Société Générale (GLE) CMD 2026 summary

Strategic transformation and financial targets

• Achieved significant cost reductions (~8% decrease from 2022 to 2026e) and organic revenue growth (~8% over 2022-2026e), outperforming initial targets.

• Cost-to-income ratio improved to below 60% in 2026, targeting below 55% by 2029, with cost base below €16.3bn and gross savings of €1.9bn.

• ROTE targeted at 13-14% in 2029 and above 15% post-2030, with CET1 ratio above 13%.

• Shareholder distributions may exceed €21bn (39% of market cap) from 2026-2029, combining ordinary and extraordinary payouts.

• Revenue growth expected at 3% CAGR (2026-2029), with all 2026 financial targets confirmed or upgraded.

Business segment strategies and growth drivers

• French Retail Banking: Integrated platform, BoursoBank to exceed 14m clients by 2029, cost-to-income below 55%, and RONE above 45%.

• Wealth and savings: AUA targets of €115bn at BoursoBank, €180bn in private banking, and insurance assets above €200bn by 2029.

• GBIS: Record revenues, RONE at 19% in H1 2026, cost-to-income below 60% by 2029, focus on scaling prime brokerage and recurring revenues.

• MIBS: Streamlined portfolio, cost-to-income below 47% by 2029, selective growth in Ayvens and international retail, focus on efficiency and risk discipline.

• Growth focused on high-return businesses, strict portfolio management, and disciplined acquisition policy requiring accretive EPS.

Operational efficiency and technology

• IT costs to decrease by ~30% between 2022 and 2029, targeting IT intensity ratio of 12% by 2029.

• AI expected to deliver €500-600m in cost reductions, >30% coding cost reduction, and >20% productivity gains, with strategic partnership with Anthropic.

• Workforce reduction of ~20k FTEs (2023-2026e), mainly through natural attrition and reskilling, with headcount down 17% since 2023.

• Procurement costs to decrease by ~€0.4bn in 2029 vs. 2026e via supplier consolidation and AI-controlled sourcing.

• Group-level initiatives to generate €500–600m in savings by 2029.