SocGen to sell professional equipment financing business for €1.1bn

11th Apr 2024 07:47

(Sharecast News) - Societe Generale said on Thursday that it has agreed to sell its professional equipment financing businesses to Groupe BPCE for €1.1bn.

As part of the deal, Groupe BPCE would take over most of Societe Generale Equipment Finance's activities, which offer tailor-made financing and leasing solutions for distributors, traders, manufacturers and companies.

The outstanding loans of the businesses covered by the memorandum of understanding between SocGen and BPCE amount to nearly €15bn at the end of December 2023, or around €8bn in risk-weighted assets.

"This divestment project would mark an important step in the execution of Societe Generale's strategic roadmap presented in September 2023, targeting a streamlined, more synergetic and efficient business model, while strengthening the group's capital base," it said.

The French bank said the sale would lift its CET1 ratio by around 25 basis points once it completes, which is expected to be in the first quarter.