SocGen, Sberbank upbeat on Russia's banking prospects
* SocGen aims to add 300 branches
* Over 60 pct of panellists see stagnation in sector
* Sberbank chief says sector offers good growth prospects
ST PETERSBURG, Russia, June 18 (Reuters) - Societe Generale (SOGN.PA) and Sberbank SBER03.MM forecast growth for Russia's financial system, contesting expectations of stagnation in coming years from some top bankers.
Russia's banks are emerging from the worst crisis in a decade as provisions for bad loans ease, but the recovery remains under the question as lending has slowed despite the central bank's efforts.
Over 60 percent of financiers believe the Russian financial system will stagnate, while only a third are betting it will grow, a poll of financiers discussing "Finances After the Crisis" at the St Petersburg Economic Forum showed on Friday.
Russia's top lenders posted record-breaking first-quarter profits, but weak loan growth has raised questions about future growth.
Among those taking a more positive stance is Societe Generale (SOGN.PA).
"We want to develop in Russia. We have already something like 700 branches, we want to open 300 additional branches. We are creating a huge champion on this market, we believe in that market," Frederic Oudea, chairman and chief executive officer at Societe Generale, told Reuters on the sidelines of the forum.
His comments came as Russian Prime Minister Vladimir Putin announced more measures to support the banking sector. [ID:nLDE65H1FV]
The French heavyweight is merging its banking assets in Russia with those of industrial magnate Vladimr Potanin's Interros group.
"The merger is going very well ... We have now a common management team, we are (aiming to) ... create a universal banking model on this market," Oudea said.
German Gref, head of Russia's No.1 lender Sberbank SBER03.MM, agreed the banking sector still offers good growth opportunities. "The Russian market (has) ... the best prospects in Europe," he said at the forum.
Russia's banking system, with total assets of around 30 trillion roubles ($971.8 billion), showed annual growth of around 50 percent in the years before the crisis, but analysts expect loan portfolios to grow between 10 and 15 percent in 2010. (Reporting by Denis Dyomkin and Dmitry Sergeyev; Editing by David Holmes)
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