Citigroup said that its profit fell in the fourth quarter from results a year earlier that were boosted by a gain on the sale of a business line.Its latest results beat Wall Street expectations.
January 19, 2007 (Press Release) --
Citigroup Inc., the nation's largest bank, said Friday that its profit fell in the fourth quarter from results a year earlier that were boosted by a gain on the sale of a business line. Its latest results beat Wall Street expectations.
The New York-based bank said it earned $5.13 billion, or $1.03 a share, in the October-December period, down from $6.93 billion, or $1.37 a share, a year earlier. The year-earlier figure included a $2 billion gain on the sale of an asset management business; excluding the gain, earnings in the fourth quarter of 2005 were 98 cents a share.
The latest quarter's results included $415 million in charges stemming from previously announced cutbacks in the bank's consumer-finance operations in Japan.
Quarterly revenue was a record $23.83 billion, up from $20.78 billion in the same period in 2005.
Analysts surveyed by Thomson Financial had projected earnings of $1.00 a share on revenue of $22.45 billion.
The bank also announced that the board approved a 10 percent increase to the quarterly dividend on the company's common stock to 54 cents per share from 49 cents per share, payable on Feb. 23 to stockholders of record Feb. 5.
Citigroup shares were up 21 cents to $54.60 in premarket trading.
Charles Prince, chairman and chief executive, said in a statement accompanying the results that they reflected "double-digit revenue growth in our corporate and investment banking, wealth management and alternative investment businesses."
He noted "positive trends" in U.S. consumer operations, offset in part by the problems in the Japanese finance arena, where new legislation limiting lending rates and terms prompted Citigroup to cut back operations. Citigroup opened nearly 1,200 bank branches and consumer finance offices worldwide last year, the report said.
For 2007, Prince said, the bank's priorities include growing businesses while 'focusing sharply on expense management and remaining highly disciplined in credit management."
Analysts and investors have criticized the bank for expenses that have been rising faster than revenue.
Prince in December appointed Robert Druskin, who chairs Citigroup's corporate and investment banking division, to review the bank's expense base. Prince said last month he expects the review to be completed by the end of the January-March quarter.
The latest earnings report indicated that operating expenses were up 23 percent in the fourth quarter.
Like other banks reporting this week, Citigroup faced some deterioration in credit quality. It raised provisions for losses to $2.3 billion in the fourth quarter from $2.1 billion in the third period.
For the full year, profits totaled $21.54 billion, or $4.31 a share, down 12 percent from $24.6 billion, or $4.75 a share in 2005. Revenue was $89.6 billion for 2006, up from $83.6 billion in 2005.
Citigroup ended the year with $1.88 trillion in assets.
Author: EILEEN ALT POWELL
Source: http://www.mercurynews.com/
The New York-based bank said it earned $5.13 billion, or $1.03 a share, in the October-December period, down from $6.93 billion, or $1.37 a share, a year earlier. The year-earlier figure included a $2 billion gain on the sale of an asset management business; excluding the gain, earnings in the fourth quarter of 2005 were 98 cents a share.
The latest quarter's results included $415 million in charges stemming from previously announced cutbacks in the bank's consumer-finance operations in Japan.
Quarterly revenue was a record $23.83 billion, up from $20.78 billion in the same period in 2005.
Analysts surveyed by Thomson Financial had projected earnings of $1.00 a share on revenue of $22.45 billion.
The bank also announced that the board approved a 10 percent increase to the quarterly dividend on the company's common stock to 54 cents per share from 49 cents per share, payable on Feb. 23 to stockholders of record Feb. 5.
Citigroup shares were up 21 cents to $54.60 in premarket trading.
Charles Prince, chairman and chief executive, said in a statement accompanying the results that they reflected "double-digit revenue growth in our corporate and investment banking, wealth management and alternative investment businesses."
He noted "positive trends" in U.S. consumer operations, offset in part by the problems in the Japanese finance arena, where new legislation limiting lending rates and terms prompted Citigroup to cut back operations. Citigroup opened nearly 1,200 bank branches and consumer finance offices worldwide last year, the report said.
For 2007, Prince said, the bank's priorities include growing businesses while 'focusing sharply on expense management and remaining highly disciplined in credit management."
Analysts and investors have criticized the bank for expenses that have been rising faster than revenue.
Prince in December appointed Robert Druskin, who chairs Citigroup's corporate and investment banking division, to review the bank's expense base. Prince said last month he expects the review to be completed by the end of the January-March quarter.
The latest earnings report indicated that operating expenses were up 23 percent in the fourth quarter.
Like other banks reporting this week, Citigroup faced some deterioration in credit quality. It raised provisions for losses to $2.3 billion in the fourth quarter from $2.1 billion in the third period.
For the full year, profits totaled $21.54 billion, or $4.31 a share, down 12 percent from $24.6 billion, or $4.75 a share in 2005. Revenue was $89.6 billion for 2006, up from $83.6 billion in 2005.
Citigroup ended the year with $1.88 trillion in assets.
Author: EILEEN ALT POWELL
Source: http://www.mercurynews.com/
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