Citigroup (C) Shares Down After EPS Miss Fueled by Higher Costs and Weak Consumer Banking Revenue

January 14, 2022 10:16 AM EST
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Shares of Citigroup (NYSE: C) are down 3% today after the company reported mixed 4Q earnings.

Citi reported Q4 EPS of $1.46 to miss on the FactSet analyst estimate of $1.49. Revenue for the quarter came in at $17 billion versus the consensus estimate of $16.77 billion.

Jane Fraser, Citi CEO, said: “We continue to make steady progress on executing our strategy as demonstrated most recently by the signing of an agreement to sell four consumer businesses in Asia. We are also aligning our organization and reporting structure with our strategy, including the creation of the Personal Banking and Wealth Management and Legacy Franchises segments. This will make it easier for our investors to understand the performance of our core businesses and optimize the businesses we have chosen to exit.”

Especially notable was that the bank's global consumer banking revenue dropped 6%, fueled by a 3% drop in revenue from credit cards in North America.

Goldman Sachs analyst Richard Ramsden blamed higher expenses for the EPS miss, with costs soaring 6% YoY.

“We believe that the market will take these results modestly negatively despite the stronger revenue than expected, although we believe the focus will continue to be on the return and growth profile of Citigroup post the restructuring,” Ramsden wrote in a memo to clients.

Citigroup stock price is still up 4.5% YTD.

By Senad Karaahmetovic |

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