Citigroup earnings jump despite energy hit

GMT 07:35 2016 Saturday ,16 January

Arab Today, arab today Citigroup earnings jump despite energy hit

Citibank earnings were $3.3 bn
New York - AFP

Citigroup reported a big jump in fourth-quarter earnings as much lower expenses offset a hit to results due to weakness in energy-sector loans.

Earnings were $3.3 billion, nearly 10 times the $344 million in the fourth quarter of 2014, which was hit with a hefty $3.5 billion charge for legal and restructuring expenses.

Revenues rose 3.1 percent to $18.5 billion.

Citigroup saw gains in several key areas of its institutional clients business, including investment banking, bond trading and equity trading.

However, net income still fell for this business overall by 18 percent to $1.4 billion due to increased reserves taken in case of loan defaults; this included $250 million for the energy portfolio, which has suffered due to low oil prices.

Citigroup's other major division, global consumer banking, reported a 20 percent drop in net income to $1.3 billion due in part to a streamlined retail presence in several overseas markets that led to lower revenues.

Citigroup reported annual profits of $17.2 billion, more than double the $7.3 billion in 2014.

Citigroup chief executive Michael Corbat said the company's highest annual earnings since 2006 reflected "substantial progress to our targets and execution priorities."

"We have sharpened our focus on target clients," he said. "We have undoubtedly become a simpler, smaller, safer and stronger institution."

Citigroup shares were down 2.6 percent to $44.20 in pre-market trade.

US stocks were broadly lower in pre-market trade.

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