Press release
Societe Generale presents an ambitious strategic roadmap supported
by disciplined execution
Paris, 21 September 2026
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%1 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 billion2 over the 2026e-2029 period and will result in a low-to-mid teens3 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 billion4 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.”
Meeting under the chairmanship of William Connelly on 18 September 2026, Societe Generale’s Board of Directors approved the Group’s strategic plan and financial objectives for 2029 and beyond.
The plan is based on an enhanced value creation equation, combining the pursuit of efficiency gains, selective and disciplined growth, rigorous risk management, and the continuous transformation of all the Group’s businesses.
Further reduce costs
In 2029, Societe Generale’s cost base is expected to be below EUR 16.3 billion, a decrease of approximately -2%, in absolute terms, compared to the 2026e level.
The Group aims to achieve a net cost reduction of approximately EUR -0.3 billion by 2029 (vs. 2026e), thanks to expected gross savings of approximately EUR 1.9 billion between 2026e and 2029. This will largely offset the impact of inflation, estimated at approximately
EUR 1 billion between 2026e and 2029, and expected incremental investments of approximately EUR 600 million over the same period.
The cost reduction measures for the 2026e-2029 period will be based on three main levers:
- A decrease in procurement costs, excluding IT, for an amount of approximately
EUR 0.4 billion;
- A decrease in IT spending of approximately EUR -0.5 billion, bringing our IT intensity ratio to 12% by 2029, thanks to further simplifications, elimination of redundancies and obsolete solutions, and productivity gains enabled by AI;
- An expected reduction in the number of employees through natural attrition.
Our fundamental work in terms of simplification, organization and process re-engineering will gradually be supported by controlled developments in AI. The implementation of numerous initiatives at Group level will generate between EUR 500 million and EUR 600 million in savings, including approximately EUR 350 million already identified by 2029. The signing of a strategic agreement with Anthropic marks a decisive step in our ambition to accelerate the adoption of corporate AI. This collaboration will strategically strengthen our productivity while increasing the quality of the service offered to our clients.
Accelerate disciplined growth
Between 2022 on a pro forma basis5 and 2026e, we expect the Group to generate an organic revenue growth of approximately +8%. Building on this momentum, Societe Generale intends to accelerate its growth by focusing its investments on activities offering the best risk-adjusted returns and the strongest value creation. These businesses include BoursoBank, Wealth and Savings, selected activities and geographies of our Global Banking and Investor Solutions division, as well as our activities in Eastern Europe and Ayvens. The Group thus aims to achieve an average annual revenue growth (CAGR) of approximately +3% over the 2026e-2029 period, while maintaining strict discipline in the use of capital, with an average annual organic growth (CAGR) in risk-weighted assets (RWA) of approximately +2% over the same period, which represents approximately EUR 25 billion in RWA in total.
In addition, the Group will continue to rely on strict criteria in the management of its portfolio of activities. Criteria include: contribution to the Group’s profitability; significant synergies within the Group; limited exposure to tail risks; leading positions in attractive markets; and, alignment with the Group’s ESG requirement.
The Group’s acquisition policy maintains a rigorous and disciplined approach, with strict investment criteria: a return on invested capital higher than the cost of capital; an accretive impact on earnings per share; a higher level of profitability (ROTE) than that of the Group; a strong strategic and industrial fit; and, a controlled execution risk.
With regards to its businesses, the Group’s ownership levels in its three main subsidiaries give it full control over their strategy while providing an optimal balance between value creation and capital allocation. This approach is fully in line with the disciplined management of the business portfolio and the Group’s selective acquisition policy.
Maintain a best-in-class risk management
Following the repositioning of its Global Markets activities since 2021, the Group has significantly reduced its exposure to market risks, notably with a -16% decline in market RWA in H1 26 compared to the average RWA between 2018 and 2022, while significantly increasing the level of revenues generated by Global Markets.
Moreover, with a solid track record in credit risk management, Societe Generale expects a net cost of risk of between 25 and 30 basis points over the 2026e-2029 period. The Group will maintain rigorous and disciplined risk management with a diversified geographical and business exposure. The Group is strongly focused on concentration risk with a global exposure of less than 13% to the five largest corporate sectors, as well as to the quality of its counterparties with more than 70% of its exposure geared toward investment grade clients. As a result, the Group’s cost of risk has been low at 23bps on average since 2023, well below its peers.
