Swiss banking giant Credit Suisse Group has posted a net loss attributable to shareholders of CHF2.3bn for the fourth quarter of 2016, compared to a net loss of CHF5.83bn for the same period in the last year.

The bank said that the loss was driven by net litigation provisions of CHF2.17bn, mainly relating to the settlement with the US Department of Justice (DOJ) for sale of legacy residential mortgage-backed securities (RMBS).

Net revenues were CHF5.18bn, a 23% surge from CHF4.21bn in the prior year.

Total operating expenses slumped 37% from CHF7.01bn from CHF10.52bn in the previous year.

The bank has three geographic divisions – Asia Pacific (APAC), Swiss Universal Bank (SUB) and International Wealth Management (IWM).

The APAC unit generated a pre-tax income of CHF103m for the fourth quarter of 2016, compared to a loss of CHF617m in the fourth quarter of 2015. The unit’s net revenues increased 4% to CHF862m from CHF826m the last year.

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The SUB division posted income before taxes of CHF382m for the fourth quarter of 2016, up 5% compared to CHF364m in the corresponding quarter of 2015. The unit’s net revenues dropped 6% year-on-year to CHF1.39bn.

The IWM unit posted a pre-tax income of CHF331m for the fourth quarter of 2016, compared to a loss of CHF24m in the prior year. Net revenues increased 11% year-on-year to CHF1.29bn.

Credit Suisse CEO Tidjane Thiam said: “2016 was the first full year of implementing our new strategy and it was a challenging and busy 12 months. Thanks to our strong client franchise and the dedication of our teams, we have made good progress on our key objectives.

“We have significantly reduced our fixed operating cost base and increased our operating leverage. We have generated industry-leading net inflows at higher margins. We have achieved meaningful successes in advisory and underwriting, with strong increases in both market share and profitability.

“We have substantially completed the rightsizing of GM and the division was profitable for FY16, with good momentum in 4Q16. We have reached an agreement with the US Department of Justice on the RMBS matter, thus removing a major source of uncertainty for our future.”