Gazprombank Luxembourg arm posts record €61.4M profit amid sanctions-driven market chaos

Four executives at Gazprombank’s Luxembourg arm reportedly made profitable transactions during the market mayhem that followed Russia’s invasion of Ukraine. The Luxembourg subsidiary, GPB International S.A., posted a record net profit of €61.4 million in 2022. That figure was more than three times its previous best year. The forex windfall that built a record year Foreign exchange trading was the engine behind GPB International’s 2022 blowout. Forex transactions generated over €55 million, accounting for roughly 90% of operating income that year. The subsidiary has operated out of Luxembourg since late 2013, functioning as Gazprombank’s European outpost. Unlike its Moscow-based parent, GPB International managed to avoid full EU sanctions for years, which allowed it to serve as a critical conduit for certain energy-related payments flowing between Russia and Europe. The hangover arrived fast If 2022 was the party, 2023 was the morning after. GPB International’s profits collapsed roughly 90%, falling to just €6.1 million. The corporate loan portfolio shrank dramatically, dropping from €609 million in 2022 to €222 million in 2023. The bank severed approximately 40 client relationships...