Continuing to "slim down"! Société Générale sells UK and Swiss wealth management business for 900 million euros

Zhitong
2024.08.05 07:20

Société Générale has agreed to sell its wealth management business in the UK and Switzerland to a joint private bank for 900 million euros, indicating progress in streamlining the bank. This is part of the bank's ongoing "slimming down" efforts, with CEO Slawomir Krupa planning to divest low-profit businesses and increase capital. Despite investors not being enthusiastic about this strategy, these transactions are expected to increase Société Générale's CET1 ratio by around 10 basis points. The transaction is expected to be completed in the first quarter of 2025

According to the VETIM app, Société Générale has agreed to sell its wealth management divisions in the UK and Switzerland to Union Bancaire Privée, indicating progress in CEO Slawomir Krupa's efforts to streamline the bank. Société Générale stated on Monday that the sale of these divisions is priced at approximately 900 million euros (984 million US dollars), with assets under management of around 25 billion euros.

Krupa announced a plan in September last year to divest low-profit businesses and increase the bank's capital. Since then, he has sold the equipment financing division and most of the business in Morocco in April this year, as well as smaller-scale operations in other parts of Africa.

Despite progress in selling businesses, investors have not shown much enthusiasm for Krupa's strategy so far. Since he proposed the plan, Société Générale's stock price has fallen by about 20%.

Société Générale stated in the announcement that the transaction announced on Monday is "part of the execution of its strategic roadmap." It will continue to operate private banking businesses in France, Luxembourg, and Monaco.

These transactions are expected to increase Société Générale's CET1 ratio by approximately 10 basis points. The transactions are expected to be completed in the first quarter of 2025.

In another statement on Monday, Société Générale also announced that it will sell its business in Madagascar to BRED Banque Populaire

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