PARIS (Reuters) - French bank Societe Generale (SOGN.PA) is set to announce an overhaul of its private banking unit that will see Daniel Truchi replaced as head of private banking, according to several sources familiar with the matter.
SocGen, France’s second-listed bank, is cutting jobs, selling assets and overhauling management under Chief Executive Frederic Oudea as it seeks to restore investor confidence after a brutal 2011.
“Operationally, (Truchi) is stepping down as head of the private bank,” one of the sources told Reuters.
Spokespeople for SocGen’s private-bank division were not immediately available for comment.
Several sources told Reuters that SocGen’s deputy head of global finance, Jean-Francois Mazaud, was set to join the private bank as part of the reorganization but it was not clear in which post.
A veteran banker with years of experience in Asia, Truchi first joined SocGen in 1997 as head of its Asia-Pacific private bank. He became global CEO of the private bank in 2007.
The announcement is expected late next week, one of the sources said.
Shares of SocGen closed down 5.4 percent, at 16.08 euros ($20.57), depressed by investor anxiety about European banks after Italian bank UniCredit’s (CRDI.MI) heavily discounted 7.5 billion euro rights issue.
SocGen has pledged to cut 60 to 80 billion euros in risk-weighted assets from its balance sheet by 2013, with around half the cuts coming from its corporate and investment bank. The unit is seeking to slash euro funding needs by up to 60 billion euros and U.S. dollar needs by $50 billion.
The bank plans to cut some 880 jobs at the French unit of its investment bank as part of a “voluntary departure plan,” it said on Wednesday, as it and rivals struggle through a liquidity crisis. ($1 = 0.7817 euros)
Reporting by Lionel Laurent and Julien Ponthus; Editing by Christian Plumb