Citigroup Falls Short In Fourth Quarter Earnings

Citigroup Inc (NYSE:C) reported weak earnings before opening bell this morning, and shares slumped afterward, falling as much as 3% in premarket trading. The bank reported earnings per share of 82 cents on $17.9 billion in revenue, excluding items.

Citigroup Falls Short In Fourth Quarter Earnings

Analysts had been expecting the bank to report earnings of 95 cents per share on $18.18 billion in revenue.

Breaking down Citigroup’s results

The bank reported net income of $2.6 billion excluding CVA / DVA and impacts from its credit card divesture. Including those items, net income was $2.7 billion or 85 cents per diluted share. Citigroup Inc (NYSE:C) saw $2.5 billion in net credit losses during the fourth quarter, which was a 15% year over year decline. CVA / DVA was -$164 million or $100 million after tax. They note improvements in their credit spread contributed to that.

Citigroup reported having $968 billion in deposits, a 4% increase over the same quarter a year ago. Citicorp loans were $575 billion during the quarter, a 7% increase from the same quarter a year ago. However, Citi Holdings Assets fell 25% year over year to $117 billion. They made up 6% of Citigroup’s total assets at the end of 2013.

Examining Citigroup’s full-year results

For the full 2013 fiscal year, Citigroup Inc (NYSE:C) reported net income of $13.9 billion on $76.4 billion in revenue. That’s compared to $7.5 billion in net income on $69.1 billion in revenue for all of 2012. The bank’s full-year CVA / DVA weighed on its results, coming in at -$342 million. That’s compared to -$2.3 billion at the end of 2012.

Also 2012’s results had $4.6 billion in losses in connection with the sale of some of Citigroup’s minority investments.

Citigroup reports Basel Tier standings

Citigroup Inc (NYSE:C) estimates that its Basel III Tier 1 common ratio was 10.5%, while its Basel III supplementary leverage ratio was 5.4%. Its book value per share rose to $65.31, while its tangible book value per share increased to $55.38 per share.