February 28, 2019 / 9:06 AM / 3 months ago

SocGen agrees to sell Macedonia and Montenegro units

PARIS, Feb 28 (Reuters) - Societe Generale has agreed to sell its banks in Macedonia and Montenegro as it pulls back from Eastern Europe in a bid to lift up its profitability.

The French bank has agreed to sell Societe Generale Montenegro to Hungary’s OTP Bank, an increasingly assertive player in the region, and to sell Macedonia’s Ohridska Banka Societe Generale to Austrian bank Steiermaerkische Sparkasse.

Societe Generale did not disclose the amount of the transactions but said they would boost the group’s core equity tier one (CET1) ratio by around two basis points and reduce the group’s risk weighted assets by around 1.1 billion euros ($1.25 billion).

The sale will also lead to a 66 million euro charge for SocGen, which was already accounted for in the fourth quarter, the bank said.

Societe Generale said in late 2017 it would exit markets where its local units did not have critical size and didn’t allow synergies for the group. Since then, the bank has sold banks in Serbia, Bulgaria, Albania, but also in Belgium and South Africa.

$1 = 0.8787 euros Reporting by Inti Landauro; Editing by Leigh Thomas

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below