By Valentina Za
MILAN (Reuters) – Intesa Sanpaolo mentioned on Wednesday that its loans to Russian and Ukrainian purchasers amounted to five.1 billion euros internet of ensures from credit score export companies, which is round 1% of the entire for Italy’s greatest financial institution.
Intesa added in an announcement it was analysing its publicity to Russia and Ukraine to know find out how to higher deal with dangers in mild of the European Union’s determination to section out Russian fossil fuels by 2027.
Of the general mortgage determine, some 4 billion euros are cross-border, with oil and gasoline companies accounting for half of the entire.
Considering off-balance sheet gadgets, Intesa’s complete internet publicity to the 2 nations is 5.7 billion euros ($6.3 billion), Reuters calculations based mostly on Intesa’s figures present.
Nearly the entire loans expire by 2027, Intesa mentioned, giving it time to work out an answer earlier than the EU-set deadline.
“Over two-thirds of loans to Russian clients seek advice from top-notch industrial teams,” it mentioned, including these had “long-established business relationships with clients which are a part of main worldwide worth chains, with a good portion of their proceeds coming from commodities.”
Intesa’s native subsidiaries in Russia and Ukraine account for simply 1.1 billion euros in loans to clients and sums due from banks, it added.
Some 200 million euros are loans to entities which have been hit by worldwide sanctions towards Russia since its invasion of Ukraine, it mentioned.
Like different main worldwide banks, together with home rival UniCredit, Intesa has mentioned it’s reviewing its presence in Russia, the place it serves company purchasers with a employees of round 980 folks throughout 28 branches.
UniCredit on Tuesday mentioned it was contemplating pulling out of Russia.
Analysts at dealer Autonomous calculated a core capital hit of round 75 foundation factors, decrease than its preliminary estimate of 90 foundation factors, assuming a 60% loss on cross border exposures.
Intesa, which used to deal with greater than half of economic transactions between Italy and Russia, has financed main funding Russian tasks, such because the Blue Stream gasoline pipeline and the sale of a stake in oil group Rosneft.
It additionally employs 780 employees in Ukraine, the place its Pravex Financial institution unit has 45 branches.
Intesa has mentioned it was persevering with to supply important banking providers at Pravex branches each time it was protected to take action, whereas serving to to evacuate staff below menace.
The financial institution mentioned its native subsidiaries’ off-balance sheet publicity amounted to 300 million euros.
For the remainder of the group exposures deriving, for instance, from untapped credit score strains have been 1.1 billion euros and coated by 800 million euros in ensures.
($1 = 0.9093 euros)
(Reporting by Valentina Za; Enhancing by Keith Weir and Alexander Smith)