Raiffeisen Won't Propose a Dividend for 2021 Due to Ukraine Conflict -- Update

   By Cristina Roca and Ed Frankl 
 

Raiffeisen Bank International AG said Tuesday that it intends to propose carrying forward its entire net profit for 2021 in light of the geopolitical situation around Ukraine.

The lender, one of the largest in Central and Eastern Europe, had previously intended to propose a 2021 dividend of 1.15 euros ($1.29) per share, after posting a full-year profit of EUR380.0 million.

"Once the current critical geopolitical developments have subsided, the management board intends to reassess the possibility of a subsequent dividend distribution from the retained earnings of the 2021 financial year, taking into account the development of the capital ratios and the economic effects of the conflict," the bank said.

The Vienna-listed bank has suspended new lending in Russia and Ukraine, with exceptions on a case-by-case basis, Chief Executive Johann Strobl told analysts in a conference call. Most of the bank's branches in Ukraine are open, mostly to serve retail customers, he said.

Raiffeisen made 33% of its pretax profit in Russia last year. Ukraine accounted for another 8.4% of its pretax profit in 2021.

Write to Cristina Roca at [e-mail] and Ed Frankl at [e-mail]

(END) Dow Jones Newswires

March 01, 2022 13:13 ET (18:13 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.