Citigroup Shares Slip as Earnings Fall Short of Wall Street Estimates


Citigroup Inc (NYSE:C)

Citigroup reported fourth-quarter financial results before markets opened Monday, kicking off the start of a quarterly earnings season during which Wall Street is expected to pay more attention on forecasts for calendar 2019 than profit figures for the last three months of 2018.

Shares of the company lost 1.7% before markets opened for the regular session on Monday. The stock has run down more than 18% over the past three months through Friday, while the S&P 500 has declined 6.2%.

C Earnings & Outlook

Citigroup posted fourth-quarter net income of $4.31 billion, or $1.64 per share, compared with a loss of $18.89 billion, or $7.38 per share, in the year-ago period. Earnings, adjusted for one-time items were $1.61 per share. Revenue came to $17.12 billion, a decline of 2% from $17.50 billion in the same period last year.

Analysts were anticipating adjusted earnings of $1.55 per share on revenue of $17.60 billion, based on figures compiled by Refinitiv. Revenue from the Global Consumer Banking segment was $8.4 billion, while Institutional Clients Group segment posted revenue of $8.21 billion, representing a decline of 1% from $8.30 billion in the earlier-quarter.

Revenue from its credit-card business was $5.1 billion, an increase of 1% from the same period last year. Meanwhile, the bank’s treasury and trade services business climbed 7% to $2.4 billion. The unit serves multinational corporations around the world.

Citigroup CEO Comments

Citi Chief Executive Michael Corbat said, “We made solid progress throughout 2018 towards our longer-term financial targets, ending the year with an RoTCE of 10.9% and an efficiency ratio of 57%. Our institutional and consumer franchises each grew revenue on a full year basis and we continued to invest in our people and technology in order to better serve our clients. During the year, we also grew loans and deposits, improved ROA, and carefully managed both our expenses and balance sheet. We also returned more than $18 billion of capital to common shareholders.”

Citigroup, Inc. Profile

Citigroup, Inc. is a holding company, which engages in the provision of financial products and services. It operates through the following segments: Global Consumer Banking; Institutional Clients Group; and Corporate and Other. The Global Consumer Banking segment includes global, full-service consumer franchise, array of banking, including commercial banking, credit card lending, and investment.

The Institutional Clients Group segment composes of banking and markets; and securities services. The Corporate and Other segment involves activities that are not assigned to a specific business segment as well as certain North America and international loan portfolios, other legacy assets, and discontinued operations. The company was founded in 1812 and is headquartered in New York, NY. – CNN Money