Citigroup profits fall

 
City A.M. Reporter
Citigroup fourth-quarter profits fell 11 per cent and missed Wall Street estimates as the European debt crisis battered capital markets trading and discouraged clients from doing deals.

The third-largest US bank by assets reported net income of $1.16bn (£754.47m), or 38 cents per share, down from $1.31, or 43 cents per share, a year earlier.

Analysts, on average, expected 49 cents a share, according to surveys. Citigroup stock dropped three per cent in premarket trading after the results.

Citi said securities and banking revenue fell 29 per cent from the year-earlier quarter, excluding the accounting impact of changes in the value of Citi debt.

The profit drop came in spite of an improvement in the cost for bad loans, which fell nearly $2bn, or 41 percent, to $2.9 billion.