Slawomir Krupa has one clear mission when he takes over at Société General (OTC: SCGLY) on Tuesday: remake France’s third-largest lender as a top-tier bank with a distinct identity. The 48-year-old, who has spent his whole career at Socages, must perform a tricky balancing act, improving returns for shareholders without taking an undue risk against a shaky backdrop for bank stocks. “It’s very important to clarify (things), where necessary, to all stakeholders and say: That’s what Society General is,” Krupa, who most recently headed Sorge’s investment bank, told Reuters in an interview. He is due to lay out his plans for the bank by the autumn. After a tumultuous 15 years under his predecessor, Frederic Oued, who merged units, sold businesses – including a costly Russia exit – and cut risk-taking, the bank’s stock price is trading at just 30% of the book value of its business. As a yardstick of investor support, that puts it on a par with Deutsche Bank (ETR: Dubcon) but far behind its bigger French rival BNP Paribas (OTC: BNPQY), and at the bottom end of European lenders. Society General’s vulnerability was made clear earlier this year when its stock was among the hardest hit as investors sought safety following the collapses of Silicon Valley Bank and Credit Suisse. Those who appointed Krupa hope he can lead the bank out of this danger zone. A person familiar with the decision by Sorge’s board to appoint him as CEO said the top priority is to improve efficiency within the bank’s current structure, as Krupa did after taking over the investment bank in early 2021. This could include seeking to squeeze more out of other parts of the business to reduce what is seen as too high an exposure to riskier investment banking. In his previous role Krupa cut costs and addressed trading risks, said that person, who is familiar with the Sorge’s board thinking, paving the way for a turnaround of the division. Two years on, Sorge’s investment bank recorded the largest annual growth in pre-tax profit among the three French listed banks, cementing it as the group’s main profit driver. BREAK WITH TRADITION Krupa’s reputation as a problem-solver helped make his case for the top job when he appeared before Sorge’s independent directors in September, people familiar with the process said. Despite his 26 years at the bank, he was also viewed as something of an outsider, because unlike Socages CEOs stretching back a century he has not previously been in the senior ranks of France’s public administration. The board favored a break with tradition, said one of the people. Born in Communist Bulgaria in 1974, Krupa’s family emigrated from Poland to France when he was six. His hard-driving style is also seen as a contrast to Ooldea’s. “Slawomir has … a way of moving forward, of taking people with him. Frederic (Oued) is more collegial,” said Jean-Pierre Mustier, the former Slawomir Krupa has one clear mission when he takes over at Society Générale (OTC:SCGLY) on Tuesday: remake France’s third-largest lender as a top-tier bank with a distinct identity. The 48-year-old, who has spent his whole career at Socages, must perform a tricky balancing act, improving returns for shareholders without taking undue risk against a shaky backdrop for bank stocks. “It’s very important to clarify (things), where necessary, to all stakeholders and say: That’s what Society General is,” Krupa, who most recently headed Sorge’s investment bank, told Reuters in an interview. He is due to lay out his plans for the bank by the autumn. After a tumultuous 15 years under his predecessor, Frederic Oued, who merged units, sold businesses – including a costly Russia exit – and cut risk-taking, the bank’s stock price is trading at just 30% of the book value of its business. As a yardstick of investor support, that puts it on a par with Deutsche Bank (ETR: Dubcon) but far behind its bigger French rival BNP Paribas (OTC:BNPQY) and at the bottom end of European lenders. Society General’s vulnerability was made clear earlier this year when its stock was among the hardest hit as investors sought safety following the collapses of Silicon Valley Bank and Credit Suisse. Those who appointed Krupa hope he can lead the bank out of this danger zone. A person familiar with the decision by Sorge’s board to appoint him as CEO said the top priority is to improve efficiency within the bank’s current structure, as Krupa did after taking over the investment bank in early 2021. This could include seeking to squeeze more out of other parts of the business to reduce what is seen as too high an exposure to riskier investment banking. In his previous role Krupa cut costs and addressed trading risks, said that person, who is familiar with the Sorge’s board thinking, paving the way for a turnaround of the division. Two years on, Sorge’s investment bank recorded the largest annual growth in pre-tax profit among the three French listed banks, cementing it as the group’s main profit driver. BREAK WITH TRADITION Krupa’s reputation as a problem-solver helped make his case for the top job when he appeared before Sorge’s independent directors in September, people familiar with the process said. Despite his 26 years at the bank, he was also viewed as something of an outsider, because unlike Socages CEOs stretching back a century he has not previously been in the senior ranks of France’s public administration. The board favored a break with tradition, said one of the people. Born in Communist Bulgaria in 1974, Krupa’s family emigrated from Poland to France when he was six His hard-driving style is also seen as a contrast to Judea’s. “Slawomir has … a way of moving forward, of taking people with him. Frederic (Oued) is more collegial,” said Jean-Pierre Mustier, the former Uncredited CEO and former head of Cogen’s investment bank who made Krupa his chief of staff in 2007. A self-described straight-talker, Krupa can be impatient and demanding, a former top executive at Socages said. Others say that bluntness is a strength. One of Sorge’s top corporate clients, who has met Krupa on several occasions, told Reuters he was not part of a French establishment where nobody wants to say no. Krupa faces challenges from the outset. Some investment bankers suggest that ultimately the group could be combined with a European rival. One, asking not to be named, said such a move would benefit Socages because it was a “mid-size player” dwarfed by U.S. rivals and domestic giant BNP Paribas. That view is echoed by Jean Demine, a professor at business school INSEAD. “How to improve profitability without mergers? I don’t see how it is possible at all,” he said. For now, Krupa is focused on operational questions, such as finalizing a joint venture with investment management company Alliance Bernstein (NYSE:AB) for global cash equities and equity research. That may offer a platform to grow in the United States. But Krupa said a big merger is not on the cards in the near term. “Strategically, does Europe need stronger banks? The answer is yes, but I don’t think that’s really on the agenda at this stage,” he told Reuters. CEO and former head of Sorge’s investment bank who made Krupa his chief of staff in 2007. A self-described straight-talker, Krupa can be impatient and demanding, a former top executive at Sorge said. Others say that bluntness is a strength. One of Sorge’s top corporate clients, who has met Krupa on several occasions, told Reuters he was not part of a French establishment where nobody wants to say no. Krupa faces challenges from the outset. Some investment bankers suggest that ultimately the group could be combined with a European rival. One, asking not to be named, said such a move would benefit Socages because it was a “mid-size player” dwarfed by U.S. rivals and domestic giant BNP Paribas. That view is echoed by Jean Demine, a professor at business school INSEAD. “How to improve profitability without mergers? I don’t see how it is possible at all,” he said. For now, Krupa is focused on operational questions, such as finalizing a joint venture with investment management company Alliance Bernstein (NYSE:AB) for global cash equities and equity research. That may offer a platform to grow in the United States. But Krupa said a big merger is not on the cards in the near term. “Strategically, does Europe need stronger banks? The answer is yes, but I don’t think that’s really on the agenda at this stage,” he told Reuters.