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Citigroup posts $1.8 billion fourth-quarter loss after litany of charges

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Jane Fraser, CEO of Citigroup, attends a hearing on Annual Oversight of Wall Street Firms before the Senate Committee on Banking, Housing, and Urban Affairs in Washington, D.C., the United States, on Dec. 6, 2023. 

Tom Williams | Cq-roll Call, Inc. | Getty Images

Citigroup on Friday posted a $1.8 billion fourth-quarter loss after booking several large charges tied to overseas risks, last year’s regional banking crisis and CEO Jane Fraser’s corporate overhaul.

All told, the charges — so massive the bank preannounced their impact this week — hit quarterly earnings by $4.66 billion, or $2 per share, Citigroup said. Excluding their impact, earnings would’ve been 84 cents a share, the bank said.

Here’s what the company reported vs. with what Wall Street analysts surveyed by LSEG, formerly known as Refinitiv, expected:

  • Earnings: adjusted 84 cents a share, may not compare with expected 81 cents
  • Revenue: $17.44 billion, vs. expected $18.74 billion

Fraser called her company’s performance “very disappointing” because of the charges, but said Citigroup had made “substantial progress” simplifying the bank last year.

The CEO announced plans for a sweeping corporate reorganization in September after previous efforts failed to boost the bank’s results and share price. The bank said it would exit municipal bond and distressed debt trading operations as part of the streamlining exercise. Earlier this week, the company said it booked bigger charges in the quarter than previously disclosed by CFO Mark Mason.

Citigroup revenue slipped 3% to $17.4 billion in the quarter, though the bank said revenue rose 2% after excluding the impact of divestitures and charges tied to exposure to Argentina. Despite the noise, the bank’s institutional services operations, U.S. personal banking and investment banking performed well, according to the bank.

“Citigroup’s earnings looked awful with a big loss of $1.8 billion, but the bank’s underlying business showed resilience,” Octavio Marenzi, CEO of consulting firm Opimas LLC, said in an email. Fraser will be under mounting pressure to deliver results this year, he added.

Shares of Citigroup rose 2% in premarket trading.

JPMorgan Chase and Bank of America posted results earlier Friday, while Goldman Sachs and Morgan Stanley report Tuesday.

This story is developing. Please check back for updates.

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