Citigroup misses by $0.04, misses on revs
Reports Q4 (Dec) earnings of $0.06 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus Estimate of $0.10; revenues rose 0.2% year/year to $17.81 bln vs the $18.53 bln consensus.
- Legal and related expenses and repositioning charges totaled $3.5 billion in the current quarter, compared to $1.0 billion in the prior year period.
- Citigroup revenues of $17.8 billion in the fourth quarter 2014 were unchanged from the prior year period. Citigroup's net income declined to $350 million in the fourth quarter 2014 from $2.5 billion in the prior year period.
- Citigroup's operating expenses were $14.4 billion in the fourth quarter 2014, 21% higher than the $11.9 billion in the prior year period..
- Citigroup's loans were $645 billion as of quarter end, down 3% from the prior year period.
- Citigroup's book value per share was $66.16 and its tangible book value per share was $56.83.
- Citicorp revenues of $16.5 billion in the fourth quarter 2014 were unchanged from the prior year period.
- Global Consumer Banking GCB revenues of $9.4 billion were unchanged from the prior year period, as growth in North America was offset by a decline in international revenues on a reported basis.
- ICG revenues rose 2% from the prior year period to $7.2 billion. Banking revenues of $4.1 billion increased 1% from the prior year period (excluding gain / (loss) on loan hedges in each period), primarily reflecting growth in Private Bank and Corporate Lending revenues.
- Investment Banking revenues decreased 7% versus the prior year period, driven by a 19% decrease in equity underwriting revenues to $252 million, a 4% decrease in debt underwriting revenues to $550 million and a 1% decrease in advisory revenues to $263 million. Corporate Lending revenues rose 9% versus the prior year period to $431 million (excluding gain / (loss) on loan hedges in each period) reflecting growth in average loans and lower funding costs.
- Fixed Income Markets revenues of $2.0 billion in the fourth quarter 2014 (excluding $9 million of CVA/DVA, compared to negative $153 million in the prior year period) decreased 16% from the prior year period, driven by difficult trading conditions in spread products as well as a challenging macroeconomic environment that impacted the rates business. Equity Markets revenues of $471 million (excluding $7 million of CVA/DVA) were down 3% versus the prior year period, driven by lower trading revenues in cash equities in EMEA.
- Citi Holdings revenues of $1.3 billion in the fourth quarter 2014 included CVA/DVA of negative $5 million, compared to $1 million in the prior year period. Excluding CVA/DVA, Citi Holdings revenues increased slightly from the prior year period driven by higher gains on asset sales and lower cost of funds. As of the end of the quarter, Citi Holdings assets were $98 billion, 16% below the prior year period, and represented approximately 5% of total Citigroup assets. Citi Holdings net income, excluding CVA/DVA, was $161 million, up from a loss of $432 million in the prior year period, reflecting lower operating expenses and lower net credit losses, partially offset by a lower net loan loss reserve release.