Shares of financial services company Citigroup Inc (C
) fell over 3% on Thursday morning after the company reported earnings that fell below analysts’ estimates.
Citi’s Earnings in Brief
Citi reported Q4 earnings of $2.691 billion, or 85 cents per share, up from $1.196 billion, or 38 cents per share, last year. Excluding special items, earnings were 82 cents per share. Total revenue for the quarter dipped to $17.78 billion from $17.92 billion a year ago. Analysts estimated earnings of 95 cents per share on revenue of $18.18 billion.CEO Commentary
Citi’s CEO Michael Corbat commented on the results: “Although we didn't finish the year as strongly as we would have liked, we made substantial progress toward our key priorities in 2013. Having grown our operating net income by 15% over 2012, we achieved our highest amount of net income since before the financial crisis. We accelerated our growth in capital and ended the fourth quarter with an estimated Basel III Tier 1 Common ratio of 10.5%, exceeding our target for the year. We also grew loans in our core businesses by 7%, utilized $2.4 billion of our deferred tax assets, and reduced the assets in Citi Holdings by 25% while cutting its annual loss in half. In addition, we improved our efficiency by executing on the repositioning actions announced at the end of 2012, reducing expenses and growing revenues. We enter 2014 as a strong and stable institution that is committed to achieving our 2015 financial targets and our objective of returning capital to our shareholders."
Citi’s Dividend
The company declared its next quarterly dividend of 1 cent per share. This dividend will be paid on February 28 to shareholders of record on February 3. The stock will go ex-dividend on January 30.
Stock Performance
Citigroup shares were down $1.72, or 3.11%, during pre-market trading Thursday.
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