Societe Generale announces the sale of Euro Bank, its Retail banking subsidiary in Poland, to Bank Millennium
Societe Generale has entered into an agreement to sell Euro Bank, its Retail banking subsidiary in Poland, to Bank Millennium. The closing of the transaction is expected to take place in the first half of 2019, subject to receipt of clearances from the relevant banking and antitrust authorities.
On completion, this transaction will lead to a reduction of the Group’s risk weighted assets of EUR 2 bn and improve the Group’s CET 1 ratio by 8 basis points. The transaction includes specific risk sharing arrangements in respect of the Swiss Franc-denominated mortgage loan portfolio of Euro Bank (*).
Societe Generale will continue to provide Corporate and investment banking services in Poland, through its Global Banking and Investor Solutions business, and will remain present in the country in various other activities including ALD, Insurance and Equipment Finance.
Philippe Heim, Deputy Chief Executive Officer of Societe Generale Group in charge of International Retail Banking activities, Financial Services and Insurance, comments: “The sale of Euro Bank is a further step in the execution of Societe Generale’s Strategic and Financial plan “Transform to Grow”, whose primary objectives are to focus and develop its presence on markets and activities with a critical size and the potential for generating synergies with other Group businesses. International Retail Banking activities are a profitable growth engine for Societe Generale Group and we are committed to pursue their development”.
(*) The mortgage loans denominated in Swiss francs represent less than 10% of Euro Bank’s loan portfolio, corresponding to less than 300m Swiss francs.
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