Societe Generale has set itself a target to increase profits at its retail banking arms in Russia and Romania, the chief executive of the bank has told the Financial Times. Just like its French rivals, as well as those abroad, is cutting its operating costs and selling some of its assets, SocGen, like its rivals at home and abroad, is cutting costs and selling assets to better resist Europe's sovereign debt crisis, mounting regulatory costs and volatile markets.
The bank's international retail division, which posted a net loss in the second quarter, is also facing an overhaul which comprises changes in management and the sale of assets, with Qatar National Bank eyeing a possible bid for its Egyptian arm.
"What will be key is to show at the end of 2013 that our international retail is delivering growth and more profitability than today," CEO Frederic Oudea said.
He also said that Russian arm Rosbank would expand corporate banking activity and that Romanian arm BRD would aim to bring down loan-loss provisions.
The CEO of Societe Generale told a conference earlier this month that SocGen saw "decent" group returns beyond 2013, though he warned that profitability would fall short of pre-crisis levels.
This month, the shareholders of BRD have approved the election of Philippe Lhotte as administrator of the bank for a period of four years. He was appointed at the end of July to take over the position of CEO of BRD, after Alexandre Maymat resigned for personal reasons. Alexandre Maymat was going to take over the management of the bank after the retirement of Guy Poupet, president and CEO until spring this year. Maymat had previously served as administrator and CEO of Societe Generale Cameroon.
At the end of H1, BRD posted a net profit of 39.4 million lei, down from 282 million lei. The drop in profits between June 30 2011 and June 30 2012
