Update on the situation at Rosbank
In light of the legal proceedings against two managers of Rosbank, Societe Generale and its Russian subsidiary Rosbank have jointly put in place a number of measures to ensure that Rosbank continues to operate smoothly and according to high international business and compliance standards:
- The Board of Directors of Rosbank has initiated the process of dismissal of Vladimir Golubkov as CEO of Rosbank.
- Rosbank is operating under the management of acting CEO of Rosbank, Igor Antonov, with the supervision of Didier Hauguel, Chairman of the Board of Directors of Rosbank and Société Generale Country Head for Russia.
- Rosbank continues to operate under normal conditions with no commercial or financial impact. Rating agency Moody's reaffirmed Rosbank's credit rating on May 20, 2013 (1).
- Rosbank is fully cooperating with the Russian authorities to clarify the situation related to the legal proceedings against two individuals.
- An independent audit firm Deloitte has been mandated to perform additional diligence and necessary investigations.
Central to all aspects of Rosbank’s activity is an unrelenting commitment to strong business ethics and a fully aligned management.
The Societe Generale group reaffirms its strong commitment to Russia, a market with a strong potential for development.
(1) Extract of Moody’s statement, May 20, 2013: “We do not currently envisage any material implications for Rosbank's business or financial fundamentals following the investigation. The bank’s business is not critically dependent on its CEO, and we believe that there is an efficient succession planning in place for top management personnel at Rosbank. Although we expect the investigation to cause some reputational damage to the bank, due to the negative publicity around the case, it will likely be limited. We do not foresee a major loss of client confidence or customer fund outflows from the bank. We are also not currently aware of any penalties to be imposed on Rosbank by the Russian authorities.”