A new phase of disciplined, profitable and value-creating growth

• Societe Generale presents its strategic roadmap for 2029, opening a new development phase after the successful transformation initiated in 2023.
• With a simplified model, an improved risk profile, increased discipline in capital allocation, and a substantially improved financial performance, the Group is now entering a new stage of value creation based on four main priorities:
• Decrease further our cost base: the Group will pursue its cost reduction efforts, continuing the structural measures successfully undertaken in recent years, by relying on traditional levers of simplification, operational efficiency and technological transformation, as well as on the gradual and responsible acceleration of the deployment of Artificial Intelligence (AI).
• Accelerate its disciplined growth approach: the Group will pursue a disciplined growth strategy, in line with the selective approach implemented in recent years in terms of capital allocation and prioritizing the activities that create the most value.
• Deepen the transformation of our businesses: (i) by relying on a unique setup and a more integrated approach in France, the Group intends to accelerate the development of French Retail Banking, Private Banking and Insurance, in order to better serve its customers; (ii) by strengthening its already highly profitable Global Banking and Investor Solutions businesses; and, (iii) by ensuring a disciplined development combining growth and improvement in the profitability of the International Mobility, Retail Banking and Financial Services activities.
• Maintain best-in-class risk management: rigorous risk management will remain a cornerstone of the Group’s strategy, extending the actions taken since 2023 to control the risk/return profile of its activities.

Ambitious financial targets for 2029

• Cost reduction of ~-2% vs. 2026 estimated (2026e), with a 2029 cost base expected to be below EUR 16.3bn
• Average annual growth (CAGR) in Group revenues ~+3% on average between 2026e and 2029
• Cost/income ratio below 55% in 2029
• Cost of risk in a target range of 25 to 30bps in 2026e-2029
• Return on tangible capital (ROTE) between 13% and 14% in 2029 and more than 15% in 2030 and beyond
• CET1 ratio above 13%

An attractive distribution policy

• The distribution policy is based on two components:
• An ordinary distribution policy based on a distribution payout ratio of 50% of the reported net income, with:
  • A balanced distribution between a cash dividend payment and a share buy-back, 
    • An interim dividend paid in the fourth quarter each year.
• This ordinary distribution is expected to exceed EUR 13 billion over the 2026e-2029 period and will result in a low-to-mid teens average annual growth (CAGR) of the dividend per share over the period 2026e-2029.
• A distribution of excess capital above the CET1 ratio of 13%. Should all this excess capital were to be distributed, distribution could amount up to EUR ~8 billion over the period 2026e-2029. Communications on the Group’s excess capital management will be made once a year during the second quarter results publication.
• In total, the sum of these two components could exceed EUR 21 billion over the period.

Slawomir Krupa, Group Chief Executive Officer, says:

“Over the past three years, we have fundamentally transformed Societe Generale. We have simplified our model, strengthened our discipline, and demonstrated our ability to meet all our commitments.

This success, which is the result of the collective work of the entire company, creates a sense of shared pride and reinforces a sense of ongoing responsibility for our common future. Today, we are entering a new phase. Our ambition is clear: to accelerate our profitable growth and maintain rigorous risk and cost discipline. This will enable us to achieve high profitability, offer new opportunities to our teams, increase our capacity to support the growth of our clients, and offer an attractive distribution policy.

Thanks to the commitment of our teams, the quality of our franchises, and the many opportunities that are emerging, we are confident in our ability to achieve our new objectives in the interest of our clients, our shareholders and our employees.”

Source: Societe Generale