Société Générale said today its quarterly profits fell 17.6 per cent after it took a restructuring charge and put aside money to cover a drop in value of its equity holdings in a weak stock market.
The Paris-based bank earned €364 million in net profit in the fourth quarter of last year, compared with €442 million in the 2001 quarter.
The bank also said it proposed leaving its annual net dividend unchanged at €2.10 a share. Results were a bit better than expected. Société Générale was expected to earn €356 million, based on an average estimate of analysts.
Société Générale put aside €113 million in the quarter to cover a drop in the value of its industrial equity portfolio in the prolonged stock market rout.
The bank also took an €82 million charge in the quarter for cutbacks in its cash equity and advisory business. Strong retail banking, a driver at many banks over the year, helped offset the provision and charge.
Société Générale's gross operating profit fell 1.8 per cent to €998 million in the fourth quarter, slightly less than what analysts had expected. Its net banking income dipped 0.5 per cent to €3.67 billion, also topping estimates.
For the full year, net profits fell 35.1 per cent to €1.397 billion compared with 2001.
Société Générale stock closed at 48.49 on last night in Paris. The shares fell about 12 per cent last year, outperforming a nearly 27 per cent drop in the DJ Stoxx European banks index.