Published on 20/12/2018

Societe Generale announces an agreement with a view to sell Societe Generale Serbia to OTP Bank

Societe Generale has entered into an agreement with a view to sell Societe Generale Serbia (SGS) to OTP Bank. The closing of the transaction is subject to receipt of clearances from the National Bank of Serbia (NBS) and antitrust authorities. It is expected in the coming months. The scope of the transaction includes insurance and leasing activities in this country.

On completion, this transaction is expected to have a positive impact on the Group’s CET1 ratio of around 8 basis points and to reduce the Group’s risk weighted assets by around EUR 1.95 bn. The transaction will have an impact of around -108 MEUR on the Group’s 4th quarter 2018 earnings mainly due to goodwill impairment.

In addition to Albania, Bulgaria, Croatia and Hungary, Serbia will be part of a services agreement between Societe Generale and OTP Bank that would encompass the provision of mutual services in various fields (including, but not limited to investment banking, capital markets, financing and global transaction banking). Societe Generale will remain directly present in Serbia through its fleet management activities (ALD Automotive).

Philippe Heim, Deputy Chief Executive Officer of Societe Generale Group in charge of International Retail Banking activities, Financial Services and Insurance, comments: "This agreement with a view to sell Societe Generale Serbia to OTP Bank is another milestone in the execution of Societe Generale’s Transform to Grow strategic plan. It highlights the Group’s capacity to simplify its organization and focus capital allocation on high potential synergetic activities with a critical size. In this context, International Retail Banking activities are a key profitable growth engine for Societe Generale Group and we are committed to further pursue their development.

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