Societe Generale Group announces the creation of its new french retail banking: SG
On the 1st of January 2023, Societe Generale Group announced that it had completed the legal merger of its two French Retail Banking networks, Societe Generale and Crédit du Nord Group. SG is now the Group’s new French Retail Banking.The bank SG aims to build a leading banking partner on the French market serving 10 million customers and be in the Top 3 of customer satisfaction.The completion of the merger is accompanied by the implementation of a new relationship model, which will improve the quality of service provided to individual, business and corporate customers and establish itself as a leading player in the French market in terms of savings, insurance and excellent solutions for businesses and professionals.The bank SG makes firm commitments to its customers in terms of proximity, responsiveness, expertise and responsibility. SG will be, for our customers:
a bank with a greater regional presence, with the vast majority of decisions taken at regional level, and increasingly directly in branches and business centres. All customers will benefit from an increased number of points of sale, multiplied by more than two for customers from Crédit du Nord Group and increased by 15% for Societe Generale customers. The brand strategy illustrates the territorial roots of the French Retail Banking, with a national SG brand accompanied by regional brands: SG CREDIT DU NORD, SG GRAND EST, SG LAYDERNIER, SG AUVERGNE RHÔNE ALPES, SG SMC, SG COURTOIS, SG SUD OUEST, SG TARNEAUD, SG GRAND OUEST and, in Ile-de-France as well as in Corsica, SG SOCIETE GENERALE;
an expertise bank, with systems even more adapted to the specific needs of the different categories of customers, with, for example, the setting up of a wealth bank, the roll-out of the single advisor for business customers, both for their personal and professional needs, or the increase in the number of experts across the territory in terms of savings, insurance and support for professionals and companies in all their financing and advisory needs;
an accessible and responsive bank, with shorter decision-making circuits to speed up decision-making and response time to customer requests, state-of-the-art digital services enabling it to carry out its day-to-day banking operations remotely, in a secure manner, and to subscribe more and more offers by the mobile application;
a responsible bank, which places CSR issues at the heart of its new model to strengthen the positive impact for customers and territories, through new choices in terms of offer and organization, in particular the establishment of CSR consulting teams in each region, allowing SG to accelerate the financing of the ecological transition and to be a major player in the development, both economic and social, of the regions and their ecosystems.
A merger that is progressing on scheduleInitiated in 2020, the merger of the two networks has mobilized thousands of employees, at all levels of the bank, to define the new banking model. It is carried out in compliance with all the commitments made at the launch of the project, in particular that of not leaving any city and to carry it out in the context of constructive industrial relations. Four agreements were signed in this respect with a majority of representative trade unions in 2021 and 2022.The legal merger is an important step that marks the effective creation of the new bank. The new organization is now in place and all management teams have been appointed, both at headquarters and in the regions. The IT migration of Crédit du Nord Group’s banks to Societe Generale’s information system will be carried out in two stages during the first half of 2023. Branch groupings will begin in the second half of 2023, with a first step of 150 reconciliations (30%). 80% of the groupings will be completed by the end of 2024, and 100% by the end of 2025.The new SG brand will be gradually deployed on the facades of our branches, with a first step of 1,000 branches affected by the end of 2023. To support the launch of the new bank SG, an advertising campaign will start from 15 January and will continue throughout the year.“We are very pleased to start 2023 with the launch of SG, the new French Retail Banking. The legal merger of Societe Generale’s networks and the banks of Crédit du Nord Group on 1 January 2023 is a major step, completed within the planned deadlines. This new bank is not only a banking merger. It is also the implementation of a new model, which will allow us to offer our 10 million private, business and corporate customers, throughout the territory, more proximity, responsiveness, expertise and responsibility. Our goal is to become an even more essential player in the French market, recognised for the quality of its expertise, its speed of execution, its regional roots, and to achieve the Top 3 customer satisfaction,” said Sébastien Proto, Deputy General Manager, in charge SG French Retail Banking Network, Private Banking and their IT division.
Carlos Gonçalves appointed Societe Generale Group’s Global Chief Information Officer
Societe Generale announce the appointment of Carlos Gonçalves as Global Chief Information Officer for the Group, effective as of 15th June 2022. Carlos Gonçalves will report to Gaëlle Olivier, Group Deputy General Manager and Chief Operating Officer, who will directly oversee the Group Resources and Digital Transformation Service Unit.
