Societe Generale (SCGLY) shares gained firmly in Paris on Thursday after France's second-biggest bank posted stronger-than-expected fourth-quarter earnings and unveiled plans to spin off its vehicle leasing unit.

SocGen saw its net income fall to €390 million in the three months ending in December, down from €656 million in the year-ago period but still ahead of analysts' forecasts of €354 million. Revenue for the period rose 1.3% to €6.13 billion, the bank said, also ahead of the €5.99 billion forecast.

Shares in the bank rose 1.8% to change hands at €43.46 each by 8:30 a.m. GMT, making it the second-biggest gainer on the CAC 40 benchmark. The stock has been significantly outpaced, however, by its European lending peers over the past three months, falling 5.5% against a 13.6% gain for the Stoxx 600 Europe Banks Index.

"In an economic environment that is less buoyant and much more demanding on the regulatory front, we have simplified our banking model, optimized capital allocation and continued to invest in the businesses of the future, as we undertook to do in our 2014 ... We have demonstrated our potential for growth and operational excellence, and there has been a significant improvement in our structural profitability," said CEO Frederic Oudea. "The balance sheet has improved and all our regulatory capital and liquidity ratios are above the regulators' requirements."

Alongside the quarterly results, SocGen said it would sell a portion of its strong-growing vehicle leasing division, known as ALD, that services corporate clients. Revenue for the group rose 23.4% in the fourth quarter to €454 million, according to the company's earnings report, which described it as a "high added-value business with substantial commercial and financial synergies within the group."

"Societe Generale will retain control of ALD and continue to actively support its subsidiary's growth strategy in the development of commercial relations," the company said.