The retail banking arm of BNP Paribas has reported pre-tax income of €1.86bn for the fourth quarter of 2016, a 1.2% decrease compared to €1.88bn the year ago.

The unit’s quarterly revenues were €7.76bn, a rise of 1% from €7.68bn in the prior year. Operating income at the unit dipped 0.9% year-on-year to €1.73bn.

Revenues in the bank's French Retail Banking unit stood at €1.55bn, down 3.4% from €1.60bn last year. The division’s net interest income decreased 4.9% to €1899m from €1946m the year ago.

Overall, BNP Paribas group reported pre-tax income of €2.26bn for the fourth quarter of 2016, a surge of 53.9% from €1.47bn in the fourth quarter of 2015.

The banking group’s net income attributable to equity holders was €1.44bn, over double compared to €665m in the prior year. Revenues increased 1.9% year-on-year to €10.65bn.

BNP Paribas CEO Jean-Laurent Bonnafe said: “With 7.7 billion euros net income, BNP Paribas delivered a good performance in 2016 thanks to its integrated and diversified business model and the dedicated work of all its employees. Revenues are up despite a lacklustre environment this year. Costs were well contained and the cost of risk was significantly lower.

“The Group’s balance sheet is rock-solid and the significant increase in the fully loaded Basel 3 common equity Tier 1 ratio to 11.5% testifies the capital generation. After the success of its 2014-2016 plan, which allowed to attain the defined targets, the Group now unveils its 2020 business development plan that announces an acceleration of digitalisation and targets an average growth of net income of more than 6.5% per year until 2020.”