Citigroup Q4 Earnings Miss Expectations, Posts Lower Profits On Provision Hike, Slower Dealmaking

Citigroup Inc's C Q4 FY22 net income decreased by more than 21% from a year ago to $2.5 billion.
Revenues increased 6% to $18.01 billion, beating the consensus of $17.90 billion as growth in net interest income was partially offset by lower noninterest revenues.
The higher net interest income was driven by higher interest rates across businesses and strong loan growth in Personal Banking and Wealth Management. The lower noninterest revenues reflected declines in Investment Banking and lower investment product revenues in Global Wealth Management in PBWM.
Related: Investment Bankers Brace For Lower Compensation Amid Lower Deal Making Activity.
Adjusted EPS of $1.10 missed the consensus of $1.14, versus $1.99 a year ago.
Guidance: Citigroup sees 2023 revenue of $78 billion – $79 billion, excluding 2023 divestiture-related impacts
Shares of Citi slipped nearly 3% in premarket trading after fears of a potential recession prompted Citi to add $640 million to its reserves in the fourth quarter.
That compares with a release of $1.4 billion from its reserves in 2021 when pandemic-related loan losses failed to materialize.
The institutional clients group, which houses its investment bank and corporate services, posted $9.16 billion in quarterly revenue, up 3%.
Trading revenue rose 18%. Trading in fixed-income, currencies and commodities rose 31% thanks to interest-rate volatility.
Investment-banking fees plunged 58% due to a steep drop-off in deal-making.
Price Action: C shares are up 0.70% at $49.44 on the last check Friday.

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