(Reuters) – Citigroup reported lower fourth-quarter profit on Friday, weighed down by higher provisions and lower investment banking revenue as mergers and acquisitions activity slowed sharply.
In New York, Citigroup shares fell nearly 3% in pre-market trading.
Fears of a global economic recession prompted Citigroup to increase its provisions for bad debts by $640 million in the fourth quarter.
For comparison, the bank had reduced these same provisions by $ 1.37 billion in 2021, as loan losses linked to the coronavirus pandemic did not materialize.
Revenue at Citigroup’s investment bank also plunged 58% as mergers and acquisitions activity slowed significantly last year amid rising interest rates, the war in Ukraine and growing economic uncertainties.
Traders, however, repositioned their portfolios in the face of high volatility, which boosted trading activities, whose revenue rose 6% to $18 billion.
For the three months ended Dec. 31, Citigroup’s net profit was $2.5 billion (€2.31 billion), or $1.16 per share, from $3.2 billion ($1.46 per share) a year earlier.
(Reporting Mehnaz Yasmin in Bangalore and Lananh Nguyen in New York; French version Dagmarah Mackos, editing by Blandine Hénault)
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