French lender Societe Generale has reported a net income of €390m for the fourth quarter of 2016, a 40.5% decrease compared to €656m for the same quarter of 2015.

Gross operating income was €1.73bn, a rise of 1.6% from €1.70bn the year ago. Operating expenses increased 1.1%year-on-year to €4.39bn.

The group’s tier 1 ratio at the end of 31 December 2016 was 11.5%, compared to 10.9% a year ago.

The asset and wealth management arm of the bank posted net banking income of €255m for the fourth quarter of 2016, down 5.9% compared to the fourth quarter of 2015.

Net banking income at the group’s private banking unit dropped 10.3%year-on-year to €208m. The unit’s assets under management stood at €116bn at the end of December 2016.

Societe Generale CEO Frederic Oudea said: “The quality of the Societe Generale group's results in 2016 reflects the good commercial and operating performances in all its businesses and in an uncertain environment.

"In an economic environment that is less buoyant and much more demanding on the regulatory front, we have simplified our banking model, optimised capital allocation and continued to invest in the businesses of the future, as we undertook to do in our 2014-2016 strategic plan."