VEDOMOSTI. Russian banks that are part of international financial group Societe Generale reported a €20 mln net loss under IFRS in 1Q 2012 against €2 mln net profit in January — March 2011, SG reported on Thursday, as Vedomosti business daily wrote. This result is driven in particular by “weak commercial activity, especially in the corporate segment," SG explained reasons behind disappointing numbers. And this is a second straight quarter of losses for this banking group as net losses totaled €6 mln in October — December 2011.
SG’s Russian banking assets include Rosbank, and also DeltaCredit, Rusfinance Bank and Bank Societe Generale Vostok, which were consolidated on the basis of Rosbank last year. The reorganization of SG’s Russian banks is in progress, the group noted. Last year they earned €5 mln net profit. Net profit generated by Societe Generale in January — March 2012 totaled €732 mln.
In the segment of international retail banking SG’s Russian subsidiaries have the highest operating expenses (€214 mln in 1Q vs. €199 mln in January — March 2011, and expenses related to loan reserves soared 60% to €55 mln). Net income from banking operations fell from €244 mln to €240 mln.
SG separates credit portfolios of universal lender Rosbank and DeltaCredit (they totaled €9.45 bln and €1.57 bln in January — March 2012). The deposit portfolios amounted to €8.28 bln and €29 mln, respectively.
