiffeisen Bank loan portfolio grew by 16.4%, to 990 billion rubles

In 2021, Raiffeisen Bank loan portfolio before provisions increased by 16.4% compared to 2020 and reached 990 billion rubles. This rise in the bank was associated with loans issued to medium-sized businesses (here the rise was 30.1%) and large companies (+ 17.3%). These figures are contained in a report that the credit institution published on February 16, 2022.

According to the data presented, the share of impaired loans from Raiffeisen Bank amounted to 2.4% as of the end of 2021, having decreased by 92 basis points on an annualized basis. The ratio of loans and deposits at the end of 2021 amounted to 76.5% against 73.3% a year earlier.

Raiffeisen Bank loan portfolio grew in 2021 by 16.4%, to 990 billion rubles

Earlier, Raiffeisen Bank reported that in June 2021 it issued more than 12.79 billion rubles of consumer loans. This is a record volume of monthly issuance for the entire period of the bank's work on the Russian market. The average check of one loan in 2021 amounted to more than 650 thousand rubles.

It is noted that Raiffeisen Bank receives more than 80% of applications for consumer loans through online channels. In 2020, this figure averaged 70%, and in 2019 - 63%.

By the end of 2021, the bank's assets reached almost 1.6 trillion rubles, showing an increase of 10.3% over the year. Customer funds grew by 12.1%, to 1.267 trillion rubles. Raiffeisen Bank at the end of 2021 increased its net profit by 7.6%, to 41 billion rubles.

Equity as of December 31, 2021 amounted to 176 billion rubles, an increase of 0.4% over the year. Expenses on reserves in 2021 amounted to 5.4 billion rubles, which is 43.6% less than in 2020 (9.6 billion rubles).

It also follows from the bank's report that its operating expenses in 2021 increased by 7.7% - to 37.6 billion rubles. The annual expense-to-income ratio increased to 41.6% from 39.5%.^[3]

History

2024

The court froze the shares of Raiffeisen Bank International in Russia

Raiffeisen Bank International AG said in September 2024 that a Russian court had ordered the freezing of shares in its division in the country.

The Kaliningrad Regional Arbitration Court satisfied the claim of MKAO "Rasperia Trading Limited" against a number of foreign companies. The main ones are the Austrian-born European construction giant Strabag and Raiffeisen Bank.

With the help of Raiffeisenbank, the company planned to sell Strabag shares after the controlling concern Peter Haselsteiner and Raiffeisen Bank International (RBI) pushed the Russian investor away from management and eroded his stake in the shares. However, the deal to buy back shares of the Russian subsidiary RBI fell through.

Rasperia estimates losses from the breakdown at 2 billion euros: the value of its stake in Strabag plus unpaid dividends.

Termination of outgoing transfers in US dollars due to the requirements of correspondent banks

On May 29, 2024, Raiffeisen Bank announced the termination of outgoing US dollar transfers for all customers effective June 10. The changes are related to the new requirements of correspondent banks that carry out such transfers.

Plan for sharp reduction of lending in Russia at the request of the ECB

Raiffeisen Bank International (RBI) in the third quarter of 2024 will begin to comply with the order ECB on a significant reduction in business in Russia, said the head of the group Johann Strobl.

According to him, we are talking about almost a complete halt in lending - the bank will wait for the repayment of loans already issued and not issue new ones "with a few exceptions."

2023: Buying a stake in Strabag

The company of the Russian businessman Oleg Deripaska Rasperia Trading Limited sold a 27.78% stake in the construction concern Strabag for 1.51 billion euros. The asset was bought Raiffeisen Bank International (RBI) by the Austrian through the Russian "daughter" -. Raiffeisen Bank The deal was announced in December 2023. More. here

2022

Introduction of fees to foreign currency accounts

In June 2022, Raiffeisen Bank decided to introduce a commission for storing money in current foreign currency accounts over the limit from June 30. For all currencies of all customers, the threshold value will be 5000 UE, the exception is premium customers - for them the bank will introduce a threshold of 50,000 UE.

Raiffeisen Bank and co-owners of Sovcombank demand a debt of 800 million rubles from the Cypriot roots of IT outsourcer Maykor

As TAdviser found out in February 2022, the Raiff eisen Bank through the court is trying to recover the amount of about 397.7 million rubles from Maykor Outsourcing Services PLC, based in Cyprus. According to the database of legal entities Kontur.Focus, "this company is the founder of Maykor-UK. And the latter is 99.99% owned by Maykor-Service LLC, a key legal entity of Maykor, a provider of IT outsourcing services, to the basis of which the former chairman of the board of directors of Complink Sergey Sulgin was related. He also headed Maykor in 2012-2018. The share in 0.01% of Maykor-Service since 2021 belongs to Sovcombank.

