More revenue, less costs and a shareholder remuneration which could exceed the 21 billion euros in four years. Société Générale opens a new phase of the relaunch led by Slawomir Krupa and presents a plan to 2029 which aims to accelerate profitability without loosening spending discipline. The starting point is a return on tangible capital, the Rote, equal to 10,2% in 2025, with a target of around 11% for 2026. The French bank wants to bring it to 13-14% in 2029, to exceed 15% by 2030. This progression will have to be supported by a average annual revenue growth of approximately 3% between 2026 and 2029 and a cost base 2% lower than that forecast for the current year.
"Today we are entering a new phaseOur ambition is clear: to accelerate profitable growth and maintain rigorous risk and cost discipline,” said Krupa, who will lead the group from 2023. new program arrives After an improvement in earnings, supported in recent years by higher interest rates and spending cuts, there remains a need to consolidate growth, especially given the disappointing performance of investment banking, one of the group's core businesses, in recent quarters.
Société Générale: over 21 billion in dividends and buybacks
The promise to investors is based on a remuneration policy that is confirmed in its principles, but accompanied by new economic objectives. Société Générale will continue to distribute the 50% of reported net profit, splitting ordinary remuneration equally between cash dividends and share buybacks. In the period 2026-2029, these distributions are expected to over 13 billion, including the interim dividend of 0,75 euros per share announced on July 30. The dividend per share is expected to grow at a double-digit annual rate, in the low to mid-range range.
This component could be supplemented by approximately €8 billion in capital exceeding a CET1 ratio of 13%, including the €1,5 billion extraordinary distribution already announced in July. Total shareholder returns could thus exceed €21 billion, subject to the achievement of targets. On the patrimonial front, the group aims to maintain a CET1 ratio above 13% in 2029, while the net cost of risk is expected to be between 25 and 30 basis points.
Société Générale: savings, artificial intelligence and growth of BoursoBank
The driving force behind the plan remains cost containment. By 2029, Société Générale intends to reduce overall costs under 16,3 billion euros, with a net reduction of approximately 300 million compared to 2026. To get there, approximately 1,9 billion in gross savings, intended to offset one billion in inflation and 600 million in additional investments.
The measures include approximately €400 million in savings on purchasing and external non-IT services, and €500 million in IT spending. In France, the rationalization of branches will continue, along with the elimination of a regional supervisory level, already underway. The number of employees is expected to decrease through natural turnover.
A contribution is also expected fromartificial intelligence, with estimated savings of between €500 million and €600 million, of which approximately €350 million has already been identified by 2029. The bank also announced an agreement with Anthropic to accelerate the adoption of AI in business operations. The overall goal is to reduce the cost/income ratio to below 55% in 2029, compared to the target of 60% for 2026.
On the commercial side, part of the growth will be entrusted to BoursoBank, which had 9,1 million customers at the end of June and is expected to post a profit of more than €300 million this year. The goal is to exceed 14 million customers by the end of 2029. The accounting treatment of customer acquisition and retention bonuses will also change. Until now, they were immediately recognized as expenses, but will now be capitalized and amortized over seven years. The group also forecasts approximately €115 billion in assets under management for BoursoBank in 2029, alongside approximately €180 billion in assets under management in private banking and €205 billion in reserves in the life insurance and savings segment.
Société Générale: the stock flies to Paris and supports European banks
The stock market rewards Société Générale's new ambitions. On the morning of September 21, the stock gained about 5% in Paris, standing out in an already positive European banking sector. This was a favorable reaction for Krupa, after the previous strategic plan, presented in September 2023, had triggered a sharp sell-off.
Since the beginning of 2025, the bank's shares have nearly tripled, outperforming the Stoxx Europe 600 Banks Index. Analysts view the new targets as slightly higher than expected, especially on the cost front, while Jefferies calls the 3% average annual revenue growth forecast "rather conservative." "The strength of today's plan is that management has clear visibility into the cost trajectory and has outlined a series of very specific cost-driven actions," Jefferies notes.
The Société Générale movement also contributes to supporting the banks of Piazza Affari, along with expectations for developments in the risk game: Banco Bpm rises by 3,6%, Unicredit by 2,06%, Intesa Sanpaolo by 1,78%, Unipol by 1,78% and MPS by 1,65%.
