Societe Generale Shares Slide on Profit Warning

   By Anthony Shevlin 
 

Shares in France's Societe Generale SA France (GLE.FR) fell on Thursday after the bank issued a revenue warning for its Global Markets and Investor Services unit due to a challenging environment in global capital markets.

SocGen expects revenue in this business to fall by around 20% in the fourth quarter and by 10% for 2018. Market-weighted risks should increase significantly, too, the company said.

At GMT 0813, shares in SocGen traded 3.7% lower at EUR29.11 ($33.19).

Furthermore, the company said an exceptional charge of EUR240 million will be booked in its Corporate Centre in the fourth quarter due to a result of the IFRS 5 accounting of disposals by the group.

Taking into account both disposals and acquisitions, SocGen said its CET1 ratio, on a pro-forma basis, is expected to be between 11.4% and 11.6% as of the fourth quarter.

Analysts at Jefferies said the profit warning was likely to restart a debate on the company's low capital generation.

Write to Anthony Shevlin at [e-mail]; @anthony_shevlin

(END) Dow Jones Newswires

January 17, 2019 03:39 ET (08:39 GMT)

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