Societe Generale may be contemplating selling its securities services unit, a Bloomberg report (paywalled) reveals. The Paris-based bank is said to be “exploring strategic options” for Societe Generale Securities Services (SGSS) with Citigroup. Insiders have told Bloomberg that valuation for the business unit could pass €1 billion.
If the deal goes through, it would be part of a plan to boost Societe Generale’s valuation by “getting rid of poorly performing businesses”, Bloomberg writes. The bank’s CEO, Slawomir Krupa, who took over the helm in May this year, has mentioned in an earnings call that he intends to “shrink or even dispose of some activities” in his attempt to revamp Societe Generale.
According to Bloomberg, Societe Generale’s stock is currently the worst performer among France’s largest banks. Its Q2 2023 results revealed that revenue from SGSS fell short of estimates over the quarter, dropping by 21 percent to €179 million. Slawomir Krupa has promised to achieve better capital allocation and ensure that the bank’s businesses “make sense from the perspective of long-term value creation”.