CBC Cains Beer

RNS No 2370x
COMPAGNIE BANCAIRE S.A.
4th August 1997


  Sale of UCB Bank's investment, social housing and owner occupier loan 
           portfolio to Birmingham Midshires Building Society



The Board of Compagnie Bancaire SA ("Compagnie Bancaire") announces that it 
has agreed on the terms of the sale to Birmingham Midshires Building 
Society ("Birmingham Midshires") of UCB Bank plc's investment, social 
housing and owner occupier loan portfolio (the "Portfolio") with total 
assets of approximately #460 million.  The sale was at a premium to book 
value.

Since 1986, Compagnie Bancaire, through UCB Bank plc, has accumulated a 
portfolio of UK commercial mortgages which totalled #1.1 billion at 30th 
November, 1996 and is split between the investment, social housing, owner 
occupier and healthcare sectors.

The sale represents a further step in Compagnie Bancaire's strategy to 
reduce its exposure to the commercial property market.  It also continues 
the restructuring of UCB's UK subsidiary, UCB Group plc, following the sale 
of UCB Home Loans Corporation Ltd to Nationwide Building Society in 1995 
and, more recently, the sale of UCB Invoice Discounting Ltd and UCB 
Factoring Ltd to Bank of New York Financial Corporation.

UCB Bank will continue to administer the Portfolio for a period of up to 
nine months, but will no longer write new business in the investment, 
social housing or owner occupier sectors. All existing offers or 
commitments will be honoured.

UCB will continue to write new business in the healthcare sector and a 
further announcement is expected before the end of 1997 regarding UCB 
Bank's healthcare mortgage business.

The overall restructuring of UCB Group plc is not expected to have a 
significant net impact on Compagnie Bancaire's 1997 results.


Commenting on today's announcement, Bernard M|ller, Chief Executive Officer 
of Compagnie Bancaire said:

"I am pleased to announce the successful sale of UCB Bank's investment, 
social housing and owner occupier loan portfolio to Birmingham Midshires 
Building Society. The price paid for the portfolio reflects the quality of 
UCB's origination in recent years." 

Compagnie Bancaire was advised on this transaction by Baring Brothers 
International Limited.



Press enquiries:

Compagnie Bancaire                       Didier Taquet     00 331 4067 5223

UCB Group plc                            Jean-Pierre Maci     0181 240 5555

Baring Brothers International Limited    Matthew Greenburgh   0171 767 1000


END


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