Société Générale raised its target for return on tangible equity to 13–14% in 2029 under an updated strategic plan. The French bank also set an ambition to exceed 15% from 2030. Its programme calls for €1.9 billion of gross savings by 2029 as chief executive Slawomir Krupa extends a restructuring focused on costs, capital and selected growth businesses.
The bank expects annual revenue to grow by about 3% between 2026 and 2029 while total costs fall below €16.3 billion. It is targeting a group cost-to-income ratio below 55% by 2029. The targets build on Krupa’s effort since 2023 to improve returns and narrow Société Générale’s profitability gap with larger French competitors.
COSTS, CAPITAL AND AUTOMATION
Société Générale expects wider use of artificial intelligence to contribute €500 million to €600 million of savings by 2029. The bank also plans to reduce information-technology and procurement expenses, with workforce reductions expected largely through natural attrition.
The group said it could distribute more than €21 billion to shareholders between 2026 and 2029 if it meets its operating and capital objectives. That total would include more than €13 billion through ordinary dividends and buybacks, with as much as €8 billion of excess capital available for additional distributions.
SELECTIVE GROWTH PRIORITIES
The plan prioritises prime brokerage, hedge-fund services and digital retail banking. Société Générale aims to expand BoursoBank from 9.1 million customers to more than 14 million by the end of 2029, while its global markets unit is targeting €6 billion to €6.5 billion of revenue.
Execution against the annual revenue, expense and capital milestones will determine whether the higher return target is credible. Investors will next watch management’s progress on cost reductions and BoursoBank customer growth when the group reports subsequent results.