The bank has "entered into an agreement to sell its majority stake in Societe Generale Expressbank to OTP Bank. The closing of the transaction is expected to take place in the coming months, subject to receipt of clearances from the relevant banking and antitrust authorities", it said. It is also selling its majority stake in Societe Generale Albania to the same purchaser. That deal is also expected to conclude in the coming months, subject to receipt of clearances from the relevant banking and antitrust authorities, and relevant third parties’ consents.
 
When complete, the deals will boost SocGen's CET1 capital ratio - a standard measure of a bank's capital strength - of around 12 basis points and cut its risk weighted assets by around €3 billion.
 
"Alongside these transactions, Societe Generale and OTP Bank are in non-exclusive discussions in relation with the entering into of a services agreement that would encompass the provision of mutual services in various fields in Albania, Bulgaria, Croatia and Hungary," it said.
 
“The sale of Societe Generale Expressbank in Bulgaria and Societe Generale Albania is an important milestone in the implementation of Societe Generale’s Strategic and Financial plan “Transform to Grow”, whose primary objectives are to focus and develop its presence on markets and activities with a critical size and the potential for generating synergies with other Group businesses. International Retail Banking activities are a profitable growth engine for Societe Generale Group and we are committed to pursue their development," Philippe Heim, deputy chief executive of Societe Generale Group in charge of international retail banking activities, Financial Services and Insurance, said.

SocGen – like some of its peers – is cutting some business lines, consolidating booking centres and focusing on areas where it can make most profit. As the report said, Frederic Oudea, chief executive, has said in late 2017 it intends to change its footprint.

At the start of this week, the French bank agreed to sell its Belgian private banking arm to ABN AMRO, a move mirroring the French bank’s move to spin off its Asian private bank about four years ago.

Netherlands-headquartered ABN AMRO said the deal will approximately double its Belgian private banking assets to €12 billion . Four years ago, SocGen span off its Asian private bank, selling it to Singapore-listed DBS.

As reported yesterday, SocGen reported net income in Q2 of €1.156 billion, against €1.058 billion a year earlier; net banking income rose to €6.454 billion from €5.199 billion.