The Society Gunarel plans to shift its investment bank’s focus to corporate finance and consulting, as it tries to move away from business risks that have pushed the French nder into first-year losses over the decades.
The agency said Monday it would push for “a client-centric strategy” by allocating capital “in favor of financing, consulting and transaction banking” to further reduce reliance on an opening trade flow.
The pledge comes after its equity derivatives business, which has been a key part of the bank’s identity for decades, Loss last year After epidemic companies were forced to cancel dividend payments, there were holes in a few of them Structural products Sell to bank clients.
As a result, Sosgen has reduced the level of risk taken by its equity division. It is At the top of the list And created an overhaul of new products that offered revenue of up to 250 250 million, but by 2023 the amount of spending would have to be reduced by 50 450 million.
This segment of the business has returned to its best performance since 2015, helping to inspire Sosgen’s profit in the first quarter And reducing stress for profound change.
The division payer is now going to try to provide “predictable performance” from its market business, department head Jean-Franসois Gregor told investors on Monday.
“Last year, the impact of a unique displacement in the market led us to review the management of structured products that were clearly very problematic in extreme market conditions,” Gregoire said. “We decided to de-risk quickly.”
Sosgen said Monday that its overall global banking and investor solutions business (GBIS), which includes both business and investor funds, will now focus on the bank’s measure of consolidated returns compared to 2023 – “return on normal equity”. In contrast to currently about cent percent.
For financial resources and advisory business, the bank aims to achieve a revenue growth of about 3 percent between 2020 and 2023, while building “stability” in the market business.
Sosgen wants to “generalize” to earn about 5 5 billion in GBIS in 2023, while spending 2023 targets a বেস 5.5bn- € 5.7bn spending base. It stood at around 5.8bn in 2020 b
“All in all, this is the result of the inclusion of Sausage’s new target [roughly] Analysts at Morgan Stanley reported a 20 percent gain in 2023.
Shares of Sosgen rose nearly three percent during trading in early afternoon in Paris and their profits have reached nearly 50 percent this year.
However, the bank’s share price, at .6 25.64, is still below the position held by CEO Frederick Odia in 2008. Jerome Carville The rogue trade scandal.
Odua’s current term as CEO will run until 2023 and is part of a change in the investment bank’s restructuring strategy that will become the core of his legacy.