French lender Societe Generale has reported a net income of €69m for Q4 2017, a slump of 82% compared to €1.1bn in the year ago period.
The bank’s fourth quarter result was impacted by several exceptional items related to the acceleration in the adaptation of French Retail Banking networks, the effects of the tax reforms in France and the United States.
Gross operating income for the period ended 31 December 2017 was €1.23bn, down 25% from €1.73bn in the same period last year. Operating expenses rose 14% year-on-year to €5.02bn.
The group’s common equity tier 1 ratio at the end of December 2017 stood at 11.4% as against 11.5% a year ago.
The asset and wealth management arm of the bank posted net banking income of €988m, a dip of 1.3% compared to the fourth quarter of 2016.
Net banking income at the group’s private banking unit stood at €777m, down 4.8% over the year ago quarter. The unit’s assets under management totalled €118bn as at 31 December 2017.
Societe Generale CEO Frederic Oudea said: “We are starting 2018 with confidence, sustained by the ambition to seize the growth opportunities of our activities, in an economic and financial environment that should gradually be more favourable.
“We will focus on the disciplined execution of the first year of our new strategic plan. With globally recognised expertise, the exceptional commitment of our teams and a solid balance sheet, we are resolutely aiming to be a trusted partner of our customers, deeply involved in the positive transformation of our societies and economies.”