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Citigroup shares slide after fourth-quarter profit declines 26%

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A pedestrian wearing a protective mask walks past a Citibank branch in New York on Friday, April 10, 2020.
Bloomberg

Citigroup shares fell nearly 4% on Friday after the banking giant reported a steep profit drop for the fourth quarter.

Here’s how the bank fared in the quarter compared to what analysts expected:

Earnings per share: $1.46, but it was not clear if that is comparable to the $1.38 estimated by Refinitiv
Revenue: $17 billion vs. $16.75 billion expected

The company’s net income dropped 26% to $3.2 billion. Citigroup cited an increase in expenses for the sharp decline, adding that the results included a “pre-tax impact” of about $1.2 billion related to the sale of its consumer banking businesses in Asia.

Citigroup reported an 18% year-over-year increase in operating expenses to $13.5 billion for the quarter.

When Jane Fraser took over for predecessor Michael Corbat a year ago, her mandate was to improve returns at the third-biggest U.S. bank by assets.

To do so, she has opted to exit less profitable parts of the firm’s global empire. Her first major strategic move was to leave 13 retail markets across Asian and Europe; since that April announcement she has disclosed plans to depart South Korea and Mexico.

Shares of the bank have climbed 11% this year, matching the rise of the KBW Bank Index.

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–CNBC’s Hugh Son contributed to this report.

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