Citigroup (NYSE:C) reported fourth-quarter adjusted earnings that comfortably beat Wall Street expectations, as a resurgence in investment banking and the steady performance of its "crown jewel" services unit helped the bank weather a massive charge related to its exit from Russia.
The New York-based lender reported net income of $2.47 billion, or $1.19 per share.
However, excluding a $1.2 billion pre-tax loss tied to the sale of its Russia-based unit, AO Citibank, and other non-recurring items, adjusted earnings reached $1.81 per share.
This surpassed the $1.65 average estimate from analysts surveyed by Zacks Investment Research, marking a successful end to a year defined by CEO Jane Fraser’s "ruthless simplification" of the bank's global structure.
While earnings shone, the bank’s top line told a more complex story.
Total revenue reached $40.85 billion, but revenue net of interest expense came in at $19.87 billion, missing the $20.94 billion forecast by analysts.
The shortfall was primarily attributed to the impact of the Russia divestiture and a 1% dip in Markets revenue as volatility in fixed income cooled toward the end of the quarter.
Despite the miss, Citigroup’s banking unit saw a massive 78% revenue jump to $2.2 billion, fueled by a record year for M&A and equity underwriting.
The bank’s "Services" division remained a standout, benefiting from high-margin cash management and trade finance for multinational corporations.
Meanwhile, credit quality appeared resilient; net charge-offs of $2.19 billion were better than the $2.31 billion analysts had feared, suggesting that the bank’s affluent customer base is holding up well despite broader economic uncertainty.