SOCIETE Generale (SocGen) has agreed to sell its wealth management units in the United Kingdom and Switzerland to Union Bancaire Privée as chief executive officer Slawomir Krupa makes progress on his pledge to slim down the lender.
The price tag for the sale of the units is about 900 million euros (S$1.3 billion), SocGen said on Monday (Aug 5). It involves about 25 billion euros in assets under management, it said. Bloomberg News previously reported the lender was evaluating the sale of both units.
Krupa unveiled a plan last September to shed less profitable businesses and build up the bank’s capital. He has since sold the equipment finance unit and most of the Moroccan operations in April as well as other, smaller, businesses across Africa.
But despite the progress in selling businesses, investors have so far shown little enthusiasm for Krupa’s strategy. The bank’s shares are down about 20 per cent since he presented his plan.
The deals unveiled on Monday “are part of the execution of Societe Generale’s strategic roadmap”, the bank said. It will continue to have private banking operations in France, Luxembourg and Monaco.
The transactions are expected to add about 10 basis points to SocGen’s CET1 ratio. Completion is anticipated for the first quarter of 2025, according to the statement.
SocGen is also selling its unit in Madagascar to Bred Banque Populaire, it said in a separate statement on Monday. BLOOMBERG
