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Legal Charges Weigh Down Net Income At Citi; Private Banking Arm Prospers
Eliane Chavagnon
16 January 2015
, the US banking group with a large private banking offering, reported $350 million ($0.06 per diluted share) in net income for the fourth quarter of 2014, down sharply from $2.5 billion ($0.77 per diluted share) a year ago. Revenue of $17.8 billion dropped 9 per cent from the third quarter of 2014 (when it was $19.6 billion) and is essentially flat year-on-year, the firm said yesterday in a statement, as US banks and financial institutions began issuing results. Firms such as JP Morgan, Wells Fargo and BlackRock have started to issue their quarterly and full-year numbers. The firm said legal and related expenses, and repositioning charges, totalled $3.5 billion for the quarter, compared to $1.0 billion in the prior-year period. Citigroup full-year 2014 net income was $7.3 billion on $76.9 billion in revenue, compared to net income of $13.7 billion on $76.4 billion in revenue for the full-year 2013. The picture is brighter at , where revenue rose 11 per cent year-on-year from $599 million to $666 million in the final quarter of 2014. Private banking revenue is also up from $663 million in the third quarter of 2014.