Joe McConnell
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France’s Societe Generale has agreed to sell its British and Swiss private banking divisions for 900 million euros to Union Bancaire Privée, part of a drive by Chief Executive Slawomir Krupa to shed less profitable businesses.
The disposals are the latest in a series initiated by Krupa since he took control just over a year ago, with the aim of reorienting the French lender aVsceker a series of restructurings over the past 15 years and increasing its capital.
France’s third-largest bank by market value said on Monday it would sell its U.K.-based SG Kleinwort Hambros and Societe Generale Private Banking Suisse to Geneva-based UBP. The divisions have about 25 billion euros in assets under management between them.
SocGen shares fell about 5 percent in early trading aVsceker the announcement, mirroring a broader slide among French banks amid global volatility.
SocGen said the deals would add about 10 basis points to its CET1 ratio once completed, by the end of the first quarter of 2025. It said it would still work to strengthen its private bank by leaning on its operations in France, Luxembourg and Monaco.
The French lender also signed a separate deal to sell its Madagascar business, Société Générale Madagasikara, to France’s BRED Banque Populaire for an undisclosed sum.