As a member of the Group Management Committee, Carlos Gonçalves will focus on ensuring the strength and security of the Group’s IT, improving its operational efficiency while facilitating business transformation to better serve Societe General Group’s customers and employees.
Complete biography of Carlos GonçalvesSince November 2016, Carlos Gonçalves was Global Chief Technology Officer for the Group. Previously, Carlos was appointed Global Chief Information Officer for SGCIB in July 2011. He was formerly Deputy Global Chief Information Officer for SG CIB, since 2009. In 2013 he took over the supervision of all IT for Private Banking, Asset Management and Securities Services. In January 1993, Carlos Gonçalves joined SG CIB’s Equities Derivatives IT department, where he participated in the conception and development of a large number of SG CIB’s systems, responsible for products and architecture. In 2007, Carlos was appointed Global Head of Equities Derivatives Technology. Prior to joining Société Générale, he worked for Portugal Telecom in the Research and Development teams. Carlos Gonçalves is a graduate of Nova University in Lisbon (UNL).
SOCIETE GENERALE GROUP MEDIUM-TERM STRATEGY FOR GLOBAL BANKING AND INVESTOR SOLUTIONS
The Group presents today the medium-term strategy for its Global Banking and Investor Solutions core business and underscored the key feature of these activities in its diversified banking model. Société Générale’s goal is to consolidate its position as a top-tier European corporate and investment bank.
The roadmap has set three priorities:
revive strong and sustainable growth by retaining a client-centric strategy and making targeted and balanced capital allocation adjustments in favour of financing, advisory and transaction banking
push ahead with cost reductions, the ongoing aim of which is to improve the operating leverage
keep a tight rein on risks and make results less sensitive to market dislocations.
Société Générale also intends to increase its ESG commitments and hold a top-ranking position in this field. It will make this major strategic pillar the bedrock underpinning both the corporate and investment banking arm’s actions and those of the entire Group.
From a financial standpoint, Global Banking and Investor Solutions is targeting profitability on normative equity (RONE) of over 10% from 2023, representing more than 12% when adjusted for the Single Resolution Fund contribution, whose initial building phase is to be completed by the end of 2023.
*************************** Since the beginning of an unprecedented year 2020 that was dominated by the effects of the health crisis, Global Banking and Investor Solutions provided unwavering support to its clients. It further demonstrated its ability to adapt and bounce back, all of which is highlighted by its Q1 2021 performance. After successfully transforming the Global Banking and Investor Solutions core business over the past two‑or-more years by refocusing on core franchises, reducing costs and de-risking the Global Markets business, whilst preserving its client franchises, Global Banking and Investor Solutions is determined to execute its strategic plan to deliver sustained and profitable growth.
The Group will draw on some powerful attributes to ensure the roadmap is a success. It has been able to forge lasting ties with an extensive and stable client base thanks to the value-added of its franchises and the proven expertise of its globally recognised businesses. On that score, the Group ranks among the leading corporate and investment banks for revenues generated from allocated capital.
Global Banking and Investor Solutions intends to pursue disciplined and profitable growth by fully exploiting its areas of excellence which are perfectly adapted to increasing demand anticipated in the post-crisis period, particularly across infrastructure financing, the energy transition, real assets, growth‑driving businesses and investment solutions. This will go hand in hand with a gradual and coherent shift in the weight of the businesses, particularly between Global Markets and the Financing & Advisory activities, by making targeted capital allocations to identified growth initiatives according to the clients, businesses and geographies in question.
The Group aims to lock in average annual revenue growth of approximately 3% between 2020 and 2023 for the Financing & Advisory businesses and normalise revenues in Global Markets and Investor Solutions to around EUR 5 billion in 2023, of which EUR 4.5 billion in annual run-rate revenues is expected from Global Markets.
The Group’s priority is to grow “ESG by design” businesses, with an objective of doubling by 2025 ESG-related revenues in both Global Markets and Investor Services, and Financing & Advisory.
Investments in innovative technologies and digitalising businesses and processes have been placed at the forefront of our priorities in order to meet customer requirements and retain our competitive edge. Other investment priorities include the ongoing automation of front-to-back processes and increased connectivity with client systems to provide best execution to customers and enhance our process efficiency.
