Here is what we know at the moment about banks' exposures to Russia in terms of loans and other investments. Some banks, such as JP Morgan and Goldman Sachs, are pulling out.

A number of major banks have set out their risk exposures to Russia, and investment stakes in Russian assets, following the country’s invasion of Ukraine. Here is a summary:

Deutsche Bank
Deutsche Bank has reiterated that it has “substantially” cut its Russian exposure since 2014, taking the same course as a number of banks spelling out how much they are being affected by the country’s actions. 

“As we have repeatedly said, we condemn the Russian invasion of Ukraine in the strongest possible terms and support the German government and its allies in defending our democracy and freedom,” the Frankfurt-listed lender said in a statement late last week. 

“Deutsche Bank has substantially reduced its Russian exposure since 2014. Like some international peers and in line with our legal and regulatory obligations, we are in the process of winding down our remaining business in Russia while we help our non-Russian multinational clients in reducing their operations. There won’t be any new business in Russia,” it said.

As stated earlier in March, Europe’s largest bank said that it supported the German government’s actions and would fully implement the sanctions and other measures imposed. “Within this framework, we continue to support our clients globally, including with respect to their Russia and Russia-related activities. Most of our clients with Russian operations or requirements are European or multinational corporates who are currently adapting their business activities in the country. We are monitoring the situation closely and may adapt our approach as appropriate. We have reduced our exposure to Russia significantly over recent years and the risks are well contained.” 

Societe Generale
Its exposure to Russia is limited at 1.7 per cent of the group’s total exposure – €18.6 billion at 31 December 2021, of which €15.4 billion is accounted for at its subsidiary Rosbank. In 2021, activities located in Russia generated 2.8 per cent of SocGen’s net banking income and 2.7 per cent of group net earnings.

“The group is extremely prudent and selective in the conduct of its activities in Russia and its priorities are focused to reduce its risks and preserve its subsidiary’s liquidity, while maintaining diversified deposit inflows,” the French bank said. The bank said it had a Common Equity Tier 1 ratio of 13.7 per cent at the end of 2021. 

JP Morgan
The bank is leaving Russia, as reported here. At the time of writing, the firm does not appear to have spelled out its exposures.

Goldman Sachs
The bank is leaving Russia and winding down operations there. At the time of writing, the firm does not appear to have spelled out its exposures.

Citigroup
Citigroup has the biggest presence of US banks in Russia, with a total exposure of almost $10 billion as at the end of last year (source: The Street). 

Before Russia's attack on Ukraine, Citigroup was planning to sell its consumer banking division in Russia – it has been spinning off such businesses in Mexico and Asia as part of a global restructuring and pivot towards areas such as wealth management.

Credit Suisse
The bank said that it had SFr848 million ($914.8 million) in net Russia credit exposures as of the end of 2021. Switzerland’s second-largest bank said its exposure to the country was “well-managed.” The Zurich-listed lender has set out details on Russia’s exposures as part of its annual report.

Explaining its net credit exposure figure, the bank said that this included derivatives and financing exposures in the investment bank, trade finance exposures in the Swiss Universal Bank and Lombard and other loans in international wealth management. These net exposures have been reduced since the end of 2021. Net assets held in the bank's Russian subsidiaries, JSC “Bank Credit Suisse (Moscow)” and LLC “Credit Suisse Securities (Moscow),” totalled SFr195 million as of 31 December 2021. Country credit risk exposures to Ukraine or to Belarus were not material as of 31 December 2021.

UBS
The bank said that it identified a “small number” of global wealth management clients hit by recent sanctions imposed on Russia, and the affected number of loans outstanding comes to less than $10 million. Its direct country risk exposure to Russia contributed $634 million to its total emerging market exposure of $20.9 billion as of 31 December 2021. That figure includes trade finance exposures in personal and corporate banking, a single loan in the investment bank with a non-Russian entity with key facilities spread globally including Russia and the Commonwealth of Independent States, Nostro and cash accounts balances, issuer risk on trading inventory within the investment bank, and derivatives within the investment bank.

