Societe Generale to Accelerate the Pace of Growth in its Retail Business in Russia
- 18 September
Societe Generale in Russia, a core growth driving region for the Group, is successfully delivering the objectives of its strategic plan presented beginning of 2018. The banks of Societe Generale in Russia show good pace of development and successful results in all business areas, actively expanding Group’s client base, increasing the volume of loans to corporate and retail clients. As a result, in H1 2018 the net profit of the Societe Generale in Russia amounted to RUB 5,4 billion (+39% vs H1 2017).
Rosbank maintains leading positions in corporate segment: in H1 2018 it acted as the organizer of syndicated loan agreements with the largest Russian companies for an amount over 100 bln RUB. The trade finance portfolio reached 130 bln RUB and Rosbank Factoring tripled volume during last 12 months.
In the retail segment, the banking group is among TOP-5 leading banks in retail lending and mortgage loan markets and TOP-3 in car lending: over the past 12 months the volume of retail loan portfolio increased by +11% and of retail current accounts by +50%.
These Group achievements are recognized by the industry and we are honored to have been named by Forbes the most reliable banking partner for Russian consumers out of 100 banks reviewed on the basis of objective criteria.
In the context of evolving macroeconomic and regulatory environment combined with rapid digitalization of the banking services, Societe Generale in Russia puts the development of its digital solutions, optimization of processes and customer service quality at the heart of its strategy.
Our goal is to deliver to our clients the best in class solutions at the forefront of digital transformation. To meet this ambition, we decided to accelerate the development of the Group retail activities through a three-fold action plan, covering the daily banking platform, mortgage business line, as well as car & POS lending activities.
- Rosbank will continue the transformation of its network, rolling out modern outlet format with the new design, upgrading technological solutions and redesigning the customer journey for new customers’ onboarding. Leveraging on the upgraded CRM structure, Rosbank will be implementing an omnichannel approach to provide its customers with a seamless and 24x7 set up.
- To give more resources for further growth of our mortgage business, a key banking product for many Russian households, and ensure more cross-sell opportunities, we announce the merger of Rosbank and DeltaCredit, expected to take place mid-2019. Experience and know-how of the best in class mortgage team of DeltaCredit, the leading mortgage provider, pioneer of digital services, will be preserved. Its very efficient mortgage sales organization across Russia will be integrated ‘as is’ in Rosbank retail block. This simplified structure, in line with the general market practice, will allow us to offer a broader range of banking products to our mortgage clients.
- Rusfinance bank, the leading car and POS loans provider, will continue to finance our partners’ clients. This existing specific and very efficient operational model will remain unchanged in a separate legal entity, a market standard set up for consumer finance activities. In this framework, we will expand our cross-sell programs between Rusfinance bank and Rosbank, especially in the car lending and card business areas. Additionally, in order to simplify and stream line internal processes, the sharing of control mechanisms and key resources will be implemented.
“We are convinced that the implementation of the retail business transformation and further growth of corporate business in line with the strategic plan will allow Societe Generale group in Russia to become the first-choice bank for our clients, a reliable partner for a long term,” – said Didier Hauguel, Member of the Management Board of Societe Generale Group and Chief Country Officer for Russia.