NEW YORK: Citigroup Inc says earnings for the fourth quarter of 2020 fell 7 per cent to US$4.63 billion.
The New York-based bank said it had earnings of US$2.08 per share, down from US$2.15 per share a year earlier. Earnings, adjusted to account for discontinued operations, were US$2.07 per share.
The results exceeded Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of US$1.35 per share.
The US bank posted revenue of US$16.5 billion, down 10 per cent from a year ago and below Street forecasts. Six analysts surveyed by Zacks expected US$16.58 billion.
Citigroup reduced its credit loss reserves by US$1.5 billion due to an improved outlook for the global economy and a reduction in credit losses in its global consumer banking division.
The amount set aside for potentially bad loans remains elevated, however, at US$25 billion, about double what it was at the end of 2019.
Citigroup shares have risen 12 per cent since the beginning of the year, while the Standard & Poor’s 500 index has increased 1 per cent. The stock has dropped 16 per cent in the last 12 months.