Societe Generale Sells UK and Swiss Units to Union Bancaire Privée for €900M

Societe Generale accelerates asset sales, agreeing to sell its British and Swiss private banking units to Union Bancaire Privee for €900 million.

In a significant strategic maneuver, Societe Generale (SOGN.PA) has announced its decision to divest its British and Swiss private banking divisions to Union Bancaire Privée (UBP) for a substantial sum of 900 million euros (approximately $984 million). This move, disclosed on Monday, is part of SocGen's accelerated asset sale program aimed at enhancing its financial performance.

Societe Generale Sells UK and Swiss Units to Union Bancaire Privee for €900M

The units in question, SG Kleinwort Hambros and Societe Generale Private Banking Suisse, collectively managed assets totaling around 25 billion euros at the close of 2023. This transaction not only marks a pivotal moment for SocGen but also provides UBP, one of Switzerland's premier private banking institutions, with an opportunity to expand its international footprint, particularly in the UK, where it has maintained a presence for nearly three decades.

As of June, UBP boasted total assets under management of 150.8 billion Swiss francs (roughly $178 billion), underscoring its robust position in the financial landscape. In a separate announcement, SocGen revealed its intention to sell 70% of its stake in its Madagascar subsidiary to BPCE's BRED Banque Populaire, although the financial details of this particular transaction remain undisclosed.

SocGen aims to finalize these three sales by the end of the first quarter of 2025, as part of a broader strategy to shed non-core assets and bolster its overall performance metrics. The urgency of these divestitures has been amplified by a notable decline in SocGen's share price following a revision of performance targets within its French retail division, intensifying the pressure to rejuvenate its stock market appeal.

The sale of SG Kleinwort Hambros and Societe Generale Private Banking Suisse is projected to enhance SocGen's core equity tier 1 (CET1) capital ratio by approximately 10 basis points, while the Madagascar unit's sale is expected to contribute an additional 2 basis points. Moving forward, SocGen has indicated a renewed focus on its private banking operations within France, Luxembourg, and Monaco, signaling a strategic pivot in its business model.