Citigroup Says Fourth-Quarter Profit Dropped on Legal Costs

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Associated Press

Citigroup pronounced Thursday that a fourth-quarter distinction forsaken 86 percent after incurring vast authorised and restructuring charges.

The bank warranted $350 million, or 6 cents a share, for a three-month duration finale in December, compared with a distinction of $2.5 billion, or 0.77 cents a share, for a same duration a year ago.

Revenue was prosaic during $17.78 billion.

The bank warned investors that it would catch charges of $3.5 billion in a fourth entertain to cover a costs compared with investigations into banking trading, a strategy of a pivotal seductiveness rate, as good as anti-money laundering and compared probes. Money was also set aside to cover costs compared with shortening a Citi’s headcount and slicing a real-estate holdings.

Like JPMorgan Chase and Bank of America, Citi also reported a dump in quarterly fixed-income trade revenue. Citi pronounced that income in that partial of a business fell to $2 billion in a period, a dump of 16 percent from a year earlier, due to a “challenging” mercantile environment.

Financial markets were flighty in a final entertain of final year. There were large swings in bond and batch prices as investors disturbed about a opinion for tellurian mercantile growth.

“When we get these remarkable swings, people don’t know what to do and activity only stops,” John Gerspach, Citi’s arch financial officer, pronounced on a call with reporters. “That’s what’s causing a lot of a flighty formula that you’re seeing.”

Citi’s gain fell brief of analysts’ guess of 10 cents a share, according to a financial information provider FactSet.

For a full year, Citi warranted $7.3 billion, a dump of 47 percent compared with gain of $13.7 billion a year earlier.

Citi fell 99 cents, or 2 percent, $48.10. The company’s batch is down 11.2 percent this year.

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