PARIS (dpa-AFX) - Societe Generale SA (SCGLF.PK, SCGLY.PK) said that it will cease its banking and insurance activities in Russia. It agreed to sell its entire stake in Rosbank and the Group's Russian insurance subsidiaries to Interros Capital, the previous shareholder of Rosbank.
The closing of the operation should occur in the coming weeks, the French Lender said in a statement.
The impact of the disposal of Rosbank and the Group's Russian insurance activities on the Group's CET1 ratio is expected to be around 20 basis points based on the net value of the disposed assets as of December 31, 2021.
Societe Generale said the deal would result in a write-off of about 2 billion euros and an exceptional non-cash item with no impact on the Group's capital ratio.
The write-off will be largely offset by the deconsolidation of its 15.4 billion euros exposure to Russia and by an unspecified payment including the repayment of subordinate debt by Interros Capital, Societe Generale said.
Societe Generale confirmed its distribution policy for the 2021 financial year i.e. the cash dividend of 1.65 euros per share and the announced share buyback program for an amount of about 915 million euros.
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