Societe Generale Societe Generale

Societe Generale is one of the largest financial groups in Europe. The Group adheres to a diversified universal banking model that combines financial stability and sustainable development. The bank is a recognized leader in the markets of presence and values ​ ​ relations with customers who choose it for the quality of services and the interest of employees in the results of their work. As of March 2014, the group employs 154 thousand employees who serve more than 32 million customers in 76 countries of the world.

Societe Generale provides services to private and corporate clients, as well as business structures in three main areas:

• Retail banking services in the branches of Societe Generale in France, in the banks Credit du Nord and Boursorama. The Group offers a full range of financial services using many modern customer interaction channels at a highly technological level;
• International retail banking, financial services and insurance, including presence in emerging economies and strong positions in specialty financial services markets;
• Corporate and investment banking services, private banking services, asset management and custodial services. The Group offers comprehensive financial solutions, a recognized qualitative level of expertise, confirmed by international ratings.

Societe Generale has indices of socially responsible investment FTSE4Good and ASPI.

Performance indicators

2023: Societe Generale made a loss of 79 million euros from the sale of ALD Avtomotiv

The sale of the Russian leasing company ALD Avtomotiv brought losses to Societe Generale - in the second quarter of 2023 they amounted to 79 million euros. The French group announced this in early August 2023. Read more here.

2022: €3.36 billion profit cut due to withdrawal from Russia

At the end of 2022, the French bank Societe Generale received a net profit of €2.02 billion. Such data are provided in the financial report published on February 8, 2023.

For comparison: in 2021, Societe Generale's net profit was €5.64 billion. Thus, the indicator on an annualized basis decreased almost three times, which is due, among other things, to the departure of the company from Russia in the current geopolitical situation. It is noted that Societe Generale in 2022 could show a record profit of €5.6 billion (as in 2021), if not for the curtailment of Russian operations and the sale of Rosbank. The deal to transfer the assets of Rosbank and the insurance business Societe Generale in Russia, represented by the Rosbank Insurance brand, to the Interros group took place in May 2022.

Societe Generale's annual profit tripled due to withdrawal from Russia

Net losses from other assets amounted to €3.36 billion in 2022, compared with €603 million in profit in 2021. Losses include a loss of €3.3 billion from the sale of Rosbank and the insurance business in Russia in the first half of 2022, the report says.

Societe Generale's total revenue in 2022 reached €28.06 billion. This is 8.8% more than the result for the previous year, when the company received €25.8 billion. The growth was facilitated by good dynamics in several divisions of the bank. The company notes that in 2022 it was able to quickly and successfully adapt to the changed macroeconomic situation, including the curtailment of business in Russia. In addition, Societe Generale continues to take digital transformation measures aimed at improving operational efficiency. Significant milestones have been achieved in the merger of banking networks in France, which led to the legal merger of Societe Generale and Crédit du Nord as of January 1, 2023.^[1]

2020: First loss since 1988 - €258m

In 2020, the Societe Generale group made a net loss of 258 million euros, while a year earlier net profit was measured at 3.248 billion euros. The French bank registered net losses for the first time since 1988.

In Russia, Societe Generale (a division of SG Russia) at the end of 2020 had a net profit of 76 million euros, which is almost 1.9 times less than the profit a year ago. At the same time, without taking into account the dynamics of exchange rates and when adjusting for changes in the structure of the group, Societe Generale's net profit from activities in the Russian Federation decreased by 38% in 2020.

Net profit only from banking activities of SG Russia in 2020 reached 793 million euros, down 11.8% compared to 2019. At the same time, excluding the dynamics of exchange rates and when adjusting for changes in the structure of the group, the indicator increased by 1%. The volume of outstanding loans over the past year increased by 3%, and the volume of deposits increased by 14%.

Societe Generale made its first loss since 1988

It also follows from the financial statements of Societe Generale that the group's net profit from servicing individuals in France reached 666 million euros, decreasing from 1.1 billion euros in 2019. Similar business outside France (including financial services) brought the group 1.3 billion euros in profit, which is significantly inferior to the one-year-old figure of 1.96 billion euros.

Societe Generale's corporate business remained unprofitable: in 2020, net losses in this area were measured at 339 million euros against 152 million euros in losses in 2019. In the direction of Global Banking and Investor Solutions, a multiple reduction in net profit was recorded - from 958 million to 57 million euros.