This lawsuit is not the only major one for Maycore Outsourcing Services Pielsey. In January 2022, another one came to her in the Moscow Arbitration Court for a substantial amount: 430.5 million rubles are demanded by the international company Sovco Capital Partners. This is a holding structure that owns 86.5% of the bank's shares. Its main business is connected with Sovcombank. Read more here.

Fraudsters opened a bank ATM in Voronezh and stole 4.5 million rubles

In February 2022, thieves opened a Raiffeisen Bank ATM in a shopping center in Voronezh. Their prey was 4.5 million rubles.

2021

Alexander Lozhechkin - the new Chief information officer of Raiffeisen Bank

In early October 2021, Alexander Lozhechkin was appointed head of the Raiffeisen Bank Information Technology Directorate. Read more here.

Provision of a loan line for 2.7 billion rubles to the developer "Theorem"

Raiffeisen Bank on April 8, 2021 announced the conclusion of a deal with the Theorem group of companies, one of the developers of the North-West region, specializing in the field of commercial real estate class A and B +. A credit line in the amount of 2.7 billion rubles was provided to the company for a period of 5 years. Read more here.

Purchase of payment operator Akcenta

In mid-February 2021, Raiffeisen Bank announced the purchase of Akcenta at a price that the participants in the transaction did not disclose. According to the terms of the agreement, Raiffeisen will buy 70% of Akcenta, and the remaining share will be acquired by the Czech subsidiary - Raiffeisenbank a.s. The deal is planned to be closed by the end of May 2021, previously companies need to obtain regulatory approvals. Read more here.

Loan issuance for 1.95 billion rubles. for Raven Russia

Raiffeisen Bank on January 14, 2021 announced a loan agreement with Raven Russia. The bank provided the company with financing in the amount of 1.95 billion rubles for five years secured by the warehouse complex "New Riga." Read more here.

2019

Changing the network structure and closing a number of branches

On October 4, 2019, Raiffeisen Bank announced a change in the structure of its network and the closure of a number of branches, the least popular among customers. Branches that continue to be in demand will continue to actively develop. The Bank plans to improve the format of its offices, offering service that meets consumer models.

At the same time, Raiffeisen Bank is strengthening investments in the development of digital services. The Bank is actively investing in a high-tech remote service model, as well as the technological development of a contact center and branches. In 2019, investment in digital services almost doubled compared to 2018 and will continue to grow in 2020. All these measures will allow the bank to continue to dynamically develop its business in Russia and even more actively increase its customer base.

We are a universal bank for which a competitive network of branches is very important, and we strive to focus our business model on the real needs of the client. We expect that the synergy of an efficient retail network and technological remote service formats will allow us to increase the number of our customers in Russia by one and a half times in the next few years, noted Sergey Monin, Chairman of the Board of Raiffeisen Bank

The reorganization will affect 39 branches in cities with the largest retail network, such as Moscow and St. Petersburg, Volgograd, Voronezh, Yekaterinburg, Irkutsk, Kazan, Krasnoyarsk, Novosibirsk, Omsk, Perm, Rostov-on-Don, Samara, Surgut, Tyumen, Ufa and Chelyabinsk. Raiffeisen Bank will continue to serve all customer segments, including individuals, small, micro and corporate businesses, in other bank offices in these cities.

In five more cities Zheleznogorsk-,,, and Kirov Kursk- Saransk Sochi the service will continue completely in a modified digital format. The choice of cities for the transition to a digital service format is due to the data demand for branches, as well as the previous success of launching a digital model in more than 100 cities. In Kirov, Saransk, and Sochi Kursk , the transition to this format was successfully tested back in 2018.

As a result of the reorganization, by the end of the 1st quarter of 2020, the network of Raiffeisen Bank branches will amount to more than 130 offices in 44 cities of Russia. Raiffeisen Bank plans to develop a wide network of its own and partner ATMs throughout Russia, which as of October 2019 has more than 22,000 devices. No further reorganization of the network is planned in the foreseeable future.

The development of digital sales and service channels is one of the focus areas of Raiffeisen Bank strategy in the retail and corporate business. It implies the transfer of operations and services to online channels, increased investment in IT, further growth of the IT staff, focus on data-based decision-making, and the rapid introduction of innovative solutions into business processes.

Combining an ATM network with Otkritie Bank

Raiffeisen Bank On April 8, 2019, it announced the merger of the ATM network with, thanks to Otkritie Bank which customers bank will be able to withdraw cash without a commission of 21 thousand devices throughout the country. The service is available to debit and credit card holders, and payment systems Visa. MasterCard "Mir" The amount of withdrawal limits depends on the category and tariff plan of the card.

