SocGen Divests Stake in Three Subsidiaries

Paris-based Societe Generale on Monday said that it has signed agreements with Union Bancaire Privée, UBP SA (UBP), a Swiss bank specialised in wealth and asset management, for the sale of its two banking subsidiaries – SG Kleinwort Hambros in the UK and Societe Generale Private Banking Suisse in Switzerland.

They would be implemented at a total price of around $982.1 million including equity with a positive impact of around 10 basis points on the Group’s Common Equity Tier (CET1) ratio, on the expected completion dates which could take place by the end of the first quarter of 2025.

These sales are part of the execution of Societe Generale’s strategic roadmap targeting a streamlined, more synergetic and efficient business model, while strengthening the Group’s capital base.

Societe Generale intends to pursue the development strategy of its private bank by relying on its leading positions in France and abroad, in Luxembourg and Monaco, to support its high-net-worth clients thanks to its expertise and recognised services.

The assets under management of the businesses covered by these agreements amount to almost $27.39 billion at the end of December 2023 and these transactions will be structured as sales of relevant legal entities.

According to the commitments made in these agreements, UBP would take over all activities operated by SG Kleinwort Hambros and Societe Generale Private Banking Suisse, as well as all client portfolios and employees within these entities.

Third Agreement

Societe Generale has also signed a third agreement with BRED Banque Populaire which would result in the total divestment of Societe Generale Group’s shares (70%) in Société Générale Madagasikara, in Madagascar.

Accordingly, BRED Banque Populaire would take over all activities operated by this subsidiary, as well as all client portfolios and employees within this entity.

This transaction would have a positive impact of around 2 basis points on the Group’s CET1 ratio, on the expected completion date which could take place by the end of the first quarter of 2025. (1)

These three divestment projects are subject to the usual conditions precedent and the validation of the relevant financial and regulatory authorities, Societe Generale said.