Societe Generale Shares Gain on Results -- Earnings Review

02/08/18 05:24 AM EST
   By Pietro Lombardi 
 

Societe Generale SA's (GLE.FR) reported better-than-expected fourth-quarter results Thursday, giving its shares a boost. At 1008 GMT shares traded 3.6% at higher. Here are some highlights:

 

PROFIT: SocGen's fourth-quarter net profit declined 82% on the year to 69 million euros ($85.1 million), dented by one-off items. Despite this steep drop, the bank beat expectations for a loss of about EUR300 million in the quarter.

 

NET BANKING INCOME: France's third-largest listed bank by assets had a 3.2% increase in net banking income to EUR6.32 billion, above the EUR5.85 billion consensus forecast provided by FactSet.

 

WHAT WE WATCHED

 

TAX-RELATED AND OTHER CHARGES: Exceptional items hit results, as expected. The list of one-offs include a EUR416 million charge related to tax reforms in France and the U.S., with the U.S. tax overhaul accounting for EUR253 million. In addition, exceptional items pushed 4Q operating expenses up 14% to EUR5.02 billion, including a EUR390 million charge related to the restructuring of French retail operations. The lender also added EUR200 million to its provision for disputes, which now stands at EUR2.32 billion.

 

MARKET REVENUES: The low volatility environment weighed on 4Q market revenues, which declined. However, while some forecasts expected a double-digit drop in fixed income, currencies and commodities revenue, or FICC, and equities revenue, these fell by roughly 7% and 2% respectively, SocGen said.

 

DIVIDEND: As expected, SocGen proposed a dividend of EUR2.20 for 2017, unchanged from 2016.

 

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

 

(END) Dow Jones Newswires

February 08, 2018 05:24 ET (10:24 GMT)

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