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France’s Société Générale has agreed to sell its British and Swiss private banking divisions for €900mn to Union Bancaire Privée as part of a drive by chief executive Slawomir Krupa to ditch less profitable businesses.
The disposals are the latest in a series initiated by Krupa since taking over just over a year ago, designed to refocus the French lender after a series of restructurings over the past 15 years and build up its capital.
On Monday, France’s third-biggest bank by market value said it was selling SG Kleinwort Hambros in the UK and Société Générale Private Banking Suisse to Geneva-based UBP. The divisions have about €25bn in assets under management between them.
SocGen shares fell by about 5 per cent in early trading after the announcement, mirroring a broader rout among French banks amid global volatility.
SocGen said the deals would add about 10 basis points to its CET1 ratio once closed, by the end of the first quarter of 2025. It said it would still work on building up its private bank by leaning on its operations in France, Luxembourg and Monaco.
The French lender also signed a separate agreement to sell its business in Madagascar, Société Générale Madagasikara, to France’s BRED Banque Populaire for an undisclosed sum.
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