Societe Generale's Russian bank post 5 mln euro in net profit for 2011, Q4 losses come to 6 mln euro
MOSCOW. Feb 16 (Interfax) - Russian banks in the Societe Generale (SG) Group posted 5 million euro in net profit according to international financial reporting standards (IFRS) for 2011 compared to 35 million euro in net losses for 2010, SG said in its materials.
SG's Russian banks posted 6 million euro in net losses for the fourth quarter of 2011, whereas they posted 13 million euro in net profit for the same period of 2010.
The banks' operational profit for 2011 came to 32 million euro compared to 65 million euro in losses for 2010. Total operational revenues decreased by 41% to 166 million euro.
Operational expenditures went up by 24% to 807 million euro.
The group's unified Rosbank after its legal merger, continued to rearrange its operational model, SG Group said. Nonetheless, the bank's operational expenditures went up in 2011 because of the merger's costs, as well as expenses for resetting its IT platform, and increased employee payments and social obligations.
In the framework of operational restructuring during the banks' merger, the total staff was reduced, SG said. For instance, around 300 employees were let go in the fourth quarter of 2011. A total of 2,000 employees should be let go by the end of 2012.
Net revenue from banking operations increased by 5.2% to 973 million euro in 2011.
The consolidation of Russian banking assets in the SG Group came to a conclusion in July 2011. Rosbank became the owner of 100% in the charter capital of DeltaCredit and Rusfinance banks, and merged with Bank Societe Generale Vostok (BSGV).
Unified Rosbank's loan portfolio came to 9.304 billion euro on January 1, 2012 and DeltaCredit's portfolio - 1.497 billion euro.
Rosbank's loan portfolio on July 1, 2011 came to 6.35 billion euro (down from 6.775 billion euro on January 1, 2012), BSGV - 2.349 billion euro (2.582 billion euro), and DeltaCredit - 1.272 billion euro (1.23 billion euro).
Total deposits in the unified bank stood at 8.456 billion euro on January 1, 2012 and DeltaCredit - 32 million euro.
Rosbank had 6.459 billion euro in deposits on July 1, 2011 (at the start of 2011 - 7.081 billion euro), BSGV - 1.64 billion euro (1.675 billion euro) and DeltaCredit - 26 million euro.
Unified Rosbank was ninth biggest bank in Russia by assets for 2011 according to the Interfax-100 ranking, compiled by the Interfax Center for Economic Analysis, Rusfinance Bank - 50th biggest bank, and DeltaCredit - 68th largest in the ranking.
