Societe Generale Group and Mobiasbanca confirm their solidity and stability

In the context of the current climate of uncertainty, turbulent financial markets and unsubstantiated rumors affecting banks, Societe Generale Group and Mobiasbanca confirm their solidity and stability. In a communiqué, the Societe Generale Group says it is fundamentally strong, stable and well-positioned to manage its businesses through the current turbulent environment. The Group has solid profitability across its business lines and sufficient liquidity, funding and capital to ride out the turbulence in markets. “Thanks to its robust and diversified business model, Societe Generale has remained profitable throughout the crisis and has increased its capital (shareholder’s equity) by plus EUR 19 billion up to EUR 40.6 billion since 200,” it is said in the communiqué quoted by Info-Prim Neo. Over the past two years, Societe Generale has taken significant steps to build a more client-oriented, lower risk, higher capital base business model. The new environment calls for an acceleration of this transformation. In particular, Societe Generale has decided to further focus on strengths, cost efficiency and leverage reduction in our corporate&investment banking activities, and the Group will dispose of EUR 4 billion businesses assets (+100 bp in Basel 3 Core Tier One ratio at 2013 horizon). The Group has a reinforced solid Core Tier One of 9.3% and thanks to our continued capital generation capacity and the additional disposal measures, Societe Generale will reach a fully loaded Basel 3 Core Tier One ratio well above 9% by 2013 without a capital increase. Following the review of French banks’ ratings, Societe Generale acknowledges Moody’s decision to lower its rating to Aa3, down by one notch due to a methodological aspect in order to align the systemic support assumptions related to Societe Generale with the two other large French banks. Societe Generale notes that there is no direct impact of the financial crisis in the Eurozone on Mobiasbanca activity. It has been involved exclusively in financing the Moldavian clients. Mobiasbanca is profitable with sound financial and liquidity ratios. Mobiasbanca reaffirms its will to finance the local economy, to stand by individual and corporate customers, and to be at the service of these clients. Mobiasbanca is part of SG International Retail Banking activity, which is one of 3 pillars of the Group’s strategy.