Citigroup has reported a net income of $4.6bn, or $2.08 per diluted share, for the fourth quarter of 2020, a 7% decline compared to $5bn, or $2.15 per diluted share, for the corresponding quarter in 2019.
The company has generated $16.5bn revenues for the Q4 2020, which decreased by 10% compared to $18.4bn revenues from the prior-year period.
Citi attributed the 7% decrease in net income to the reduction in revenues, increase in expenses, and an increase in the effective tax rate, and partially to the declined cost of credit.
Citi CEO Michael Corbat said: “We ended a tumultuous year with a strong fourth quarter. As a sign of the strength and durability of our diversified franchise, our revenues were flat to 2019, despite the massive economic impact of COVID-19.
“For the year, we generated $11 billion in net income despite our credit reserves increasing by $10 billion as a result of the pandemic and the impact of CECL.
“We remain very well capitalized with robust liquidity to serve our clients. Our CET 1 ratio increased to 11.8%, well above our regulatory minimum of 10%. Our Tangible Book Value per share increased to $73.83, up 5% from a year ago.”
The company said that the fall in revenue indicates the revenue decline in its Global Consumer Banking (GCB), Institutional Clients Group (ICG), and Corporate / Other businesses.
GCB business generated $7.13bn revenue for the Q4 2020, a decrease of 2% than the $8.4bn for the same quarter in 2019.
ICG business generated $9.27bn in revenue for Q4 2020, a decline of 10% compared to $9.37bn in revenues for the Q4 2019.
Corbat added: “Looking back, I am proud of the progress the firm has made since I became CEO. We have streamlined our consumer business and embraced the shift to digital so we can serve our clients the way they want to be served. We have re-established Citi as a go-to bank for our institutional clients through our global network.
“Before the pandemic slowed our progress, we had steadily improved our returns and dramatically increased the return of capital to our shareholders. Notably, we went from having a one penny dividend to returning over $85 billion in capital since 2013 and we have reduced our share-count by 30%. Jane has a great foundation to build upon and I am certain great things are in store for Citi and all its stakeholders.”
