Hungarian lender OTP Bank has signed an agreement to acquire Societe Generale’s Slovenia business for an undisclosed sum.

Under the agreement, OTP Bank will acquire SKB Banka (Slovenia) and its subsidiaries SKB Leasing and SKB Leasing Select.

The latest deal is aligned with Societe Generale’s strategy to optimise its portfolio by selling non-core operations.

Earlier, the company signed agreements to sell its businesses in Albania, Montenegro, Croatia, Serbia and Bulgaria, all to OTP Bank.

The transactions for Albania and Bulgaria businesses have already been concluded.

The divestment of SKB Banka is estimated to boost Societe Generale’s CET1 ratio of around 7 basis points. It will also reduce the group’s risk weighted assets by around €2.3bn.

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By GlobalData

Additionally, the divestment will have a €76m impact on the lender’s first-half 2019 results.

Societe Generale Group deputy CEO and in charge of International Retail Banking activities, Financial Services and Insurance said: “This transaction is in line with the Group’s refocusing strategy, which aims to achieve a positive effect of + 80-90 basis points on its CET1 ratio by 2020.

“I welcome the strategic agreement reached with OTP which will allow us to continue to serve our clients in Slovenia and in many Balkan countries in various fields including investment banking, capital markets, corporate banking, cash and liquidity management.

“Societe Generale will sustain a dynamic and profitable growth in its International Retail Banking activities, leveraging on its subsidiaries in Eastern Europe, particularly in the Czech Republic and Romania, Russia and Africa.”

The sale of Societe Generale’s Slovenia business is subject to regulatory approvals including Bank of Slovenia, European Central Bank and antitrust authorities.