BNP Paribas (BNPQY) led stocks in Paris lower Tuesday after it posted a rise in fourth-quarter profit but missed analysts' forecast as low interest rates and a "lackluster" trading environment held down earnings.

France's biggest bank said net income for the final three months of 2016 came in at €1.44 billion, more than double the €665 million posted in the fourth quarter of 2015, but shy of the €1.5 billion anticipated by analysts. Revenue for the final quarter totaled €10.66 billion, the bank said, slightly ahead of analysts' forecast of €10.48 billion.

BNP shares fell 3.7% in early Paris trading to change hands at €57.76 each by 8:15 a.m. GMT, trimming the three-month gain to 15%. That gain has lagged both the 19.9% advance for the Stoxx Europe 600 Banks Index and the staggering 53% rise for Deutsche Bank (DB) - Get Report over the same period.

"Revenues are up despite a lackluster environment this year. Costs were well contained and the cost of risk was significantly lower. The group's balance sheet is rock-solid and the significant increase in the fully loaded Basel 3 common equity Tier 1 ratio to 11.5% testifies the capital generation," said CEO Jean-Laurent Bonnafe.

"After the success of its 2014 to 2016 plan, which allowed to attain the defined targets, the group now unveils its 2020 business development plan that announces an acceleration of digitalization and targets an average growth of net income of more than 6.5% per year until 2020," he added.

Full year net profit, however, increased by 15% to €7.7 billion and the bank boosted its annual dividend 16.8% to €2.7 per share.

Corporate and investment banking revenue for the quarter rose 8% from a year ago to €2.8 billion, BNP said, while revenue in the fixed income division jumped 23% to €838 million. Operating expenses for the CIB unit fell 3.2% to just over €1.9 billion.

Looking ahead, the bank said it will invest around €3 billion in digital technologies over the next three years as it reduces its overall headcount and closes branches to focus more on online banking.