Citigroup (NYSE:C) Reporting 2011 Profit Increase, Despite Fourth Quarter Slump
According to a report from financial institution Citigroup (NYSE:C), profits were up 6% in 2011 compared to the previous year, and resulted in $11.3 billion.
Vikram Pandit, CEO of Citigroup, seemed guardedly optimistic about the bank’s 2011 numbers. He cited “solid progress” made in the recently concluded year and added that their consumer business strategies have been successful so far.
On the other hand, Pandit admitted that the ongoing economic crisis affecting most of the world took a bit of a toll on some facets of Citigroup’s operations.
Citigroup’s fourth-quarter profits dropped a significant 11%. Revenue was also down, decreasing to $78.4 billion in 2011 from $86.6 billion in 2010.
As a whole, the results manifested “negative surprise” based on analysts’ predictions, and this had led to a drop in Citigroup shares in early trading. However, due to additional profit from loans and deposits, the year’s total profit enjoyed an increase, which Citi is taking as good news for the most part.
As another long year is coming to an end for most banks across America, Citigroup included, other competitors have recently reported profit decreases.
In related news, JPMorgan & Chase (NYSE:JPM) announced that their fourth quarter 2011 profits took a hit, dropping close to 23%. Their yearly revenue was also down, decreasing by 18% to $21.5 billion.
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