Societe Generate adds to bank worries

摘要

Societe cenerale has joined a growing list of European banks to worry investors that it faces a difficult year after being hit by a combination of litigation costs, losses from oil loans and a tough trading environment. Despite lifting its proposed final dividend by two-thirds to €2 a share, the French bank's shares slumped to their lowest level for 2.5 years and investors were unsettled after it took a series of unexpected provisions totalling €400m for litigation and writedowns for oil and gas exposures. The fourth quarter also looked weaker for the group. It reported a 1.7% fall in net banking income to €6.05bn compared with the same period a year earlier and a 2.1% rise in operating expenses to €4.35bn. When the additional cost items were added, group operating income fell 46% to €547m.