Societe Generale raises profitability target with new strategic plan
by@Reuters
Summary
Societe Generale (SocGen) has announced a new strategic plan aimed at lifting its profitability targets, with an increased return on tangible equity projected at 13% to 14% by 2029, up from approximately 11% this year. This marks a continuation of CEO Slawomir Krupa's turnaround efforts, following an initial three-year plan that is already showing positive results. To achieve these goals, the bank plans to implement more cost cuts, anticipating gross savings of €1.9 billion and reducing costs to below €16.3 billion by 2029. The announcement has led to a nearly 4% rise in the bank's shares, which have almost tripled since early 2025, outperforming the broader European banking index.
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Analysis
Slawomir Krupa: Slawomir Krupa serves as Chief Executive Officer of Societe Generale. Since assuming the role in 2023, he has overseen the implementation of strategic initiatives aimed at enhancing the bank's performance through cost discipline and growth efforts. He presented the new plan emphasizing accelerated profitable growth and rigorous risk management. Societe Generale: Societe Generale is France's second-biggest listed bank. Under CEO Slawomir Krupa, who took over in 2023, the lender has been executing turnaround plans focused on improving returns and controlling costs. The latest strategic plan announced on September 21, 2026, builds on prior progress with updated targets for profitability and efficiency. Market Response: Shares in the bank rose following the plan announcement and have outperformed the broader European banking index since early 2025. Performance Trends: The bank's performance has improved over the past two years with rising profits from higher interest rates and ongoing cost reductions. Strategic Planning: The announcement marks the next phase of the CEO's turnaround efforts following an initial three-year plan that is beginning to deliver results.
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