Societe Generale to Sell Croatian Bank to OTP GroupAndrew Blackman
Societe Generale SA agreed to sell Splitska Banka, a Croatian unit, to OTP Group for an undisclosed price.
The transaction will reduce Societe Generale’s fourth-quarter profit by about 240 million euros ($250 million), the Paris-based bank said in a statement on Wednesday. When completed, the deal will increase the French bank’s core equity Tier 1 capital ratio by 8.5 basis points.
Societe Generale is shutting branches in its home market and cutting costs to combat higher capital requirements and record-low interest rates. The company said its strategy for central and eastern Europe is to focus on markets where it can compete with the biggest banks that operate there.
The deal is expected to be completed in the summer of 2017, OTP Bank said in as separate statement. The acquisition of Splitska Banka will increase OTP’s share of the Croatian market to about 10 percent, according to the statement.