Citigroup revenue misses on ugly quarter for fixed income

|About: Citigroup Inc. (C)|By:, SA News Editor

Citigroup (NYSE:C) Q4 EPS of $1.61, excluding one-time impact of tax reform, exceeds the average analyst estimate of $1.55, and increases from $1.28 in the year-ago quarter.

Q4 revenue of $17.1B misses consensus of $17.6B, as fixed-income markets revenue sinks 39% from Q3.

“A volatile fourth quarter impacted some of our market sensitive businesses, particularly Fixed Income," says CEO Michael Corbat.

Citi -0.4% in premarket trading.

However Institutional Clients Group accrual businesses--Treasury and Trade Solutions, Securities Services, Private Bank, and Corporate Lending--had strong performances. Global Consumer Banking showed underlying growth in U.S. Branded Cards.

Q4 revenue by segment:

    Global Consumer Banking $8.44B fell 2% Q/Q, flat on Y/Y basis.

    Institutional Clients Group $8.21B, down 11% Q/Q, down 1% Y/Y; fixed-income markets revenue of $1.94B fells 39% Q/Q, and 21% Y/Y; investment banking revenue of $1.28B rose 8% Q/Q and fell 1% Y/Y.

Q4 allowance for loan losses was $12.3B at quarter end, or 1.81% of total loans, compared with $12.4B or 1.86%, at the end of the year-ago period.

CET1 capital ratio 11.9% vs. 11.7% for Q3 and 12.4% in Q4 2017.

Book value per share $75.05 vs. $72.88 for Q3.

Conference call 10:00 AM ET.

Previously: Citigroup beats by $0.06, misses on revenue (Jan. 14)

Subscribe for full text news in your inbox