In light of Russia’s invasion of Ukraine, France’s Credit Agricole disclosed that it has an exposure of over $7.2bn (€6.4bn) to the two nations.
The French lender operates in these two countries via two wholly-owned units, the international retail bank Crédit Agricole Ukraine as well as the subsidiary of Crédit Agricole CIB in Russia, CACIB AO.
Its exposure in these countries accounts for around 0.6% of its total commercial lending portfolio. Of this, Ukraine represents 0.15% while Russia accounts for 0.45%.
These exposures are said to be a “limited size and of good quality”.
Commenting on its Russia exposure, the bank said: “The bulk of assets consist in loans to local corporates, mainly in rubles, 1/3 of which benefits from the parent multinational company’s guarantee5 and of a sovereign exposure corresponding to the excess liquidity of the subsidiary deposited short term at the Central Bank of Russia in the context of its regulatory liquidity and ratio requirements.”
The bank also disclosed that it did not grant new funding to Russia counterparties since the invasion, adding that it is currently monitoring its exposure in these two countries. Credit Agricole also said that the situation will not affect its 2021 dividend payout.
Last week, Societe Generale, also based in France, disclosed around $20bn of Russian exposure.
The lender also warned that it could lose property rights to its Russian banking assets due to the fallout of the Ukraine conflict.