By Adria Calatayud
Societe Generale is targeting slower average annual revenue growth between 2022 and 2026 than for the 2021-25 period, and aims to streamline its portfolio and reduce oil-and-gas exposure as part of a new strategy.
The French bank on Monday outlined its new strategic plan to 2026 that Chief Executive Slawomir Krupa said will strengthen the group with a simplified business portfolio. The bank intends to focus on its core franchises going forward, it said.
SocGen said it is targeting average annual revenue growth between 0% and 2% over the 2022-26 period. Under its previous targets between 2021 and 2025, the bank aimed to deliver average annual revenue growth of at least 3%.
The bank said its businesses will grow differently, mainly through increased advisory and growth in self-financed risk-weighted assets, as a result of strict capital discipline.
The bank aims to achieve a return on tangible equity–a key profitability metric-of between 9% and 10%, a cost-to-income ratio below 60% in 2026 and a common equity tier 1–a measure of financial strength–ratio at 13% in 2026.
SocGen said it expects to an 80% reduction in its upstream oil-and-gas exposure by 2030 relative to 2019 levels, and that it aims to halve its exposure by 2025. It had previously targeted a 20% reduction by 2025.
Write to Adria Calatayud at adria.calatayud@dowjones.com