Sale of Societe Generale Montenegro to OTP Bank and the sale of Ohridska Banka Societe Generale (Macedonia) to Steiermärkische Sparkasse
On completion, the sales of Societe Generale Montenegro and Ohridska Banka Societe Generale are expected to have a positive impact on the Group’s CET1 ratio of around 2 basis points and to reduce the Group’s risk weighted assets by around EUR 1.1 billion. These transactions had a cumulated impact of EUR 66 million embedded in the exceptional charge of EUR 241 million published in Société Générale Q4 2018 financial statement.
The closing of the transaction relating to Societe Generale Montenegro and the launch of the mandatory takeover relating to Ohridska Banka Societe Generale by Steiermärkische Sparkasse are expected in the coming months, subject to receipt of clearances from the relevant banking, antitrust and market authorities. The closing of the transaction relating to Ohrisdka Banka Societe Generale is subject to the successful completion of the mandatory takeover by Steiermärkische Sparkasse.
Societe Generale Montenegro will be part of the cooperation agreement signed between Societe Generale and OTP Bank that encompass the provision of mutual services in various fields (including, but not limited to investment banking, capital markets, financing cash and liquidity management). The cooperation agreement includes Hungary and will soon be extended to Croatia and Bulgaria. Albania, Moldova and Serbia will join once the transactions closed.
Philippe Heim, Deputy Chief Executive Officer of Societe Generale Group in charge of International Retail Banking activities, Financial Services and Insurance, comments: “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.”
Press contacts :
Pascal Hénisse +33 (0)1 57 29 54 08 pascal.henisse@socgen.com