Jane Fraser, CEO of Citigroup, attends a hearing on annual oversight of Wall Street firms before the Senate Committee on Banking, Housing and Urban Affairs in Washington, DC, United States, on December 6, 2023.
Tom Williams | Cq-roll Call, Inc. | fake images
citi group on Friday posted a fourth-quarter loss of $1.8 billion after accounting for several large charges linked to overseas risks, last year's regional banking crisis and Chief Executive Jane Fraser's corporate overhaul.
In total, the charges – so massive that the bank previously announced their impact this week – hit quarterly earnings by $4.66 billion, or $2 per share, Citigroup said. Excluding its impact, earnings would have been 84 cents per share, the bank said.
Here's what the company reported versus what Wall Street analysts surveyed by LSEG, formerly known as Refinitiv, expected:
- Earnings: Adjusted 84 cents per share, may not compare to expected 81 cents
- Revenue: $17.44 billion, versus $18.74 billion expected
Fraser called his company's performance “very disappointing” because of the charges, but said Citigroup had made “substantial progress” streamlining the bank last year.
The chief executive announced plans for a sweeping corporate reorganization in September after previous efforts failed to boost the bank's results and share price. The bank said it would exit municipal bond and distressed debt trading operations as part of the rationalization exercise. Earlier this week, the company said it had booked larger charges in the quarter than Chief Financial Officer Mark Mason had previously disclosed.
Citigroup's revenue fell 3% to $17.44 billion in the quarter, although the bank said revenue rose 2% after excluding the impact of divestitures and charges linked to exposure to Argentina. Despite the noise, Citi's institutional services operations, U.S. retail banking and investment banking, performed well, according to the bank.
“Citigroup's earnings looked dire with a large loss of $1.8 billion, but the bank's underlying business showed resilience,” Octavio Marenzi, chief executive of consulting firm Opimas LLC, said in an email. Fraser will be under increasing pressure to deliver results this year, he added.
Citigroup shares rose 2% in premarket trading.
JPMorgan Chase and Bank of America released the results early Friday, while Goldman Sachs and Morgan Stanley report on Tuesday.
