SocGen’s Krupa Fails to Win Investors With Sobering New Strategy
- SocGen slumps most in six months as revenue, profit goals cut
- Shareholder payouts will also likely be lower, new chief says
WATCH: SocGen CEO Slawomir Krupa’s first strategy update underwhelmed investors. Caroline Connan reports.
Source: BloombergThis article is for subscribers only.
Societe Generale SA investors waited four months for Slawomir Krupa to outline how he wants to revive the shares of the French laggard. His answer, in a nutshell: Lower your expectations.
Krupa on Monday cut targets for revenue and profitability, and guided for lower payouts to shareholders, as he focuses on boosting capital buffers and efficiency. But if the former head of the investment bank had planned to underpromise so he could overdeliver later, markets didn’t want to hear about it. SocGen slumped 10%, the most in six months, erasing all gains in the stock since the new chief executive officer took over.