Societe Generale has announced that it will suspend its banking and insurance operations in Russia, including the sale of Rosbank.
The French bank has said it will divest its entire stake in Rosbank and its Russian insurance subsidiary Interros Group, one of Rosbank’s former shareholders.
SocGen stressed that the sale would lead to a write-off of 2 billion Euros from the net book value of the sold activities, and an extraordinary non-cash amount of 1.1 billion Euros.
The impact of the sale of Rosbank and insurance activities on the bank’s capital ratio is expected to reach 20 basis points, although the French bank stressed that it will remain much higher than its estimates.
SocGen previously said its exposure to Russia was 1.7% of the group’s total exposure at the end of last year, with operations in Russia accounting for 2.7% of 2021 net profit.
Most of the report consists of the € 15.4 billion report to Rosbank.
The agreement is expected to be completed in the coming weeks, as it is subject to the approval of regulatory and antitrust authorities.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
