Barclays is reportedly considering an acquisition of Societe Generale’s UK private banking division, Kleinwort Hambros, as part of its strategy to cater to affluent clients, according to information from three sources familiar with the situation as reported by Reuters.
Barclays Considers Acquiring SocGen’s UK Private Banking Unit
Societe Generale, with advisory services from Rothschild & Co, has initiated seeking potential buyers through an auction for Kleinwort Hambros, as mentioned by two sources.
The French banking conglomerate is also preparing to divest its private banking operations in Switzerland, aligning with its strategy to streamline its business portfolio, the sources added.
Kleinwort Hambros, which is based in London and had assets under management exceeding £12 billion ($15 billion) in 2022, is speculated to have a valuation of around £700 million in a potential sale, according to one source’s estimate.
The auction attracted the interest of several financial institutions, including Lloyds Banking Group, along with wealth management firms Rathbones and Raymond James, as noted by two sources and an additional informant. However, Rathbones has opted out of the bidding process, as per a source close to the company.
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While discussions are still in the nascent stages and the outcome remains uncertain, both Barclays and Societe Generale have refrained from commenting on the matter.
The move by Barclays to explore the acquisition of Societe Generale’s UK private banking operations follows its recent takeover of Tesco’s banking activities, indicating a strategic pivot towards diversifying its revenue streams beyond the fluctuating investment banking sector.
Under CEO C.S. Venkatakrishnan’s leadership, Barclays is anticipated to unveil a comprehensive group strategy on February 20, coinciding with the announcement of its annual financial results.
