By Cristina Roca and Ed Frankl
Shares in Societe Generale SA rose Monday after the French bank said that it will stop its activities in Russia and quantified the financial hit it would take as a result of its exit from the country.
SocGen said it will cease its banking and insurance activities in Russia and that it has agreed to sell its stake in Rosbank, one of the country’s largest foreign-owned lenders, as it exits Russia following the invasion of Ukraine.
At 0729 GMT, shares in SocGen were up 6.4% higher at EUR23.26.
SocGen will sell its entire stake in Rosbank as well as its Russian insurance subsidiaries to Interros Group, a previous shareholder of Rosbank.
SocGen said the disposal would lead to a roughly 2 billion-euro ($2.18 billion) write-off of the net book value of the divested activities, and an exceptional noncash item of about EUR1.1 billion.
The impact of the disposal of Rosbank and the insurance activities on the bank’s common equity Tier 1 capital-buffer ratio is expected to be around 0.20 percentage point, though the Paris-based bank said it would remain comfortably above its own guidance. The CET1 ratio was 13.7% at the end of last year.
SocGen confirmed it intends to keep its EUR1.65 dividend and EUR915 billion share-buyback program for 2021, subject to approval at the company’s annual general meeting in May.
Previously, SocGen said its exposure to Russia was 1.7% of the group’s total exposure, or EUR18.6 billion, at the end…
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