Citigroup reported earnings this morning of $0.82 per share in the fourth quarter of 2013, representing a 19% gain over the $0.69 per share posted in the fourth quarter of 2012. In 2013 it had $13.8 billion in adjusted net income and $4.37 of diluted earnings per share, gains of 15% and 13%, respectively, over 2012 levels.
Revenue at Citigroup was down slightly in the final quarter of 2013 relative to 2012 from $18.4 billion in 2012 to $17.9 billion in the most recent quarter. This was due to both changes in its credit and debt valuation adjustments (DVA / CVA) and its Global Consumer Banking revenue falling from $10.0 billion to $9.5 billion. The bank noted "significantly lower" U.S. mortgage refinancing activity.
"Although we didn't finish the year as strongly as we would have liked, we made substantial progress toward our key priorities in 2013," said Citigroup CEO Michael Corbat in a statement. "Having grown our operating net income by 15% over 2012, we achieved our highest amount of net income since before the financial crisis."
For the full year 2013, Citigroup's revenue stood at $76.7 billion after the CVA/DVA adjustments, an increase of 1% over the prior year.
Consumer Banking net income at Citigroup was down 11% from $7.9 billion for the full year 2012 to $7.1 billion in 2013. This was attributable to weaker revenues, fewer benefits from the release of loan loss reserves, and a higher cost of credit. Its Transaction Services line saw net income fall by 7%. However its Securities and Banking business line net income was up 45% year over year, but only 9% on an adjusted basis.
Corbat concluded his remarks by noting, "[w]e 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 article Citigroup Fourth-Quarter Earnings up 19% originally appeared on Fool.com.Fool contributor Patrick Morris has no position in any stocks mentioned. The Motley Fool owns shares of Citigroup. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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