Citigroup has mixed Q4 earnings report
Citigroup has high profits per share, but lowered revenue.
Citigroup has positive and negative news in its fourth-quarter(Q4) earnings report. The bank started earnings week for financial institutions by increasing its earnings per share, but missing revenue estimates.
How the US markets in December affected Citigroup
The unpredictability of Wall Street had an effect on Citigroup and its Q4 earnings. Overall revenue dropped by 21% to $17.1 billion because of the correction in the US markets in December. Many banks were hit hard by the volatility in 2018, and Citibank was no exception. The reported revenue is less than the $17.6 billion financial experts expected from the corporation.
Shares also disappointed in Citigroup’s Q4 report, declining by 18%. However, earnings per share(EPS) were up, with the bank producing $1.61 in EPS. The corporation bought back 74 million of its own shares to boost its earnings. Despite the mixed report, chief executive officer (CEO), Michael Corbat, noted the success of the bank’s corporate lending and international lending divisions.
‘A volatile fourth quarter impacted some of our market-sensitive business. However, our ICG accrual businesses – Treasury and Trade Solutions, Securities Services, Private Bank and Corporate Lending – continued their strong performance. And in Global Consumer Banking, we had good underlying growth in U.S. Branded Cards and solid performance from our franchise in Mexico where we have been investing,’ said Corbat.
What’s next for Citigroup?
Corbat sees Citigroup’s shares improving in the new year, after the unpredictability of 2018. Though the institution’ trading revenue plummeted last year after bond trading declined, the chief financial officer (CFO), John Gerspach, is optimistic about the company’s trading circumstances.
‘We have seen improvements in trading conditions. Volatility has somewhat moderated, and equity prices and yields have shown signs of stabilization,’ said Gerspach.
Citibank’s Q4 earnings report could be signal a disappointing one for other banks as they report their revenue this week. The 2018 stock market could have a great impact on the first banking earnings reports of the new year.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
See your opportunity?
Seize it now. Trade over 17,000+ markets on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