Deepen the transformation of our businesses
French Retail, Private Banking and Insurance aims to optimize its operational efficiency with a cost/income ratio of less than 55% in 2029, substantially improved compared to the 2026 target of a cost/income ratio below 60%.
To achieve this objective, the Group has implemented a strategy based on three levers:
- Continue to reduce operating expenses with targeted streamlining of the number of branches and the central functions of the SG network as well as the ongoing suppression of a regional level of supervision;
- Accelerate the growth of BoursoBank, which expects to reach more than 14 million clients at end-2029 and a profitability (RONE) of more than 45% each year between 2026 and 2029. In addition, BoursoBank has made a change in accounting standards. The client acquisition and loyalty bonuses that were previously recognized immediately as expenses will now be capitalized in accordance with IFRS 15 standard and amortized over their estimated 7-year recoverability period;
- Take advantage of the growing needs of clients in terms of Wealth and Savings, aiming for approximately EUR 115 billion in assets under administration for BoursoBank, approximately EUR 180 billion in assets under management for Private Banking, and approximately EUR 205 billion in savings life insurance outstandings for 2029.
The Group intends to develop a more integrated approach to the French retail market for individuals. The Group will make greater use of the strengths of its unique retail banking model based on the complementarity of BoursoBank (the leading online bank in France) with the SG network (the fourth largest national player) and Societe Generale Private Banking (the second largest private banking player in France). In a rapidly changing French market, with an increasingly digitized and polarized banking offering, our ambition is to meet even better the expectations of our different types of clients by offering them more segmented value propositions adapted to their needs, while opening up new growth potential for the Group.
Individual and professional clients will therefore be supervised by the same manager, implementing a coherent and optimized vision and strategy with the aim of offering each client segment an adapted service offering and, for the Group, a production cost corresponding to the profitability of each of these segments.
Global Banking and Investor Solutions targets a cost/income ratio of less than 60% in 2029, substantially better than the 2026 target of below 65%. This target is based on an annual revenue growth (CAGR) of between +3% and +5% on average in Financing & Advisory (between 2026e and 2029) and a revenue range of between EUR 6.0 and 6.5 billion in Global Markets.
The strategic objectives of this pillar are structured around four levers:
- Efficiency with the redesign and automation of processes and the acceleration of the use of AI;
- Disciplined growth by continuing to invest in our leading global franchises. In Global Markets, our objective is to strengthen our presence with hedge funds and asset managers and further develop our Prime Brokerage activities. In Financing & Advisory, we aim to continue increasing origination and distribution volumes, while growing deposits in Transaction Banking. These franchises offer significant growth potential, which we intend to continue capturing;
- Rigorous risk management through continued disciplined origination and a controlled appetite for market risk;
- Acceleration of the diversification of our mix of activities and our geographical coverage, notably in the United States, to further improve the quality of our revenues.
Mobility, International Retail Banking and Financial Services aims for a cost/income ratio of less than 47% in 2029. In particular, Ayvens targets a cost/income ratio of approximately 49%6 in 2029 and a profitability (ROTE reported by Ayvens) of between 14% and 16% in 2029.
The division’s strategy is based on two levers:
- Efficiency with the optimization of operational performance at the level of each franchise of the pillar, thanks in particular to digitization and AI;
- Growth based on disciplined development in high-potential markets in Eastern Europe, as well as on a selective growth at Ayvens, combining expansion and margin protection. In consumer finance activities, the ambition is to maintain a high level of profitability while maintaining a controlled risk profile and a strict discipline in the underwriting of new loans.
Pursuing our ESG trajectory
Societe Generale is making concrete progress in its decarbonization strategy and is positioning itself for new growth opportunities.
The Group is continuing to implement its 2030 goals, with more than EUR 200 billion mobilized in favor of sustainable finance since 2024. It is making progress on its credit portfolio alignment targets while preparing for alignment ambitions by 2035.
The transformation of the Group’s energy mix financing is a concrete example of this progress. Societe Generale has significantly reduced its exposure to fossil fuels while increasing its financing for low-carbon energies, which accounted for 81% of commitments related to energy production at end-2025, compared to 43% at end-2019.
Thanks to the solid expertise it has developed, the Group is now broadening its scope of action to better meet the growing needs of its clients in the face of climate challenges. Today, it announces a new ambition to deploy EUR 1.5 billion in debt and equity, in order to further support the emerging players in the climate transition, and also the emerging leaders in climate change adaptation and nature-based solutions.
