Citigroup, one of the largest banks in the United States, published fourth-quarter 2022 net income of $2.5 billion, or $1.16 per share.
The bank reported revenues of $18 billion above Refinitiv’s expectations of $17.9 billion.
The bank set aside more money for future credit losses, increasing provisions 35% from the prior quarter to $1.85 billion. Including $640 million in unfunded commitments due to growth in private banking loans.
Markets division: best fourth quarter in the bank’s recent history
“The markets division had its best fourth quarter in recent history, driven by a 31% increase in fixed income, while Banking and Wealth Management were impacted by the same market conditions they faced throughout the year,” he said. commented CEO Jane Fraser.
Citigroup CEO Jane Fraser’s turnaround efforts have hit a snag amid concerns about a global economic slowdown as central banks around the world battle inflation.
Like the rest of the industry, Citigroup is also facing a sharp decline in investment banking revenues, partly offset by an expected increase in trading results in the quarter.
The drop in net income the bank saw in the fourth quarter was largely due to loan growth at its private bank along with expectations for a weaker macroeconomic environment going forward. The weakness was partially offset by higher revenues and lower expenses.