The financial sector kicks off the new week with a bang. On Monday, Société Générale announced the sale of its private banking business in Switzerland and its asset management unit in the UK and Channel Islands (SG Kleinwort Hambros) to Union Bancaire Privée (UBP) for approximately 900 million euros. The deal is expected to be completed by the end of the first quarter of 2025.

This move is not entirely surprising. Société Générale had been showing signs of strain for some time. Speculation about such a sale surfaced in April this year, as reported by finews.ch. The bank has been grappling with higher costs and declining inflows of new funds.

New Strategy Failed to Boost Stock Price

Société Générale began restructuring its business last year, aiming to divest less profitable units to raise fresh capital. In particular, it sold several units in Africa earlier this spring.

Despite these efforts, investors have shown little enthusiasm for CEO Slawomir Krupa's strategy, with the bank's stock recently losing about 20 percent of its value.

UBP’s Acquisition Appetite

The Swiss private banking business and British asset management unit are now set to join Union Bancaire Privée (UBP), and this choice is not accidental. Over 50 years, UBP has risen to become a leading global player in wealth management. The Geneva-based private bank, owned by the de Picciotto family, has been notably active in acquisitions in recent years: DBTC (2002), ABN AMRO (2011), Coutts International (2015), and Danske Bank International (2022).

UBP CEO Guy de Picciotto had already expressed a willingness for further acquisitions in an interview with finews.com in April 2023: «A ‹morphing transaction› before I head off into retirement—why not!», he said.

The deal with Société Générale could provide UBP with a significant boost: it will gain more visibility in Switzerland and advance its presence in the UK and Channel Islands.

Integration of the two units is unlikely to be a hurdle, given UBP’s extensive experience in managing acquisitions over the years.