Staff Report
In a strategic maneuver aimed at streamlining its operations, Societe Generale, France’s third-largest bank, announces the sale of its professional equipment financing business to domestic competitor BPCE. Valued at €1.1 billion, the transaction underscores Societe Generale’s commitment to optimizing its business landscape under the leadership of Chief Executive Officer Slawomir Krupa.
Expected to conclude by the first quarter of 2025, the divestiture targets a segment of Societe Generale Equipment Finance, specializing in providing leasing and financing solutions across various sectors, including transportation and industrial domains.
CEO Slawomir Krupa underscores the bank’s vision to solidify its position as a premier European financial institution, emphasizing a strategic roadmap outlined in September 2023. He views the sale as a pivotal step towards fostering a more agile, synergistic, and capital-efficient business model.
The divestiture is projected to bolster Societe Generale’s Common Equity Tier 1 (CET1) ratio by approximately 25 basis points, enhancing its financial resilience and reinforcing its capital adequacy.
Commenting on the sale, Odile de Saivre, CEO of Societe Generale Equipment Finance, heralds a new era of growth for the entity, propelled by a strategic realignment of services to capitalize on emerging opportunities.
As Societe Generale embarks on this transformative journey, the move underscores its unwavering commitment to strategic evolution, positioning itself for sustained growth and resilience in an ever-evolving financial landscape.
