Societe Generale selling Splitska Banka to OTP Group

The French bank Societe Generale agreed to sell its Croatian branch, Splitska Banka, to the Hunagrian OTP Group for an undisclosed price, as reported by the New York agency Bloomberg.

This transaction will reduce SG's profit in the fourth quarter by around EUR 240 million, as stated in the bank's report. Following the completion of the transaction, SG's capital assets will increase by 8.5 basis points.

As Bloomberg reports, Societe Generale is closing down branches in the local market and cutting costs as a response to higher capital requirements.

The bank said that its strategy for central and eastern Europe was to focus on markets where it can compete with the biggest banks that operate there.

The transaction is expected to be completed in the summer of 2017, said OTP Bank, which will increase its share of the Croatian market by about 10% through the acquisition of Splitska Banka.

Societe Generale - Splitska banka d.d. Split

Societe Generale

OTP BANK Budapest, Hungary

OTP banka Srbija a.d. Novi Sad

OTP banka Srbija a.d. Novi Sad

Societe Generale

OTP Bank

Splitska Banka

sale of Splitska Banka