RBI could deconsolidate Raiffeisenbank Russia after Q3, but not prepared to sell 'at any price'

MOSCOW. May 5 (Interfax) - Austria's Raiffeisen Bank International (RBI) could deconsolidate Raiffeisenbank Russia after Q3 2023, RBI CEO Johann Strobl said on a conference call.

"If everything unfolds within the framework of our plans, then one of the options that depends more on us is a spin-off. The current plan envisages that a spin-off might be complete no sooner than the end of the third quarter," he said.

RBI is looking either to sell or spin Raiffeisenbank off. Both options require a number of approvals, he said.

In the event of a sale, the group would like to conclude an agreement and close the deal within one quarter, but this is a very bold assumption, Strobl said.

"As we have said before, we will not sell at any price. There is a level that is acceptable, but not at any price," he said.

When deciding the amount of the transaction for the sale of Raiffeisenbank in ruble terms, the latest data on the size of its equity will be taken into account; when determining it in euros there are a number of issues that still need to be resolved, Strobl said. He said the amount would depend on the potential buyer, as well as their opinion of the bank's equity and loan portfolio.

Raiffeisenbank's equity audited to Russian Accounting Standards grew 80% in 2022 to 305.3 billion rubles on the back of higher retained earnings. The equity of the Russian subsidiaries to International Financial Reporting Standards doubled to 4.1 billion euros, according to RBI information.

RBI Group assets in Russia include Raiffeisenbank and leasing, insurance and management companies.

Strobl said in May last year that RBI was thinking of selling Raiffeisenbank and had received a number of unsolicited expressions of interest.