trending Market Intelligence /marketintelligence/en/news-insights/trending/wckwpqmkbtnldwnvgg9wpg2 content esgSubNav
In This List

Exceptional items, tax reforms dent SocGen Q4'17 net income

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Exceptional items, tax reforms dent SocGen Q4'17 net income

Société Générale SA reported fourth-quarter 2017 group net income of €69 million, down 82.3% from €390 million earned in the prior-year period. When adjusted for revaluation of own financial liabilities and debt value adjustment on derivative instruments, group net income dropped to €3 million from the year-ago €421 million.

The lender noted that the result was impacted by several exceptional items. When corrected for the impact of these exceptional items, noneconomic items and the linearisation over the year of the IFRIC 21 charge recorded in the first quarter of 2017, underlying group net income totaled 877 million in the fourth quarter of 2017, compared to 1.16 billion in year-ago quarter.

The lender noted that net income for the quarter also includes an exceptional expense of €416 million, the impact of the tax reforms in France and the U.S.

Net banking income was €6.32 billion, up from €6.13 billion a year earlier. Operating income, meanwhile, declined on a yearly basis to €830 million from €1.25 billion.

The French lender booked net losses from other assets of €39 million, compared to year-ago losses of €262 million. Net cost of risk reached €469 million, compared to €486 million in the fourth quarter of 2016.

Provision for disputes amounted to €200 million, compared to the year-ago €150 million.

For full year 2017, SocGen's group net income dropped year over year to €2.81 billion from €3.87 billion. EPS for the period amounted to €2.92, compared to €4.26 a year earlier.

Underlying group net income amounted to 4.49 billion in 2017, compared to 4.15 billion in 2016. Underlying return on equity for 2017 was 8.3%, compared to 7.9% in 2016.

The fully loaded common equity Tier 1 ratio stood at 11.4% as of Dec. 31, 2017, down from 11.5% at the end of 2016.

SocGen's board of directors proposed a dividend of €2.20 per share for 2017. The dividend will be detached May 30 and paid June 1.