Citigroup missed on fourth quarter earnings.
Citi reported adjusted earnings per share of 82 cents for the fourth quarter.
The bank was expected to report adjusted earnings per share of 95 cents, according to data compiled by Bloomberg.
Revenue came in at $US17.8 billion.
Analysts expected revenue for the quarter is expected to come in at $US18.3 billion, according to Bloomberg.
Shares of Citi are trading down more than 2.7% in the pre-market.
Citigroup Reports Fourth Quarter 2013 Earnings Per Share of $US0.85; $US0.82 Excluding CVA/DVA1 and Impact of the Credicard Divestiture2
Fourth Quarter Net Income of $US2.7 Billion; $US2.6 Billion Excluding CVA/DVA and Impact of the Credicard Divestiture
Fourth Quarter Revenues of $US17.8 Billion; $US17.9 Billion Excluding CVA/DVA
Fourth Quarter Net Credit Losses of $US2.5 Billion Declined 15% versus Prior Year Period
Utilized Approximately $US600 Million of Deferred Tax Assets
Estimated Basel III Tier 1 Common Ratio of 10.5%3
Estimated Basel III Supplementary Leverage Ratio of 5.4%4Book Value Per Share Increased to $US65.31
Tangible Book Value Per Share5Increased to $US55.38
Citigroup Deposits of $US968 Billion Grew 4% versus Prior Year Period
Citicorp Loans of $US575 Billion Grew 7% versus Prior Year Period
Citi Holdings Assets of $US117 Billion Declined 25% from Prior Year Period and Represented 6% of Total Citigroup Assets at Year End 2013
NEW YORK–(BUSINESS WIRE)–
Citigroup Inc. today reported net income for the fourth quarter 2013 of $US2.7 billion, or $US0.85 per diluted share, on revenues of $US17.8 billion. This compared to net income of $US1.2 billion, or $US0.38 per diluted share, on revenues of $US17.9 billion for the fourth quarter 2012.
CVA/DVA was a negative $US164 million ($100 million after-tax) in the fourth quarter, mainly resulting from the improvement in Citigroups credit spreads, compared to negative $US485 million ($301 million after-tax) in the prior year period. Excluding CVA/DVA, fourth quarter revenues were $US17.9 billion, down 2% from the prior year period. Fourth quarter 2013 results also included a $US189 million after-tax benefit related to the divestiture of Citis Credicard business in Brazil, while results in the prior year period included a $US1.0 billion repositioning charge ($653 million after-tax). Excluding CVA/DVA, the impact of the Credicard divestiture in the fourth quarter 2013 and the fourth quarter 2012 repositioning charge, 6 earnings were $US0.82 per diluted share, up 19% from the prior year period.
Michael Corbat, Citigroups Chief Executive Officer, said, Although we didnt finish the year as strongly as we would have liked, we made substantial progress toward our key priorities in 2013. Having grown our operating net income by 15% over 2012, we achieved our highest amount of net income since before the financial crisis. We accelerated our growth in capital and ended the fourth quarter with an estimated Basel III Tier 1 Common ratio of 10.5%, exceeding our target for the year. We also grew loans in our core businesses by 7%, utilized $US2.4 billion of our deferred tax assets, and reduced the assets in Citi Holdings by 25% while cutting its annual loss in half. In addition, we improved our efficiency by executing on the repositioning actions announced at the end of 2012, reducing expenses and growing revenues. We enter 2014 as a strong and stable institution that is committed to achieving our 2015 financial targets and our objective of returning capital to our shareholders.
Citigroup full year 2013 net income was $US13.9 billion on revenues of $US76.4 billion, compared to net income of $US7.5 billion on revenues of $US69.1 billion for the full year 2012. Full year 2013 results included negative CVA/DVA of $US342 million ($213 million after-tax), compared to negative $US2.3 billion ($1.4 billion after-tax) in the prior year. Citigroup full year 2012 results included a loss of $US4.6 billion ($2.9 billion after-tax) related to the sale of various minority investments. 7 In addition, Citigroup recorded tax benefits of $US176 million and $US582 million in the third quarters 2013 and 2012, respectively, related to the resolution of certain tax audit items. Excluding CVA/DVA and the impact of minority investments in 2012, Citigroup revenues were $US76.7 billion in 2013, up 1% compared to the prior year. Excluding these items as well as the impact of the Credicard divestiture, the tax benefits in 2013 and 2012, 8 and the fourth quarter 2012 repositioning charge, net income was $US13.8 billion in 2013, up 15% compared to 2012, as higher revenues, lower operating expenses and lower net credit losses were partially offset by a lower net loan loss reserve release and a higher effective tax rate.
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