Through the sale of Mobiasbancă, Societe Generale takes a further step in its ”Transform to Grow” strategic plan by optimizing capital and refocusing its international Retail banking activities on geographies where it has a critical size and high potential synergetic activities, said Philippe Heim, Deputy Chief Executive Officer of Societe Generale Group in charge of International Retail Banking Activities, Financial Services and Insurance, IPN reports.

Societe Generale entered into an agreement to sell its majority stake in Mobiasbancă Societe Generale (Moldova) to OTP Bank Group. “We are pleased to announce the signing  of the cooperation agreement with OTP, which will allow us to provide mutual services to our corporate clients in the region,” stated Philippe Heim.

In a press release, Societe Generale says 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 €400m. The transaction will have an impact of around €28m on the Group’s 4th quarter 2018 earnings mainly due to goodwill impairment. This impact is embedded in the exceptional charge of about €240m.

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.