Tied in with this objective is the Group’s relentless focus to reduce costs and improve the operating leverage of Global Markets and Investor Solutions’ activities. Business attrition will not be harmed by our disciplined approach to costs in light of our durable commitment to maintain a positive jaws effect between evolving costs and revenues. Global Banking and Investor Solutions (excluding Asset and Wealth Management businesses) will in particular benefit from a reduction in the cost base of EUR 450 million by 2022-2023, announced in the first half of 2020. Accordingly, it is targeting a cost base of between EUR 5.5 billion and EUR 5.7 billion in 2023, thereby generating a cost-to-income ratio of between 70% and 73% (or between 65% and 68% excluding Single Resolution Fund contribution).
Last, the Group intends to press on with stringent risk management of both market and credit risks, notably against a backdrop of lower market risk appetite, and prudently manage its counterparty risk. It furthermore aims to ensure that all risk categories are diversified healthily across its businesses.
On the basis of this roadmap, the Group is targeting profitability on normative equity (RONE) in Global Banking and Investor Solutions activities of more than 10% from 2023, representing over 12% adjusted for the Single Resolution Fund contribution (whose initial building phase is to be completed by the end of 2023), which integrates expected Basel IV capital requirements and cost of risk converging to through-the-cycle average.
Appointment of a new Societe Generale Group management team to accelerate the transformation of the businesses and prepare the new strategic plan
Meeting on August 3, the Board of Directors, chaired by Lorenzo Bini Smaghi, approved the propositions presented by Frédéric Oudéa, Chief Executive Officer, on the evolution of the company’s management organisation.
The aim is to build a renewed General Management team, by the side of the Chief Executive Officer, to be composed of two positions of deputy CEO instead of four with very seasoned profiles, and the creation of new roles of Deputy general manager entrusted to a new generation of high-potential managers.
Following Séverin Cabannes’s decision to retire in 2021, he will leave his position as Deputy Chief Executive Officer at the end of 2020.
Slawomir Krupa, currently Head of Global Banking & Investor Solutions for the Americas, will become Deputy general manager, head of the Global Banking & Investor Solutions activities globally, effective as of January 1, 2021. He will report directly to Frédéric Oudéa.
Philippe Aymerich, Deputy Chief Executive Officer, currently in charge notably of French Retail Banking activities, sees his supervision extended to all international retail banking and consumer credit activities, following the departure of Philippe Heim, who leaves his position as Deputy Chief Executive Officer today.
Sébastien Proto, currently Head of Group Strategy, will become Deputy general manager, head of the Societe Generale and Crédit du Nord networks and the related Innovation, Technology and IT Service Unit, effective as of September 1, 2020. He will report directly to Philippe Aymerich.
Diony Lebot, Deputy Chief Executive Officer, will be entrusted, in addition to her current functions of risk and compliance supervision, internal control and sponsor of the Group’s Corporate and Environmental Responsibility, with the supervision of the Group’s financial services and insurance activities.
Finally, William Kadouch-Chassaing, the Group’s Chief Financial Officer, is appointed Deputy general manager, head of Finance, reporting directly to Frédéric Oudéa.
Lorenzo Bini Smaghi comments: “These decisions taken by the Board of Directors aim at renewing the management team around Frédéric Oudéa, drawing on in-house talents, in order to better support the in-depth changes needed to build the bank of tomorrow”.
Frédéric Oudéa comments: “In order to build by my side the Group’s new strategic phase, I wanted to assemble a renewed management team with diversified and strengthened banking skills. Together, we will focus on accelerating the transformation of our business to better serve our clients, particularly in capital markets and retail banking, in an economic environment impacted by the COVID crisis and in a broader context of technological shift and of increased responsibility for banks to finance the positive transformations of economies. The objective of this new organisation is to enable us to strengthen the Group synergies and our efforts to reduce costs.
I would like to highlight the exceptional contribution of Séverin Cabannes a member of the Executive Board since 2008. I am pleased that he has agreed to continue in his position until the end of the year. I would also like to warmly thank Philippe Heim for his tenure during his two years as Deputy Chief Executive.