France’s Société Générale has agreed to divest its British and Swiss private banking operations to Union Bancaire Privée (UBP) for €900 million. This transaction is part of CEO Slawomir Krupa’s strategy to exit less profitable sectors and streamline the bank’s focus.

On Monday, Société Générale announced the sale of SG Kleinwort Hambros in the UK and Société Générale Private Banking Suisse to the Geneva-based UBP. Collectively, these units manage approximately €25 billion in assets. This move is aligned with Krupa’s ongoing efforts to refocus the bank and enhance its capital base following a series of restructuring initiatives over the past 15 years.

Despite Krupa’s strategic pivot, Société Générale has faced challenges gaining investor confidence. The bank’s shares have declined by around 18% this year and have underperformed relative to its peers. On Monday, the stock fell by 3% in tandem with a broader market decline.

Krupa’s strategy, introduced last September, emphasized more disciplined capital management and moderated revenue growth. Initially met with skepticism, this approach has faced further scrutiny following weaker-than-expected results from Société Générale’s French retail division, which led to a downgraded annual outlook and additional pressure on the stock.

In addition to the private banking sale, Krupa has overseen the disposal of several other assets, including an equipment finance division, Société Générale’s Moroccan bank, and various African operations. On Monday, the bank also agreed to sell its Madagascar operations, Société Générale Madagasikara, to France’s BRED Banque Populaire, though the terms of this deal were not disclosed.

Upon completion of the UK and Swiss transactions by the end of Q1 2025, Société Générale expects a 10-basis point increase in its Common Equity Tier 1 (CET1) ratio. The bank plans to continue developing its private banking services through its French, Luxembourg, and Monaco operations.

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