Societe Generale presents new strategy, aims for slower growth and… – Investing.com

French banking giant Société Générale (OTC:SCGLY) has unveiled a strategic plan for 2022 to 2026 that focuses on streamlining its portfolio and reducing its exposure to the oil and gas sector. Announced on Monday, the plan should strengthen the bank’s strength through a simplified business portfolio, according to Managing Director Slawomir Krupa.

The bank’s new strategy includes a more modest target for average annual revenue growth, set at between 0% and 2% over the period 2022-2026. This is a notable drop from its previous targets for the 2021-25 period, during which the bank targeted annual growth of at least 3%.

Societe Generale also revealed plans to diversify its revenue streams, primarily through increased advisory services and growth in self-funded risk-weighted assets, as part of a disciplined capital strategy. The bank has set ambitious financial targets for 2026, targeting a return on tangible equity of between 9% and 10%, a cost-to-income ratio of less than 60% and a Common Equity Tier 1 ratio, a measure of financial strength, at 13%.

In line with global trends towards sustainability, Societe Generale is seeking to aggressively reduce its exposure to upstream oil and gas. By 2030, the bank is targeting an 80% reduction from its 2019 levels. This represents a significant increase from its original target of a 20% reduction by 2025. The bank now aims to reduce half its exposure by this date.

This article was generated with the support of AI and reviewed by an editor. For more information, consult our General Terms and Conditions.

French banking giant Société Générale (OTC:SCGLY) has unveiled a strategic plan for 2022 to 2026 that focuses on streamlining its portfolio and reducing its exposure to the oil and gas sector. Announced on Monday, the plan should strengthen the bank’s strength through a simplified business portfolio, according to Managing Director Slawomir Krupa.

The bank’s new strategy includes a more modest target for average annual revenue growth, set at between 0% and 2% over the period 2022-2026. This is a notable drop from its previous targets for the 2021-25 period, during which the bank targeted annual growth of at least 3%.

Societe Generale also revealed plans to diversify its revenue streams, primarily through increased advisory services and growth in self-funded risk-weighted assets, as part of a disciplined capital strategy. The bank has set ambitious financial targets for 2026, targeting a return on tangible equity of between 9% and 10%, a cost-to-income ratio of less than 60% and a Common Equity Tier 1 ratio, a measure of financial strength, at 13%.

In line with global trends towards sustainability, Societe Generale is seeking to aggressively reduce its exposure to upstream oil and gas. By 2030, the bank is targeting an 80% reduction from its 2019 levels. This represents a significant increase from its original target of a 20% reduction by 2025. The bank now aims to reduce half its exposure by this date.

This article was generated with the support of AI and reviewed by an editor. For more information, consult our General Terms and Conditions.