SocGen shareholders renew CEO Oudea for four-year board term

FILE PHOTO: Frederic Oudea, Chief Executive Officer of French bank Societe Generale, attends the MEDEF union summer forum on the campus of the HEC School of Management in Jouy-en-Josas, near Paris, France, August 29, 2018. REUTERS/Benoit Tessier

PARIS (Reuters) - Shareholders of French bank Societe Generale voted to give Chief Executive Frederic Oudea another four-year term as board member after he renewed his commitment to lift up the bank’s profitability and solvency.

About 96% of shareholders present during the bank’s annual shareholders meeting voted in favour of Oudea, who has been at the helm of the bank since 2008.

During the meeting, Oudea reiterated his priority is to lift the bank’s return on tangible equity between 9% and 10% in 2020. He also said he will work to boost the bank’s common equity tier one ratio to 12%.

The bank’s management plans to sell assets with lower profitability, cut 500 million euros in costs and restructure its corporate and investment unit.

Oudea dismissed the possibility of merging his bank with another French or European one. For the time being, at least.

“A consolidation operation won’t improve Societe Generale’s profitability or capital level,” Oudea told shareholders.

He added the management would see later - if the regulatory and market environment changes - whether a possible tie-up with another bank would create more value.

Reporting by Inti Landauro; Editing by Geert De Clercq