Societe Generale to Sell Businesses in Balkan Region
28 February 2019 - 10:59PM
Dow Jones News
By Pietro Lombardi
Societe Generale SA (GLE.FR) said Thursday that it is selling
two businesses in the Balkan region.
The deals are the latest in a string of sales that are part of
SocGen's plan to rejig its geographical presence and focus its
international retail-banking operations on countries where it has
critical size and sees potential for synergies.
France's third-largest listed bank by assets is selling Societe
Generale Montenegro to OTP Bank (BISI.RS) and Ohridska Banka
Societe Generale to Steiermaerkische Sparkasse.
The deals should add 2 basis points to the French bank's CET1
ratio--a key measure of capital strength--and reduce its
risk-weighted assets by roughly EUR1.1 billion ($1.25 billion).
Risk-weighted assets, or RWA, are a bank's assets weighted by how
risky they are. A EUR66 million impact of the deals was included in
a EUR241 million exceptional charge the bank reported in its
fourth-quarter results.
Societe Generale Montenegro will be part of a cooperation
agreement between the French bank and OTP Bank and focused on
services in different fields, including investment banking and
capital markets.
"These transactions are in line with the divestment process
already undertaken in the Balkan region," Deputy Chief Executive
Officer Philippe Heim said.
SocGen has sold businesses in Serbia, Albania, Bulgaria and
other countries over the past 12 months.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
February 28, 2019 06:44 ET (11:44 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Societe Generale (EU:GLE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Societe Generale (EU:GLE)
Historical Stock Chart
From Apr 2023 to Apr 2024
