Soc Gen offloads Greek subsidiary

French bank Société Générale said on Friday that it had finalised the sale of its Greek Geniki unit to the Bank of Piraeus, also of Greece.

Soc Gen offloads Greek subsidiary
Photo: Mohamed Yaha

According to a statement, Societe Generale sold Geniki for one million euros ($1.3 million), but will invest €444 million, including €281 million to recapitalise Geniki.

The rest of the amount would underwrite Piraeus bank debt, Société Générale said, adding that the operation would negatively affect third quarter earnings by about €100 million.

The operation should be completed by the end of the year, ending a venture into Greece that began in 2004 and has cost the company about one billion euros.

The two companies will no longer have any ties after the deal is over, Société Générale said.

With the sale, Société Générale joins French rival Credit Agricole, which reached agreement to sell its Greek unit Emporiki to Athens-based Alpha Bank earlier this week.

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France’s Societe Generale to cut 1,500 jobs: report

French banking group Societe Generale is planning to cut 1,500 positions in its BFI corporate and investment banking arm, Le Figaro newspaper reported on Saturday.

France's Societe Generale to cut 1,500 jobs: report
Societe Generale CEO Frederic Oudea at the Climate Finance Day and Global Roundtable in Paris on November 26, 2018. Photo: ERIC PIERMONT / AFP
Citing internal bank documents, the paper said the bank was looking at two scenarios, both of which envisage 1,500 job cuts worldwide, with around 700 of them in France.
The company said in a statement on Saturday it was still reviewing activities in its corporate and investor client business so it was not possible to comment on the impact on jobs.
“We have an ongoing dialogue with our unions and will consult them on our projects and their impact as soon as the review is completed in the coming weeks,” the bank said.
French CGT union representative Philippe Fournil could not confirm the information, but said the bank's management had on Thursday indicated it was still reviewing activities within that business.