WASHINGTON (dpa-AFX) - Citigroup Inc. (C) on Wednesday reported a 7 percent increase in profit for the fourth quarter from last year as lower revenues were more than offset by decreases in cost of credit as well as operating expenses. Adjusted earnings for the quarter beat analysts' expectations, while revenues missed their estimates.
Citigroup's fourth-quarter net income rose to $3.57 billion or $1.14 per share from $3.34 billion or $1.02 per share reported last year.
Excluding credit or debit valuation adjustments in the year-ago period, adjusted earnings for the quarter were also $1.14 per share, compared to $1.06 per share last year.
On average, 26 analysts polled by Thomson Reuters expected the company to report earnings of $1.12 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter declined 8 percent to $17.01 billion from $18.46 billion in the prior year. Adjusted revenues were also $17.01 billion, compared to $18.64 billion last year. Analysts expected revenue of $17.30 billion for the quarter.
Revenues at Citigroup's core assets, called Citicorp, rose 7 percent from last year to $16.36 billion.
Revenues dropped 79 percent at Citi Holdings to $657 million, mainly reflecting the absence of net gains from asset sales. Citigroup noted that the latest quarter marked the last time it will report the results of Citi Holdings separately.
At Citicorp, revenues from Institutional Clients Group rose 14 percent, while Global Consumer Banking revenues increased 2 percent.
The company's total operating expenses declined 9 percent to $10.12 billion, reflecting lower expenses in Citi Holdings largely due to divestitures.
Citigroup's cost of credit in the quarter declined 29 percent to $1.79 billion, driven by the absence of significant loan loss reserve builds related to energy exposures in Institutional Clients Group as well as lower provision for benefits and claims and a decline in net credit losses.
Citi Holdings assets of $54 billion decreased 33 percent from the year-ago period and represented only 3 percent of total Citigroup assets at quarter-end.
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