BGŻ to sell its factoring business

WSE-listed lender BGŻ BNP Paribas has signed a conditional agreement to sell 100 percent of BGŻ BNPP Faktoring shares to its French majority shareholder, BNP Paribas for PLN 10.41 million, the company said in a market filing. The sale will go through if it will be cleared by proper authorities, including receiving an approval from Financial Market Supervisor KNF enabling the bank to carry out cross-border activity in the field of factoring services in other EU member states. The transaction is expected to be finalized before the end of the year. “After the transaction, BGŻ and BGŻ BNPP Faktoring will continue to cooperate and supporting the bank's customers with a wide range of high-quality factoring services,” the bank said. The transaction will improve BGŻ’s consolidated capital ratios on a consolidated basis (TCR by 0.61 percentage points, Tier I by 0.47 percentage points, based on data at the end of September 2017), while negatively affecting its Q4 results by PLN 8.9 million.