Societe Generale has agreed to divest its private banking subsidiaries SG Kleinwort Hambros and Societe Generale Private Banking Suisse operating respectively in the UK and Switzerland to Union Bancaire Privée (UBP) in a deal worth about €900m.
UBP is a Switzerland-based bank that specialises in wealth and asset management.
Under the terms of the agreements, UBP will take over all activities operated by SG Kleinwort Hambros and Societe Generale Private Banking Suisse along with all client portfolios and employees within these entities.
Both businesses have approximately €25bn of assets under management at the end of December 2023.
For the French financial services company, the divestments are part of its strategic roadmap to achieve a streamlined, more synergistic, and efficient business model along with bolstering the company’s capital base.
Societe Generale plans to enhance its private banking strategy by relying on its positions in France, Luxembourg and Monaco, aiming to support its high-net-worth clients with expertise and recognised services.
Through the acquisition, UBP intends to expand its global presence and its wealth management activities across the globe.
The deal is also expected to advance the bank’s footprint in Switzerland and expedite its expansion in the UK in both wealth and asset management.
UBP CEO Guy de Picciotto said: “We are extremely pleased to onboard skilled and experienced teams and are looking forward to providing clients with an even broader range of high-quality investment solutions.
“This acquisition represents a meaningful add-on to UBP’s capabilities in Switzerland and reaffirms our long-term commitment to the UK, which will become a new growth engine for the group.”
Subject to the applicable social procedures, conditions precedent and to approval by the relevant financial and regulatory authorities, both deals are expected to be completed by the end of Q1 2025.
Last week, Societe Generale posted a 23.7% increase in its group net income for the second quarter of 2024 (Q2 2024) at €1.1bn compared to €900m in the same quarter of the previous year.
The net banking income of the company in Q2 2024 ended 30 June 2024 was €6.7bn, a growth of 6.3% compared to €6.28bn in the corresponding quarter of the previous year.
