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SocGen to cut costs, protect dividend in 2017-2020

Societe Generale implied on Monday it plans to close more branches and cut staff in its French retail banking network while stock assets, as part of a three-year plan to boost returns.

Chief Supervisory Frederic Oudea, who took the top job following a rogue trader scandal in 2008, is under prevail upon to boost profitability in the face of tougher regulation and client demand for growing investment in new technologies.

France’s third-largest listed bank unveiled a 1.1 billion euros savings map out that will cut 900 jobs in its French retail bank, proximate 300 branches and reduce the number of back office centres.

It is also seeking to better revenue by more than 3 percent annually – with the slowest vegetation seen coming from French retail and the strongest from intercontinental retail banking and financial services.

The bank’s shares have underperformed dukes so far this year amid fears that pending legal discords could hurt dividends.

But SocGen said it was targeting progressive dividend rise, with a 50 percent payout ratio and 2.20 euro overwhelm – matching what it paid on 2016 results – to apply from 2017.

It also intended it could sell or close sub-scale businesses accounting for around 5 percent of the team’s risk-weighted assets, which stood at 353 billion euros as of Sept 30.

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