Societe Generale Expects More Than $500 Million in Charges in 4Q

By Euan ConleyFeaturesDow Jones Newswires

France's Societe Generale (GLE.FR) said Thursday it would take over $500 million in additional charges in the fourth quarter, more than half of which stem from U.S. tax reform.

The bank said it expects to book a charge of $307 million dollars in its fourth-quarter results due to the short-term accounting impact of the change in U.S. federal corporate tax rate and a valuation adjustment of deferred tax assets.

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"From 2018, the decrease of the federal tax rate will have a favorable impact on the profitability of group operations in the U.S.," it added.

Societe Generale will also book a charge of around EUR200 million ($239.1 million) in fourth-quarter operating expenses, stemming from a audit by the French government of various operating taxes and from a Paris court judgment related to the processing of checks.

The bank said none of the charges would affect its dividend policy.

Write to Euan Conley at euan.conley@dowjones.com

(END) Dow Jones Newswires

January 11, 2018 12:42 ET (17:42 GMT)