Citigroup: quarterly loss as provisions pile up

(CercleFinance.com) - Citigroup acknowledged on Friday that it had recorded 'very disappointing' results in Q4, due to a string of charges and provisions.


The US banking group reported a net loss of over $1.8bn for Q4 2023, compared with a net profit of $2.5bn a year earlier.

Citi explains that it was hit by a $1.7bn charge due to a "revaluation" imposed by the US Federal Deposit Insurance Corporation (FDIC).

A $1.3bn reserve was also set aside to cover risks associated with Argentina and Russia, in addition to an $880m loss due to the depreciation of the Argentine peso.

Lastly, the Group reported a $780m restructuring charge relating to the simplification of its organisation.

Excluding all these items, Citi would have posted EPS of 84 cents, above the market consensus of 79 cents.

The company added that it had paid out $6bn to its shareholders in dividends and share buybacks last year, including $1.5bn in Q4 alone.

The share price rose by more than 2% following this publication in pre-market trading.


Copyright (c) 2024 CercleFinance.com. All rights reserved.