Skip to content
Subscriber Only

SocGen to Shrink Trading Unit, Cut Costs After Market Rout

  • Bank sees fixed-income, commodities, currency trading down 29%
  • Lender to review less profitable trading activity after slump
Video player cover image
Societe Generale CEO Oudea discusses plans to shrink the bank’s markets business after trading revenue plummeted 29%.(Source: Bloomberg)
Updated on

Societe Generale SA is shrinking its markets business and cutting an additional 500 million euros ($567 million) of costs to combat the market rout that sent trading revenue tumbling.

The Paris-based bank is replacing global markets head Frank Drouet and cutting about 8 billion euros ($9.1 billion) of risk-weighted assets. SocGen will review less profitable fixed-income and currencies activities after a 29 percent decline in fourth quarter revenue, while seeking to maintain its position in equity derivatives.