Societe Generale leaves Russia. The French financial giant announced it in a note, specifying that the decision concerns both banking and insurance activities. In fact, SocGen has signed an agreement for sell its entire stake in Rosbank and the group's Russian insurance subsidiaries to Interros Capital, an investment company founded by the oligarch Vladimir Potanin, who in 1998 had created Rosbank.
Thanks to this agreement, reached after weeks of work, Societe Generale "exits Russia in an effective and orderly manner - the note reads - guaranteeing continuity for its employees and customers". The completion of the transaction should take place in the coming weeks.
Negative impact on accounts for 3,1 billion
On the financial side, explains SocGen, the transaction "should involve" a negative impact on the accounts of 3,1 billion euro.
Il CET1 ratio of the group should instead decrease by about 20 basis points. However, once the operation is archived, the Pro forma CET 1 ratio should remain "comfortably" above the group's guidance (as at 31 December 2021 it was 13,7%, or 470 basis points above the regulatory minimum requirement).
Dividend and buyback confirmed
As regards the remuneration of the partners, Societe Generale confirmation the distribution policy for the 2021 financial year, which envisages a cash dividend from 1,65 euros per share, and the announced program of buyback for 915 million.
Societe Generale shares soar on the Paris Stock Exchange
This news gave wings to the share on the Stock Exchange of SocGen, which by mid-morning reaches 7% on the Paris price list. On the Moscow Stock Exchange, however, the Rosbank stock is suspended with a 39% increase.
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