Economy
UniCredit has no intention to leave Hungary - Papa
UniCredit’s reaction comes on the back of an analysis on the Austrian banking sector published by Fitch Ratings on Tuesday.
Geopolitics in Russia and Ukraine and little signs of a major turnaround in central and eastern Europe (CEE) underpin the negative outlook for the Austrian bank sector, the rating agency said in the report.
Fitch analysts believe the banks can make efficiency gains to mitigate some of the pressures. But two of the largest - UniCredit Bank Austria and, particularly, Raiffeisen Bank International (RBI) - are "heavily exposed to Russia and Ukraine and are vulnerable to risks from a continuation of the crisis."
"The likelihood of Austrian banks leaving this country has increased with the uncertainty in the market's long-term recovery prospects," Fitch analysts said.Gianni Franco Papa, Head of UniCredit CEE Division, stated they are not considering an exit from Hungary.
"Our local bank was one of very few profitable banks there till the end of 3Q14 - this is also one of the reasons why UniCredit has no intention to leave Hungary, while the other one is that we expect economic growth in Hungary in 2014 and the following years.
"We are closely monitoring the local business environment and examining all the opportunities in order to adapt our business model in time and to secure positive results," Papa said in an emailed statement.
Geopolitics in Russia and Ukraine and little signs of a major turnaround in central and eastern Europe (CEE) underpin the negative outlook for the Austrian bank sector, the rating agency said in the report.
Fitch analysts believe the banks can make efficiency gains to mitigate some of the pressures. But two of the largest - UniCredit Bank Austria and, particularly, Raiffeisen Bank International (RBI) - are "heavily exposed to Russia and Ukraine and are vulnerable to risks from a continuation of the crisis."
"The likelihood of Austrian banks leaving this country has increased with the uncertainty in the market's long-term recovery prospects," Fitch analysts said.Gianni Franco Papa, Head of UniCredit CEE Division, stated they are not considering an exit from Hungary.
"Our local bank was one of very few profitable banks there till the end of 3Q14 - this is also one of the reasons why UniCredit has no intention to leave Hungary, while the other one is that we expect economic growth in Hungary in 2014 and the following years.
"We are closely monitoring the local business environment and examining all the opportunities in order to adapt our business model in time and to secure positive results," Papa said in an emailed statement.
