Société Générale: 'Bernstein' joint venture launched
April 02, 2024 at 03:39 am EDT
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Societe Generale and AllianceBernstein announced on Tuesday the official launch of 'Bernstein', their joint venture in equity research and cash equities, a project which had originally been announced for late 2022.
With a workforce of over 750 employees, this 'joint venture' will be structured around two distinct legal vehicles with a headquarters in New York covering North America and a headquarters in London covering Europe and Asia.
This organization will be complemented by two major 'hubs' in Paris and Hong Kong, as well as several regional offices.
In a press release, SG explains that it will be able to offer its clients, through the joint venture, a comprehensive range of global services across the entire equity chain, from research to derivatives, prime brokerage and equity markets.
The project should enable the company to broaden its offering to investor and issuer clients, maximize synergies within the group and increase revenues.
Robert van Brugge, who has been CEO of AB Bernstein Research Services since 2011, has been appointed CEO of the new entity, while Stéphane Loiseau, who has been head of Societe Generale's cash equities business since 2021, will become deputy CEO.
The aim of Société Générale and AllianceBernstein is for the French bank to own 100% of both structures within five years.
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Société Générale is one of the largest French banking groups. Net interest income breaks down by activity as follows:
- financing and investment banking (36.8%): specialized financing (for acquisitions, projects, etc.), activity on the stock, interest rate, currency exchange, and raw material markets, brokerage operations, merger-acquisition consulting, commercial banking activities, etc.;
- retail banking in France (30.7%; SG). The group also develops asset management and private banking activities (EUR 143 billion in assets under management in 2023), and provides online banking and online brokerage services (Boursorama Banque) as well as an economic and financial information Website (boursorama.com);
- provision of specialized financial and insurance services (16.5%): consumer loan, leasing, management of car fleets, professional equipment financing and insurance;
- international retail banking (16%).
At the end of 2023, Société Générale managed EUR 533.8 billion in current deposits and EUR 485.4 billion in current credits.
Net interest income is distributed geographically as follows: France (40.2%), Europe (37.4%), the Americas (8.3%), Africa (8%) and Asia/Oceania (6.1%).
SOCIÉTÉ GÉNÉRALE 
