SG Swiss private bank on lookout for takeovers

GENEVA (Reuters) - French bank Societe Generale (SOGN.PA) has considered possible acquisition opportunities for its Swiss private banking arm and will continue to do so, one of its top executives told the Reuters Wealth Management Summit.

"We are in a complete Darwinian process right now, it's survival of the fittest," Guillaume Lejoindre, managing director of SG Private Banking Switzerland, said on Monday.

"We've looked at some possibilities and we'll keep looking," he added.

Lejoindre said SocGen was more likely to seek out a relatively large takeover target rather than one of the smaller, unlisted private banks often found in Switzerland.

"One key point is that we want to increase our assets under management. Obviously you don't want to go after too small a unit because it's a lot of hassle for not so much."

"If possible you would like to find something well positioned where there is the biggest and largest wealth creation."

Daniel Truchi, SocGen's global head of private banking, has also said in the past that the company is keen on acquisitions in this area but Lejoindre cautioned that it was often hard to find a suitable target.

"Usually what is for sale is not for what you're looking for," he said.

DECENT THIRD QUARTER

The private banking business has recently been one of the better performing units at SocGen, which has been on the road to recovery after a 4.9 billion euro ($7.1 billion) rogue trading scandal last year.

In August, SocGen posted a 52 percent fall in second-quarter net profit, although the results beat market forecasts, and its private banking division had a rise in profits.

"It's a profitable business which provides a lot of liquidity to the group," said Lejoindre.

Lejoindre denied recent market speculation that SocGen could sell its Swiss private banking arm.

"The rumors are completely out of scope."

SocGen reports third quarter results next month.

Asked about how the third quarter had been so far for SocGen's Swiss private banking business, Lejoindre replied: "Very good in terms of asset gathering. OK in terms of return."

($1=.6879 Euro)

(Editing by Hans Peters)