La Banque Postale to buy 35% stake in La Banque Postale Financement from Societe Generale

Societe Generale and La Banque Postale signed an agreement to sale Societe Generale’s 35% stake in La Banque Postale Financement to La Banque Postale. Subject to obtaining authorization from the competent regulatory authorities, the operation is expected to be completed during the first half of 2019. Created in 2009, La Banque Postale Financement relies on a multi-channel distribution system to market consumer credit products and services to La Banque Postale customers. The operation is the consequence of the expiry of the partnership. Once finalized, it will lead to a reduction of approximately 0.6 billion euros in the Group's risk-weighted assets and a positive impact on the Group's CET 1 ratio of around 5 basis points. The transaction will have an impact on the Group 4th quarter 2018 earnings of around-35 million euros due to goodwill impairment.