Citigroup’s Big Earnings Disappointment

by Christopher Freeburn | January 17, 2013 11:24 am

Citigroup’s Big Earnings Disappointment

citigroup building 630 300x187 Citigroup's Big Earnings Disappointment[1]Shares of Citigroup (NYSE:C[2]) fell almost 3% in Thursday morning trading after the bank posted fourth-quarter results that fell short of Wall Street forecasts[3].

During the quarter, Citigroup generated net income of $1.2 billion, up 25% from $956 million during the same period in 2011. Adjusted EPS came in at 69 cents a share. That disappointed analysts who had anticipated earnings of 96 cents a share, Reuters noted.

Citigroup’s results were dented by $1.2 billion in charges relating to litigation and $1.03 billion in charges resulting from layoffs.

In October, former CEO Vikran Pandit was ousted by the bank’s board of directors[4] and was replaced by current CEO Michael Corbat.

Last month, the bank announced that it would eliminate 11,000 jobs at its worldwide operations[5] in a bid to trim $1.1 billion in annual costs.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/08/citigroup_building_630.jpg
  2. C: http://studio-5.financialcontent.com/investplace/quote?Symbol=C
  3. fourth-quarter results that fell short of Wall Street forecasts: http://www.reuters.com/article/2013/01/17/citigroup-results-idUSL1E9CH32V20130117
  4. ousted by the bank’s board of directors: http://investorplace.com/2012/10/citigoup-ceo-pandit-and-coo-havens-resign/
  5. eliminate 11,000 jobs at its worldwide operations: http://investorplace.com/2012/12/citigroup-to-eliminate-11000-jobs-shares-jump/

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