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LONDON, Sept 18 - Societe Generale's shares plunged more than 9% on Monday after France's third-biggest listed bank said it expected little if any growth in annual sales over the coming years in a keenly-awaited strategic plan from its new CEO.
"We are negatively surprised by lack of revenue growth, increased capital target, payout & ROTE cut, and by the lack of details," Jefferies analysts said in a note. SocGen's challenges highlight the predicament of French banks, which tend to benefit later than European peers from interest rate rises because of the dominance of fixed-rate mortgages in France and government limits on passing on rate hikes - a particular problem as the global economy struggles.
"It will take time for the shares to discount the cost improvement given SG's mixed track record," they said."The new CEO will have to earn investor goodwill through delivery."
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