French bank Societe Generale has agreed to sell its wealth management units in the UK and Switzerland to Switzerland’s Union Bancaire Privée (UBP) for about €900 million.

The assets under management of the businesses in the deal amounted to almost €25 billion at the end of December 2023.

“Societe Generale has signed agreements with Union Bancaire Privée, UBP SA (UBP), a Swiss bank specialised in wealth and asset management, for the sale of SG Kleinwort Hambros and Societe Generale Private Banking Suisse operating respectively in the United Kingdom and Switzerland,” said Societe Generale.

“These sales are part of the execution of Societe Generale’s strategic roadmap targeting a streamlined, more synergetic and efficient business model, while strengthening the group’s capital base. 

“Societe Generale intends to pursue the development strategy of its private bank by relying on its leading positions in France and abroad, in Luxembourg and Monaco, to support its high-net-worth clients thanks to its expertise and recognised services.

“The assets under management of the businesses covered by these agreements amount to almost €25 billion at the end of December 2023.

“These transactions would be structured as sales of relevant legal entities. They would be implemented at a total price of around EUR 900 million including equity with a positive impact of around 10 basis points on the group’s CET1 ratio, on the expected completion dates which could take place by the end of the first quarter of 2025.

“According to the commitments made in these agreements, UBP would take over all activities operated by SG Kleinwort Hambros and Societe Generale Private Banking Suisse, as well as all client portfolios and employees within these entities.

“These two divestment projects are subject to the applicable social procedures, the usual conditions precedent and to approval by the relevant financial and regulatory authorities.”