PARIS: Societe Generale SA is considering shutting hundreds of bank branches in France as more clients go online.
The bank is considering closing 20 percent of branches by 2020 in France, the Force Ouvriere union said in a statement. Societe Generale said the numbers have not been finalized, though it wants to “optimize” its network in a program that has begun with 40 branch closures in 2015.
Societe Generale, which like UniCredit SpA and Barclays Plc is aiming for a
leaner and less bureaucratic bank, estimates that about 42 percent of clients visit one of its French branches once a month, down from 57 percent in 2007. The bank will finalize its new plans for branch reductions by year end.
HSBC Holdings Plc’s analysts raised their recommendations for Societe Generale and its larger French competitor BNP Paribas SA to buy after their shares fell since Jun. Job cuts at their French networks may also improve the cost base, the analysts wrote in the note to clients.
The bank said the overhaul of its retail network will focus on urban areas
and it aims to increase the average size of remaining outlets. The French retail network consists of more than 2,200 branches, excluding the Credit du Nord brand. Societe Generale’s French consumer-banking unit generated a 419 million-euro ($472 million) net income in the second quarter, topping profit at its market activities, it said in June.
Societe Generale shares fell as much as 2.2 percent to 37.25 euros as of 9:05 a.m. in Paris trading.
