Societe Generale SA is exploring a sale of its German consumer finance business as part of Chief Executive Officer Slawomir Krupa’s plans to boost the French bank’s valuation by getting rid of non-core businesses.

SocGen is talking to advisers as it weighs offloading Hanseatic Bank, the Hamburg-based bank it owns in conjunction with the iconic German retailer Otto Group, according to people familiar with the matter. The bank, which has been majority owned by SocGen since 2005, offers consumer loans, credit cards, insurance and factoring, according to its website.

The deal could fetch a few hundred million euros, the people said, asking not to be identified discussing non-public information. A representative for Societe Generale declined to comment.

Founded in 1969, Hanseatic Bank was created by Werner Otto as a way to allow customers of his retail business to finance their purchases. Today, the business has €445 million ($475 million) of total equity and employs more than 500 people, according to a filing.

The unit is profitable and commands a return on equity of 15%, according to one of the people familiar with the matter.

The disposal adds to a long list of deals planned by Krupa, including the bank’s custody business and its equipment-finance division. The 49-year-old CEO has come under pressure after a disappointing investor day which sent shares down after he cut key profitability targets.

The potential sale of the German business comes as Barclays Plc, the UK lender, is also seeking for a buyer for its German consumer-finance business.

Author: Jan-Henrik Förster