Citigroup (C 58.41, +1.72, +3.03%) was on track to begin with a loss
of 0.6% after the company reported mixed results for the fourth quarter.
The bank reported above-consensus fourth quarter earnings of $1.64 per share, but its revenue declined 2.3% year/year to $17.1 bln, which was shy of expectations. The shortfall in revenue was driven by a 21% year/year decline in Fixed Income trading revenue, which fell to $1.94 bln.
The bank ended the fiscal year with an efficiency ratio of 57.4%, down from 58.0% one year ago. The Common Equity Tier 1 Capital Ratio decreased to 11.9% from 12.3% one year ago. Return on Average Tangible Common Shareholders' Equity was reported at 10.9%, up from 8.9% one year ago.
Citigroup CEO Michael Corbat said the bank expects that its Return on Average Tangible Common Shareholders' Equity will be around 12% in 2019 with continued improvements in operating efficiency.
The Global Consumer Banking segment generated revenue of $8.44 bln, down 0.1% year/year. Lower revenue in Asia was largely offset by higher revenue in North America and Latin America. Net Credit Losses increased 6.3% year/year to $1.74 bln while Credit Reserve decreased 59.4% to $71 mln. Segment net income grew 14.2% year/year to $1.52 bln.
Institutional Client Group revenue fell 1.1% to $8.21 bln. Fixed Income Markets revenue dropped 21.2% to $1.94 bln while Equity Markets revenue grew 17.8% year/year to $668 mln. Segment net income grew 14.4% to $2.52 due to a lower effective tax rate, lower cost of credit, and lower expenses.
Corporate/Other revenue declined 37.4% year/year to $470 mln due to the continued wind down of legacy assets. The segment recorded an adjusted net income of $179 mln, up 6.6% year/year.
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