Paris, 6 February 2019
Societe Generale has entered into an agreement to sell its majority stake in Mobiasbanca Societe Generale (Moldova) to OTP. The closing of the transaction is expected to take place in the coming months, subject to receipt of clearances from the relevant local banking, antitrust and market (*) authorities.
The transaction is expected to have a positive impact on the Group’s CET1 ratio of around 1 basis point and to reduce the Group’s risk weighted assets by around EUR 400m. The transaction will have an impact of around -28 MEUR on the Group’s 4th quarter 2018 earnings mainly due to goodwill impairment. This impact is embedded in the exceptional charge of ca. EUR -240 million disclosed in the press release published on January 17th.
Furthermore, Societe Generale and OTP Bank signed a cooperation agreement that encompasses the provision of mutual services in various fields (including but not limited to investment banking, capital markets, financing, cash and liquidity management services). Hungary is part of this cooperation agreement; Bulgaria and Croatia will join shortly. Albania, Serbia and Moldova will be part of it after the closing of the transactions.
Philippe Heim, Deputy Chief Executive Officer of Societe Generale Group in charge of International Retail Banking activities, Financial Services and Insurance, comments: “Through the sale of Mobiasbanca, Societe Generale takes a further step in its” Transform to Grow” strategic plan by optimising capital and refocusing its international Retail banking activities on geographies where it has a critical size and high potential synergetic activities. We’re pleased to announce the signature of the cooperation agreement with OTP, which will allow us to provide mutual services to our corporate clients in the region”.
(*) National Commission for Financial market of the Republic of Moldova
Press contacts:
Pascal Hénisse +33 (0)1 57 29 54 08 pascal.henisse@socgen.com
Societe Generale
Societe Generale is one of the leading European financial services groups. Based on a diversified and integrated banking model, the Group combines financial strength and proven expertise in innovation with a strategy of sustainable growth, aiming to be the trusted partner for its clients, committed to the positive transformations of society and the economy.
Active in the real economy for over 150 years, with a solid position in Europe and connected to the rest of the world, Societe Generale has over 147,000 members of staff in 67 countries and supports on a daily basis 31 million individual clients, businesses and institutional investors around the world by offering a wide range of advisory services and tailored financial solutions. The Group is built on three complementary core businesses:
- French Retail Banking which encompasses the Societe Generale, Crédit du Nord and Boursorama brands. Each offers a full range of financial services with omnichannel products at the cutting edge of digital innovation;
- International Retail Banking, Insurance and Financial Services to Corporates, with networks in Africa, Russia, Central and Eastern Europe and specialised businesses that are leaders in their markets;
- Global Banking and Investor Solutions, which offers recognised expertise, key international locations and integrated solutions.
Societe Generale is included in the principal socially responsible investment indices: DJSI (World and Europe), FTSE4Good (Global and Europe), Euronext Vigeo (World, Europe and Eurozone), four of the STOXX ESG Leaders indices, and the MSCI Low Carbon Leaders Index.
For more information, you can follow us on Twitter @societegenerale or visit our website www.societegenerale.com
DISCLAIMER: Issuers of press releases – not the news agency IPN – are fully responsible for the accuracy and essence of the content submitted for publication and/or distribution.
__150x100.jpg)
