Société Générale sells private banking divisions to Union Bancaire Privée

Société Générale has announced the sale of its British and Swiss private banking divisions for €900 million to Union Bancaire Privée. This move is part of CEO Slawomir Krupa's strategy to shed less profitable business areas while simultaneously strengthening the capital of the French banking giant. Since assuming his role just over a year ago, Krupa has initiated a series of divestitures to reposition the bank after more than 15 years of restructuring. On Monday, Société Générale announced the sale of SG Kleinwort Hambros in the United Kingdom and Société Générale Private Banking Suisse to Geneva-based UBP. Together, both divisions manage approximately €25 billion in assets. Following the announcement, Société Générale's shares dropped by about 5 percent in early trading, indicating broader market uncertainty among French banks amidst global volatility. The transactions are expected to be completed by the end of the first quarter of 2025, adding approximately 10 basis points to the bank's CET1 ratio. At the same time, Société Générale aims to continue expanding its retail banking business in France, Luxembourg, and Monaco. Additionally, the French lender has reached an agreement to sell its business in Madagascar, Société Générale Madagasikara, to French BRED Banque Populaire, with the purchase price not disclosed.