Rome, 15 Mar Italy's second bank, UniCredit, is analyzing the cessation of its operations in Russia, where it operates with 4,000 employees and some 70 branches, as a result of the geopolitical risks arising from the war in Ukraine. UniCredit CEO Andrea Orcel said today at a digital meeting with US financier Morgan Stanley that UniCredit is “seriously studying the impact and complexity of untying an entire entity” from Russia and that “soon” the market will be informed. The Italian bank reported a week ago that at the end of 2021 its Russian subsidiary UniCredit Bank Russia had a self-financed credit position of 7.8 billion euros, an RWA (risk-weighted assets) ratio of 9.4 billion euros and a net worth of 2.5 billion euros. He also pointed out that, in an extreme scenario, in which all his exposure was lost, the impact on UniCredit's CET1 ratio at the end of 2021 (15.03%, which deducts the dividend earned in 2021 of 1.2 billion euros) would be around 200 basis points and would not fall below 13%. UniCredit shares accumulated a 36.07% drop over the past 30 days as a result of Russia's invasion of Ukraine. CHIEF lsc/jac
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