According to the CEO of Societe Generale, Frederick Oudea, the group was able to adapt to the consequences of the health crisis and, therefore, was able to effectively support its clients and employees. At the same time, the causes of losses in 2020 are not specified.^[2][3]

History

2024

Moroccan Saham Group acquires assets of Société Générale in Morocco for $745 million

In April 2024, the French banking group announced the sale of 58% of Société Générale Marocaine de Banques (banking) and La Marocaine Vie (insurance) to the Moroccan company Saham Group for $745 million. UNITED STATES. Under the legislation, the deal will close at the end of 2024 after regulatory approval.

Saham Group is an investment group founded in 1995 by Moulay Hafid Elalami (former Minister of Industry, Trade, Investment and Digital Economy of Morocco). The group's interests include the telecommunications sector and the financial sector.

The only bank in Morocco that still remains under the control of French investors is "BMCI" ("BNP Paribas"). Earlier, the Moroccan company Holmaroc bought out 79% of the bank "Crédit du Maroc."

Cutting 900 head office jobs to reduce costs

In February 2024, it was announced that Societe Generale SA would cut about 900 head office jobs to reduce costs.

2023

President Putin allowed Rosbank to buy out shares of Russian companies owned by Societe Generale

In December 2023, Vladimir Putin allowed Rosbank to acquire Societe Generale.

Now Rosbank, in particular, will be able to redeem from its former owner the shares of a number of energy companies, including Rosseti"," RusHydro"," Inter RAO"," "" and GazpromGazprom neft"," Lukoil"," SurgutneftegasRosneft"" and Tatneft"," "," "TransneftUnipro VTB Bank," "Rostelecom and", Aeroflot"" diamond mining, ALROSA"" steel and mining Severstal"." In addition, Rosbank is allowed to buy out shares of Norilsk Nickel, Novolipetsk and Magnitogorsk Metallurgical Plants, gold producer Polyus and a number of other companies.

Former head of Rosbank Polyakov appointed deputy head of the global banking division Societe Generale

In mid-May 2023, it became known about the appointment of Ilya Polyakov as deputy director of the global banking and consulting division of the Societe Generale group. Prior to that, he was chairman of the board of Rosbank. Read more here.

Sale of Russian business to ALD Automotive

At the end of April 2023, the French leasing company ALD Automotive announced the sale of Russian business. The new owner of ALD Avtomotiv LLC was the Central Committee JSC, associated with the structures of Igor Kim, one of the owners of Expobank. The company was bought from the French group Societe Generale. The Russian authorities approved this deal, after which it was closed. The financial and other terms of the agreement were not disclosed. Read more here.

2022

Fine from Brazil over exchange rate manipulation

On June 22, 2022, Brazil's antimonopoly authority said it would fine Brazilian units Citibank and Societe Generale for manipulating exchange rates. Citibank pledged to pay $13.78 million, and Societe will pay $1.07 million in fines, the department said.

Brazil's antitrust authority said evidence was found back in 2016 that banks were fixing price spreads by currency and coordinating the purchase and sale of currencies involving the Brazilian real. Banks are accused of conspiring to manipulate the foreign exchange market, whose daily volumes are estimated. Bank traders allegedly exchanged information about customers and their plans in online chats and instant messengers.

Citibank, Societe Generale to pay millions to manipulate exchange rates

According to Reuters, the banks are expected to plead guilty under the agreement. This means that their operations in Brazil will be subject to restrictions, however, their clients will not be affected, according to the agency's sources. For Citibank, this could be the largest fine after it paid $13.78 million under an agreement that followed the discovery of market manipulation.

According to Brazilian Finance Minister Paulo Guedes, Brazil is preparing a number of measures against further strengthening the national currency, and will also raise the issue of manipulating exchange rates at the G-20 summit. Guedes added that the manipulation of the exchange rate by Citibank and Societe Generale banks could be one of the reasons for the full-scale trade war between states, as well as the infliction of socio-economic damage on Brazil.^[4]

Agreement on the sale of Rosbank to the Interros group of Vladimir Potanin with losses of 3 billion euros

On April 11, 2022, it became known that Interros Vladimir Potanin would buy Rosbank from the French group Societe Generale, which Potanin sold to them in 2006-2011. The Societe Generale group at that time is the largest foreign player in the banking market in Russia and also owns the banks Deltacredit (Rosbank Dom) and Rusfinans (Rosbank Auto).

Societe Generale SA will suffer losses of about 3 billion euros ($3.3 billion) after agreeing to sell its division to Rosbank PJSC.