Furthermore, the Group confirms its commitment to the responsible management of the Bank’s transformations. The Group is also continuing its efforts to promote diversity, with the ambition of increasing the share of women in management bodies7 to 35% at Group level and 40% in France by 2029. In order to further strengthen employee shareholder engagement, the Group intends to continue to launch a Global Employee Share Ownership Program (GESOP) each year, in line with the alignment of employee and shareholder interests.8.
Regarding its contribution to society, the Group will increase the budget of the Societe Generale Foundation by 50%, with an extension of its geographical scope of intervention. A specific focus is placed on actions to strengthen financial education.
Finally, the Group intends to continue to respect the highest governance standards. The Board of Directors is composed of 91% independent directors and has had an independent and separated Chairman since 2015. Its composition is characterized by a high diversity of profiles, expertise and nationalities. The Board of Directors ensures the regular reinforcement of its members’ skills through training dedicated in particular to new strategic issues. In addition, it benefits from the expertise of a non-voting director dedicated to sustainability issues.
Disclaimer
This press release and the attached presentation, together with any materials made available to analysts or investors, any webcast or archived recording or transcript thereof, (together, the “Documentation”), which are or may be made available on https://investors.societegenerale.com/en, as well as any oral statements made in connection with the Capital Markets Day, including during any question-and-answer session, contain or may contain forward-looking statements relating to the targets and strategies of the Societe Generale Group.
These forward-looking statements are based on a series of assumptions, both general and specific, including regulatory assumptions, in particular the application of accounting principles and methods in accordance with IFRS (International Financial Reporting Standards) as adopted in the European Union, as well as the application of prudential regulations in force as at the date of the Documentation.
These forward-looking statements have also been developed from scenarios based on a number of economic assumptions in the context of a given competitive, regulatory, political and geopolitical environment.
Important factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among others, overall trends in general economic activity and in Societe Generale’s markets in particular, regulatory, prudential, political and geopolitical changes, and the success of Societe Generale’s business, strategic, operating and financial initiatives. Actual results may also be affected by changes in regulatory capital, liquidity, resolution or supervisory requirements applicable to the Group.
The Group may be unable to anticipate all the risks, uncertainties, contingencies or other factors likely to affect its business and to appraise their potential consequences, or to evaluate the extent to which the occurrence of a risk or a combination of risks could cause actual results to differ materially from those provided in the Documentation.
Therefore, although Societe Generale believes that these statements are based on reasonable assumptions, these forward-looking statements are subject to numerous risks, uncertainties and contingencies arising, in particular, from a changing economic, financial, competitive, regulatory, political and geopolitical environment, including armed conflicts, international tensions, trade restrictions and political or fiscal instability in countries in which the Group operates. Such risks, uncertainties and contingencies may include matters of which the Group or its management are not yet aware or currently deem immaterial, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved.
Investors are advised to take into account the factors of uncertainty and risk likely to affect the operations of the Group when considering the information contained in such forward-looking statements and not to place undue reliance on such statements as predictions of actual results.
Any targets, objectives, ambitions, outlooks, estimates or other forward-looking financial information included in the Documentation are based on assumptions and judgments considered reasonable as at the date on which they are made. They do not constitute guarantees of future performance and remain subject to the risks, uncertainties and contingencies described in the Documentation and in Societe Generale’s Universal Registration Document, as amended.
Other than as required by applicable law, Societe Generale undertakes no obligation to update or revise any forward-looking information or statements, whether as a result of new information, future events or otherwise.
Certain financial indicators included in this Documentation constitute Alternative Performance Measures (“APMs”), referred to as alternative performance indicators in Societe Generale’s Universal Registration Document. Such APMs are not defined by IFRS and should be considered together with, and not as a substitute for, IFRS measures.
Societe Generale uses these indicators to monitor and assess the Group’s financial and operating performance and considers that they provide useful additional information for understanding such performance. Their definitions and calculation methodologies are provided in Section 2.3.6, “Definitions and methodology, alternative performance indicators”, of Societe Generale’s 2026 Universal Registration Document, as amended and, where applicable, in the methodological notes included in or published in connection with this Documentation. Reconciliations to the most directly reconcilable IFRS measures are provided where required and applicable. The principles governing the presentation of prudential ratios are set out separately in the Universal Registration Document and, where applicable, in the methodological notes included in or published in connection with this Documentation.
For a detailed description of the potential risk factors that could affect Societe Generale’s business activities, financial condition and results of operations, please refer to the “Risk Factors” section of Societe Generale’s 2026 Universal Registration Document filed with the French Autorité des Marchés Financiers (“AMF”) on 13 March 2026 under number D.26-0091, as amended, most recently by the second amendment filed with the AMF on 31 July 2026 under number D-26-0091-A02. These documents are available on Societe Generale’s website.
