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NEW YORK (AP) – Citigroup Inc. says fourth quarter 2020 profits fell 7% to $ 4.63 billion.
The New York-based bank said it had earnings of $ 2.08 per share, down from $ 2.15 per share a year earlier. Earnings, adjusted for discontinued operations, were $ 2.07 per share.
The results exceeded Wall Street’s expectations. The average estimate of 10 analysts polled by Zacks Investment Research was for earnings of $ 1.35 per share.
The U.S. bank posted revenues of $ 16.5 billion, down 10% from a year ago and below Street’s forecast. Six analysts polled by Zacks forecast $ 16.58 billion.
Citigroup reduced its reserve for credit losses by $ 1.5 billion due to improving prospects for the global economy and reduced credit losses in its global consumer banking division. The amount earmarked for potential bad debt remains high, however, at $ 25 billion, roughly double what it was at the end of 2019.
Citigroup stock has risen 12% year-to-date, while the Standard & Poor’s 500 index has risen 1%. The stock has fallen 16% in the past 12 months.
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This story was partially generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on C at https://www.zacks.com/ap/C
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