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.
Australian Open Day Two: Sunny skies, Federer, Halep to play
The 28-year-old remains resident in the United Kingdom but now flies the flag of his native Slovenia at Grand Slams once again. After being allowed to return from her doping ban sooner than initially expected, the U.S.
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.
Jorge Garcia Deported to Mexico After 30 Years in US
Meanwhile, the number of people apprehended attempting to cross the US southern border dropped to a historical low in fiscal 2017. His wife, Cindy Garcia, cried out while his daughter, Soleil, 15, sobbed into Garcia's shoulder as they hugged, with two U.S.
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.
Billy Murray returns to "SNL" as Steve Bannon
House of Representatives committee that is probing whether Russian Federation meddled in the 2016 presidential election. President Donald Trump's former chief strategist Steve Bannon will meet behind closed doors on Tuesday with a U.S.