As of April 8, Raiffeisen Bank customers in Russia can withdraw cash without a commission from more than 18 thousand ATMs. The agreement with Otkritie Bank will increase this number by 3 thousand devices.

2017: 29.1 billion rubles of net profit

In 2017, Raiffeisen Bank earned 29.1 billion rubles of net profit against 23.3 billion rubles a year earlier, which means an average return on assets of 3.7%. Profit growth was achieved primarily due to a threefold reduction in contributions to reserves.

The share of bad loans of the bank, including those impaired and overdue by 90 or more days, in 2017 decreased to 4.3% from 6.3% a year earlier. This is significantly lower than the level of problem debt in the Russian banking sector, which Moody's estimates at 12% in 2017. Coverage of bad loans with reserves in Raiffeisen Bank remains at a high level and is 79%, as of the end of 2017.

2016: Raiffeisenbank closes Russian investment subsidiary

Raiffeisen Investment LLC specialized in supporting M&A transactions () M&A and offering securities. As follows from the Kartotek database, the company was liquidated in February 2016^[4]

As you can see, the company registered in 2007 - before the previous Russian crisis - was unable to rise with the Russian economy six years ago and has generated losses totaling at least 126.2 million rubles since 2009, with revenue of 440.5 million (no data for 2011, 2015).

According to the consulting and audit firm KPMG, the total amount of transactions in the Russian M&A market decreased last year by 29% at once to $55.8 billion. Both the number of deals and their average check have decreased. So, if in 2014 almost 600 transactions were made on average of $169 million each, then in the past - only 504 transactions, each of which "pulled" $157 million. This was affected by the economic downturn, falling oil prices, and difficult access to international financing. At the same time, on the world market, the total volume of transactions, on the contrary, increased by 30% to a record $4.3 trillion. According to AK&M, the largest share among mergers and acquisitions last year was occupied by transactions in the financial sector (65%). This is thanks to the Russian Central Bank: the main way to transfer ownership of banks has become reorganization: one bank undertakes to treat a bank standing on the edge of the abyss - as a rule, with the help of cheap state loans (from the DIA). M&A reviews also note the continuation of the exodus of foreign shareholders from banks - due to the low profitability of work in the local market with the devaluation of the ruble and a reduction in lending. Over the past six years, their Russian subsidiaries have sold Santander Consumer Finance, Barclays, Straumborg, Societe Generale, WestLB, KBC group, GE Money, Privatbank, DNB group, DFE, ICICI Bank, Royal Bank of Scotland.

Raiffeisen Bank International (RBI) also considered the sale of the Russian subsidiary, although the Russian Rife provided the group with more than 50% of all profits (for example, in the nine months of 2015, the Russian RBI business brought a net profit of €253 million, while the group's total profit for this period amounted to €432 million). However, assets in Eastern Europe are considered highly risky, and as a result, Raiffeisen chose between the sale of the Polish subsidiary and the Russian one - and settled on the Polish subsidiary^[5].

The Russian business group is actively optimizing: last year Raiffeisen curtailed car loans in Russia and closed offices in 15 cities (remaining in the 44s), and also - in the status of the last foreign player in the pension market - sold its NPF to the BIN group for 7 billion rubles.

As indicated in the rating of investment advisers of the magazine "Mergers and Acquisitions," in 2015 Raiffazen was able to conduct only one transaction in the amount of $49 million. Consultants helped the Norwegian Orkla sell her Russian daughter Orkla Brands Russia (she owns four confectionery factories) to the Belgorod confectionery holding Slavyanka.

2015: Plan to sell 20% of assets to cover possible losses

Raiffeisen Bank International AG (RBI), the third largest Austrian bank faced the need to increase buffer capital (designed to cover possible losses due to the difficult economic situation). To do this, the RBI will sell more than 20% of the assets, focusing on developing sustainably profitable business lines, the bank said.

RBI notes that it was under pressure due to the conflict in Ukraine, which affected the activities of the Russian "daughter," and the sharp strengthening of the Swiss franc. The Russian business of the group is the largest source of its profit: in the first 9 months of 2014, the contribution of the Russian subsidiary Raiffeisenbank ​ to the group's profit amounted to 55%, increasing from 42% in 2013 and 37% in 2012. For the entire 2014, the daughter's profit will be significantly higher than €300 million, the RBI also expects a positive result in Russia in 2015. However, the reduction in assets will also affect it, the report says, but we are not talking about the sale of business in Russia.