Sustainability-related information, including environmental, social and governance (“ESG”) and climate-related information, may be based on estimates, assumptions, judgments, evolving methodologies and data obtained from internal or third-party sources. Such methodologies and data may evolve over time, in particular as a result of regulatory developments, improvements in data availability or changes in market practices. Accordingly, such information may not be directly comparable over time, across reporting periods or with information published by other institutions. Further information on the Group’s sustainability-related disclosures and ESG risks is available in the “Sustainability Statement” and “Risk Factors” sections of Societe Generale’s Universal Registration Document, as amended.
This Documentation includes information pertaining to our markets and our competitive positions therein. Such information is based on market data and our actual revenues in those markets for the relevant periods.
We obtained this market information from various third-party sources, including publications, surveys, forecasts and market, industry or sustainability data providers, as well as from our own internal estimates.
Societe Generale has not independently verified these third-party sources and cannot guarantee their accuracy, truthfulness, precision or completeness.
In addition, our internal surveys and estimates have not been verified by independent experts or other independent sources.
Unless otherwise indicated, the financial information and figures included in this Documentation have not been audited.
Where financial information has been extracted from audited financial statements or financial statements subject to a limited review, its status is that specified in the relevant published financial statements or reports.
The sum of values contained in the tables and analyses may differ slightly from the total reported due to rounding rules.
No representation, warranty or undertaking, express or implied, is made as to the adequacy, accuracy, completeness or reasonableness of the information contained in the Documentation, except as required by applicable law. Neither Societe Generale nor its representatives may be held liable for any error, omission or inaccuracy or for any consequences arising from reliance placed on, or use of, the Documentation or any document or information referred to therein, except to the extent that such liability cannot be excluded or limited under applicable law.
Societe Generale
Societe Generale is a top-tier European Bank with around 110,000 employees serving 27 million clients in 58 countries across the world. We have been supporting the development of our economies for over 160 years, providing our corporate, institutional, and individual clients with a wide array of value-added advisory and financial solutions. Our long-lasting and trusted relationships with the clients, our cutting-edge expertise, our unique innovation, our ESG capabilities and leading franchises are part of our DNA and serve our most essential objective – to deliver sustainable value creation for all our stakeholders.
The Group runs three complementary sets of businesses, embedding ESG offerings for all its clients:
French Retail, Private Banking and Insurance, with leading retail bank SG and insurance franchise, premium private banking services, and the leading digital bank BoursoBank.
Global Banking and Investor Solutions, a top tier wholesale bank offering tailored-made solutions with distinctive global leadership in equity derivatives and structured finance.
Mobility, International Retail Banking and Financial Services, comprising well-established universal banks (in Czech Republic, Romania and several African countries), Ayvens, a global player in sustainable mobility, as well as specialized financing activities.
Committed to building together with its clients a better and sustainable future, Societe Generale aims to be a leading partner in the environmental transition and sustainability overall. The Group is included in the principal socially responsible investment indices: DJSI (Europe), FTSE4Good (Global and Europe), Bloomberg Gender-Equality Index, Refinitiv Diversity and Inclusion Index, Euronext Vigeo (Europe and Eurozone), STOXX Global ESG Leaders indexes, and the MSCI Low Carbon Leaders Index (World and Europe).
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For more information, you can follow us on Twitter/X @societegenerale or visit our website societegenerale.com.
1 Based on reported Group net income, restated for non-monetary items and after deducting interest on deeply subordinated notes and perpetual subordinated notes.
2 Including the interim dividend of EUR 0.75 per share announced on 30 July 2026.
3 Based on a balanced distribution between the payment of a cash dividend and a share buy-back, and without taking into account the extraordinary distribution.
4 Including EUR 1.5bn of extraordinary distribution announced on 30 July 2026.
5 2022 pro forma revenues correspond to revenues reported in 2022, restated for mainly perimeter effects, TLTRO and UCS result.
6 Cost/income ratio excluding used car sales result and hyperinflation as per Ayvens’ new methodology, to be compared with a 53% target for 2026, restated on a like-for-like methodology basis (vs. 52% previously).
7 Top 250 positions or Group Leaders Circle is made up of the members of the Executive Committee, the Management Committee and the other Key Group Positions.
8 Subject to the approval of the General Meeting of Shareholders.
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