TOP NEWS IN EUROPEAN FINANCIALS
* Austria-based Raiffeisen Bank International AG plans to retain its entire 2021 net profit amid the ongoing conflict between Russia and Ukraine and suspend the previously announced dividend of €1.15 per share. CEO Johann Strobl reiterated on an analyst call that the bank was "not walking away" from Russia, where its business has a €354 million exposure to sanctioned financial institutions and €119 million to other sanctioned companies, the Financial Times reported.
* Germany's Commerzbank AG unveiled improved 2024 targets as it looks to springboard from positive developments in customer business and rising interest rates in Poland, where it operates through mBank SA. The German lender now targets revenues of €9.1 billion, an operating result of €3 billion and a return on tangible equity of more than 7%, noting that a potential return to capital distributions could happen earlier than planned. Additionally, Commerzbank said it has a €1.3 billion net exposure to Russia, or about 0.4% of total exposures, and less than €100 million to Ukraine. Meanwhile, mBank will halt transfers in Russian rubles from March 2, news agency PAP reported. Similar decisions were earlier announced by Bank Polska Kasa Opieki SA and Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna, the news wire noted.
➤ Fed rate hike expectations shrink as Ukraine crisis pushes up energy prices
Inflation is rising at levels higher than any period since the early 1980s. Oil prices' climb above $100 per barrel will keep fueling the jump in prices.
➤ Russia sanctions ripple through private equity portfolio companies
Venture capital firms have made the most Russia deals, though the vast majority of investments have been in the single-digit millions.
BANKING
* VTB Bank PJSC, Bank Rossiya, PJSC Bank Otkritie Financial Corp. and VEB.RF are among seven Russian banks that the EU intends to delist from the Swift international payments system as part of sanctions against Moscow following its invasion of Ukraine, Dow Jones Newswires reported, citing two diplomats involved in discussions. The banks also include Novikombank, Promsvyazbank PJSC and Sovcombank PJSC, insiders told Bloomberg News, and excludes Sberbank of Russia and Gazprombank JSC. Swift said it is in contact with authorities over which entities are under sanctions and will disconnect them once it receives a legal order to do so.
* Sberbank of Russia is withdrawing from the European market, where its units have seen large outflows, Reuters reported, citing the Russian lender. The bank said it will stop providing liquidity to the units but that its capital levels and asset quality were enough to return deposits. Hungary's central bank has withdrawn the license of the bank's local unit, saying the earlier order of two bank holidays was not enough to boost the lender's finances, Reuters reported separately. Britain also blocked Sberbank of Russia from correspondent banking and sterling clearance.
* Croatia-based Sberbank d.d. and Slovenia-based Sberbank banka d.d. will be sold to Hrvatska postanska banka d.d. and Nova Ljubljanska Banka dd, respectively, after being declared as failing or likely to fail last week, the European Commission and Single Resolution Board said. Their direct parent, Austria-based Sberbank Europe AG, will be wound down under Austrian insolvency proceedings. Czech authorities also decided to wind down Sberbank CZ a.s., the commission said. NLB said acquiring Sberbank banka will boost its market position as it is set to take on some €1.8 billion of assets.
* German financial regulator BaFin said VTB Bank's EU unit has stopped accepting new clients, while existing customers who are not subject to sanctions can withdraw their credit balances, Reuters reported.
* France-based Crédit Agricole SA has paused financing new Russia-linked businesses, insiders told Bloomberg News. Nordic lenders Nordea Bank Abp and Danske Bank A/S have decided to exclude all Russian investments from their portfolios, Børsen reported.
* Switzerland-based UBS Group AG is creating a new global family and institutional wealth unit, which will house family office, global markets, global lending and prime brokerage businesses, Dow Jones Newswires reported, citing a memo seen by Barron's Advisor. A UBS spokesperson confirmed the memo to Bloomberg.
* Italy's Banca Popolare di Sondrio SpA has agreed to purchase the 39.5% it does not already own in Factorit SpA from Banco BPM SpA for €75 million, said MF.
* State Savings Bank of Ukraine introduced credit holidays for individual clients from March 1 to May 31 for all credit products in relation to the imposition of martial law in Ukraine, with payments on such loans and any penalties to be canceled during this period.
FINANCIAL SERVICES
* Norway-based Storebrand Asset Management AS said it would divest from Russia, a decision that affects interests valued at 1.4 billion kroner in 19 companies, Reuters reported.
POLICY AND REGULATION
* The Bank of Italy said smaller lenders would not benefit from capital relief measures beyond Dec. 31, 2022, while a liquidity relief measure would end March 15, as it removes a number of relief measures introduced to help bank through the COVID-19 crisis, Reuters reported.
* Russian Prime Minister Mikhail Mishustin said the country will impose temporary curbs on the sale of Russian assets by foreign investors, Reuters reported.
Sheryl Obejera, Arno Maierbrugger, Danielle Rossingh, Gerard O'Dwyer, Beata Fojcik, Heather O'Brian, Brian McCulloch, Praxilla Trabattoni and Nelson Siqueira contributed to this report.
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