Citigroup posts lower than expected Q4 revenues

For the three months to December, the lender announced adjusted net income of $4.2bn, for adjusted earnings per share of $1.61, on revenues of $17.1bn.

Analysts had forecast EPS of only $1.55, but on revenues of $17.59bn.

During the same quarter one year ago, the lender had reported a net loss of -$18.9bn or $7.38 per share, on the back of a one-time charge of $22.6bn or $8.66 per due to the enactment of the Tax Cuts and Job Acts, on sales of $17.5bn.

Nevertheless, Citigroup pointed out that if it excluded the impact of extraordinary items from both the current and the year ago period then its EPS would have risen by 26% to $1.61, driven by an 8% reduction in the number of its shares outstanding.

Excluding of the Tax Cuts and Job Acts, Citigroup's effective tax rate would have been 21% during the period just ended, versus 25% in the last quarter of 2017.

By operating units, revenues in its Global Consumer Banking arm increased 1% in constant US dollar terms to $8.4bn, which was nearly offset by a 1% reduction in sales at its Institutional Clients Group to reach $8.2bn.

Within the latter, its Banking revenues jumped 6% to $5.1bn, but those from Market and Securities Services fell 11% to $3.1bn.

Meanwhile, "other" corporate revenues fell 37% to $470m as the lender wound-down legacy assets.

The group's allowance for loan losses also declined during the period, from 1.86% of its total loan book in the fourth quarter of 2017 to 1.81%.

Its Tier 1 common equity capital ratio fell from 12.4% to 11.9%.

As of 1704 GMT, its shares were adding 3.62% to $58.75.