Societe Generale signs contract with BRED Banque populaire. Source: Shutterstock

Société Générale has signed a contract with BRED Banque Populaire to divest all of the Société Générale Group’s shares (70%) in Société Générale Madagasikara, based in Madagascar.

As per the agreements, BRED Banque Populaire would assume full control of all the operations conducted by this subsidiary, including all client portfolios and staff members.

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When the transaction is completed, which might happen by the end of the first quarter of 2025, the Group’s CET1 ratio would benefit by about 2 basis points.

This divestment project is subject to the standard conditions precedent and approval by the appropriate financial and regulatory authorities.

Moreover, Société Générale and UBP (Union Bancaire Privee) have entered into two exclusive agreements.

As a result, UBP will acquire Société Générale’s Swiss private banking activities (Société Générale Private Banking Suisse) as well as their UK and Channel Islands wealth management arm (SG Kleinwort Hambros).

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Both transactions are expected to be completed by the end of Q1 2025.

Additionally, this is a big step for UBP and its attempts to grow its global presence and its wealth management activities across the world.

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.”

Furthermore, Société Générale has set a target to improve its cost/income ratio steadily and significantly, with the attainment of about €1.7bn ($1.8bn) in gross savings in 2026 compared with 2022, during the presentation of the group’s plan of action in September 2023.