(Bloomberg) -- Deutsche Bank AG said its Russia exposure was a net 600 million euros ($665 million) at year-end, becoming the latest lender to issue an update after the invasion of Ukraine.
“Our direct exposures are currently very limited and tightly managed,” Chief Risk Officer Stuart Lewis said in a statement late Wednesday. “Second- and third-order effects of the current situation, including sanctions and cybersecurity risk, are being carefully evaluated and monitored.”
Deutsche Bank said the net figure was “after taking account of guarantees and asset collateral,” while its gross loan exposure was 1.4 billion euros, equivalent to about 0.3% of the overall loan book.
Russia’s invasion of Ukraine has stopped a nascent recovery of Europe’s banking industry dead in its tracks, as lenders prepare for rising bad loans and the prospect that much-anticipated rate increases will be delayed. Banks were the worst performers on Europe’s stock markets over the past month, reversing a strong start to the year when the industry seemed poised to benefit from higher lending income.
More than a dozen big euro-area banks have meaningful operations in Russia, with Raiffeisen Bank International AG, Societe Generale SA and UniCredit SpA among the most exposed. France’s BNP Paribas SA on Wednesday said it had 3 billion euros of gross exposures to Russia and Ukraine as it postponed its investor day, which was scheduled for next week, because of the war.
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