Societe Generale has outlined a revised strategy that includes a higher profitability objective for 2029 and additional cost reductions, as chief executive Slawomir Krupa aiming to reshape the bank.
The French lender is now aiming for a return on tangible equity of 13% to 14% in 2029 and over 15% from 2030 onwards.
The group expects its cost base in 2029 to come in below €16.3bn ($18.7bn), which would represent a reduction of around 2% in absolute terms from the 2026 level.
According to the bank, those savings are intended to offset inflation of about €1bn over the same period, together with an additional €600m of planned investment.
The updated plan points to average annual group revenue growth of about 3% between 2026 and 2029 and a cost/income ratio below 55% in 2029.
Societe Generale said its approach to acquisitions would remain selective, with conditions including a return on invested capital above the cost of capital, a positive effect on earnings per share, profitability above the group level, strategic and industrial relevance, and manageable execution risk.
In French retail, private banking and insurance, the bank is targeting a cost/income ratio of under 55% in 2029, compared with a 2026 objective of below 60%.
For BoursoBank, the group is aiming for about €115bn in assets under administration by 2029. It is also targeting around €180bn in assets under management in private banking.
In Global Banking and Investor Solutions, the lender is seeking a cost/income ratio below 60% in 2029, versus a 2026 target of below 65%.
That objective is based on average annual revenue growth of 3% to 5% in Financing & Advisory between 2026e and 2029, alongside revenue of €6bn to €6.5bn in Global Markets.
In Mobility, International Retail Banking and Financial Services, the bank is targeting a cost/income ratio of less than 47% in 2029.
Societe Generale Group CEO Slawomir Krupa said: “Over the past three years, we have fundamentally transformed Societe Generale. We have simplified our model, strengthened our discipline, and demonstrated our ability to meet all our commitments.
“Our ambition is clear: to accelerate our profitable growth and maintain rigorous risk and cost discipline. This will enable us to achieve high profitability, offer new opportunities to our teams, increase our capacity to support the growth of our clients, and offer an attractive distribution policy.”
In June, the bank made headlines for cutting management layers to simplify the structure, according to a Bloomberg report.
The changes were taking place within the corporate and investment banking division, including trading and risk functions.
“Societe Generale targets higher profits and cost cuts in 2029 outlook” was originally created and published by Retail Banker International, a GlobalData owned brand.
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