Société Générale plans to cut costs by 450 million euros to boost profitability at its cornerstone Global Banking and Investor Solutions unit, according to a company statement on May 10.
In a strategy revamp, the Gallic lender said it was targeting a more than 10% “return on normative equity” for the division by 2023. To achieve that, it is targeting a cost base of between 5.5 billion euros and 5.7 billion euros, thereby generating an estimated cost-to-income ratio of between 70% and 73%.
The lender is looking to boost profitability in the division and stabilise revenue after its flagship equities business, long a strength, was hit hard during the Covid-19 pandemic last year when companies suspended or cancelled dividends. The bank aims to lock in average annual revenue growth of approximately 3% between 2020 and 2023 for its financing and advisory businesses. It is seeking to stabilise revenue in its trading unit, Global Markets and Investor Solutions, at around 5 billion euros in 2023.Frederic Oudea, Chief Executive Officer of French bank Societe Generale, attends a news conference to present the bank's 2017 annual results in Paris, France, February 8, 2018.