Societe Generale ceases its banking and insurance activities in Russia

The group will sell its entire stake in Rosbank and its insurance subsidiaries.

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The French bank Societe Generale has announced “to cease operations” in Russia, Monday, April 11, and will sell its entire stake in Rosbank, a heavyweight in the Russian banking sector, as well as its insurance subsidiaries in the country. The group points out in a press release that the transaction “envisaged” remains subject to the approval of the competent regulatory and competition law authorities. “The finalization of this operation should take place in the coming weeks.”

This “envisaged transaction should lead” to a negative impact in its accounts of 3.1 billion euros. “With this agreement, concluded after several weeks of intensive work, the group would withdraw in an effective and orderly manner from Russia while ensuring continuity for its employees and customers”, highlights the bank. After this announcement, the action of the French bank Societe Generale jumped nearly 5% Monday morning.

The group had continued its activities in Russia since the start of the invasion of Ukraine on February 24. The bank with the red and black logo weighed, in this country, 18.6 billion euros, of which 15.4 billion (83%) accounted for in its subsidiary Rosbank. In 2021, the activities of its subsidiary Rosbank represented 2.8% of its total net banking income (equivalent to turnover) and 2.7% of net income.

This retail bank, based in Moscow, claims on its site 5 million individual customers, 78,000 customers in very small businesses (VSEs) and small and medium-sized enterprises (SMEs) and 9,000 customers in large companies. A heavyweight in the Russian banking market, Rosbank is considered a systemic institution by the Russian Central Bank.

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