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