Business

Société Générale sells Slovenia’s SKB to OTP

French banking group Société Générale has sold its stake in Slovenia’s SKB and subsidiaries SKB Leasing and SKB Leasing Select to Hungarian group OTP bank.

“I welcome the strategic agreement reached with OTP which will allow us to continue to serve our clients in Slovenia and in many Balkan countries,” said Philippe Heim, deputy CEO of Societe Generale Group in charge of international retail banking activities, financial services and insurance. “Societe Generale will sustain a dynamic and profitable growth in its international retail banking activities, leveraging on its subsidiaries in Eastern Europe, particularly in the Czech Republic and Romania, Russia and Africa.”

The sale of SKB Banka is expected to have a positive impact on the group’s CET1 ratio of around seven basis points and to reduce the group’s risk-weighted assets by around 2.3 billion euros. This transaction will also have a negative impact of 67 million euros on the group’s first-half 2019 results, due to goodwill impairment.