Societe Generale to sell to DBS private banking activities in Asia
Societe Generale has agreed to sell to DBS its private banking activities in Asia operated in Singapore and Hong Kong, representing a total of $12.6bn of assets under management.
As a result, the Societe Generale group will receive cash for of $220m for the franchise and will free up around $200m of equity.
Further to the transaction, Societe Generale announced that it has entered into a memorandum of understanding with DBS to develop a commercial partnership combining the strengths of the two franchises for the benefit of their respective clients.
The partnership will give Societe Generale’s clients access to DBS’ Private banking offering in Asia. In addition DBS’ clients will have access to Societe Generale Private Banking’s offering in Europe as well as to Corporate & Investment Banking solutions.
The transaction is subject to approvals from the relevant authorities and is expected to be completed in Q4 2014. It is expected to have a positive impact on the Group net income and on the Basel 3 Common Equity Tier 1 ratio.
Societe Generale Private Banking will be in a position to free up investment capacities to accelerate its development in its core markets and to further strengthen the services offered to its clients in Europe, Latin America, the Middle East and Africa.
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