Barclays is reportedly weighing up a bid for Societe Generale’s UK private bank as it looks to diversify its business model.
Reuters reported that the FTSE 100 bank was considering the move as part of efforts to expand its wealth management division, citing unnamed sources.
The news agency added that SocGen has launched an auction for its London-based Kleinwort Hambros business, which had more than £12bn in assets as of 2022.
The private bank is said to be worth up to £700m.
Paris-based SocGen’s profit slumped in the fourth quarter amid continued weakness in retail banking, with net income plunging 60 per cent compared to 2022.
Others invited to bid for Kleinwort Hambros are understood to include Lloyds, Raymond James and Rathbones, with the latter declining to participate.
Barclays, one of the UK’s Big Four lenders, is due to post its annual results next Tuesday, with chief executive CS Venkatakrishnan expected to provide investors more clarity on a major restructuring of the bank announced last October.
His strategy to boost Barclays’ struggling share price includes diversifying the group’s business model to rely less on investment banking – often seen as a volatile revenue stream.
Barclays announced last week that it would buy most of Tesco’s retail banking arm for £600m and transfer around 2,800 staff in a bid to create new distribution channels for Barclays’ unsecured lending and deposit businesses.
City A.M. approached Barclays and SocGen for comment.
