Citigroup Falls Short In Fourth Quarter Earnings

0
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.

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

Seth Klarman’s 2021 Letter: Baupost’s “Never-Ending” Hunt For Information

Baupost's investment process involves "never-ending" gleaning of facts to help support investment ideas Seth Klarman writes in his end-of-year letter to investors. In the letter, a copy of which ValueWalk has been able to review, the value investor describes the Baupost Group's process to identify ideas and answer the most critical questions about its potential Read More

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.

Updated on

No posts to display