Costs from the Russia-Ukraine conflict continue to mount for global banks with Mizuho Financial Group and Sumitomo Mitsui Financial Group setting aside more than $1 billion to cover potential related losses.
Mizuho Financial Group and Sumitomo Mitsui Financial Group (SMFG) – Japan’s two largest lenders – set aside a total of $1.3 billion to cover potential losses from Russia-linked exposure.
Mizuho added $752 million in reserves for the first quarter to prepare for losses from Russia-linked exposure while SMFG added $582 million in related provisions, the two banks reported in financial statements.
In addition, SMFG also booked a 47 billion yen ($360 million) write-down after a Dublin-based unit failed to recover aircraft from Russian airlines since terminating leases to comply with Western sanctions against Moscow.
The Russia-Ukraine conflict and the subsequent Western sanctions continue to be a headline issue for global banks. Last month, UBS said it cut its Russia-linked exposure to $400 million, down from $600 million as of end-2021. Credit Suisse said the value of its Russia-related business fell 16 million Swiss francs ($15.95 million) in the first three months of 2022 to 200 million francs.
