Societe Generale denies rumours it is leaving the Georgian market

Societe Generale has denied rumours it is leaving the Georgian market. Reports had said that China's Hualing was planning to purchase the majority of shares of Georgian JSC Bank Republic, of which Societe Generale owns 93.64%.

The FINANCIAL — Société Générale, French multinational banking and financial services company, owning 93.64% of Georgian JSC Bank Republic, has denied rumours about their leaving the Georgian market, news that has circulated in the banking sector over the last few weeks. Antoine Lhéritier, SocGen representative based in France, said he can neither confirm nor deny the “market rumours”.

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Chinese group Hualing are planning to purchase the majority of shares at Bank Republic, a source close to Bank Republic told The FINANCIAL. Hualing Group already owns a 90% equity stake at Georgian BasisBank. A representative of Hualing Group did not confirm that the Group has purchased shares at BR.

Officials from Bank Republic denied the information regarding new shareholders.

“As per our general policy, we do not deny and we do not confirm any market rumours,” Antoine Lhéritier, SocGen representative, told The FINANCIAL.

Established in 1991, Bank Republic was one of the first privately owned banks in Georgia. In 2006, the French international financial group Société Générale purchased 60% of the Bank’s shares. In 2009, the group increased its share participation to 80%. The European Bank for Reconstruction and Development (EBRD) has also been a bank shareholder since 2006.

Currently, Société Générale owns 93.64% of Bank Republic’s stock, with the European Bank for Reconstruction and Development holding 6.36% of shares.

Bank Republic holds over 6% of the Georgian banking sector. Despite recent economic turbulences in the country that were mostly linked to a dramatic fall of the exchange rate, the Georgian banking sector has been ending business without loss. There are no concrete reasons that could push SocGen group to quit the Georgian market. According to official data, Société Générale’s income from the Bank amounted to 71,198,300 in 2015; the income of EBRD was 4,832,500.

There are 19 commercial banks operating on the market.