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Raiffeisen's Polish unit says writedown to cut 2016 results by $25 mln
February 25, 2017 / 9:24 AM / 9 months ago

Raiffeisen's Polish unit says writedown to cut 2016 results by $25 mln

WARSAW, Feb 25 (Reuters) - Raiffeisen Bank Polska, the Polish unit of Austrian lender Raiffeisen Bank International (RBI), has written down the value of its local brand Polbank, which will weigh on the bank’s 2016 financial results, it said late on Friday.

* Raiffeisen Bank Polska said it decided to book an impairment charge of almost 119 million zlotys in relation to the Polbank brand and goodwill.

* The negative impact of the charge on Raiffeisen Bank Polska’s 2016 financial results amounts to 102.6 million zlotys ($25 million), the bank said.

* Raiffeisen bought Polbank in 2012 from Greece’s Eurobank.

* “In the past few years the Polish market has seen changes, which lowered the valuation of banks. This made the bank’s management decide on the impairments,” Raiffeisen Bank Polska said.

* Raiffeisen Polbank has one of the biggest Swiss-franc loan portfolios among Polish lenders. The portfolio and a banking tax have hurt RBI’s plans to sell the Polish subsidiary.

* RBI had been in exclusive talks with Poland’s Alior Bank about selling it but Alior pulled out in December. RBI is required to list at least 15 percent of the local subsidiary in Warsaw by the end of June.

* Raiffeisen Bank Polska will publish its 2016 financial results on March 15. ($1 = 4.0845 zlotys) (Reporting by Agnieszka Barteczko; editing by David Clarke)

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