For Immediate Release Citigroup Inc. (NYSE: C)

On February 23, 2018, Citi announced that it was adjusting downward its fourth quarter and full year 2017 financial results, from those reported on January 16, 2018, due to an updated estimate for a one-time, non-cash charge of $22.6 billion, recorded within North America Global Consumer Banking, Institutional Clients Group and Corporate/Other related to the enactment of Tax Reform, which was signed into law on December 22, 2017 (previously, the entire charge was recorded in Corporate/Other). The financial impact of this adjustment lowered Citi’s fourth quarter and full year net income by an aggregate of $594 million due to refinements of original estimates. The financial impact of this adjustment is not reflected in this fourth quarter press release, dated January 16, 2018. For additional information, including Citi’s fourth quarter and full year 2017 results of operations including this adjustment, see Citi’s Annual Report on Form 10-K for the period ended December 31, 2017, filed with the U.S. Securities and Exchange Commission on February 23, 2018.

Fourth Quarter 2017 Results and Key Metrics

highlights Net Loss of $18.3 Billion ($7.15 per Share)



Excluding the Estimated Impact of Tax Reform7, Net Income of $3.7 Billion ($1.28 per Share)



Revenues of $17.3 Billion



Returned $6.3 Billion of Capital to Common Shareholders in the Fourth Quarter and $17.1 Billion in Full Year 2017



Repurchased 74 Million Common Shares in the Fourth Quarter and 214 Million in Full Year 2017



Book Value per Share of $70.85



Tangible Book Value per Share of $60.408

Read the full press release with tables and CEO commentary.

View the Financial Supplement (PDF)

View Financial Supplement (Excel) New York  Citigroup Inc. today reported a net loss for the fourth quarter 2017 of $18.3 billion, or $7.15 per diluted share, on revenues of $17.3 billion. This compared to net income of $3.6 billion, or $1.14 per diluted share, on revenues of $17.0 billion for the fourth quarter 2016. The net loss of $18.3 billion, or $7.15 per share, included an estimated one-time, non-cash charge of $22 billion, or $8.43 per share, recorded in the tax line within Corporate / Other, related to the enactment of the Tax Cuts and Jobs Act (Tax Reform)7. This charge is comprised of $19 billion related to the re-measurement of Citi's deferred tax assets (DTA) arising from a lower U.S. corporate tax rate and shift to a territorial tax regime, and $3 billion related to the deemed repatriation of unremitted earnings of foreign subsidiaries. Excluding the impact of Tax Reform, net income of $3.7 billion increased 4% from the prior year period. Earnings per share increased 12% to $1.28, driven by the higher net income and a 7% reduction in average diluted shares outstanding. These results include a combined net benefit of roughly $0.08 per share, recorded in Corporate / Other, related to discrete items that resulted in a lower-than-expected tax rate, as well as a one-time loss in discontinued operations. For the full year 2017, Citigroup reported a net loss of $6.2 billion on revenues of $71.4 billion, compared to net income of $14.9 billion on revenues of $69.9 billion for the full year 2016. Excluding the impact of Tax Reform, Citigroup net income of $15.8 billion increased 6% compared to the prior year. Throughout the remainder of this press release, Citigroup and Corporate / Other's net income and Citigroup's effective tax rate are presented on a reported and adjusted basis, excluding the impact of Tax Reform. For additional information on this adjustment as well as other non-GAAP financial measures used in this release, see the Appendices and Footnotes to this release. Percentage comparisons are calculated for the fourth quarter 2017 versus the fourth quarter 2016, unless otherwise specified. Read the full press release with tables and CEO commentary.

Citigroup

Citigroup revenues of $17.3 billion in the fourth quarter 2017 increased 1%, driven by 2% aggregate growth in Global Consumer Banking (GCB) and Institutional Clients Group (ICG), partially offset by a 13% decrease in Corporate / Other, primarily due to the continued wind-down of legacy assets. of $17.3 billion in the fourth quarter 2017 increased 1%, driven by 2% aggregate growth inand, partially offset by a 13% decrease in, primarily due to the continued wind-down of legacy assets. Citigroup's operating expenses remained largely unchanged at $10.1 billion in the fourth quarter 2017, as higher volume-related expenses and ongoing investments were offset by efficiency savings and the wind-down of legacy assets. Citigroup's cost of credit in the fourth quarter 2017 was $2.1 billion, a 16% increase, driven by an increase in net credit losses of $184 million, primarily due to volume growth and seasoning in cards and an episodic charge-off in ICG, as well as a higher loan loss reserve build. Citigroup's net loss of $18.3 billion in the fourth quarter 2017, compared to net income of $3.6 billion in the prior year period, primarily reflected the impact of Tax Reform. Excluding the impact of Tax Reform, Citigroup's net income increased to $3.7 billion, as the higher revenues and the lower tax rate more than offset the higher cost of credit and the one-time loss in discontinued operations. Including the impact of Tax Reform, Citigroup's effective tax rate in the fourth quarter 2017 was not meaningful. Excluding the impact of Tax Reform, Citigroup's effective tax rate in the fourth quarter 2017 was 24.9% compared to 29.6% in the fourth quarter 2016. Citigroup's allowance for loan losses was $12.4 billion at quarter end, or 1.87% of total loans, compared to $12.1 billion, or 1.94% of total loans, at the end of the prior year period. Total non-accrual assets declined 17% from the prior year period to $4.8 billion. Consumer non-accrual loans declined 15% to $2.7 billion and corporate non-accrual loans decreased 20% to $1.9 billion. Citigroup's end of period loans were $667 billion as of quarter end, up 7% from the prior year period. Excluding the impact of foreign exchange translation9, Citigroup's end of period loans grew 5%, as 7% aggregate growth in ICG and GCB was partially offset by the continued wind down of legacy assets in Corporate / Other. Citigroup's end of period deposits were $960 billion as of quarter end, up 3%. In constant dollars, Citigroup deposits were up 1%, as a 2% increase in ICG was slightly offset by a decline in Corporate / Other, and GCB remained largely unchanged. Citigroup's book value per share was $70.85 and tangible book value per share was $60.40, each at quarter end, representing 5% and 6% decreases, respectively, primarily reflecting the estimated impact of Tax Reform. At quarter end, Citigroup's Common Equity Tier 1 (CET1) Capital ratio was 12.3%, down from 13.0% sequentially, driven primarily by the return of capital to common shareholders and the impact of Tax Reform (a reduction of approximately $6 billion of CET1 Capital or 40 bps to the CET1 Capital ratio). Citigroup's Supplementary Leverage Ratio for the fourth quarter 2017 was 6.7%, down from 7.1% sequentially, driven by a decrease in Tier 1 Capital as well as an increase in Total Leverage Exposure. During the fourth quarter 2017, Citigroup repurchased 74 million common shares and returned a total of $6.3 billion to common shareholders in the form of common share repurchases and dividends.

