Citigroup Earnings Disappoint

The quarter’s results included a “CVA/DVA loss” of $164 million ($100 million post-tax).

For the full year, Citigroup reported adjusted EPS of $4.23 on revenues of $76.4 billion. A year ago the company reported EPS of $3.86 on $77.13 billion in revenue. The consensus estimate called for EPS of $4.57 on revenues of $76.96 billion.

The full-year results included a “CVA/DVA loss” of $342 million ($213 million post-tax).

The bank’s CEO said:

 Although we didn’t finish the year as strongly as we would have liked, we made substantial progress toward our key priorities in 2013. Having grown our operating net income by 15% over 2012, we achieved our highest amount of net income since before the financial crisis. We accelerated our growth in capital and ended the fourth quarter with an estimated Basel III Tier 1 Common ratio of 10.5%, exceeding our target for the year. We also grew loans in our core businesses by 7%, utilized $2.4 billion of our deferred tax assets, and reduced the assets in Citi Holdings by 25% while cutting its annual loss in half. In addition, we improved our efficiency by executing on the repositioning actions announced at the end of 2012, reducing expenses and growing revenues. We enter 2014 as a strong and stable institution that is committed to achieving our 2015 financial targets and our objective of returning capital to our shareholders.

The bank did not offer guidance for 2014, but the consensus estimates call for full-year EPS of $5.27 on revenues of $77.68 billion.

Shares were down more than 2.5% in premarket trading Thursday, at $53.57 in a 52-week range of $40.28 to $55.28. Thomson Reuters had a consensus analyst price target of around $60.90 before the results were announced.