Citigroup shares were under pressure Friday after the banking giant reported a steep profit drop for the fourth quarter.
Here’s how the bank fared in the quarter compared to what analysts expected:
Earnings per share: $1.46, but it was not clear if that is comparable to the $1.38 estimated by Refinitiv
Revenue: $17 billion vs. $16.75 billion expected
The company’s net income dropped 26% to $3.2 billion. Citigroup cited an increase in expenses for the sharp decline. Shares fell nearly 4% after the results were released.
Citigroup reported an 18% year-over-year increase in operating expenses to $13.5 billion for the quarter.
Shares of the bank slumped 2% last year, while the KBW Bank Index jumped 37% and all of her big bank peers surged on strong capital markets revenue and expectations for rising interest rates.
But Citigroup, which trades for less than tangible book value (the measure of what a bank would be worth if it were liquidated), has been struggling for years.
When Jane Fraser took over for predecessor Michael Corbat a year ago, her mandate was to improve returns at the third biggest U.S. bank by assets.
To do so, she has opted to exit less profitable parts of the firm’s global empire. Her first major strategic move was to leave 13 retail markets across Asian and Europe; since that April announcement she has disclosed plans to depart South Korea and Mexico. Analysts will be keen to ask her if she’s completed her divestiture project.
Investors were surprised when the bank said last month that it was suspending share repurchases to help it comply with impending regulatory rules. Analysts will likely ask Fraser when buybacks will resume, and at what levels.
Shares of the bank have climbed 11% this year, matching the rise of the KBW Bank Index.
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–CNBC’s Hugh Son contributed to this report.