(Bloomberg) -- Societe Generale SA is planning to substantially cut costs at its corporate investment-banking unit, a person familiar with the matter said, after the French lender warned that “challenging” conditions in the fourth quarter dented revenue from market units.

Reductions are an urgent priority for Chief Executive Officer Frederic Oudea and may be presented as soon as early February, said the person, who requested anonymity because the details are private. A spokesman for Societe Generale declined to comment.

France’s third-largest bank warned on Thursday that trading revenue probably declined about 20 percent in the fourth quarter, undermining Oudea’s efforts to deliver on growth targets. SocGen said that market conditions were behind the drop, and that trading revenue last year was probably about 10 percent lower compared with 2017.

SocGen is also considering steep cuts to its traders’ bonus pool for a second straight year, people with knowledge of the matter said this week. Bonuses will probably fall by as much as 25 percent, mirroring the levels of cuts a year ago, the people said, asking not to be identified because the deliberations are private. Tough market conditions in the fourth quarter will require the bank at the very least to cut the pool by 10 percent, the people said.

Oudea is seeking to restore investor confidence after the bank paid about $2.6 billion in penalties last year to solve major probes.

To contact the reporter on this story: Geraldine Amiel in Paris at gamiel@bloomberg.net

To contact the editors responsible for this story: Vidya Root at vroot@bloomberg.net, Dan Reichl, David Scheer

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