The lower trading revenues of Citigroup Inc was offset by solid gains in Asia and Latin America as the lender beat Wall Street expectations off profits in its global consumer banking business, the company announced on Tuesday.
There was a rise of 2.8 per cent in the shares of the company in premarket trading.
A one-time hit of $22 billion due to the alterations in the new U.S. tax law was taken by Citigroup and which contributed to the loss of $18.3 billion in the fourth quarter ended Dec. 31, the lender reported.
There has bene a number of Wall Street banks who have announced that a one-time hit would be needed to be taken by them by the changes in the corporate tax laws in the fourth quarter even though the changes in the tax law is anticipated to provide long term benefits for U.S. banks doing business across the globe.
A one-time tax expense of $2.4 billion mainly for taxes against its earnings in foreign market in the past was announced to be taken on Friday by JPMorgan Chase & Co, the biggest U.S. bank.
The new tax regulations are expected to provide benefits in the future, said Citigroup which is the fourth-largest U.S. bank in terms of assets. There would be a drop of 5 per cent in its tax rate for it in 2018 from 30 per cent in 2017.
But since the corporate taxes over seas are mainly lower than those in the U.S. and because Citigroup primarily makes about half of its profits from overseas markets, therefore many analysts are of the view that the lender would have lesser advantage from the tax rate changes in its home market.
The net income of the bank rose 4 percent to $3.7 billion after adjusting for major tax charge. And according to Thomson Reuters I/B/E/S, the analysts’ average estimate of adjusted earnings was $1.19 whereas the bank reported $1.28 per share. On the other hand, there was also rise of 1.4 per cent in total revenues clocking $17.26 billion which was just higher than the market estimate of $17.22 billion.
Lower volatility in fixed income markets resulted in a 1 per cent decrease in Institutional Clients Group revenue that entails investment banking and trading, with respect to what the bank earned a year ago. At that time there was active position changing by investors due to the U.S. presidential election.
There was an increase of 5.6 per cent in the revenues from Global Consumer Banking business for the group which included retail banking and credit cards and this revenue made up about 50 per cent of the total revenue. There was a 11 per cent growth in this segment in Asia and Latin America.
(Source:www.reuters.com)
There was a rise of 2.8 per cent in the shares of the company in premarket trading.
A one-time hit of $22 billion due to the alterations in the new U.S. tax law was taken by Citigroup and which contributed to the loss of $18.3 billion in the fourth quarter ended Dec. 31, the lender reported.
There has bene a number of Wall Street banks who have announced that a one-time hit would be needed to be taken by them by the changes in the corporate tax laws in the fourth quarter even though the changes in the tax law is anticipated to provide long term benefits for U.S. banks doing business across the globe.
A one-time tax expense of $2.4 billion mainly for taxes against its earnings in foreign market in the past was announced to be taken on Friday by JPMorgan Chase & Co, the biggest U.S. bank.
The new tax regulations are expected to provide benefits in the future, said Citigroup which is the fourth-largest U.S. bank in terms of assets. There would be a drop of 5 per cent in its tax rate for it in 2018 from 30 per cent in 2017.
But since the corporate taxes over seas are mainly lower than those in the U.S. and because Citigroup primarily makes about half of its profits from overseas markets, therefore many analysts are of the view that the lender would have lesser advantage from the tax rate changes in its home market.
The net income of the bank rose 4 percent to $3.7 billion after adjusting for major tax charge. And according to Thomson Reuters I/B/E/S, the analysts’ average estimate of adjusted earnings was $1.19 whereas the bank reported $1.28 per share. On the other hand, there was also rise of 1.4 per cent in total revenues clocking $17.26 billion which was just higher than the market estimate of $17.22 billion.
Lower volatility in fixed income markets resulted in a 1 per cent decrease in Institutional Clients Group revenue that entails investment banking and trading, with respect to what the bank earned a year ago. At that time there was active position changing by investors due to the U.S. presidential election.
There was an increase of 5.6 per cent in the revenues from Global Consumer Banking business for the group which included retail banking and credit cards and this revenue made up about 50 per cent of the total revenue. There was a 11 per cent growth in this segment in Asia and Latin America.
(Source:www.reuters.com)
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