Raiffeisen Predicts Loss as Ukraine Causes Bad-Debt Rise - Bloomberg:
"Raiffeisen Bank International AG (RBI), the foreign bank with most at risk in Ukraine and Russia, predicted its first annual loss this year as the conflict in Ukraine causes bad-debt charges to rise faster than expected.
Raiffeisen’s loan loss provisions will rise to 1.5 billion euros to 1.7 billion euros ($2.2 billion) this year, compared with 1.15 billion euros in 2013, the Vienna-based bank said in a statement late yesterday. It’s the second time this year the bank has raised the provisioning forecast as the escalating conflict takes a bigger toll on Ukraine’s economy. Loan losses in Hungary will also be higher than expected, Raiffeisen said.
“As a consequence of the latest developments, a negative result for 2014 is to be expected,” Raiffeisen said in the statement. That’s “primarily due to higher expected risk costs in Ukraine in light of ongoing political tensions in the region"
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