Key facts
- Societe Generale aims for a 13%-14% return on tangible equity by 2029.
- Overall costs are targeted to fall below 16.3 billion euros by 2029.
- The cost-to-income ratio is targeted below 55% by 2029.
- Revenue growth is projected at an average of 3% annually.
- Shareholder distributions could reach 21 billion euros by 2029.
Societe Generale has outlined its 2029 strategic plan, focusing on accelerating profitable growth and enhancing efficiency. The French bank aims to achieve a return on tangible equity of 13% to 14% by 2029, an increase from its current 11% level, and further targets 15% from 2030 onwards. This initiative is part of CEO Slawomir Krupa's broader effort to turnaround the lender, which has faced challenges with high costs and relatively weak profitability compared to peers.
The plan includes significant cost-cutting measures, with overall expenses expected to fall below 16.3 billion euros by 2029, representing a 2% reduction from 2026 levels. These savings will be driven by reduced spending on procurement and IT, productivity gains from artificial intelligence, and a smaller workforce achieved through natural attrition. The bank also aims to lower its cost-to-income ratio to below 55% by 2029, down from its current 60% target. Revenues are projected to grow at an average annual rate of approximately 3%.
Despite a recent rebound in its share price, which has nearly tripled since early 2025, Societe Generale still trades at less than half the valuation of rival BNP Paribas. Investors are watching to see if the bank can sustain growth amidst competition from digital lenders and stronger performance from U.S. investment banks. The bank's payout policy for shareholders, including dividends and buybacks, remains unchanged, with a potential distribution of 21 billion euros to 2029 if targets are met.