Citigroup profits up but revenues dip in Q4

Citigroup saw a revenue drop of 2.1 per cent. — Reuters pic
Citigroup saw a revenue drop of 2.1 per cent. — Reuters pic

NEW YORK, Jan 14 — Lower expenses helped boost Citigroup's fourth-quarter earnings but heavy volatility dented revenues in some trading divisions, the bank reported today.

Citigroup, the first US banking giant to report results, said fourth-quarter net income was US$4.3 billion (RM17.7 billion), compared to a loss of $18.9 billion a year ago, when results were affected by a one-time accounting loss from US tax reform.

Revenues dropped 2.1 per cent to US$17.1 billion, below analyst expectations for US$17.6 billion.

Revenues in Citigroup's global consumer banking were about flat with the year-ago period while revenues in institutional clients group dipped one percent.

Declines in bond trading more than offset the gains in increased equity trading, the company said.

"A volatile fourth quarter impacted some of our market sensitive businesses, particularly Fixed Income," said Chief Executive Michael Corbat.

The bank notched  a three percent increase in total loans compared with the year-ago level.

Earnings translated into US$1.61, six cents about analyst expectations.

Citigroup shares fell 0.7 per cent to $56.30 in premarket trading in New York. — AFP

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