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Bank Republic to Announce the Acquisition of HSBC Bank Georgia’s Retail Portfolio

Published: December 7, 2011 | 10:45 am
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The COMMERCIAL TIMES

Bank Republic JSC, a member and subsidiary of the international Société Générale Group, announced the acquisition of HSBC Bank Georgia’s retail portolio. The value of gross assets to be sold was approximately USD 4.5 million at November 23, 2011. According to Bank Republic, in line with its strategy to become “the reference bank”, the bank is striving to improve client relationships, extend the network, design innovative products and deliver a high quality service to its clients.

With effect from December 3, HSBC Bank Georgia’s retail clients will continue to enjoy modern banking products and solutions, as well a high level of service from Bank Republic.

“Bank Republic is honored to share the retail client portfolio of another commercial bank-HSBC Bank Georgia. Our bank will provide sustainable solutions to the clients of HSBC Bank Georgia, the management of which decided to leave the local banking sector. Bank Republic welcomes HSBC Bank Georgia’s retail clients, we’ll become a reference bank to them offering full package of high quality banking products and services,” declared  Christian Carmagnole, CEO of Bank Republic, during the December 6 press-conference held at Bank Republic’s head office. “As a part of our current strategy, we are constantly seeking new challenges and opportunities to drive progress and success.”

The Top Management of Bank Republic officially reported on the transaction with HSBC Bank Georgia. In addition, BR Directors shared with the audience the opinions of future partnership and team spirit Bank Republic will have with HSBC Bank Georgia’s retail clients.

In September, 2011 HSBC Bank Georgia announced that following a strategic view it would exit the Georgian banking market, a direct result of the continuing five-filter portfolio review announced at the Investor Day in May.  HSBC Bank Georgia wished to ensure its clients would continue to receive a high quality service, and chose Bank Republic, a subsidiary of international ranking Société Générale Group, to purchase the retail portfolio.

“HSBC Bank Georgia is very pleased to partner with Bank Republic in this important transaction. It’s very important for us that our clients continue receiving excellent services. Bank Republic is a subsidiary of an international Société Générale Group, which is well-known for high standards of client service and respect,” stated Guy Lewis, CEO of HSBC Bank Georgia. “HSBC will leave Georgian market in the first quarter of 2012.”

According to Lewis, HSBC Bank Georgia’s retail portfolio share was approximately 14-15% and was presented by around 170 active clients. “As for corporate portfolio, we’re not selling it, HSBC Bank Georgia will assist its clients in refinancing issues,” HSBC Bank Georgia’s CEO noted.

As Lewis told The COMMERCIAL TIMES, when HSBC leaves Georgia, he’ll probably continue his work in London.

In Bank Republic’s CEO’s words, the bank’s retail portfolio share value is approximately Laries 242 million plus Laries 8 million from the recent acquisition of HSBC Bank Georgia’s retail portfolio. The number of Bank Republic’s retail clients is around 90 000.

Brief information about companies

Bank Republic is a leading commercial bank with rapid expansion of operations in Retail and Financial Services in Georgia. Employing more than 1000 staff, serving its clients through 38 branches and service centers.  Bank Republic leads an Universal banking throughout Georgia and offers innovative and tailor-made products and services to its customers.

On 29th of September 2006 Bank Republic entered into agreement with Société Générale Group and EBRD on purchasing 60% and 10% of shares of BR respectively. In 2009, Société Générale raised its share to 80% in Bank Republic.

www.republic.ge

Société Générale Group

Established in 1864, Société Générale is the 7th largest French company by market capitalization and one of the leading financial services group in euro zone. The Group employs 163,000 people in 82 countries worldwide in three key businesses: Retail Banking & Financial Services, Global Investment Management & Services and Corporate & Investment Banking. The Group consistently delivers high profitability, operating efficiency and rigorous risk management.

www.socgen.com


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