As of 3 March, it had about $200 million of exposure stemming from reliance on Russian assets as collateral on Lombard lending and other secured financing in its global wealth management arm.

BNP Paribas
The French bank said that “gross exposures off- and on-balance sheet on Ukraine and Russia are limited.” In Ukraine, the exposures were 0.09 per cent of group total commitments (€1.7 billion ($1.8 billion)) and for Russia, 0.07 per cent (€1.3 billion), a total of about €3 billion overall. “Considering the way BNP Paribas operates in those two markets and secures its activities with guarantees and collaterals at a high level, the net residual combined exposures of BNP Paribas for Russia and Ukraine stand at around €500 million.” 

HSBC
More than 1,700 HSBC customers have written to the bank urging it to cut its ties with Russian oil and gas businesses, press reports said (City AM). Many of the HSBC customers calling for action are also considering switching to another bank, campaign group 38 Degrees has found. 

The bank said it is targeting a reduction of 34 per cent in absolute on-balance sheet financed emissions by 2030 for the oil and gas sector, but its comments appeared not to name Russia specifically. (There are reportedly calls on the bank to cut exposures to the sector in Russia.) In Russia, the HSBC Group operates through OOO HSBC Bank (RR).

Julius Baer 

The Swiss bank said its exposure was modest.

“Julius Baer’s market risk exposure to Russia is not significant and is tightly managed. The group is further monitoring settlement risks related to certain open transactions with Russian financial institutions related to Russian securities, such as market closures, the imposition of exchange controls, sanctions or other measures which may potentially delay or impair the counterparties’ ability to honour such claims,” it said. The net asset value of the advisory subsidiary Julius Baer CIS Ltd in Moscow amounted to SFr400,000 as at 31 December 2021. The group is reducing its local activities in line with contractual agreements, while ensuring the safety of its small number of employees,” it said.

Barclays 
No statement has been issued on exposures as far as this news service can judge. It has asked for comment and may update in due course.

Credit Agricole
The activities of the Paris-based group in Ukraine and Russia are locally operated through two 100 per cent-owned subsidiaries: the international retail bank Crédit Agricole Ukraine and the subsidiary of Crédit Agricole CIB in Russia, CACIB AO.

The total exposure (on shore and off shore) of Crédit Agricole SA in these two countries represents approximately 0.6 per cent of the total commercial lending portfolio as of 31 December 2021. Net banking income in Ukraine for 2021 was €125 million, and the figure was €22 million in Russia. 

UniCredit
Italy’s second-largest ban, UniCredit, is reviewing its Russian business, its chief executive is reported to have said. Andrea Orcel also said the economic environment had changed because of the Ukraine crisis and the bank was now assuming there would be stagflation - or a combination of low growth and high inflation. Last week the lender said a full write-off of its Russian business, including cross-border exposure, would cost around €7.4 billion, endangering its ability to pay capital to shareholders (source: Reuters, 15 March).

The lender said that a full write-off of its Russian business would cost around €7.4 billion. UniCredit Bank Russia had a self-funded loan position at year end 2021 of €7.8bn, risk-weighted assets of €9.4 billion and equity of €2.5 billion. Net of foreign currency hedges, UniCredit said that its “direct exposure” to UniCredit Bank Russia falls to around €1.9 billion.

Furthermore, UniCredit said that Russian client cross-border exposure is around €4.5 billion net of guarantees of around €1 billion by non-Russian state export agencies, and accounts for around €3 billion of risk-weighted assets. The exposure is almost entirely to leading Russian multinational corporations and mostly in euros and US dollars, with contracts governed by international laws and subject to international courts of law.

(Be advised that some of this information may be out of date as of the time of going to press but we will update as soon as new information comes in. Please email tom.burroughes@wealthbriefing.com)