France-based bank Societe Generale is reportedly considering a sale of its Polish retail banking business Eurobank amid growing competitions from the local players, two investment bankers told Reuters.
Smaller banks which are unable to compete against the larger rivals are also feeling the heat of historically low interest rates which have squeezed their operating profits.
Eurobank is the 17th largest bank in Poland. The lender has assets of PLN14bn ($3.9bn). In 2017, the bank posted a net profit of PLN103m ($28.46m)
One of the investment bankers was quoted by the publication as saying that: “Eurobank is in a sale process. SocGen is withdrawing (from retail banking activities) in Poland.”
Another banker confirmed that Eurobank is for sale. Neither wished to be identified as talks are private.
“(SocGen’s) strategy is to gain 1st to 3rd place in every market. Since it hasn’t happened here, they are to withdraw,” the first source added. “The question is who will buy Eurobank, as buyers such as BNP and Santander recently bought smaller banks.”
The French bank has said that it would sell or close sub-scale entities that bring low synergies.
“Societe Generale doesn’t comment on market rumors,” a spokesman for Societe Generale said about a potential sale of Eurobank.