RBI’s Russian subsidiary sells its pension fund business (press release):

RBI’s Russian subsidiary (AO Raiffeisenbank) closed the sale of its pension fund business (ZAO NPF Raiffeisen) to the Russian BIN Group today. As part of the agreement the parties will not disclose the price at which the transaction took place.

The transaction will result in a one-off gain before tax of around EUR 87 million for RBI, which will be booked in the fourth quarter of 2015. It will also reduce risk-weighted assets (RWA) by EUR 327 million.

In total, RBI’s common equity tier 1 ratio (fully loaded) will be strengthened by approximately 20 basis points as a result of this transaction.

ZAO NPF Raiffeisen is a top-20 Russian non-state pension fund and was founded in 2004. As of 30 June 2015, the fund manages roughly EUR 550 million in assets; in roubles, its asset base has more than quadrupled over the last three years. It manages over 250,000 pension accounts and offers a complete range of pension products for both corporate and private customers: corporate pension programs, mandatory pension insurance, and individual pension plans.

The decision to sell the pension fund business was made in conjunction with RBI’s overall strategy of reducing RWA and focusing on core business, and also in light of the ongoing consolidation in this particular sector. AO Raiffeisenbank will continue to service ZAO NPF Raiffeisen clients at its branches and will act as a selling agent for pensions going forward.