French lender Societe Generale is set to exit consumer finance business in Brazil, and book a 200m ($229m) charge in its fourth-quarter earnings as a consequence.
The bank will close the operations of its two consumer finance subsidiaries in Brazil, which include Banco Cacique and Banco Pecunia.
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It is also mulling the sale of loan portfolios of these two businesses.
Bloomberg quoted a bank spokesman saying that 1,180 employees are estimated to be laid off following the bank’s exit from consumer finance operations and the loan portfolio sale, with 650 workers slated to be dismissed this month.
The lender now intends to refocus on corporate and institutional clients in Brazil.
The bank said in a statement, "This operation will have no significant impact on the group capital ratios and will be beneficial on the return on equity of the group as soon as 2015."
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By GlobalDataSociete Generale managed BRL19.7bn ($7.3bn) in assets in Brazil as of September.
