(AOF) – Société Générale announced this Monday a project to reorganize its headquarters in France which will result in the elimination of 900 positions, or around 5% of the headquarters workforce. These are non-forced departures, specifies the group in a press release, aimed at “grouping and pooling certain activities and functions, removing hierarchical layers to simplify decision-making processes and resizing certain teams due to project reviews or process”. Societe Generale is due to publish its annual results this Thursday, February 8.
Last September, Managing Director Slawomir Krupa announced to investors that he was targeting gross cost savings of around 1.7 billion euros by 2026, including 40% new savings.
Société Générale employs 112,000 employees worldwide, including 52,000 in France, according to its latest half-year report.
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Key points
– Bank founded in 1864, one of the leading European financial services groups;
– Net banking income of €28.1 billion achieved by retail banking in France – Société Générale and Boursorama brands, international retail banking, financial services, mobility financing and insurance, then retail banking. large clientele and investor solutions;
– Business model claiming the forefront of positive transformations: a 100% digitalized bank, open platforms and architectures, a winner in the race for European leadership;
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Capital characterized by the presence of employee shareholders (7.93% and 13.2% of voting rights), with a board of 18 directors chaired by Lorenzo Bini Smaghi, general management being ensured by Frédéric Oudéa until May 23, 2023 then by Slawomir Krupa;
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Solid balance sheet with, at the end of March, a CET 1 ratio of 13.5% and a liquidity coverage ratio of 171%, resulting in debt rated A.
Challenges
– Strategy currently being revised for the 3rd quarter:
– 3 priorities including the execution of current projects: creation of the new SG retail bank in France, development of Boursorama, proposed acquisition of LeasePlan by ALD, joint venture project with AllianceBernstein and deployment of the ESG strategy,
– Innovation strategy anchored in the group’s DNA, focused on the emergence of a data bank driven by artificial intelligence:
– €200 million in annual value creation via data and AI,
– 8/10ths of servers in the cloud (2025 “second generation” cloud objectives, including 50% in private cloud and 25% in public cloud,
– new business models -Shine for individual customers, Forge for digital bonds, reezocar for vehicle rental, Treezor, payment platform and digital currencies, Arquant for cryptocurrencies, etc.;
– P&T BAX start-up accelerator;
– 2025 environmental strategy aiming to become world leader in sustainable finance with 2 axes:
– “ESG by Design” project for the integration of criteria in all professions,
– commitment to sustainable transition: funding increased to €300 million, 20% reduction in overall exposure to oil & gas extraction vs. 2019, complete exit from thermal coal by 2030-40;
– Strategic progress: launch of the new retail bank in France resulting from the merger of the Société Générale networks, strong growth of Boursorama (4.7 million customers), global positions in mobility (LeasePlan purchase by ALD and, in the professions shares, joint venture with Bernstein.
Challenges
– Net assets per share of €62.3, to be compared to the stock market price;
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Monitoring of activity indicators – operating coefficient of 60.6%, and cost of risk of 13 points at the end of March;
– After a 3.8% decline in revenues and net income up 5.7% at the end of March, 2023 objective: operating ratio close to 66 to 68% and cost of risk below 30 points;
– 2022 dividend of €1.7 and share program of €44O million.
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