Citigroup has reported a net loss of $18.3bn for the fourth quarter of 2017 because of $22bn non-cash charge related to changes in US corporate tax laws.
Without the charges related to tax reform, the bank reported operating earnings of $3.7bn for the fourth quarter of 2017 or $1.28 per share.
For the quarter ended 31 December 2017, the banking group’s total revenues were $17.25bn, up 1% from $17.01bn in the corresponding quarter of 2016.
Citigroup’s Private Bank revenues increased 15% year-on-year to $771m. The bank attributed the rise to growth in clients, loans, investments and deposits, and improved spreads.
Citi CEO Michael Corbat said: “While our fourth quarter results reflected the impact of a significant non-cash charge due to tax reform, the impact on our regulatory capital was much less significant. Tax reform does not change our capital return goals as we remain committed to returning at least $60 billion of capital in the current and next two CCAR cycles, subject to regulatory approval.
“Tax reform not only leads to higher net income and increased returns, but also serves to strengthen our capital generation capabilities going forward.”