SocGen hikes profitability target in new strategic plan
LONDON: Societe Generale lifted a key performance target out to 2029 and said it would trim costs further under a new strategic plan unveiled on Monday that forms the next phase of CEO Slawomir Krupa’s effort to drive a turnaround of the French lender. France’s second-biggest listed bank said it was targeting a return on tangible equity of between 13% and 14% in 2029, up from around 11% this…
Societe Generale has raised its profitability target to 14% for 2029, up from 11% currently, as part of a new strategic plan unveiled on Monday. The French bank aims to further reduce costs to below 16.3 billion euros by 2029, a 2% decrease from 2026 levels, through various measures like spending less on procurement and IT, leveraging AI for productivity gains, and natural attrition leading to reduced staff numbers.
The bank anticipates a 3% annual revenue growth on average. CEO Slawomir Krupa emphasized accelerating profitable growth while maintaining strict risk and cost discipline. Despite recent improvements driven by higher interest rates and a cost-cutting program, SocGen lags behind peers and faces stiff competition from digital lenders and US banks. The bank will maintain its current dividend and buyback payout policy to shareholders.
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- SocGen hikes profitability target in new strategic plan businesstimes.com.sg
- SocGen Lifts Profitability Target in New Plan bloomberg.com
