(Bloomberg) -- Societe Generale SA Chief Executive Officer Slawomir Krupa replaced several top managers as he seeks to draw a line under a disappointing performance at the French retail business.
Deputy Chief Executive Officer Philippe Aymerich, who had overseen French retail banking, is stepping down with immediate effect, along with the executive running the domestic bricks-and-mortar network, Marie-Christine Ducholet. Chief Financial Officer Claire Dumas is also leaving.
The changes come as SocGen finally emerges from a year marred by wrong-way interest rate hedges at the retail business. Shares of the lender surged as much as 11% on Thursday as third-quarter results showed signs of a rebound at the unit.
The overhaul is the biggest since Krupa unveiled a major strategy revamp in September of last year. Focused on boosting capital levels instead of profitability, the plan had been greeted with skepticism from investors. The French retail troubles complicated Krupa’s efforts further.
Shares of SocGen rose 8.4% at 9:32 a.m. in Paris trading, extending a rebound from a low in early August, when signs mounted that the worst for the French business may be over.
Krupa’s latest leadership revamp is focused on the vast domestic retail division, which accounts for roughly a third of revenue and a quarter of staff. That business has been beset by ill-timed hedges and stringent French rules limiting how much banks can raise lending rates.
As part of the overhaul, Krupa assumed direct oversight of the unit while the head of international retail, Pierre Palmieri, remains as sole deputy CEO. Leopoldo Alvear will join from Spanish lender Banco de Sabadell SA as new CFO on Jan. 7.
SocGen reported third-quarter results on Thursday that broadly beat analysts’ estimates, with trading revenue adding to the boost from the retail unit.
The past quarter “marks a turning point for SocGen’s investment case with confirmation of a turn in French retail revenue,” Jefferies analysts including Joseph Dickerson wrote in a note.
Bertrand Cozzarolo and Thierry Le Marre have jointly taken over Ducholet’s responsibilities, SocGen said in the statement announcing the management changes. Dumas will stay on until the end of January.
Krupa has previously overhauled management, including a shakeup of the investment bank a week before he assumed the CEO role in late May last year. Earlier in 2023, he appointed Aymerich as deputy CEO along with Palmieri.
(Updates with details and context from third paragraph.)
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