Société Générale said efforts to clean up its balance sheet offset a rebound in its investment banking business as it unveiled a sharp fall in third-quarter profit.
The French bank made a net profit of only €85m in the third quarter, down 86% from €622m a year earlier.
Société Générale said in a statement that earnings were hit by a €396m in charges blamed on a revaluation of its financial liabilities and loan portfolio hedges.
The earnings also included a €235m loss on the sales of stakes in Greek bank Geniki and US asset management firm TCW.
The investment banking arm saw net profits soar to €322m from €77m last year on improved investor confidence and market conditions.
The bank's chief executive Frederic Oudea blamed the 86% drop in net profits on "stupid" rules.
Mr Oudea said in an interview this morning that "exceptional items are related in particular to this stupid accounting thing - which means negative revenues."
The chief executive also warned that there was no prospect of a "big change" to sluggish global growth.
