Citigroup Inc. (NYSE: C) reported its fourth quarter financial results for the 2017 fiscal year. The bank beat estimates in both revenue and earnings, sending shares up 2.6 percent during Tuesday’s pre-market hours.
For the fourth quarter, Citigroup reported revenue of $17.3 billion, beating analysts’ estimates by $40 million. The bank reported an adjusted EPS of $1.28, beating analysts’ estimates of $1.19. Citigroup also took a $19 billion charge from the tax reform bill that lowered corporate tax rates.
“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,” said Michael Corbat, CEO of Citi.
For the full year, Citi reported a net loss of $6.2 billion on revenues of $71.4 billion, compared to a net income of $14.9 billion on revenues of $69.9 billion for fiscal year 2016.
Citi’s global consumer banking reported revenue of $8.41 billion, up 6 percent year over year. Its institutional clients group reported revenue of $8.1 billion, falling 1 percent year over year, while corporate revenue fell 13 percent.
“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.” said Corbot.
Citigroup is among many other financial institutions such as JPMorgan Chase, Bank of America, and Goldman Sachs to take a hit from the tax reform, but Citigroup faces one of the largest charges compared to its competitors.
“Tax reform not only leads to higher net income and increased returns, but also serves to strengthen our capital generation capabilities going forward.” said Corbat.