Despite the increase in profits (+25%), Citigroup's fourth-quarter accounts fell short of expectations. The chief executive, Michael Corbat, stressed that “it will take time to resolve the problems of the current environment, but realizing the potential and improving the return on assets is a crucial objective going forward”.
In the last three months of the year, net income increased to $1,19 billion (38 cents per share), up from $956 million in the same period last year (31 cents per share). Excluding special items, earnings were $2,2 billion (69 cents a share), whereas analysts had expected a much larger share (96 cents).
In the quarter, revenues grew to $18,2 billion ($18,7 billion excluding extraordinary items) from $17,2 billion in the same period of 2011. Also in this case, the value is below estimates, which were for just under $19 billion.
In 2012 Citigroup reported net profits of $7,54 billion, from 11,06 billion in 2011, with a turnover of 70,2 billion, down from 78,4 billion in 2011. The Tier 1 capital ratio stood at 12,7% according to Basel I standards and it increased to 8,7% based on Basel III estimated standards.
