French financial group Société Générale has announced it has reached an agreement with ABN Amro for the sale of its private banking activities in Belgium.
According to the terms of the deal, subject to regulatory approval and expected to close in Q1 2019, ABN Amro will fully purchase Société Générale Private Banking Belgique (SGPB Belgique), that includes all operations, client portfolios and staff from Société Générale’s subsidiary.
The group said the cession of SGPB Belgique is in line with its 2016-2020 strategic plan “Transform to Grow”, that aims at focusing on markets where Société Générale can position itself among tier-1 banks with critical size and synergies’ opportunities with its other activities.
The company added that it will continue to strengthen its positioning in France, the UK, Luxembourg, Switzerland and Monaco, whether that would be internal developments or through established partnerships.
SGPB’s sale will have a limited positive impact on the group’s core equity tier one ratio, the firm assessed. It specified it will still operate in Belgium through its corporate and investment banking and leasing activities.
Assets of ABN Amro’s private banking activities in Belgium will amount to €12bn with the transaction.