Societe Generale , France's second-biggest listed bank, is seen reporting a 78 percent slump in quarterly earnings on Thursday, largely due to losses on asset sales and the impact of the euro crisis on financial markets.

Investors are likely to focus on the outlook for capital and the impact of cutbacks at the bank, which has scrapped its dividend and pledged to slash its balance sheet to fill a 2.1 billion-euro (1.7 billion pound) capital shortfall.

SocGen Chief Executive Frederic Oudea, who overhauled his management team at the end of 2011 after a torrid six months for the bank's shares, is also expected to give details on business disposals that might help avoid a forced capital hike.

SocGen is expected to report fourth-quarter net profit of 190 million euros, down from 874 million euros a year earlier, according to a Reuters poll of 10 analysts.

Revenue is seen falling 15 percent, to 5.81 billion euros, according to the same poll.

SocGen's key investment banking division is seen reporting a net loss of 81 million euros for the quarter, hit by restructuring costs and fixed-income pain, while its more reliable cash-cow French retail bank is seen posting 322 million in net profit.

Europe's debt crisis and volatile financial markets have taken a big bite out of European banks' profits. Germany's Deutsche Bank and Switzerland's Credit Suisse ended 2011 with quarterly losses, while Barclays posted its worst quarter for three years.

SocGen's results follow those of larger rival BNP Paribas , which on Wednesday beat analyst forecasts and sounded an upbeat note at odds with the tone of many rivals, predicting that the euro zone debt crisis was stabilising.

Extra writedowns on Greek debt, which cost BNP 567 million euros in the fourth quarter, are seen costing SocGen around 191 million euros.

(Reporting by Lionel Laurent and Matthieu Protard; Editing by Helen Massy-Beresford)