12/20/2018, 9:30 AM (Source: TeleTrader)
more TeleTrader news

SocGen to sell Serbian unit to OTP Bank

French bank Societe Generale S.A. agreed to sell its Serbian operation to Hungary-based OTP Bank Group for an undisclosed price, the company announced on Thursday. It noted that the transaction will have a €108 million negative impact on its fourth-quarter 2018 earnings. This will be the third SocGen unit in Eastern Europe to be acquired by OTP Bank, after the ones in Bulgaria and Albania. It also recently sold its branch in Poland for $483 million.

SocGen first entered the Serbian banking market in February 1991. It will retain its presence in the country through its fleet management activities (ALD Automotive), the bank said.

"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," stated Philippe Heim, Deputy Chief Executive Officer of Societe Generale Group.

Shares of Societe Generale fell 1.66% at 9:28 am CET.

Baha Breaking News (BBN) / NI