French based Societe Generale is seeking the sale of its Asia private banking arm in a move to exit a market where small managers are getting hit by rising costs and competition, according to Reuters.
The sale of the Singapore-based division could fetch around US$600 million to the firm.
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The potential sale of its Asian private bank would be the next step in a series of initiatives the French bank has taken to cut costs and boost profits.
Sumitomo Mitsui Banking Corp agreed to buy Societe Generale’s Japanese private banking preparations in July this year. The sale is expected to close in the next few weeks.
A spokesman for the French bank said that Societe Generale does not comment on market rumours.
The French bank is restructuring its asset-gathering operations after combining them with its corporate and investment bank under Didier Valet, head of corporate & investment banking at Societe Generale.
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By GlobalDataSocGen Asia business may account for around EUR10 billion to EUR12 billion of assets under management although the actual details are not revealed.
The sale of SocGen’s private bank in Asia, managing more than US$10 billion, is expected to attract suitors ranging from global lenders to major regional banks in Asia.
SocGen’s move to sell its Asian wealth arm follows the region’s surging tide of millionaires and billionaires have posed a challenge to smaller private banks, which lack the asset base to compete with large global players and local upstarts.
Standard Chartered Bank, Singapore’s United Overseas Bank and DBS Group Holding are among the companies that may express interest in the business.
