Citigroup disappointed analysts' expectations but ended the fourth quarter with more than doubled profits. The American bank recorded profits for the period of 2,69 billion dollars, 85 cents per share, against 1,196 billion, 38 cents per share, in the same period last year.
On the other hand, revenues decreased to 17,78 billion dollars, 1% below the 17,88 billion of the same period of 2012. Excluding extraordinary items, earnings per share increased from 69 to 82 cents per share, while revenue fell 2,5% to $7,94 billion. The results are lower than forecasts by analysts, who expected a profit of 95 cents per share on a turnover of 18,18 billion.
“While we didn't finish the year as solidly as we would have liked, we made significant progress in terms of 2013's key priorities,” said Chief Executive Officer Michael Corbat. The improvement in the net result can be attributed to the better control of expenses and the reduction of extraordinary charges which had slowed down last year's results.
Notably, operating expenses fell 5,9% to $11,93 billion in 2013, pushing annual profits to $13,9 billion, the highest since before the financial crisis. In the fourth quarter, fixed income trading revenue fell 15% to $.33 billion (-16% from the prior quarter).
Consumer banking had revenue of $9,47 billion, down from a year earlier but up from the July-September period. Provisions to cover future credit-related losses were down 15% from the fourth quarter of 2012 to $2,55 billion.
