PARIS (Reuters) – France’s Societe Generale on Wednesday beat profit forecasts for the fourth quarter as charges linked to the COVID-19 pandemic came in lower than expected, helping it offset a drop in equity and fixed-income trading revenue.

Lenders globally have been trying to grapple with the effects of the health crisis, including by setting aside funds to deal with loans that could turn sour in a downturn, though this pressure has begun to ease for some in recent months.

Societe Generale, which is in the midst of a push by Chief Executive Frederic Oudea to boost profitability, said in a statement net income dropped by 28% to 470 million euros ($569.31 million) in the quarter while revenue fell by 6%.

Its cost of risk, which reflects bad loan charges, rose by 85.7% year on year to 689 million euros over the period, but that was less than forecast by analysts.

Economies are expected to gradually recover this year from the worst of the COVID-19 pandemic, and like its French rival BNP Paribas, SocGen said bad loan provisions should fall.

The crisis still took its toll, however, with SocGen posting a full year loss of 258 million euros for 2020, as it also took restructuring charges while it attempts to overhaul its investment banking business.

Franc’s third-biggest listed bank has been trying to reduce the risk profile of its trading division, where it has underperformed. It lagged behind competitors in the fourth quarter too. Revenue from fixed-income and currencies trading was down 16% – contrasting with Wall Street banks which profited from market volatility in the period – while in equity trading, revenue fell by 7% year-on-year, though it improved from a quarter earlier. At BNP Paribas, revenue jumped by 22% in fixed-income, currencies and commodities trading while equities revenue fell by 4.5%.

($1 = 0.8256 euros)

(Reporting by Matthieu Protard, Editing by Sarah White)