(CercleFinance.com) – Citigroup acknowledged on Friday that it had recorded ‘very disappointing’ results in the fourth quarter due to the recognition of a whole series of charges and provisions.
The American banking group reported a net loss of more than $1.8 billion for the last three months of fiscal 2023, compared with a net profit of $2.5 billion a year earlier.
In a press release, Citi explains having suffered a charge of 1.7 billion dollars due to a ‘revaluation’ imposed by the American federal bank deposit guarantee authority (FDIC).
A reserve of 1.3 billion dollars was also set up to deal with the risks associated with Argentina and Russia, not to mention a loss of 880 million dollars suffered due to the depreciation of the Argentine peso.
Finally, the group indicates that it has recorded a restructuring charge of 780 million as part of the simplification of its organization.
Apart from all these elements, Citi would have generated earnings per share (EPS) of 84 cents, higher than the market consensus, established at 79 cents.
The group adds that it paid its shareholders six billion dollars in the form of dividends or share buybacks last year, including $1.5 billion in the fourth quarter alone.
In pre-market trading, the stock rose by more than 2% following this publication.
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