🤩 Belarus: Raiffeisen Bank exits, selling A.O. "Priorbank" to the UAE-based company "Soven 1 Holding Limited" 🇦🇪

🤩 Belarus: Raiffeisen Bank exits, selling A.O. "Priorbank" to the UAE-based company "Soven 1 Holding Limited" 🇦🇪
The deal is pending regulatory approval and is expected to close successfully in the fourth quarter of 2024. Raiffeisen held 87.74% of the stake in "Priorbank."

▶️ According to the bank's website, this sale is part of its "risk reduction strategy in Eastern Europe". However, it does not appear to be driven by economic risks, as the losses will be substantial.

▶️ It is estimated that upon completing the deal, the negative impact on RBI group's consolidated earnings will be 300 million euros, primarily due to the difference between the sale price and the book value of "Priorbank.”

▶️ Regarding the CET1 ratio (excluding Russia🇷🇺), a reduction of 5 basis points is expected, resulting from the difference between the purchase price and the capital book value, along with the deconsolidation of assets exposed to risks.

▶️ Despite the anticipated losses, this transaction is taking place under pressure from international regulatory bodies.

▶️ The bank in Belarus managed 2 billion euros in deposits and employed over 1,600 staff members.

#news #Europe

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