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SocGen Flags Potential Capital Hit as Russia Crisis Reverberates

  • French lender will not cancel dividend, even in extreme case
  • Bank has $20.6 billion in exposure to counterparties in Russia
Updated on

Societe Generale SA warned of a potential hit to capital buffers from its Russian operations, and Intesa Sanpaolo SpA said it was reviewing its presence in the country, as more European lenders assessed the fallout from sanctions imposed over President Vladimir Putin’s invasion of Ukraine. 

SocGen, among the European lenders most at risk, has 18.6 billion euros ($20.6 billion) in exposure to counterparties in Russia, of which 15.4 billion euros are at its subsidiary Rosbank. In an extreme scenario in which it was stripped of property rights to its banking assets in the country, the Paris-based bank would see a hit of 50 basis points to its capital buffers, it said on Thursday.