French lender Societe Generale is set to sell its banking units in Macedonia and Montenegro as part of its business consolidation strategy and to bolster profitability.
As a part of the plan, Societe Generale Montenegro will be sold to Hungarian lender OTP Bank.
Austrian bank Steiermärkische Sparkasse will acquire Ohridska Banka Societe Generale, the French lender’s unit in Macedonia.
The financial details of the transactions have not been disclosed by the French bank.
Societe Generale divestments:
Societe Generale in a statement said that the divestments are expected to increase its CET1 ratio by around 2 basis points.
Additionally, it will reduce the group’s risk weighted assets by €1.1bn.
Societe Generale Group deputy CEO and in charge of International retail banking activities, financial services and insurance Philippe Heim said: “These transactions are in line with the divestment process already undertaken in the Balkan region.
“They confirm the Group’s ability to execute its disposal plan in accordance with its roadmap and refocus its international retail banking activities on geographies where it has critical size and high potential for synergies.”
The closing of both the transactions is subject to approvals from respective banking, antitrust and market authorities. The process is expected to be completed in the following months.
In late 2017, Societe Generale announced that it will exit from markets where it lacks a strong presence. The latest divestments were part of this plan.
Societe Generale closed the sale of its Bulgarian business to OTP Bank in the beginning of this year.
In December last year, the Hungarian lender also signed an agreement to acquire Societe Generale’s Serbian unit.