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Jan 16, 2022
Citigroup (C, $66.96) reports a decrease in Q4 earnings

Citigroup (C, $66.96) reports a decrease in Q4 earnings

Citigroup posted a sharp drop in earnings for the fourth quarter.

The banking giant’s earnings came in at $1.46 a share, compared to $1.38 expected by analysts polled by Refinitiv.

Revenue of $17 billion also was higher than analysts’ expectations of $16.75 billion expected

The company’s net income plunged -26% to $3.2 billion. Citigroup attributed that to an increase in expenses for a “pre-tax impact” of about $1.2 billion related to the sale of its consumer banking businesses in Asia.

Citi’s global consumer banking business segment experienced a revenue decline of -6% year over year to $6.94 billion. Revenue in the North America region fell by -6% as sales from Citi-branded cards and retail services decreased.  Revenue in Asia decreased by -9%, while Latin America revenue declined by -4%. Expenses within the bank’s global banking division rose +33% year-over-year.

The company’ institutional clients group’s revenue increased by 4% to $9.9 billion, on the back of + 18% surge in investment banking. But its fixed income markets revenue fell -20% year over year to $2.5 billion.

For the full-year 2021, Citigroup net income nearly doubled from 2020 to $21.95 billion. However, its revenue decreased by -5% to $71.88 billion.

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