Citigroup Inc. (NYSE: C) said on Friday that its earnings in the fiscal fourth quarter came in better than expected. Revenue, it added, printed slightly lower than what analysts had anticipated. CEO Mike Corbat commented on the quarterly report on Friday and said:
“As a sign of the strength and durability of our diversified franchise, our revenues were flat to 2019, despite the massive economic impact of COVID-19.”
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Citigroup shares were reported close to 1.5% down in premarket trading on Friday. The stock is currently trading at £49.66 per share after recovering from a low of £25.90 per share in the last week of March 2020.
Citigroup’s Q4 financial results versus analysts’ estimates
According to Refinitiv, experts had forecast the company to record £12.22 billion of revenue in the fourth quarter. Their estimate for earnings per share in Q4 stood at 98 pence. In its report on Friday, Citigroup missed estimate for revenue posting a lower £12.08 billion in the recent quarter. Its per-share earnings, however, came in at a higher than expected £1.52.
The investment bank reported £3.39 billion of net income in Q4 that represents a 7% annualised decline. Its fourth-quarter revenue, on the other hand, was 10% lower than last year. Citigroup released £1.10 billion in the fourth quarter that it had previously set aside to cover for loan losses. The American multinational named Jane Fraser as its next CEO in September 2020. Fraser would be the first woman in history to lead the largest U.S. bank.
Other prominent figures in Citigroup’s earnings report
Other prominent figures in Citigroup’s financial results on Friday include £494.71 billion of loans, and £950 billion of deposits. The New York-based bank saw an 11% annualised growth in global consumer banking revenue, a 1% decline in institutional clients’ revenue, a 5% decline in investment banking revenue, an 83% increase in equity underwriting revenue, and 7% decline in fixed-income revenue.
Revenue from corporate banking stood at a negative £62.21 million versus the year-ago figure of £396.65 million (positive). In related news from the United States, peer JP Morgan Chase also published its quarterly financial results on Friday.
Citigroup performed fairly downbeat in the stock market last year with an annual decline of roughly 25%. At the time of writing, the U.S. investment bank is valued at £105.15 billion and has a price to earnings ratio of 13.52.
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