Societe Generale has unveiled a strategic roadmap aiming to reduce its cost base to below €16.3 billion by 2029. This target represents a 2% decrease from the bank's estimated 2026 figures. The plan targets €1.9 billion in gross savings, with net savings projected at approximately €300 million after accounting for reinvestment and transition costs.
Artificial intelligence initiatives are central to this strategy, with the bank expecting to cut IT spending by roughly €500 million. This reduction is intended to bring the IT intensity ratio down to 12%. The bank has entered a strategic partnership with Anthropic to accelerate AI integration, following the earlier decommissioning of its internal tool, SoGPT, in favor of Microsoft Copilot.
The bank aims to lower its cost-to-income ratio to below 55% by 2029, compared to approximately 60% currently. Revenue growth is targeted at a compound annual rate of about 3% through 2029. Additionally, the bank expects a return on tangible equity of 13–14% by 2029, with ambitions to exceed 15% thereafter.
Workforce adjustments are also planned, with the bank intending to reduce approximately 1,800 roles in France. These reductions are expected to be achieved primarily through natural attrition rather than layoffs. These measures are part of a broader turnaround strategy led by CEO Slawomir Krupa, who has been in his role since 2023.
