Citigroup Reports Higher Earnings, Lower Revenue -- Update
January 18 2017 - 8:46AM
Dow Jones News
By Christina Rexrode and Telis Demos
Citigroup Inc. said Wednesday that its fourth-quarter profit
rose 7%, as its trading desk benefited from the uncertainty caused
by Donald Trump's election in November.
Quarterly profit at the New York-based bank was $3.57 billion,
up from $3.34 billion a year earlier. Per-share earnings were
$1.14. Analysts had expected $1.12 a share.
Revenue was $17.01 billion, down from $18.46 billion a year
earlier. Analysts had expected $17.3 billion.
Like other banks, Citigroup has so far benefited from Mr.
Trump's win in November. The resulting uncertainty has been a boon
for trading desks, and investors assume that Mr. Trump will
dismantle industry regulations that have curbed profits.
But the protectionist tone of Mr. Trump's campaign and the
unpredictability on certain issues of interest to corporations and
the markets also have raised concerns. A key part of Citigroup's
business model is moving money around the world for governments and
global businesses, an area that could change depending on the
regulatory environment and the landscape for international
cooperation.
Citigroup's shares have jumped 17% since the election, though
that is less than the rise of 20% in the KBW Nasdaq bank index.
Citigroup's shares slipped 0.2% to $58.25 in premarket trading.
Fourth-quarter trading revenue, excluding an accounting
adjustment, rose 31% to $3.7 billion from $2.82 billion a year
earlier. That was better than what Chief Financial Officer John
Gerspach predicted last month, when he said he expected trading
revenue to be up by nearly 20% from a year ago. The numbers also
followed strong trading results at rivals, including J.P. Morgan
Chase & Co.'s increase of 24%, and Bank of America Corp.'s
increase of 11%.
Quarterly profit at the consumer bank rose 2%, with the biggest
gain in North America.
Total expenses fell 9% in the fourth quarter from the prior
year.
Write to Christina Rexrode at christina.rexrode@wsj.com and
Telis Demos at telis.demos@wsj.com
(END) Dow Jones Newswires
January 18, 2017 08:31 ET (13:31 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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