(This Sept. 18 story has been corrected to fix SocGen's reported second-quarter group cost-to-income ratio which stood at 65.8%, not 75%, in paragraph 5)
LONDON (Reuters) - Societe Generale (OTC:SCGLY)'s new CEO Slawomir Krupa pledged on Monday to cut costs to boost profits by 2026 amid stagnating sales, in his first strategic plan for France's third-biggest listed bank.
Here are key targets:
GROWTH
Annual revenue growth expectations between 0 and 2% by 2026.
In August last year, the bank said it was aiming for average annual revenue growth of at least 3% for 2021-2025.
ROTE
Targets a 9 to 10% return on tangible equity ratio in 2026, up from a reported 5.6% ROTE at the end of June. Just over a year ago, SocGen was aiming for ROTE of 10% in 2025.
COSTS
Targets a cost-to-income ratio of less than 60% in 2026 from 65.8% in the second quarter. A year ago, it said it aimed for a cost-to-income ratio of 62% or below.
CET1
Aims for a CET1 ratio - a key measure of financial strength - of 13% in 2026, almost on par with the 13.1% reported at end of June. In August last year, the bank aimed for a CET 1 capital ratio of 12% in 2025.
PAYOUT RATIO
Payout ratio range is targeted at between 40% and 50% of reported net income, from 2023.
ASSET SALES
Krupa said he wants a simplified business portfolio. SocGen said it would sell four African units and review a fifth one on the continent but gave no other updates.