By Ed Frankl
Raiffeisen Bank International AG announced on Tuesday that it intends to carry forward its entire net profit from the 2021 financial year “due to the war in Ukraine”.
The Austrian lender, one of the largest in Central and Eastern Europe, had previously planned to offer a 2021 dividend of 1.15 euros ($1.29) per share, after a full-year profit of 380.0 million euros.
The Vienna-based bank made 33% of its pre-tax profit in Russia last year, but its chief executive said new lending in Russia and Ukraine was now on hold.
“Once the current critical geopolitical developments have passed, the Executive Board intends to reassess the possibility of a subsequent distribution of dividends from the carryforward of the financial year 2021, taking into account the evolution of fund ratios own and the economic effects of the conflict,” the bank said in a statement.
Write to Ed Frankl at [email protected]
Corrections and Amplifications
This article was corrected at 18:00 GMT as it incorrectly stated that the bank made 33% of its net profit in Russia. Raiffeisen made 33% of its pre-tax profit in Russia last year.
Raiffeisen made 33% of its pre-tax profit in Russia last year. “Raiffeisen proposes to postpone 2021 profits due to Ukraine conflict,” at 4:40 p.m. GMT, erroneously said the bank made 33% of its net profits in the country.