Dow Jones Newswires: Societe Generale swings to loss after 3.3bn euro hit from Russia exit

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Societe Generale SA GLE, +2.82% said Wednesday that it swung to a second-quarter net loss as it booked losses from its disposal of Russian assets.

The French lender reported a net loss of 1.48 billion euros ($1.50 billion) compared with EUR1.44 billion net profit a year earlier.

Net banking income, its top-line figure, came in at EUR7.07 billion for the quarter, up 13% from the year prior, the Paris-based bank said.

Its operating profit rose to EUR2.39 billion from EUR2.01 billion.

SocGen said it “withdrew in an orderly and effective manner from Russia” in mid-May by disposing of its entire stake in RosBank and its insurance subsidiaries in Russia. It booked net losses worth EUR3.30 billion for the disposals.

The lender added that it managed to exit its Russian activities “without significant capital impact.”

Its CET1 ratio at the end of the second quarter was stable at 12.9%, it said.

The bank said it continues to expect cost of risk to be between 30 basis points and 35 basis points in 2022.

SocGen also said that it aims for return on tangible equity of 10% and CET1 ratio of 12% in 2025. The lender is also targeting average annual revenue growth of at least 3% over the 2021-2025 period.

Write to Clarence Leong at clarence.leong@wsj.com

This article was originally published by Marketwatch.com. Read the original article here.

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