Excluding the tax charge, Citigroup's quarterly profit was $3.7 billion, or $1.28 per share, compared to $3.6 billion, or $1.14 per share, for the same period in 2016. Because the new tax bill lowered the corporate tax rate to 21 percent, the value of those tax-deferred assets had to be written down. Separately, deposits were $960 billion as of quarter end, up 3%. Loans that the bank considers to have doubtful repayment potential, also known as non-accrual loans, declined 17% to $4.8 billion, with consumer non-accrual loans declining 15% and corporate non-accrual loans declining 20%.
While Citigroup booked a $22 billion charge to account for the tax changes, the effect on capital that regulators scrutinize was "much less significant", said CEO Michael Corbat in a statement, noting the annual bank "stress tests", or Comprehensive Capital Analysis and Review (CCAR), that's used to determine how much in buybacks and dividends banks can pay out. Tax reform not only leads to higher net income and increased returns, but also serves to strengthen our capital generation capabilities going forward. Equity markets revenue declined 23 percent, reflecting an episodic loss in derivatives of about $130 million related to a single client event.
Citigroup Inc. (NYSE: C) reported its fourth-quarter financial results before the markets opened on Tuesday.
Joshua and Parker Go Head To Head For The First Time
I came out of a police cell the day before and went up there to spar. David Price is a puncher and that was down to a lack of experience.
The New York-based bank said it had a loss of $7.15 a share, compared with a profit of $3.57 billion, or $1.14 a share, in the same period a year ago. While the new law is expected to be a long-term positive for most companies, several announced they would have to take one-time charges stemming from the changes.
That's because of the massive losses Citi suffered during the financial crisis.
Citi blamed the loss on a $22bn one-off hit incurred by the US Tax Cuts and Jobs Act, passed into law by President Trump just before Christmas. The bank had to book another $3 billion loss on repatriated earnings from its overseas subsidiaries.
U2 confirm they will bring their 2018 tour to Dublin and Belfast
European tour tickets go on general sale on Friday January 26, and will be limited to four per person. Irish giants U2 have confirmed two United Kingdom dates as part of their Experience + Innocence tour.
REVENUE RISES: Revenue at the bank rose 1% to $17.26 billion, above the $17.22 billion that analysts were expecting.
Like JPMorgan, Citigroup also was involved in a margin loan to an entity controlled by Christo Wiese, the former-chairman of Steinhoff International, whose stock has been ravaged by an ongoing accounting scandal. Global consumer banking revenue grew 6% to $8.4 billion.
JPMorgan reported a $273 million hit to its fourth-quarter earnings from the deal, and other banks are expected to have more exposure.
White House Says Judge's Temporary Block On Removing DACA Is 'Outrageous'
Earlier on Thursday, Republicans in the House of Representatives told reporters there had been substantial progress toward a deal. Some other lawmakers who have been engaged in the negotiations were also optimistic; others said no deal had yet been reached.