Bank / Credit Union

SocGen to close 600 branches and cut costs by $546M

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December 8, 2020

France's Société Générale bank is merging its retail banking network with that of its subsidiary, Crédit du Nord, as well as closing 600 branches and cutting costs by $546 million. The bank is making the changes to lessen the impact of how consumer migration to digital banking during the pandemic affected business, according to a press release.

After cutting 600 branches within the retail network there will be approximately 1,500 branches left by the end of 2025. SocGen already has had a year marked with difficulties showing a loss in its equities division of $156 billion dollars in the second quarter.

In this new branch network strategy, SocGen's will have a total of 10 million customers and save money by combining IT systems and investments. The bank did not specific how many jobs will be lost.

"In a changing French market undergoing several developments accelerated by the COVID-19 crisis, we are confirming our ambition to differentiate the group by building a unique French retail banking model based on two strong and complementary pillars," Frédéric Oudéa, CEO, Société Générale said in the release.