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Raiffeisen Bank navigates challenges while withdrawing from Russia and improving ratings

Raiffeisen Bank International (RBI) is navigating a challenging exit from Russia, with a recent rating upgrade from Standard & Poor's reflecting progress in this withdrawal. Despite obstacles, including a zero interest rate policy for deposits and ongoing legal disputes, the bank's core earnings remain stable, and negotiations for selling its Russian subsidiary are underway. Investors show confidence, as the RBI share price is only 7% below its 52-week high, but significant balance sheet reductions are necessary by 2026 to ensure a sustainable recovery.

raiffeisen bank accelerates exit from russia amid ongoing sanctions challenges

Raiffeisen Bank International is actively pursuing the sale of its Russian subsidiary while reducing its operations in the country ahead of a European Central Bank mandate. Despite ongoing geopolitical challenges, the bank has made significant progress, leading to a stable outlook from Standard & Poor’s. Legal complications, including a €1.87 billion transfer to Rasperia Trading Limited, add to the complexities of the exit strategy, but the bank maintains a strong capital position to manage potential risks.

chinese carmakers projected to capture 34 percent of mea market by 2030

Chinese automotive brands are projected to capture 34% of the Middle East and Africa market by 2030, up from 10% in 2024, driven by competitive pricing and advanced technology. The region is becoming a key growth area for Chinese exports, surpassing North America and Europe in volume. As EV adoption increases, particularly in Saudi Arabia, partnerships and technology adoption between Chinese brands and local markets are expected to deepen.

raiffeisen bank faces challenges amid reliance on russian earnings

Raiffeisen Bank International (RBI) reported a consolidated result of approximately 1.3 billion euros for the first half of 2024, with a significant reliance on Russian earnings despite scaling back operations there. The core business remains stable, showing robust performance outside Russia, but high provisions for Polish loans have impacted results. The bank's future hinges on managing political risks while maintaining profitability, as it aims for a return on equity of around 10% excluding Russia and Belarus.

UAE expands global trade network with 27 comprehensive economic partnership agreements

The UAE has signed its 27th Comprehensive Economic Partnership Agreement (CEPA) with the Republic of the Congo, advancing its strategy to lower trade barriers and enhance economic diversification. With eight agreements in force and 14 pending ratification, the UAE aims to boost non-oil foreign trade to Dhs4tn by 2031, while also engaging in talks with the EU for a potential agreement. The CEPA program, launched in September 2021, is pivotal for strengthening the UAE's global trade position and attracting foreign investment.

Trump announces new tariffs excluding Russia and heavily sanctioned nations

On April 3, President Trump announced new tariffs starting at 10% on nearly all countries, excluding Russia and other heavily sanctioned nations like Cuba, Belarus, and North Korea. White House press secretary Karoline Leavitt stated that existing US sanctions on Russia render additional tariffs unnecessary, despite a significant drop in US-Russia trade from $35 billion in 2021 to $3.5 billion last year. Canada and Mexico are the only major economies exempt from the new tariffs, although they already face 25% tariffs from previous measures.

S&P Global Ratings revises Raiffeisen Bank outlook to stable amid strategic changes

S&P Global Ratings has revised Raiffeisen Bank International's outlook to stable from negative, affirming its 'A-/A-2' ratings, following the bank's strategic exit from Belarus and scaling back in Russia. This move has mitigated nonfinancial risks and reputational concerns, with expectations of further divestment in Russian operations within 12 to 24 months. Despite a projected decline in profits for 2024, the Raiffeisen Banking Group is expected to maintain strong financial performance and capitalization amid ongoing geopolitical challenges.

s and p global ratings upgrades raiffeisen bank outlook to stable

S&P Global Ratings has upgraded Raiffeisen Bank International's outlook from negative to stable, affirming its 'A-/A-2' ratings. This change follows the bank's strategic exit from Belarus and significant reduction of operations in Russia, which has mitigated non-financial and reputational risks. Despite a projected decline in net profit for 2024, the bank's strong financial performance and robust risk management practices are expected to sustain its creditworthiness amid ongoing geopolitical uncertainties.

Raiffeisen Landesbank NÖ-Wien reports strong profit amid economic challenges

Raiffeisen Landesbank NÖ-Wien reported a profit of nearly 400 million euros for 2024, rebounding from a loss in 2022, despite one-off effects from its stake in Raiffeisenbank International due to the war in Ukraine. The bank's equity ratio increased to 24%, indicating strong resilience, while the cost-income ratio improved to 47.8%. Looking ahead, the bank anticipates continued growth but is budgeting conservatively amid economic uncertainties and an increased bank levy.

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