UniCredit’s Russian arm remains “very liquid and self-funded”, group says

UniCredit SpA’s (CRDI) Russian arm has a “very liquid and self-funded” balance sheet, while its impaired loan coverage is very high, the financial group said on Thursday, as its stock plummeted more than 13% due to the Ukraine crisis.

Italy’s second-largest lender said in an emailed note that provisions against possible losses covered 84% of the unit’s non-performing exposures.

“Our equity in the Russian subsidiary is less than 4% of the group’s total equity and if you look at loans and total assets it’s even less than that,” the financial institution said.

UniCredit’s Russian unit is one of the largest banks in the country.

As of 11:46 GMT on Friday the shares of UniCredit SpA were advancing 1.85% (EUR 0.2240) on the day, while snapping a seven-session streak of losses, to trade at EUR 12.3420 in Milan.