Citigroup increased profits faster than expected in the fourth quarter. In the course of the year, however, the bank has earned more money than Deutsche Bank is worth on the stock market.
Although the Cititbank had warned against excessive expectations in December and stated that they would probably miss their own goals easily. But the surplus now presented far exceeds the expectations of analysts.
Earnings per share rose 26 percent to $ 1.61 in the fourth quarter. Not only the total profit of $ 4.3 billion, but also the repurchase of eight percent of the issued shares contributed to this.
In the same period last year, the Institute had withdrawn a loss of $ 18.9 billion due to one-off costs of the US tax reform. Adjusted for one-off effects, revenues increased 14 percent this time to $ 4.22 billion, thanks to lower costs and lower taxes. Sales increased by only one percent to $ 72.9 billion.
More course information about Citigroup
During 2018, the bank recorded a surplus of $ 18 billion, after a loss of $ 6.6 billion a year ago. The now reported annual profit is higher than the rating of the entire Deutsche Bank.
Start of the reporting season
In the fourth quarter, yields dropped even by two percent to $ 17.12 billion due to weak bond activity. This is slightly less than experts had expected, mainly because of weak bond activities.
Citigroup is the first of the six major American banks to announce their figures this week. Tomorrow, Tuesday, investment bank JPMorgan and San Francisco-based bank Wells Fargo will follow.
In the pre-trade, investors are initially disappointed about the number. Last year, Citigroup's market share declined by almost 40 percent, but it was able to rebound strongly.