Citigroup said it had identified the cause of the flash crash and corrected the error “within minutes.”
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Citigroup said fourth-quarter net income decreased by more than 21% from a year ago as declines in investment banking overshadowed a benefit from higher interest rates. The bank also said it was setting aside more money for credit losses.
Here are the fourth-quarter numbers:
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- Net income: $2.5 billion versus $3.2 billion a year ago.
- Earnings: $1.10 a share, excluding certain divestitures. (It was not clear if that was comparable to the $1.14 a share estimate from analysts.)
- Revenue: $18.01 billion in revenues, above the $17.9 billion expected from analysts polled by Refinitiv.
- Net Interest Income: $13.27 billion, above the 12.7 billion expected by analysts, according to StreetAccount
- Trading Revenue: Fixed Income $3.16 billion, above expectations. Equities trading was $789 million, below expectations.
- Provision for credit losses: $1.85 billion compared to $1.79 billion expected by analysts polled by StreetAccount.
Shares fell 2.6% in early trading.
Jane Fraser’s turnaround efforts at Citigroup have hit a snag — concerns over a global economic slowdown as central banks around the world battle inflation.
Like the rest of the industry, Citigroup is also contending with a sharp decline in investment banking revenue, partly offset by an expected boost to trading results in the quarter.
JPMorgan, Bank of America and Wells Fargo also reported earnings on Friday. JPMorgan topped analyst estimates for the quarter and said that it now sees a mild recession as the base case for 2023. Bank of America also beat Wall Street’s expectations as higher interest rates offset losses in investment banking.
Wells Fargo shares fell, however, after the bank reported that profits fell in the latest quarter due to a recent settlement and the bank’s boosted reserves amid economic weakness.
This is a breaking news story. Please check back for updates.
