Citigroup (NYSE:C) shares fell on Friday after the banking giant reported a steep profit drop for the fourth quarter.
The company’s net income dropped 26% to $3.2 billion. Citigroup cited an increase in expenses for the sharp decline, adding that the results included a "pre-tax impact" of about $1.2 billion related to the sale of its consumer banking businesses in Asia.
Citigroup reported an 18% year-over-year increase in operating expenses to $13.5 billion for the quarter.
The company’s global consumer banking business saw revenue decline by 6% year over year to $6.94 billion. Within the North America region, Citigroup revenue fell by 6% to $4.4 billion as sales from Citi-branded cards and retail services fell.
In Asia, revenue dropped by 9%, while Latin America sales declined by 4%. Expenses within the bank’s global banking division also surged by 33% from the year-earlier period.
To be sure, Citigroup’s institutional clients group saw revenue increase by 4% to $9.9 billion. That revenue figure was driven by an 18% jump in investment banking. Citigroup’s fixed income markets revenues, however, dropped by 20% year over year to $2.5 billion.
For 2021, Citigroup said its net income nearly doubled from 2020 to $21.95 billion, while full-year revenue declined by 5% to $71.88 billion.
"We continue to make steady progress on executing our strategy as demonstrated most recently by the signing of an agreement to sell four consumer businesses in Asia," CEO Jane Fraser said in a release.
"We continue to transform our bank with a focus on simplification and building a culture of excellence."
C let go of $1.33, or 2%, to $66.45 to begin Friday.
