SocGen hikes profitability target in new strategic plan

Societe Generale unveiled a new strategic plan on Monday that raises its profitability goal through 2029 and commits the French lender to further cost reductions. According to Business Recorder, the bank now targets a return on tangible equity of 13% to 14% in 2029, compared with roughly 11% this year, and 15% in 2030 and beyond. The plan follows the agenda CEO Slawomir Krupa set after taking over in 2023.

The bank plans to bring total costs below 16.3 billion euros by 2029, a 2% decline from 2026 levels, through lower spending on procurement and IT, AI-driven productivity and fewer staff via natural attrition. Its cost-to-income ratio is expected to fall below 55% by 2029 from the current 60% goal, while revenues are forecast to rise by about 3% a year on average. Dividend and buyback payouts will stay unchanged, and if targets are met the bank could return 21 billion euros ($24.11 billion) over four years to 2029.

Krupa called this a new phase focused on profitable growth with disciplined risk and cost management. The shares have climbed roughly threefold since early 2025, beating a European banks index, yet its market value remains below half that of BNP Paribas. Results at the investment arm, the group's biggest unit, have fallen short in recent quarters.