The Private, Wealth & Commercial Clients (PW&CC) arm of Deutsche Bank has posted pre-tax income of €701m for the fourth quarter of 2016, compared to pre-tax loss of €527m in the year-ago period.

The unit’s quarterly net revenues were €2.38bn, a surge of 27% compared to €1.87bn in the year ago period. The bank said that the rise reflected a gain of €0.8bn from the sale of the bank’s stake in Hua Xia Bank. The results were also affected by the sale of the Private Client Services unit (PCS) in September 2016. Excluding these two items, revenues dipped 7% compared with year ago period, mainly driven by the ongoing low interest rate environment and reduced investment activity of clients in wealth management and private & commercial clients business segments.

The division’s noninterest expenses were €1.58bn, a 31% slump from €2.31bn in the previous year. Provision for credit losses rose 3% year-on-year to €95m.

Deutsche Asset Management (Deutsche AM) posted pre-tax loss of €753m in the fourth quarter of 2016, compared to a pre-tax income of €173m in the fourth quarter of 2015.

Excluding the impact of the Abbey Life gross-up, net revenues at the unit dropped 4% year-on-year to €712m.

Overall, the banking group reported net loss of €1.89bn for the fourth quarter of 2016, compared to a net loss of €2.12bn a year ago.

The group posted a pre-tax loss of €2.41bn during the period, compared to a pre-tax loss of €2.70bn in the previous year.

The group’s net revenues increased 6% year-on-year to €7.07bn. The bank said that revenues included a gain of €0.8bn from the Hua Xia Bank stake sale. Excluding this gain, revenues dropped 5%.

Deutsche Bank CEO John Cryan said: “Our results for the year 2016 were heavily impacted by decisive management action taken to improve and modernise the bank, as well as by market turbulence for Deutsche Bank.

“We proved our resilience in a particularly tough year. We finished 2016 with pleasingly strong capital and liquidity ratios and we are optimistic after a promising start to this year.”