Société Générale (GLE) investor relations material

Strategic direction and financial targets

• Focus is on self-help measures, emphasizing cost control, capital discipline, and execution over optimistic revenue assumptions.

• Achieved a 17% reduction in total costs versus 2022, with further efficiency gains targeted.

• Growth is planned at 2% CAGR for RWA and 3% CAGR for revenues from 2026 to 2029, aiming for higher operating leverage and resilience.

• ROTE target for 2029 is set at 13%-14%, with a longer-term ambition of 15% by 2030 and beyond.

• Capital allocation prioritizes high marginal ROE businesses, with dynamic reallocation based on performance and market changes.

Business line growth and operational focus

• French retail banking will drive growth through BoursoBank client acquisition and a shift toward affluent and private banking segments.

• Investment banking growth is focused on controlled expansion, especially in U.S. prime brokerage and structured finance.

• International retail investments are concentrated in the Czech Republic and Romania, with Ayvens adopting a conservative growth approach.

• Markets business revenue range is raised to €6–6.5 billion, reflecting stable performance and new investments.

• Integration of BoursoBank and traditional retail aims to optimize segmentation, cost to serve, and profitability.

Technology, cost management, and AI

• AI is expected to deliver €500–600 million in cost opportunities, with €350 million already embedded.

• Full AI-driven transformation is seen as a 5–10 year horizon due to regulatory and trust considerations.

• BoursoBank operates at one-twelfth the cost of traditional retail, serving as a model for efficiency.

• Success metrics include BoursoBank client growth and improved profitability for the entire French retail business.