VIENNA--Raiffeisen Bank International AG (RBI.VI) is likely to
swing back to a net profit by 2016 at the latest, Raiffeisen's
chief executive Karl Sevelda said Wednesday.
Earlier in the day, the bank said it might report a net loss in
2015 as the majority of its restructuring costs of 550 million
euros ($601.6 million) will be booked this year. Raiffeisen
reported a net loss of EUR493 million for 2014--its first loss
since it was listed in 2010.
As part of the restructuring, Raiffeisen has already started
talks to sell its Polish subsidiary. Both Mr. Sevelda and the
bank's Chief Financial Officer Martin Gruell said they were
optimistic about the sale happening quickly. Mr. Gruell said that
talks with Polish bank supervisors were taking place at the same
time. He added that the Polish requirement that Raiffeisen's Polish
subsidiary be listed on the stock exchange isn't a hurdle for the
sale.
Raiffeisen isn't looking to sell its Ukrainian business, but is
in negotiations with the European Bank for Reconstruction and
Development on a possible partnership, Mr. Sevelda said. He said
talks were likely to be completed this year and that there was the
possibility of the EBRD taking a minority stake in the bank's
Ukrainian business. In Hungary, Raiffeisen will also be
restructuring instead of selling, but there are no plans to bring
in a minority partner, Mr. Sevelda said.
In Russia, Raiffeisen will be leaving the automobile financing
business and closing 34 branches and leaving 15 cities in 2015, but
will remain in Russia, Mr. Sevelda said. He added that there are no
plans for a capital increase in Russia.
Write to Nicole Lundeen at nicole.lundeen@wsj.com
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