Italy's UniCredit, in a report on Tuesday, announced an increase in revenues from its Russian operations last year. However, the bank disclosed a reduction in loans and deposits in Russia to comply with the European Central Bank's directives. During an investor presentation, UniCredit shared that it had "exceeded" three out of four self-imposed targets for 2025.
Following Moscow's incursion into Ukraine in 2022, the ECB has been pressuring European banks, including UniCredit, to scale back their activities in Russia. UniCredit informed investors that in the fourth quarter, it reduced deposits by 51% and loans by 38%, both below its 2025 objectives. Despite this, cross-border payments surpassed expectations at 9.8 billion euros. UniCredit clarified that excluding certain "one-off" items, this figure would have fallen short of the 2025 goal.
Overall, UniCredit reported a 9% revenue growth from its Russian units to 1.29 billion euros, or 21% in constant currency terms. CEO Andrea Orcel stated, "I won’t be selling Russia for one euro or for anything that is not a fair price," emphasizing the bank's commitment to the market.
In response to the ECB's restrictions, UniCredit contested them at the European Union's General Court, citing conflicts with Russian regulations. The court denied UniCredit's plea to halt the ECB's order, and the legal process is ongoing. Banco ING recently incurred a 700-million-euro loss after agreeing to sell its Russian operations to a local entity.