The French retail banking arm of Societe Generale has posted a net income of €22m for the fourth quarter of 2017, a slump of 94.5% from €402m in the previous year.

The division’s gross operating income dropped 73.6% to €202m from €766 in the fourth quarter of 2016. Net banking income declined 4.3% year-on-year to €2.08bn from €2.17bn a year ago.

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For the quarter ended 31 December 2017, the division’s operating expenses surged 33.4% to €1.88bn from €1.41bn last year.

The bank’s international retail banking & financial services unit posted a net income of €474m, up 8.2% from €438m a year ago. The unit’s gross operating income increased 6% year-on-year to €927m.

Overall, the Societe Generale group reported a net income of €69m for the fourth quarter of 2017, a slump of 82% compared to €1.1bn in the year ago period.

The bank’s fourth quarter result was impacted by several exceptional items related to the acceleration in the adaptation of French Retail Banking networks, the effects of the tax reforms in France and the United States.

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Gross operating income for the period ended 31 December 2017 was €1.23bn, down 25% from €1.73bn in the same period last year. Operating expenses rose 14% year-on-year to €5.02bn.

The group’s common equity tier 1 ratio at the end of December 2017 stood at 11.4% as against 11.5% a year ago.

Societe Generale CEO Frederic Oudea said: “We are starting 2018 with confidence, sustained by the ambition to seize the growth opportunities of our activities, in an economic and financial environment that should gradually be more favourable.

“We will focus on the disciplined execution of the first year of our new strategic plan. With globally recognised expertise, the exceptional commitment of our teams and a solid balance sheet, we are resolutely aiming to be a trusted partner of our customers, deeply involved in the positive transformation of our societies and economies.”