Lucy Nicholson | Reuters
Citigroup posted fourth-quarter revenue that missed analysts estimates by a half billion dollars as bond trading revenue declined amid a difficult December for markets.
But the bank made $1.61 in profit per share, beating analysts’ expectation of $1.55 on better than expected cuts in expenses and loan losses.
The bank said in early December that trading revenue would likely decline from a year earlier amid choppy markets. In particular, fixed-income trading desks struggled amid gyrations in currencies and interest rates. Citigroup may also face losses of as much as $180 million on loans made to an Asian hedge fund that made soured currency bets, Bloomberg reported last month.
Gerspach is retiring in March, to be replaced by Mark Mason, who is CFO of the firm’s institutional clients group. The bank shuffled other leaders across its sprawling operations last year amid the bank’s disappointing share performance. That includes the departure of global credit-card chief Judson Linville.
Here’s what Wall Street expected:
- Earnings: $1.55 a share, a 21 percent increase from a year earlier, according to Refinitiv
- Revenue: $17.6 billion, a 2.2 percent increase from a year earlier
- Trading Revenue: Fixed income: $2.3 billion, Equities: $664.5 million, according to FactSet
- Efficiency ratio: 57.6