|Citigroup's office at the International Financial Services Centre, Dublin|
the US investment bank, today reported a 21% drop in quarterly earnings as
revenue from fixed-income trading fell. Meanwhile, Citigroup, the third largest
US bank by assets reported more than a doubling in earnings. Nevertheless, it
was lower than expected quarterly profit as cost cuts did not offset a decline
in fixed-income (bonds) revenue.
Goldman posted net income of $2.33bn, compared with year-earlier profit of
$2.89bn. Per-share earnings—reflecting the payment of preferred dividends—were
$4.60, while net revenue dropped 4.9% to $8.78bn.
In the year, FICC (fixed-income, currencies and commodities) trading had
revenues of $8.65bn, down 13% from last year and its lowest figure since 2007.
For the quarter, FICC trading revenue dipped 15% from the year-earlier period to
$1.72bn but jumped 38% from the third quarter.
Full-year net earnings rose 8% to $8.04bn on revenues of $34.2bn. Full-year
trading revenue fell 13% and accounted for 46% of the total, the lowest since
Citigroup more than doubled net income to $2.7bn in the fourth quarter
but missed analyst estimates, as mortgage banking and fixed-income trading
Earnings per share rose to 85 cents from 38 cents, the bank said. Excluding
accounting charges and special items, profit was 82 cents a share
Quarterly revenue excluding an accounting charge tied to the value of the firm’s
own debt and other items declined 2% to $17.9bn. For the full year, net income
rose 84% to $13.9bn on a 10% increase in revenue to $76.4bn.
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