Credit Agricole said net profit for the fourth quarter declined sharply, dragged by impairment at its Italian business and provisions for bad loans, and that it is taking further steps to simplify its structure.

France’s second-largest listed bank by assets posted an almost 93% fall in net profit for the period, to €124m ($150.3m). This compares with analysts’ expectations of a €165m net loss, according to a consensus forecast provided by FactSet.