European bank stocks fall as more companies break Russian ties

London — European bank stocks fell again on Monday as more lenders cut off ties with Russia and other lenders prepared for the further impact of Ukraine’s invasion of Ukraine.

Lenders and investors associated with Russia have cut off their ties with Russia due to Western sanctions. Others, meanwhile, have sought to reassure shareholders that they can contain the direct impact.

French asset management firm Ernst & Young and UK professional services firm EY said they had the latest information on Monday and were breaking the link.

Carmignac said it would not buy Russian securities and would sell it from its existing assets, but EY said it was weakening its ties to its business in Russia following similar moves by rivals KPMG and PwC. rice field.

The growing crisis has also caused turmoil at the top of the company, with several directors of Russian companies resigning, including the UK chairman of gold and silver producers Polymetal and Metals and En + of the hydropower group. ..

The London Stock Exchange has individually stated that it canceled some trading of polymetal after a stock surge of more than 700% at some point on Monday.

Russian banks subject to sanctions are struggling to adapt. According to a notice on the website on Monday, VTB’s consumer digital banks in Europe turned off their telephone lines due to heavy calls.

Crédit Agricole, one of France’s largest banks, is the latest in detail of its exposure to Russia and Ukraine, which totals around € 6.4 billion (69.5) of on-balance sheet and off-balance sheet exposure. Billion dollars) has been reached.

Lenders added that the exposure is “limited size and good quality” and is closely monitored and will not affect the distribution of dividends in 2021.

Swiss banking giant UBS also details its direct exposure to Russia in its annual report, which is $ 634 million as of the end of 2021.

The Eurozone banking index fell 9.5% to its 13-month low in early Monday trading before holding back losses. It fell 2.8% by 1422 GMT.

As the crisis worsens, bank stocks have fallen sharply and investors are preparing for the economic costs of the conflict.

Lenders operating in Russia, such as Reifaisen in Austria, UniCredit in Italy and Societe Generale in France, were particularly affected, with all three companies dropping double-digit percentages early on Monday. The trio later recovered to some extent, all falling by about 3-4 percent in early afternoon European trading.

The United States and Europe are considering a ban on Russia’s oil imports. Analysts say it could further stimulate energy prices and inflation and slow recovery. The UK said on Monday that it was considering a similar ban.

($ 1 = 0.9204 euros)

Carolyn Corn, Hugh Jones, Ian Wizards