Societe Generale to sell UK, Swiss private banking units for €900m

By Gloria Methri

Societe Generale has announced the sale of its private banking divisions in the UK and Switzerland to Union Bancaire Privée (UBP) for €900 million.

The transactions involve the sale of SG Kleinwort Hambros in the UK and Societe Generale Private Banking Suisse. Together, these divisions manage approximately €25 billion in assets.

The sales are part of Societe Generale’s ongoing strategy to divest less profitable segments of the bank. In a statement, the bank said it intends to pursue the development strategy of its private bank by relying on its strong positions in France, Luxembourg and Monaco to support its high-net-worth clients.

The deal enables UBP, one of Switzerland’s top private banks, to grow its activities overseas, notably in Britain, where it has been active for nearly 30 years.

According to the agreement, UBP would take over all activities operated by SG Kleinwort Hambros and Societe Generale Private Banking Suisse, as well as all client portfolios and employees within these entities. With this acquisition, UBP will increase its assets under management, which stood at 150.8 billion Swiss francs as of 30 June 2024,

SocGen’s share value steeply fell last week after it cut a key performance target for its French retail division.

SocGen said the sale of SG Kleinwort Hambros and Societe Generale Private Banking Suisse would lift its core equity tier 1 (CET1) capital ratio by around 10 basis points. In comparison, the sale of the Madagascar unit is expected to add 2 basis points.

The transaction is expected to be completed by the end of the first quarter of 2025. These two divestment projects, conducted with the support of Caurus Partners, are subject to the applicable social procedures, the usual conditions precedent and approval by the relevant financial and regulatory authorities.