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HomeLatest NewsCitigroup's profit plummets 32% due to higher provisions

Citigroup’s profit plummets 32% due to higher provisions

Date: May 22, 2024 Time: 16:37:42

Citigroup’s profit plummets 32% due to higher provisions. Specifically, the US bank has obtained a net attributable profit of 14,845 million dollars in the whole of 2022. As can be seen from the income statement published this Friday by the financial institution, a large part of the decrease is due to reserves for deal with credit portfolio losses.

In 2021, the bank spent releasing 7,998 million (7,391 million euros) from its anti-credit loss cushion due to the good progress of the economy, although in 2022, given the change in situation, it spent reserving 956 million dollars. Income between January and December was 75,338 million. Of that figure, the interest margin has reached 48,668 million, 15% more, while those from commissions and fees fell 9%, to 26,670 million.

The remuneration expenses of the staff were 26,655 million dollars (24,632 million euros), 6% more, while the cost of technologies and equipment grew 10%, up to 8,587 million. The firm’s mortgage business experienced a 21% year-on-year decline in the fourth quarter of 2022 due to the Federal Reserve rate hike, to stand at $3.4 billion in originated mortgages.

Only in the quarter of 2022, the net profit of the financial institution was 2,513 million (2,322 million euros), 21% less, while revenue grew by 6%, to 18,006 million (16,639 million euros). In the last quarter, the CET1 capital ratio, the one with the highest quality, the bank was 13%, seven tenths more than a year earlier. On its side, the return on capital (ROE, for its acronym in English), stood at 5%, 1.4 percentage points less.

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Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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