Citigroup: returns to profit, but volatility weighs
(CercleFinance.com) - Citigroup said it returned to profit in the fourth quarter, but said revenues fell as volatility impacted market-sensitive businesses.
The US bank reported Q4 net income of 4.3 billion dollars, or 1.64 dollar per share, compared to a net loss of 18.9 billion dollars, or 7.38 dollars per share, for the fourth quarter of 2017.
As a reminder, Q4 2017 results included a one-off, non-cash charge of 22.6 billion dollars, or 8.66 dollars per share, due to Donald Trump's tax reform.
This time Citigroup benefited from the lower effective tax rate, but also from lower expenses and cost of credit.
Revenue from Citi's institutional clients group fell by 1% to 8.2 billion dollars, reflecting a challenging trading environment characterised by volatile market conditions and widening credit spreads, particularly in December.
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