Citigroup posts mixed quarterly results
The bank released $1.5 billion in reserves for credit losses
Stocks impacted: Citigroup Inc (C), JPMorgan Chase & Co. (JPM)
Citigroup posted fourth-quarter results that beat analysts’ estimates for profit while softer revenues pushed shares lower on Friday. Group revenues fell 10.3% to $16.5 billion, missing analysts' estimates of a $16.7 billion tally. The company’s earnings fell 7% to $4.63 billion, or $2.08 a share, compared with the $1.34 a share expected. Revenue fell 10% to $16.5 billion, below the estimate of $16.7 billion. The bank released $1.5 billion in reserves for credit losses, a move that was bigger than analysts had expected. At the same time, Citigroup noted its year-end allowance for bad loans was measured at around $25 billion. Meanwhile, Citigroup's larger rival, JPMorgan, posted much stronger-than-expected fourth-quarter earnings as investment banking profits surged and the company booked a benefit of $1.9 billion from its earlier credit provisions. Still, the bank’s stocks fell 1,79% while Citigroup shares plunged nearly 7% on Friday.
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