Russia Hit Nears $10 Billion for European Banks Pulling Back
- Lenders increasing cash set aside for cost of souring loans
- Banks also seeing damage from writedowns and Russia exits
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European banks are counting the rising costs of Russia’s invasion of Ukraine as the war pushes up commodity prices and disrupts corporate supply chains.
Led by Societe Generale SA and UniCredit SpA, the region’s lenders have so far flagged a hit of about $9.6 billion, mostly from writing down the value of their operations in the region and setting aside money as a shield against the expected economic ramifications. The latest banks to add to the tally, ING Groep NV and Intesa Sanpaolo SpA, on Friday reported that Russia exposure cut combined first-quarter net income by almost $2 billion.