VIENNA (Reuters) - Shares in Raiffeisen Bank International (RBI) (RBIV.VI) fell as much as 13 percent on Monday to their lowest level in seven months as traders said investors were worried about the impact of new U.S. sanctions against Russia.
“The concern is that banks in Russia could face losses in their loan portfolios in the wake of the new sanctions,” said Roman Eisenschenk, head of sales at Kepler Cheuvreux in Vienna.
Another trader cited the same concern and pointed to the fact that operations in Russia are an important source of earnings for the Austrian group. Around 9 percent of RBI’s assets are in Russia.
“At this point in time we believe these (sanctions) will have a minimal impact on RBI (at) group level,” an RBI spokeswoman said.
Raiffeisen is looking to expand in Russia after increasing its loan portfolio by 13.6 percent in 2017, the Russian unit’s finance chief Gert Hebenstreit told Reuters last week.
Reporting by Kirsti Knolle, Alexandra Schwarz-Goerlich; Editing by Francois Murphy