Paris-based bank Societe Generale SA has announced a €745 million ($798 million) deal to sell the majority of its Moroccan business to Saham Group. As part of CEO Slawomir Krupa’s plan to streamline the bank’s operations, SocGen will sell its stake in Societe Generale Marocaine de Banques, its subsidiaries, and stakes in insurance firm La Marocaine Vie. The deal is expected to close by the end of the year, resulting in a gain of about 15 basis points in SocGen’s CET1 ratio, with a €75 million hit on its first-quarter earnings.
This transaction marks the second major disposal by SocGen this week, as Krupa has set a goal of cutting expenses by €1.7 billion by 2026 and reducing the cost-to-income ratio below 60%, with plans to eliminate around 900 jobs at the head office. In addition to the Moroccan business sale, Krupa is still considering the possible disposal of other assets such as the custodian business SGSS, German consumer business Hanseatic Bank, UK private banking arm Kleinwort Hambros and Swiss private banking assets. This strategic shift is part of a broader effort to streamline operations, improve profitability and strengthen SocGen’s financial position.
