PARIS (dpa-AFX) - Société Générale (SCGLF.PK, SCGLY.PK) said the Boards of Directors of the company and Crédit du Nord have approved the launch of the project to merge the Societe Generale and Crédit du Nord brands. This follows the study launched on 23 September 2020, which showed the relevance of such a merger.
The combination of the banking networks will form a new entity at the service of nearly 10 million customers. The merger will generate considerable cost synergies, in particular through the use of a single IT system by first half 2023, network optimisation, and the consolidation of Group functions. For the combined entity, the Group targets: a net cost base reduction of more than 350 million euros in 2024 and about 450 million euros in 2025 compared with 2019.
Also, Société Générale has decided to bring Boursorama to maturity in terms of the number of customers, with the goal of reaching 4.5 million customers in 2025. After achieving this, Boursorama plans to generate high profitability by relying on its operating model.
Following a phase of accelerated customer acquisition until 2023, which will lead to a cumulative loss of about 230 million euros over the period, Boursorama targets net income of around 100 million euros in 2024 and around 200 million euros in 2025, representing a return on normative equity of more than 25%.
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