Societe Generale announced that it returned to losses in the second quarter, as it recorded losses from the sale of its Russian assets.
The French bank reported net losses of 1.48 billion euros compared to profits of 1.44 billion euros a year ago.
Net interest income was €7.07 billion for the quarter, up 13% from a year earlier.
Operating profit rose to 2.39 billion euros from 2.01 billion dollars.
SocGen said it was “withdrawing in an orderly and efficient manner from Russia” in mid-May, with the sale of its entire stake in Rosbank and its insurance subsidiaries in Russia. For the sales it was charged with losses of 3.30 billion euros.
The bank added that it was able to exit operations in Russia “without a significant impact on capital”.
The CET1 capital adequacy ratio at the end of the second quarter remained at 12.9%.
The bank said it continues to expect the cost of risk to be between 30-35 basis points in 2022.
SocGen added that it aims to return to a return on equity of 10% and a capital adequacy ratio of 12% by 2025.
It also targets average annual revenue growth of at least 3% over 2021-2025.
Source: Capital
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