This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-35325729
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Citigroup profits jump after fall in legal costs | Citigroup profits jump after fall in legal costs |
(34 minutes later) | |
US bank Citigroup has reported a jump in fourth quarter profits compared with a year earlier, helped by a big fall in legal costs. | US bank Citigroup has reported a jump in fourth quarter profits compared with a year earlier, helped by a big fall in legal costs. |
The bank said net profit rose to $3.34bn (£2.43bn) compared with $344m in the last quarter of 2014 when it paid $3.5bn in legal and other charges. | The bank said net profit rose to $3.34bn (£2.43bn) compared with $344m in the last quarter of 2014 when it paid $3.5bn in legal and other charges. |
The bank's legal and repositioning costs fell to $724m for this quarter. | The bank's legal and repositioning costs fell to $724m for this quarter. |
Citi - which is undergoing a restructuring - is the third largest US bank when ranked by assets. | Citi - which is undergoing a restructuring - is the third largest US bank when ranked by assets. |
The picture at Citi echoed that at JP Morgan Chase, which reported results on Thursday. Profits there also jumped thanks to lower legal expenses and better cost control. | |
'Safer and stronger' | |
Citigroup has been restructuring to focus on more profitable businesses and markets, and has closed consumer operations in 11 overseas markets. | |
Operating expenses fell 23% to $11bn, partly thanks to the fall in legal-related costs. | Operating expenses fell 23% to $11bn, partly thanks to the fall in legal-related costs. |
Chief executive, Michael Corbat, said: "We have undoubtedly become a simpler, smaller, safer and stronger institution. | Chief executive, Michael Corbat, said: "We have undoubtedly become a simpler, smaller, safer and stronger institution. |
"We have sharpened our focus on target clients, shedding over 20 consumer and institutional businesses in the process." | "We have sharpened our focus on target clients, shedding over 20 consumer and institutional businesses in the process." |
Citi's shares were down 5% in early trading on Wall Street. | Citi's shares were down 5% in early trading on Wall Street. |
The US's biggest mortgage lender, Wells Fargo, also released results on Friday. | |
It reported a 0.8% fall in profits for the final quarter of 2015 to $5.34bn after it set aside more to cover bad loans. | |
However, mortgage banking revenue rose 9.6% to $1.66bn, the first quarterly rise all year. | |
Its shares were 2.5% lower in early trading. |
Previous version
1
Next version