Societe Generale Shares Gain on Results -- Earnings Review
08 Febbraio 2018 - 11:39AM
Dow Jones News
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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