SocGen's decision to withdraw from Russia is the most decisive among the largest European banks with operations in the country. Raiffeisen Bank International AG and UniCredit are also considering their future. These three banks are the largest on the continent with Russian business.

Discrimination against Russians on the basis of nationality

In April 2022, it became known that against the background of Russia's special operation in Ukraine, Russians face discrimination on a national basis in France and other countries. Despite the presence of a residence permit and other documents, they are closed and blocked due to risks.

A chat was formed with the talking name "La discrimination des clients par la Société Générale" ("Discrimination of customers of Société Générale"), where dozens of affected clients are made up. At the same time, the French bank is represented in Russia through Rosbank.

The BBC writes that banks are reinsured and, just in case, denied all Russian money, rather than following specific instructions from the ECB or local regulators.

2021: Investing in Fintecture's Instant Payment Service for Business

In May 2021 Fintecture , it announced the attraction of $7.5 million. The funding round was led by a foundation founded by Russians. Target Global In addition, Samaipata and Société Générale, as well as the founders and employees of Adyen,,, Affirm American Express Facebook Payments,, and, participated in the transaction. Google PayPal Snapchat More. here

2019

Hungary's OTP Bank Plc buys 99.73% stake in Slovenian SKB Banka

On May 7, 2019, it became known that HungarianOTR Bank agreed to buy SlovenianSKB Banka. Read more here.

Sale to Societe Generale Albania OTP Bank (Hungary)

On April 3, 2019, it became known that OTP Bank (Hungary) became 100% owner of Societe Generale Albania, an Albanian subsidiary of Societe Generale Group. Read more here.

Sale of Societe Generale banka Montenegro to Montenegrin subsidiary OTP Bank

On March 18, 2019, it became known that the Montenegrin subsidiary of OTP Bank Crnogorska Komercijalna Banka signed an agreement to acquire a controlling stake in Societe Generale banka Montenegro, a branch of Societe Generale Group in Montenegro. Read more here.

Agreement with OTP Bank Plc. on the sale of Mobiasbanca's majority stake and cooperation

February 8, 2019 HungarianOTR Bank Plc. announced the signing of an agreement on the purchase of a majority stake in Mobiasbanca - Groupe Societe Generale, the Moldavian subsidiary of Societe Generale Group. Read more here.

In addition, OTP Group and Societe Generale Group signed a cooperation agreement, mainly to support the services of international companies in key areas such as international cash and capital markets management, structuring finance and investment banking management.

1987-2014

The Societe Generale group was privatized in June 1987. Its shares were successfully placed on the stock exchange and became available, among other things, to its employees.

The group strengthened the French network by creating Fimatex in 1995, which was later renamed Boursorama Bank (a leading French Internet bank), and acquired Credit du Nord Bank in 1997.

Internationally, the Group started operating in Central and Eastern Europe (banks KB and BRD) and Russia (Rosbank). Despite the challenging environment characterized by SG's declining market value in 1988 and 1999, the crises of 2008 and 2011, the bank reaffirmed its own identity and demonstrated sustainability.

1945-1987: Period of expansion

Societe Generale, like its main competitors, was nationalized by law of 2 December 1945 and made a substantial contribution to the post-war economic recovery process.

From 1945 to 1975 ("Glorious Thirty Years"), the bank experienced a rapid rise. Thanks to the banking sector reforms that followed the Debre laws passed in 1966-1967, Societe Generale supported a growing consumption society through the diversification of deposit and loan services for individuals. With the help of specialized subsidiaries, mainly in leasing, the bank continued to play a leading role in the business world.

In 1986, Societe Generale had 1,779 offices in France, while the process of international expansion was actively gaining momentum. The Bank acquired new markets with high growth potential, expanded the European network and entered the markets of Africa, America and Oceania.

1864-1945: Creation of a universal bank

On May 4, 1864, Napoleon III signed a decree that led to the creation of the Societe Generale. The bank was founded by a group of industrialists and entrepreneurs driven by the idea of entrepreneurship, in order to support the development of trade and industry in France. In order to modernize the economy, Societe Generale adopted a universal banking model, which then and in subsequent years was at the forefront of financial innovation. The rapid penetration of government debt markets spurred the Group's growth. Subsequently, the bank demonstrated its viability and united the branch network in France and, after establishing business in London in 1871, expanded international activities, starting with Europe, Russia and North Africa.

During World War I, the bank suffered heavy human and material losses. During the interwar period, Societe Generale became the leading French deposit institute despite the impact of the Great Depression. During World War II, the bank experienced the same occupation difficulties as its partners.

Notes