SocGen lays out 2029 profitability roadmap

Socie9te9 Ge9ne9rale (GLEp) has unveiled a strategic roadmap through 2029 that raises its profitability objectives and sets detailed financial targets. The Group is aiming for a return on tangible equity (ROTE) of between 13% and 14% in 2029, with an ambition to exceed 15% from 2030 onward. Supporting this, the bank targets average annual Group revenue growth of about 3% between 2026e and 2029 and average annual organic risk-weighted asset growth of about 2% over the same period.

The plan also defines risk and capital guardrails. For the 2026e–2029 period, the cost of risk is targeted in a range of 25 to 30 basis points on outstanding loans. By 2029, the Group expects to maintain a Common Equity Tier 1 (CET1) ratio above 13%, providing room for both business growth and capital distribution under the plan.

Cost discipline is a central element of the roadmap. Socie9te9 Ge9ne9rale (GLEp) expects its overall cost base to be below EUR 16.3 billion in 2029, which represents a reduction of about 2% compared with 2026 estimates. The Group aims for a cost-to-income ratio below 55% by 2029, reflecting a push for higher efficiency across its activities.

The bank quantifies gross savings of around EUR 1.9 billion between 2026e and 2029, translating into a net cost reduction of approximately EUR 0.3 billion by 2029 versus 2026e. Key levers include about EUR 0.4 billion in procurement savings excluding IT, and a reduction of about EUR 0.5 billion in IT spending, which is intended to bring the IT intensity ratio to 12% by 2029. The Group also plans to rely on natural attrition to reduce headcount and to accelerate the deployment of artificial intelligence to generate productivity gains.

Divisional efficiency metrics are part of the framework. For 2029, the Mobility and International Retail & Financial Services division is targeting a cost-to-income ratio below 47%, while Global Banking & Investor Solutions is aiming for a ratio below 60%. These goals are intended to align each business line with the Group-wide efficiency target.

The strategic plan includes significant capital distribution ambitions. Ordinary shareholder distributions over the 2026e–2029 period are expected to exceed EUR 13 billion. The Group intends to communicate annually on its excess capital position alongside second-quarter results.

If all excess capital were to be distributed, this could amount to about EUR 8 billion over the period, implying that total potential distributions could exceed approximately EUR 21 billion between 2026e and 2029. This framework links capital returns to the bank’s profitability, risk, and growth targets set out in the roadmap.

Growth objectives for key franchises are also specified. BoursoBank is expected to have more than 14 million clients by the end of 2029 and around EUR 115 billion of assets under administration. For wealth-related activities, the Group is targeting about EUR 180 billion in private banking assets under management and around EUR 205 billion of life-savings outstandings by 2029, complementing the broader profitability and efficiency goals.