As Sergei Monin, CEO of Raiffeisen Bank, explained to RBC, there are no specific decisions on Russia yet, but it is possible to reduce lending due to the difficult economic situation, as far as it is too early to say. "We have very high credit quality standards that we maintain. Our traditionally tough credit policy now does not allow issuing so much that the portfolio does not shrink, "said^[6]%.

In early January 2015, the group announced its intention to revise medium-term plans for Russian business due to a sharp weakening of the ruble. "The changed economic situation may lead to a deterioration in the future results of the Russian division and a potential revision of goodwill, which arose as a result of the acquisition of Impexbank in 2006 and at the end of the year will amount to an adjustment of up to €148 million," - said in an official statement published on January 5, 2015.

Another reason for the RBI's problems was the sharp strengthening of the franc after the decision of the Swiss central bank on January 15, 2015 to lift the ceiling of the franc-to-euro exchange rate, which has been held for more than three years. Immediately after the regulator's statement, the franc jumped more than 30% against the dollar and the euro, and RBI investors began to worry about the group's business in Central Europe, where, according to Moody's Investors Service, the group had €4.3 billion of loans issued as of September 2014, mainly mortgage loans, in Swiss francs.

2013: Systemically Significant Bank in the Russian Federation

By orders of 30.01.2013 No. OD-102, No. OD-103 and No. OD-104, the head of the Central Bank Elvira Nabiullina transferred Gazprombank, Promsvyazbank and Raiffeisen Bank from the supervision of the Central Bank's Main Directorate for the Central Federal District directly to the central office of the Central Bank - under the supervision of Mikhail Kovrigin, director of the department for supervision of systemically important banks. These banks were the first, which the regulator recognized as systemically significant and took on a special supervision regime.

This department in the structure of the Central Bank was created on October 1, 2013 to establish special supervision over the largest players. However, the list of such backbone banks is not yet ready: according to instruction No. 3174-U "On determining the list of systemically important credit institutions," the Central Bank should have begun preparing this list only after the entry into force of the document, that is, from February 2 of this year. It is assumed that it will include banks whose assets account for 0.17% or more of the total assets of the Russian banking sector. In addition, the volume of attraction of deposits of individuals and operations in the interbank market should also be 0.17% of the total market indicator. Experts believe that about 20 banks may fall under such supervision.

2010: Moody's Aaa.ru Reliability Rating

In 2010, Raiffeisen Bank is one of the most reliable banks in Russia: Moody's Interfax Rating Agency assigned the Bank a long-term credit rating on a national scale at Aaa.ru. Moody's Investors Service assigned the following ratings to Raiffeisen Bank: Baa3 long-term and Prime-3 short-term ratings of deposits in foreign and national currencies. Raiffeisen Bank is represented in 45 regions of the Russian Federation, and the number of branches is about 240.

2009: The cashier takes out 11 million rubles from the department

Photo of Rosa Aglemzyanova appeared in the base of the Ministry of Internal Affairs of Tatarstan after August 2009. Then another 24-year-old Aglemzyanova freely carried Raiffeisen Bank 11.4 million rubles through the guards and did not go to work the next day.

The crime was loud. Aglemzyanova became famous throughout the country, but her search was unsuccessful.

In 2010, Raiffeisen Bank obtained through the court the recognition of Aglemzyanova as missing or dead. The Tatarstan police, commenting on the circumstances of the theft, assumed that the cashier was not alive.

It turned out that the girl was part of the circle of a criminal group, where cruel orders reigned and already dealt with her.

Aglemzyanova disappeared from Kazan with her six-year-old daughter and a member of the same organized criminal group Ildar Giniyatullin. He was detained with shooting in 2014 in the Leningrad region for robbery on postmen at the Shcheglovo communications department. His partner was Aglemzyanova. She managed to escape, although she was wounded. In 2015, Giniyatullin was sentenced to 13 years in prison.

In October 2019, fugitive cashier Roza Aglemzyanova was detained in St. Petersburg. At the time of her arrest, Rosa was already 34 and lived on someone else's passport. Aglemzyanova was caught in a series of robberies on jewelry salons 585.

2006: Buying and joining Impexbank

In early 2006, Raiffeisen International Group acquired a 100% stake in OJSC IMPEXBANK, in March 2007 an official decision was made on the date of the start of the reorganization of OJSC IMPEXBANK in the form of joining ZAO Raiffeisenbank Austria.

2003: Founding of Raiffeisen Capital Management Company

Raiffeisen Capital Management Company in Russia was founded in 2003 and is a 100% subsidiary of Raiffeisen Bank JSC.

Notes