The banking group Citigroup, one of the leading US companies, obtained a net profit of 18,045 million dollars in 2018 against the losses that ended the previous year due to the effect of the US tax reform.
The third largest bank in the country by volume of assets -and fourth by market capitalization- that lost 6,798 million in 2017, mainly due to the tax reform, has managed to close 2018 with profits, going from having a negative result to one positive.
The bank’s annual income amounted to 72,854 million dollars, 1% more than the previous year, in which it invoiced 72,444 million; while in the fourth quarter of 2018 it achieved 17,124 million, 2% less year-on-year.
The CEO of the entity, Michael Corbat, said in an open telephone conference to the media that the “macroeconomic uncertainty” has led to a “complicated ecosystem” in the last three months, and acknowledged that increasing revenues has been more difficult. the expected.
At the beginning of December, the financial group already warned that compared to the previous year, its revenues would probably fall due to the movements of the stock market, especially in sensitive areas such as fixed income.
Thus, the 1.942 billion dollars that Citigroup billed in the fixed income business this fourth quarter represent 21% less compared to the same period of the previous year, “due to the volatility of the market and the resulting trading environment,” says the Bank.
In spite of everything, the benefit of the last quarter did satisfy the analysts: it gained 4,313 million, when in the same period of 2017 it had registered losses of 18,893 million. Earnings per share, of $ 1.64, exceeded the experts’ estimate of $ 1.55.
Corbat highlighted that in 2018 the entity that has registered “solid progress” towards its long-term objectives, has improved its performance on assets and has generated growth in its global commercial banking, especially in Mexico.
After congratulating the chief financial officer
Citigroup, John Gerspach, who will retire next March after 29 years in the company, Corbat said that despite the “uncertainty”, plans to grow and remains “committed” to the goals set for 2019.
“That said, we will be prepared to make adjustments if we see changing economic conditions,” he added.
At the same conference, Gerspach pointed out that the “real economy is doing well” and what worries the markets is whether it will finally suffer the impact of the so-called “financial economy”, affected by fears of a slowdown in the global economy, the conflict US-China trade or the adjustment of monetary policy.
Wall Street is pending in the coming days of the results of other major US banks: this Tuesday they offer their quarterly accounts JPMorgan, the first entity in the country, and Wells Fargo; Wednesday will be Bank of America and Goldman Sachs, and Thursday, Morgan Stanley.
A half session on the New York Stock Exchange, which today is going through a negative day, Citigroup shares rose 4.29% in reaction to corporate results. In the last year they have lost, however, more than 23% of their value. (EFEUSA) .-