Societe Generale saw a plunge in quarterly profits as tax-related and restructuring costs weighed on the bank's earnings.
But SocGen's results still beat forecasts as a drop in capital markets trading was shallower than many of its peers.
Fourth quarter net income at France's third-biggest bank fell to €69m from €390m a year earlier, but it exceeded market expectations that forecast a €303m loss, according to a Reuters poll of analysts.
The bank said it was starting 2018 with confidence "in an economic and financial environment that should gradually be more favourable".
SocGen's chief executive Frederic Oudea is aiming to put the lender, whose valuation has been penalised by litigation risks, on a more stable footing with a cost-cutting drive across its retail and investment bank activities.
Oudea is also targeting investments in digital technologies to keep up with changing customers' behaviour.
Fourth quarter revenue rose at one out of its three businesses - international retail banking and financial services.
It noted that business in Russia is recovering following the economic uncertainty linked to sanctions imposed on it over the Ukraine conflict.
Even though revenue fell 5% at SocGen's investment banking arm, those results showed a relatively bright spot in trading when compared to European and US rivals.
Its fixed income, currencies and commodities (FICC) trading revenue fell 6.5% compared a 27.4% decline at BNP Paribas and a 31% drop on average at the big five US banks in the fourth quarter.
"The decline in volatility which began early in the year continued, leading to reduced investor activity. In this environment, structured products remained dynamic," the bank said in a statement.
Earlier this week, SocGen's French rival BNP Paribas reported quarterly net profit that fell short of market forecasts although BNP Paribas slightly increased its 2020 profitability target.
SocGen, which derives a third of its revenue from French retail banking, said that this business was still feeling the pinch from low interest rates and renegotiations of loans that were impacting margins, as its revenue declined 4.3%.
However, SocGen said its target for 2018 was to stabilise revenue in French retail, while making progress on its restructuring plan that envisages €1.1 billion in savings over the next three years.
