Rouble fall hits Raiffeisen Bank International's capital
* No need seen so far to write down goodwill in Russia
* Risk costs 2-3 times normal would not mean Russia loss
* Confirms hires Citi for Polish transaction (Adds quotes and background)
VIENNA, Dec 18 (Reuters) - Currency devaluations, mostly in the Russian rouble, have cut Raiffeisen Bank International's overall capital ratio by one percentage point so far this year, Chief Risk Officer Johann Strobl said on Thursday.
He said he was surprised by the extent of the rouble's fall, but said the bank's Russian business was holding up well.
Russia is the Austrian bank's single most profitable market but the country's economy has been hit by Western sanctions over the Ukraine crisis and the plunge in oil prices. This has put pressure on the rouble, prompting the Russian central bank to hike interest rates sharply.
Raiffeisen has had a good track record in terms of Russian retail customers repaying loans on time. Strobl said the central question now was whether inflation would quickly spill over into higher wages, which would let borrowers keep up payments.
He said that risk costs (bad debt provisions) of even two to three times typical levels would not push the bank to a loss in Russia.
He also said the most recent assessment two or three weeks ago had not shown any need to write down the Russian arm's goodwill of around 216 million euros ($265 million) but checks continued.
The Austrian bank, emerging Europe's second biggest lender, had enough equity capital but could do subordinated or additional tier 1 bond issues when market conditions were right, he said.
The bank had a broad capital ratio of 15.9 percent of risk-weighted assets at the end of last year.
Strobl also said Raiffeisen felt the threats from government measures against banks in Hungary were fading. Repaying customers in the country for what the Hungarian government calls unfair loans would cost it up to 270 million euros this year.
Converting foreign-currency loans into forint loans in 2015 would trigger small costs as it unwinds hedging positions.
He confirmed Raiffeisen had given Citi the mandate to prepare an initial public offering for its Polbank business in Poland. Asked whether the entire Polish bank was for sale, he said: "We are looking at all markets."
Strobl saw "zero" chance that Raiffeisen could get into trouble with U.S. or European Union authorities over a Russian bond issue that its Russian arm helped to arrange for a client.
RBI Chairman Walter Rothesnsteiner said the Austrian central bank had given it a clean bill of health over the transaction.
($1 = 0.8149 euros) (Reporting by Michael Shields; Editing by Angelika Gruber and Jane Merriman)
