Deutsche Bank has recorded a net loss of €1.89bn for the fourth quarter of 2016, compared to a net loss of €2.12bn in the year ago quarter.

The German banking group said that the results largely reflected the litigation charges of €1.6bn and the impairment of goodwill and other intangibles of €1bn.

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

The banking group’s net revenues increased 6% to €7.07bn from €6.64bn a year ago. The bank said that revenues included a gain of €0.8bn from the sale of the bank’s stake in Hua Xia Bank. Excluding this gain, revenues dropped 5%.

Noninterest expenses remained almost flat at €8.99bn. Provisions for credit losses surged 30% year-on-year to €492m, mainly driven by higher provisions for the shipping portfolio in Corporate & Investment Banking.

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.”