SCGLF - Societe Generale: Buyback Could Compensate Up To 80% Of Rosbank Loss
- Societe Generale's strong 2021 momentum carried into Q1 2022, with reported underlying RoTE of 11.9%.
- The sale of Russian subsidiary Rosbank should result in a loss of tangible net asset value per share of about 2.42 EUR/share.
- However, the potential 915M EUR buyback could boost tangible net asset value per share by about 2 EUR/share if executed at current implied ex-dividend prices, largely offsetting the Russia loss.
- A combination of dividend reinvestments and a 5% buyback of the market capitalization will likely push the stock up, limiting the accretive impact of the buyback.
- Second round of parliamentary elections in France is due on June 19th.
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Societe Generale: Buyback Could Compensate Up To 80% Of Rosbank Loss