Citigroup Q4 Profit Declines On Lower Revenues, Higher Expenses

Citigroup Inc. (C) reported that its fourth quarter net income declined 7% from the prior-year period, driven by the lower revenues, an increase in expenses, and a higher effective tax rate, partially offset by the lower cost of credit. Revenues decreased 10%, primarily reflecting lower revenues in Global Consumer Banking, Institutional Clients Group, and Corporate/Other.

Fourth quarter earnings per share was $2.08, compared to $2.15, a year ago. On average, 21 analysts polled by Thomson Reuters expected the company to report profit per share of $1.34, for the quarter. Analysts' estimates typically exclude special items. Net income was $4.6 billion compared to $5.0 billion, prior year. Effective tax
rate was 20% compared to 12%.

Fourth quarter revenues were $16.5 billion compared to $18.4 billion, a year ago. Analysts expected revenue of $16.71 billion, for the quarter. Operating expenses were $10.7 billion, increased 2% from previous year.

"Given the Federal Reserve decision regarding share repurchases as we have excess capital we can return to shareholders, we plan to resume buybacks during the current quarter," Michael Corbat, Citi CEO, said.

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