Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Barclays among parties eyeing SocGen's UK private bank, sources say

Published 15/02/2024, 07:59
© Reuters. FILE PHOTO: A view shows signage on a branch of Barclays Bank in London, Britain, March 17, 2023.  REUTERS/Peter Nicholls/File Photo
BARC
-
LLOY
-
SOGN
-
TSCO
-

By Pablo Mayo Cerqueiro, Andres Gonzalez and Oliver Hirt

LONDON/ZURICH (Reuters) -Barclays is in the early stages of considering a bid for Societe Generale (EPA:SOGN)'s UK private bank, in an effort to expand its business targeting wealthy individuals, three people familiar with the matter told Reuters.

Such a move would fit with plans by Barclays (LON:BARC), which is to present a strategy review next week, to revamp its business, but it would face competition.

Barclays' interest in SocGen's British private bank comes on the heels of its acquisition of Tesco (LON:TSCO)'s banking operations, as part of efforts to diversify away from volatile investment banking income.

Last year it also started analysing options for its global payment activities spanning merchant acquiring and credit card services as a part of broader review into how it allocates resources.

SocGen, advised by Rothschild & Co, has begun inviting bidders to take part in an auction for its Kleinwort Hambros unit, two of the people said.

Among those invited to bid for the unit are Lloyds Banking Group (LON:LLOY), as well as wealth managers Rathbones and Raymond James, two of the people and a fourth source said.

However, Rathbones has opted not to participate in the process, a person familiar with its thinking said.

London-based Kleinwort Hambros, which in 2022 had more than 12 billion pounds ($15 billion) in assets under management, could be worth up to 700 million pounds in a sale, one of the people estimated.

SocGen is also readying a sale of its private banking operations in Switzerland as it looks to shed businesses in a strategy revamp, they said.

Deliberations remain at a preliminary stage, and there is no certainty that a transaction will materialise, sources cautioned.

Barclays and SocGen both declined to comment.

© Reuters. FILE PHOTO: A view shows signage on a branch of Barclays Bank in London, Britain, March 17, 2023.  REUTERS/Peter Nicholls/File Photo

The British bank, led by CEO C.S. Venkatakrishnan, is set to announce a new group strategy on Feb. 20 alongside its full-year results.

Its shareholders are pushing for it to streamline its business model and produce higher, more sustainable returns for less risk, Reuters has reported. Its shares have underperformed UK and eurozone banking indexes, data shows. ($1 = 0.7969 pounds)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.