Societe Generale focuses its activities in Brazil on corporate and institutional clients and withdraws from consumer finance
In line with Group strategy to center its retail activities in the EMEA region, Societe Generale has decided to focus its activities in Brazil on corporate and institutional clients and to withdraw from consumer finance in this country. Societe Generale will close the operations of its Consumer Finance subsidiaries in the country, namely Banco Cacique and Banco Pecunia. The sale of existing loan portfolios of these two entities is also being considered.
This decision is another step of Societe Generale Group refocusing strategy implemented since 2009 to optimise capital allocation to businesses where Societe Generale can differentiate, has critical size and can reach a sufficient level of sustainable profitability.
Societe Generale will do its utmost to ensure the best possible transition. The closure of Consumer Finance activities in Brazil will be progressively implemented to ensure all commitments with clients, employees, regulators, commercial partners are honored. In particular, a dedicated set-up will be put in place to accompany employees in this transition period.
The overall negative financial impact of the closure is estimated at 200 million euros which will be accounted in the 4th quarter Group results 2014. This operation will have no significant impact on the Group capital ratios and will be beneficial on the return on equity of the group as soon as 2015.
Societe Generale remains committed to Brazil and will continue to serve its institutional and corporate clients through its local entities Banco Societe Generale Brasil, Societe Generale Equipment Finance, ALD Automotive Brasil, - and also via its international organisation and activities.