UPDATE: Citi just missed big on both EPS and revenue.
Here’s the rundown:
- EPS: $0.38 Estimate: $0.51
- Revenue: $17.17 billion Estimate: $18.46 billion
- 4Q Profit: $1.16 billion
Shares of Citi are falling pre-market, it’s down nearly 3% now.
The 17.17 billion in fourth quarter revenue is a 7% year-over-year decrease from 2010’s $18.37 billion. Total profit for the fourth quarter came in at $1.16 billion, down 69% from last quarter, and down 11% year-over-year.
Overall, Citi posted a profit of $11.3 billion for 2011, up 6% from 2010.
Like many other financials, the volatile global economy seems to have taken a toll on Citi’s investment banking business. The firm reported a 11% decrease in year-over-year reveues for its banking and securities division. Regional consumer banking revenue for the fourth quarter, on the other hand, had a 1% increase compared to 2010.
“Clearly, the macro environment has impacted the capital markets and we will continue to right-size our businesses to match the environment,” Citi CEO Vikram Pandit said in the press release.
Here’s a rundown of investment banking:
There were several notable one-time costs to Citi’s fourth quarter revenue, including previously announced $428 million in severence payments connected to layoffs and $300 million related to changing Japanese tax rates. Citi also reported $557 million in legal costs, making total charges for the fourth quarter around $1.28 billion.
EARLIER: Citi is the financial to watch for the day, as the bank will release its 2011 fourth quarter earnings today at 8 am ET.
Analysts are expecting earnings per share of $0.51, according to Bloomberg data.
We’ll be covering the earnings live, so check back soon for updates.
Have thoughts on Citi earnings? Contact Lisa at [email protected] or 646-376-6015