Banking And Finance
French bank Societe Generale SA will endure a loss of nearly 3 billion euros ($3.3 billion) after agreeing to sell its Roskbank PJSC to Interros Capital, a firm linked to Russian billionaire Vladimir Potanin.
The Paris-based bank signed a contract to sell its total stake in Rosbank and its Russian insurance subsidiaries to Interros Capital. Societe Generale said it’s sticking to policies for a stock buyback of 915 million euros and a 2021 dividend of 1.65 euros a share despite the financial hit.
The French bank’s decision to exit operations in Russia is the most decisive among the prominent European banks still operating in the nation. Both UniCredit SpA and Raiffeisen Bank International AG are also considering their future in Russia. The three banks are the largest in Europe involved in Russian businesses.
SocGen’s stock prices rose by 8.2% in Paris trading as the divestment eased uncertainty over the impact of the bank business in Russia. Societe General said that the sale is expected to close in the coming weeks and is subject to approval by antitrust authorities and regulators.
The bank’s French peers Credit Agricole SA and BNP Paribas SA already announced they would no longer take new businesses in Russia, joining a growing group of lenders pulling back from Russia amid wide-ranging global sanctions imposed against the Kremlin.