SocGen targets strong prime brokerage growth

Societe Generale (SocGen) is set to significantly grow its prime brokerage business, as part of Chief Executive Officer Slawomir Krupa's strategy to bolster the French bank's capital markets operations and deepen ties with hedge funds and asset managers, according to Bloomberg. Krupa aims for robust growth in client assets, building upon the approximately $210 billion held at the end of August.

This expansion is part of a larger strategy unveiled by Krupa, which merges cost-cutting with increased revenue generation. The bank aims for about 3% annual revenue growth to enhance profitability. SocGen has recently introduced cash prime brokerage for equities, a new service area. This move follows the trend of banks vying to attract business from hedge funds and other institutional investors requiring financing, trading, and custody services.

SocGen's goal is to strengthen its position among hedge funds and asset managers while continuing to develop its prime brokerage business. The bank is also expanding its fixed-income and credit operations, including derivatives, financing, and credit services. SocGen intends to further develop its fixed-income and credit franchise as part of its overall capital markets strategy.

The push is aimed at reinforcing areas in its markets business that have faced pressure from larger competitors. In the US, SocGen is enhancing its advisory capabilities for equity and debt issuance and exploring opportunities to provide financing for data-centre projects. For hedge funds, the expansion could bolster SocGen's role as a provider of leverage, financing, and other services, as alternative investment managers increasingly seek diversification among their banking partners.