Societe Generale Group Chief Country Officer for Russia Didier Hauguel comments on SG Russia financial results in Q3 2015

The contribution of SG Russia (1) to Societe Generale activity continues to improve significantly in Q3 2015 vs. Q2 2015. NBI increased by 20%* due to improving margins thanks to lowering funding costs and increasing volumes. The costs were reduced by -3%* due to planned decrease in the number of outlets and headcounts in Rosbank (-15% FTE by the end of the year).
Deposit outstandings demonstrated stability* both vs. Q3 2014 and Q2 2015. Despite continued decrease in consumption and credit demand, credit outstandings increased by +3%* comparing to Q2 2015. The main reason is the recovery in retail lending production due to strong rebound in car loans thanks to State subsidies program and in mortgages with successful implementation of special conversion program, positive trend on cash loans, and very good performance in corporate business line. Corporate production doubled* compared to Q3 2014 with a sustained activity in Q3 2015 focused on top corporates and trade finance.
Rosbank has successfully completed the transfer of its mortgage business and car loan business at dealers throughout Russia to its specialized subsidiaries DeltaCredit Bank and Rusfinance Bank, respectively. Rosbank will continue focusing on daily banking services, deposits collection and customer satisfaction in retail segment. The positive effect of the increasing specialization strengthened SG Russia positions on the market. As of September 2015, SG Russia ranked 3rd by retail loan portfolio. SG Group will continue mobilizing synergies in order to achieve greater operating efficiency in Russia.
SG Russia has one of the highest ratings among the Russian financial institutions, having allowed to raise RUB 43 bn on the Russian bond market in 9m 2015 (of which RUB 28 bn in Q3 2015).

Rosbank and its affiliates fully meet the regulatory requirements including the higher ones on capital and liquidity. Solvency ratios (N1) as of end-September 2015:  Rosbank at 14.8%, Rusfinance Bank at 16.8% and Delta Credit Bank at 11.3% (vs.10% regulatory minimum). Rosbank holds solid liquidity position with L/D ratio at 86% as of end-September 2015.

The important fact for our customers in Q3 2015 was the confirmation by the Central Bank of Russia of Rosbank’s position in list of 10 systemically important banks (SIBs), indicating its high level of financial reliability and soundness.

*All percentages are calculated on a like-for-like basis. 
(1)    Contribution of Rosbank, Delta Credit Bank, Rusfinance Bank, Societe Generale Insurance, ALD Automotive, and their consolidated subsidiaries