A Russian invasion of Ukraine could trigger sanctions from the U.S. and Europe, and there’s one Western bank particularly exposed.
According to an analysis from JPMorgan Cazeonve, Austria’s Raiffeisen
RBI,
earned 35% of 2021 pretax profits from Russia.
OTP
OTP,
earned 7% of profits from Russia, with Unicredit
UCG,
earning 6% and Societe Generale
GLE,
earn 4%, according to the JPMorgan estimates.
The analysts said an exclusion from the SWIFT bank messaging system and disallowing conversions of ruble to hard currency could drive material further downside. Although Russia has developed an alternative payment system, the initial shock to the Russian economy would be large, the analysts said.
By market share, Citi
C,
is the only American bank with a sizeable presence, at 0.6% of the Russian market by assets.
Financials stocks more broadly helped European equities recover Tuesday in a choppy trading session.
The Stoxx Europe 600
SXXP,
rose 0.6% to 459.18, with Ericsson
ERIC.B,
and Logitech
LOGN,
rallying after well-received results.
Of the major regional indexes, the German DAX
DAX,
gained 0.4%, the French CAC 40
PX1,
increased 0.9% and the U.K. FTSE 100
UKX,
increased 0.9%.
Orpea
ORP,
shares slumped for a second day, losing 19% after a 16% slide on Monday. Le Monde published extracts from a book alleging negligent practices at nursing homes run by the company, allegations the company denies.
This post was originally published on Market Watch
