- The loss of 33 cents a share was narrower than the record loss of $17.3 billion, or $3.40 a share, in the same period of 2008.
- Expectation was to lose 30 cents a share, the average estimate of 18 analysts surveyed by Bloomberg.
- Chief Executive Officer Vikram Pandit had to book an $8 billion pretax charge when he repaid $20 billion of bailout funds in December to avoid being left behind by rival banks that exited the Troubled Asset Relief Program.
- Revenue missed analysts’ estimates as trading results declined from the third quarter.
Citigroup rose 12 cents, or 3.5 percent, to $3.54 in composite trading on the New York Stock Exchange at 4:15 p.m. That compares with $34.77 on Dec. 10, 2007, the last closing price before Pandit was named to the top post.
Not counting the repayment of funds to the U.S. government, the fourth-quarter loss was $1.4 billion, or 6 cents a share.
Citigroup’s loss contrasts with results at New York-based JPMorgan Chase & Co., which said last week that profit more than quadrupled from a year earlier to $3.28 billion as investment- banking fees climbed.
Citigroup’s revenue fell 4.3 percent to $5.41 billion in the fourth quarter, the company said. Managed revenue excluding the costs of the TARP repayment was $17.9 billion. Analysts expected the bank to report revenue of $19.4 billion, according to the average of nine estimates.
Revenue Trend
For the full year, Citigroup’s loss was $1.6 billion, or 80 cents a share.
Citi Holdings, the collection of businesses tagged for disposal, had a $2.44 billion loss in the fourth quarter. Citi Holdings assets declined $70 billion to $547 billion during the quarter.
Citicorp, the division of businesses that Pandit plans to keep, had a $1.73 billion profit in the fourth quarter, compared with a $5.52 billion loss a year earlier.
Citigroup said in a presentation on its Web site that it plans to move $61 billion of assets from Citi Holdings to Citicorp in the first quarter, including $34 billion of North American mortgages.
- Net credit losses were $7.13 billion, down from $7.97 billion last quarter. Citigroup Chief Financial Officer John Gerspach said he expects a “modest increase” in credit losses in the first quarter before they fall in the second quarter.
- Non-performing loans fell 2 percent from the third quarter to $32 billion, the first sequential decline since early 2006.
- Full-year compensation fell by 20 percent to $25 billion.
- Revenue from trading and investment-banking climbed 5.9 percent from a year earlier to $5.4 billion. Those figures exclude “credit value adjustments” of $1.9 billion, or losses required under U.S. accounting rules to reflect an increase in the market value of its own liabilities. The CVA for the fourth quarter included an $840 million pretax loss to correct for an error made in the way Citigroup calculated its CVAs in prior periods, the bank said in today’s statement.
Consumer-banking revenue rose 0.2 percent to $5.72 billion, and revenue in the global transaction services unit was $2.48 billion. Local consumer lending, which includes the CitiFinancial personal-loans unit, had a $2.33 billion loss from continuing operations, narrower than the $4.89 billion loss a year earlier.
Citigroup is forecast to earn 9 cents a share this year, or 2 percent of what it made in 2005, based on Bloomberg’s analyst survey. That’s partly because Citigroup has had to issue almost 23 billion new shares to bolster a weakened capital base. Investors who were shareholders prior to the financial crisis were left with about one-fifth their original stakes.
Pandit sold $20 billion of shares to new investors last month to help repay the bailout funds, a move aimed partly to extract the company from executive-pay restrictions that threatened to drive away top-producing traders and investment- bankers. The government, which initially said it would sell as much as $5 billion of its shares in the offering, later scrapped the plan because the price was too low.
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