Citigroup’s Global Consumer Banking (GCB) arm has posted a net income of $1.33bn for the fourth quarter of 2017, an increase of 9% compared to $1.22bn a year ago.
For the quarter ended 31 December 2017, the unit’s total revenues were $8.41bn, a rise of 6% compared to $7.97bn in the corresponding quarter of 2016. Operating expenses stood at $4.52bn, an increase of 4% compared to $4.36bn a year ago.
The division’s North America business posted net income of $842m, an increase of 4% compared with $810m in the fourth quarter of 2016. Its Asian business net income rose 29% year-on-year to $336m, while Latin American business registered a rise of 4% to $160m.
Overall, Citigroup posted net loss of $18.3bn as the bank made payment 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.
The banking group’s total revenues stood at $17.25bn, up 1% from $17.01bn in the corresponding quarter of 2016.
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.”
“We grew loans across both our Consumer and Institutional franchises and we continue to see good progress across those products and geographies where we have been investing.”