Citigroup (NYSE:C) said fourth-quarter net income decreased by more than 21% from a year ago as declines in investment banking overshadowed a benefit from higher interest rates. The bank also said it was setting aside more money for credit losses. Net income was $2.5 billion versus $3.2 billion a year ago, with earnings: $1.10 a share, excluding certain divestitures. (It was not clear if that was comparable to the $1.14 a share estimate from analysts.)
Revenue: $18.01 billion in revenues, above the $17.9 billion expected from analysts polled by Refinitiv. Net Interest Income: $13.27 billion, above the 12.7 billion expected by analysts, according to StreetAccount
Trading Revenue: Fixed Income $3.16 billion, above expectations. Equities trading was $789 million, below expectations. Provision for credit losses: $1.85 billion compared to $1.79 billion expected by analysts polled by StreetAccount.
Jane Fraser’s turnaround efforts at Citigroup have hit a snag — concerns over a global economic slowdown as central banks around the world battle inflation.
Like the rest of the industry, Citigroup is also contending with a sharp decline in investment banking revenue, partly offset by an expected boost to trading results in the quarter.
Citigroup boasts a status as “a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States.”
C shares lost 59 cents, or 1.2%, to $48.50 first thing Friday.
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