Raiffeisen Bank International: More Headwinds Coming From Russia

Labutes IR
3.9K Followers
(11min)

Summary

  • Raiffeisen's exit from Russia is challenging, heavily impacting its valuation due to political risks and economic sanctions.
  • Despite reducing exposure, Raiffeisen's Russian operations still contribute significantly to profits but are trapped due to capital controls.
  • The bank's valuation is depressed, trading at a low P/BV multiple, reflecting investor concerns over unresolved Russian issues.
  • Excluding Russia, Raiffeisen's core operations are stable with a solid capital position, suggesting potential for higher valuation if risks are mitigated.
Yellow door adds charm to Raiffeisen Bank buildings facade

Dmitrii Anikin

As I’ve covered some months ago, Raiffeisen’s (OTCPK:RAIFF) investment case is mixed as the banking operations are performing relatively well, but its exit from Russia is not an easy task and continues to murk its prospects ahead.

Raiffeisen is the

This article was written by

3.9K Followers
Labutes IR is a Fund Manager/Analyst specialized in the financial sector, with more than 18 years of experience in the financial markets. I have worked at several type of institutions in the industry, always at the buy side and related to portfolio management. Associated with the existing author The Outsider.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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