Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

SocGen's asset sales spree spreads to Africa, Eastern Europe - sources

Stock MarketsAug 01, 2018 19:00
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A man passes by the logo on the headquarters of French bank Societe Generale at the financial and business district of La Defense at Puteaux near Paris

By Tsvetelia Tsolova and Tiisetso Motsoeneng

SOFIA/JOHANNESBURG (Reuters) - French bank Societe Generale (PA:SOGN) will shortly complete the sale of banks in South Africa, Albania and Bulgaria, according to several sources close to the processes, as it exits non-core markets under an asset sales programme announced last year.

The French lender is close to sealing deals to sell two small retail banks in Albania and Bulgaria to Hungary-based OTP Bank (BU:OTPB), two sources said. It is also close to selling its unit that provides custodian services in South Africa to Absa Group (J:ABGJ), two further sources said.

Those sales follow the disposal of its Belgian private bank unit to ABN AMRO (AS:ABNd) earlier this week.

Societe Generale, OTP Bank and Absa declined to comment.

The three operations are part of the strategy unveiled by the French lender's Chief Executive Frederic Oudea in late 2017. He said the bank intended to rejig its footprint by exiting from countries or businesses where it lacked critical size and consolidating its positions where it is already strong.

Oudea said then the bank was ready to offload units handling together as much as 5 percent of its weighted assets, or close to 17.5 billion euros (15.56 billion pounds).

Societe Generale Expressbank is Bulgaria's seventh largest bank with assets of 6.7 billion levs ($4 billion) as of June, according to the local central bank. The Belgian private bank holds about 6 billion euros in assets, according to ABN AMRO.

As any cross-border merger between large European banks is all but impossible until banking union becomes a reality, Oudea recently said each European bank must now look at its activities to identify the businesses where it does not have the size to be competitive and sell those businesses.

Societe Generale, which is due to release second quarter earnings on Thursday, wants to be ready to buy attractive assets put up for sale, he added.

The bank last month bought the market activities of German bank Commerzbank (DE:CBKG) . Oudea and his team had identified Germany as a market where they seek to expand.

"We keep on investing, like we did with the Commerzbank activities because in this European banking market, some will keep on exiting from some businesses and there will be a kind of consolidation," he said in mid July.

Banking sources elsewhere have said the French bank is also seeking to dispose of its banks in Macedonia, Moldova, Poland and Serbia.

($1 = 0.8573 euros)

($1 = 1.6765 leva)

SocGen's asset sales spree spreads to Africa, Eastern Europe - sources
 

Related Articles

TUI reports loss as Omicron trumps summer recovery
TUI reports loss as Omicron trumps summer recovery By Reuters - Dec 08, 2021

By Yadarisa Shabong and Zuzanna Szymanska (Reuters) -TUI reported an operating loss of over 2 billion euros ($2.26 billion) for its 2020-2021 financial year and said it may need...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email