Raiffeisen Bank International is set to sell its Polish and Slovenian operations, sell its direct banking unit Zuno, and reduce its exposure to Russia and Ukraine in a bid to increase capital buffers.
The move is aimed at bolstering the bank’s core Tier 1 ratio to 12% by the end of 2017, up from 10% at the end of 2014.
The Vienna-based lender said that its objective will have an impact in those areas "which generate low returns, have high capital consumption or are of limited strategic fit."
In the Russian market, risk-weighted assets will be shrunk by nearly 20% by end-2017, while Ukraine is expected to see a reduction of about 30% in risk-weighted assets by end-2017.
The lender is also planning to further optimise operation in Hungary, as well as significantly scale back or exit operations in Asia by end-2017 and in the US by end-2016.
The move comes after the bank posted a net loss of 493m last year. The structural overhaul is targeted at an aggregate gross risk-weighted asset reduction of about 16bn by the end of 2017.
The decisions taken are ye to secure the go-ahead from the supervisory board.