Societe Generale 4Q Net Profit Falls on One-Off Items
By Pietro Lombardi
Societe Generale SA (GLE.FR) said Thursday that its fourth-quarter net profit fell significantly, hit by one-off items.
The French lender, the country's third-largest listed bank by assets, reported a net profit of 69 million euros ($84.6 million), compared with a net profit of EUR390 million in the same period last year.
Revenue stood at EUR6.32 billion, up from EUR6.13 billion a year earlier.
For 2017, Societe Generale reported a net profit of EUR2.81 billion ($3.45 billion), a 28% decline from the previous year.
One-off items weighed on fourth-quarter results, which include a EUR416 million charge related to tax reforms in France and the U.S. The bank took a EUR253 million hit from the U.S. tax overhaul.
Exceptional items pushed up the group's operating expenses, which rose 14% in the quarter to EUR5.02 billion. These include a charge of EUR205 million stemming from an audit of various operating taxes by the French tax administration and a court judgment on the processing of checks, as well as EUR390 million related to the restructuring of its French retail operations.
The bank's core Tier 1 ratio, a key measure of capital strength, declined to 11.4% in December from 11.7% the previous quarter.
Societe Generale proposed a dividend of EUR2.20 ($2.70) a share, unchanged from 2016.
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(END) Dow Jones Newswires
February 08, 2018 01:14 ET (06:14 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.