Société Générale Sets Higher Profitability Targets and Cost Reductions for 2029
Société Généale has unveiled a revised strategy aimed at achieving higher profitability by 2029, with a target return on tangible equity of 13% to 14%, rising above 15% from 2030. The bank plans for cost reductions that would bring its total expenses below €16.3 billion in 2029—slightly down from the current level—and aims to maintain a cost/income ratio under 55%. These measures are intended to offset inflation and support planned investments. The strategy includes selective acquisitions, with specific criteria such as profitability above group levels and strategic relevance. In its retail banking segments in France, private banking, insurance, BoursoBank, and Global Banking & Investor Solutions, the bank has set ambitious cost/income ratios for 2029. The CEO emphasized Société Générale’s transformation over recent years and a focus on disciplined growth to enhance profitability while supporting clients. The updated plan also reflects structural changes within its corporate and investment banking divisions aimed at simplifying operations.
Topics: banking cost reduction profitability targets strategic planning