LAST UPDATE 15:33
Citigroup’s quarterly earnings fell to $ 3.17 billion, or $ 1.46 a share, from $ 4.3 billion, or $ 1.92 a year.
Profits were higher than market expectations due to strong investment banking performance, which curtailed the blow from higher costs.
Revenue rose to $ 17 billion from $ 16.8 billion.
The US bank outperformed its target of $ 1.39 per share and $ 16.85 billion in revenue.
Citi said it faced higher costs, which were partially offset by higher revenue and lower credit costs.
The last quarter also had a pre-tax effect of $ 1.2 billion compared to the previously announced divestment of consumer banking in Asia.
Citigroup’s investment banking arm had a strong quarter thanks to the acquisition and merger frenzy during the period.
Revenues in the Institutional Client unit increased by 4%, mainly due to the jump of 43% of investment banking commissions.
This has helped offset losses from higher costs as the bank continues to close its latest consumer operations outside the US as part of the near-strategic renewal of CEO Jane Fraser, according to Reuters.
Earlier in the day, Citigroup said it had agreed to sell its consumer business in Indonesia, Malaysia, Thailand and Vietnam to United Overseas Bank.
With this agreement, the bank has announced plans to sell seven of the 13 Asian -mainly- consumer activities, for which Fraser had previously announced that the bank would leave.
Citigroup incurred higher costs for several quarters to rectify the regulatory issues identified by regulators in its control systems, leading to questions from investors about how much time and money would be required for the remedies.
In the fourth quarter, the bank’s operating expenses increased by 8%, without the impact of sales in Asia.
Although total net interest income was unchanged from $ 10.82 billion a year earlier, net interest income from the bank’s core off-lending activities increased 0.6%.
The company’s share is down 3.6% in pre-conference trading.
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Source From: Capital
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