Citigroup 2020 Q4 Earnings

Citigroup Inc. (NYSE:C) is a New York-based financial services company founded in 1812. It is one of the leading banks in the U.S., offering a range of financial products and services to corporate customers, government institutions, and individuals. Citigroup has a strong global footprint, doing business in more than 160 countries. The bank was growing at a decent pace in the 2000s before substantially losing its market value during the 2008 global financial crisis.

The bank once again experienced huge losses after the Covid-19 outbreak last year. Citigroup shares fell to a low of around $35 in March, significantly down from a trading price of around $80 at the start of 2020. Overall, its share price has decreased about 21 percent over the past year, as low interest rates weighed on its profitability. Moreover, the bank experienced another setback when one of its employees mistakenly paid nearly $900 million to a company last year. Subsequently, the Federal Reserve Board imposed a $400 million penalty over Citigroup’s unsafe banking practices.

Meanwhile, Citigroup in September named Jane Fraser as its new CEO. Fraser will replace Michael Corbat, who led the bank for more than 8 years. Fraser is the first woman to become a CEO of a major U.S. bank.

If we look at the financial performance, Citigroup on Friday announced mixed fourth-quarter results. It reported earnings of $4.6 billion, or $2.08 per share for the quarter, as compared to $2.15 per share in the comparable period of 2019. Revenue came in at $16.5 billion, down 10 percent on a year-over-year basis.

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On the other hand, analysts on average were looking for a profit of $1.34 per share on revenue of $16.7 billion. Citigroup shares fell 6.93 percent to $64.23 in the previous trading session on weaker-than-expected revenue.