Founded in 1864, Societe Generale group today is one of the largest financial services groups in the euro-zone.
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Credit ratings: À+ (Standard&Poor’s), Àà2 (Moody’s), À+ (Fitch)
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More than 157 000 employees of 128 nationalities in 83 countries
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32 million customers worldwide
Group results in 2008:
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Net banking income: EUR 21.7 bln
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Net income: EUR 0.68 bln
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Group ROE after tax: 0.9%
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Basel II Tier One Ratio: 10.7 %
The Group works worldwide in three key businesses:
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Retail Banking & Financial Services,
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Corporate & Investment Banking,
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Global Investment Management & Services.
In Russia, the Group is present through a number of subsidiaries: Banque Societe Generale Vostok, ALD Automotive (car fleet financing), Rusfinance Bank (consumer credit), DeltaCredit (mortgage loans), Societe Generale Insurance (life insurance), Societe Generale Equipment Finance, Rosbank (where SG has a 64.7% stake).
http://www.societegenerale.com/
Societe Generale’s history in Russia dates back to the late XIX century when the Group made its first investment operations in the country. In 1880-1890’s the Group entered a banking syndicate that issued in France the famous Russian state bonds. Societe Generale’s share in the French quote of the syndicate reached 15%.
At the same time, Societe Generale developed numerous financial projects in Russia: the Group supported start-up companies by covering a part of their initial risks, and made considerable investments in coal-mining and metallurgy industries which were expanding very fast at the time.
At the beginning of the XX century the Group could be proud of the success of its investment activities in Russia. However, the greatest achievements of Societe Generale in the Russian Empire refer to the name of Russo-Asian Bank. Before the beginning of the XX century Societe Generale succeeded in being very active on Russia’s market without having a representative office here. Wishing to expand its activities in the country, the Group established in 1901 in St. Petersburg a subsidiary, North Bank. Ten years later, following a merger with Russo-Chinese Bank, it transformed into Russo-Asian Bank.
With the largest branch network in Russia, with know-how and professional skills brought from France, and with a considerable clientele of both North and Russo-Chinese banks, in 1912 Russo-Asian Bank became one of Russia’s leading banks. In 1914 it was already bank no. 1 in the country. Total assets of Russo-Asian Bank as of 1914 stood at 624 million rubles, which was around 14% of the total volume of assets of all Russian commercial banks.
In 1910’s, Russo-Asian Bank played a significant role in the development of economic relations between Europe and Asia. The Bank’s activities contributed to a boost of trade between the two continents, and Russia started to gain its niche on Asian markets. However, Russo-Asian Bank was involved not only into banking, but also into commercial operations on commission terms. The Bank financed exports of silk and grain, imports of tea from China. It also financed cross-border trade operations with silver. Investments were made into different industries including military, oil and tobacco industries. The Bank issued state and city bonds.
Assuming the results of the activities of Russo-Asian Bank, Societe Generale could state that they proved to be more than successful. The Bank that had been established at the Group’s initiative only in 12 years managed to reach 4/5 of its own balance. For example, the volume of deposits placed and loans granted by Russo-Asian Bank counted around 81% of deposits and credits of the Group.
Russo-Asian Bank symbolized a dynamic growth of Russian economy at the beginning of the past century as well as a very promising international cooperation that was suspended due to drastic changes in the politics and the economy of the country in 1917.
In 1973 the Societe Generale Group came back to Russia and established its representative office in Moscow. Liberalization of the 1990’s let the banking Group set up a subsidiary in Russia: Banque Societe Generale Vostok started to work in 1993 and was one of the first foreign banks to obtain a general license of the Central Bank.
Since 1993 BSGV has worked as investment bank serving corporate clients that included representations, joint ventures of French and other European companies operating in Russia as well as major international corporations. Over the period of its operations in Russia BSGV has considerably expanded its portfolio of customers by establishing a close cooperation with major Russian exporter enterprises.
In 2003 BSGV became a universal bank – first Bank branches were opened and BSGV began to serve individual clients. In the same years BSGV subsidiary BSGV Leasing was created.
Enlarging its presence in Russia in 2004 the Group Societe Generale opened subsidiaries Rusfinance and ALD Automotive, in 2005 the bank DeltaCredit was purchased. In 2006 two deals were done, as a result the group purchased 20% without 1 share stake of Rosbank. An option for acquisition of 30% plus 2 shares was before the end of the year 2008 was also arranged. The deal was carried out in February 2008.
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