Global Consumer Banking

GCB revenues of $8.4 billion increased 6%. In constant dollars, revenues increased 4%, driven by growth across all regions. of $8.4 billion increased 6%. In constant dollars, revenues increased 4%, driven by growth across all regions. GCB net income increased 9% to $1.3 billion. In constant dollars, net income increased 8%, as the higher revenues were partially offset by higher expenses and higher cost of credit. Operating expenses were $4.5 billion, up 2% in constant dollars, as higher volume-related expenses and investments were partially offset by efficiency savings. North America GCB revenues of $5.2 billion increased 2%, driven by higher revenues across all businesses. Retail banking revenues of $1.3 billion increased 7%. Excluding mortgage, retail banking revenues increased 14%, driven by continued growth in checking deposits and deposit margin, growth in investments and loans and increased commercial banking activity. Citi retail services revenues of $1.6 billion increased 2%, primarily reflecting continued loan growth. Citi-branded cards revenues of $2.2 billion increased 1%, as growth in interest-earning balances slightly outpaced the continued run-off of non-core portfolios as well as the higher cost to fund growth in transactor and promotional balances, given higher interest rates. North America GCB net income was $842 million, up 4%, as the higher revenues and a lower tax rate were partially offset by higher cost of credit. Operating expenses remained largely unchanged at $2.5 billion, as higher volume-related expenses and investments were offset by efficiency savings. North America GCB cost of credit increased 10% to $1.3 billion. Net credit losses of $1.2 billion increased 7%, reflecting volume growth and seasoning. The net loan loss reserve build in the fourth quarter 2017 was $151 million, compared to a build of $116 million in the prior year period, also driven by volume growth and seasoning. International GCB revenues increased 11% to $3.2 billion. In constant dollars, revenues increased 7%. On this basis, revenues in Latin America GCB of $1.3 billion increased 6%. Within Latin America GCB, retail banking revenues grew 7%, with volume growth across deposits, commercial loans and personal loans, as well as improved deposit spreads. Latin America GCB card revenues increased 4% driven by growth in purchase sales and full rate revolving loans. Revenues in Asia GCB of $1.9 billion increased 8%. Within Asia GCB, retail banking increased 5%, driven by improvement in wealth management, partially offset by lower retail lending revenues. Asia GCB card revenues increased 11% reflecting growth in average loans and purchase sales, as well as a modest gain on the sale of a merchant acquiring business. International GCB net income increased 19% to $493 million. In constant dollars, net income increased 16%, as the higher revenues were partially offset by higher expenses and higher cost of credit. Operating expenses increased 9% on a reported basis and 5% in constant dollars, versus the prior year period, primarily driven by higher investments and volume-related expenses, partially offset by efficiency savings. Credit costs increased 5% on a reported basis and increased 1% in constant dollars. In constant dollars, the net loan loss reserve build was $24 million, compared to $48 million in the prior year period, net credit losses increased by 6% and the net credit loss rate was 1.59% of average loans, increasing from 1.56% in the prior year period.

Institutional Clients Group

ICG revenues of $8.1 billion decreased 1%, as continued momentum in Banking and Securities Services was offset by a decline in Markets revenues. of $8.1 billion decreased 1%, as continued momentum inwas offset by a decline inrevenues. Banking revenues of $4.7 billion increased 14% (including gain / (loss) on loan hedges)10. Excluding gain / (loss) on loan hedges in Corporate Lending, Banking revenues increased 11%. Treasury and Trade Solutions (TTS) revenues of $2.2 billion increased 9%, reflecting volume growth and improved deposit spreads, with balanced growth across both net interest and fee income. Investment Banking revenues of $1.2 billion were up 10% versus the prior year period, reflecting continued wallet share gains for the full year 2017, across debt and equity underwriting and M&A. Advisory revenues increased 5% to $311 million, equity underwriting revenues increased 23% to $233 million and debt underwriting revenues increased 8% to $697 million. Private Bank revenues increased 15% to $771 million, driven by growth in clients, loans, investments and deposits, as well as improved spreads. Corporate Lending revenues of $509 million increased 14% (excluding gain / (loss) on loan hedges), reflecting lower hedging costs as well as loan growth. Markets and Securities Services revenues of $3.4 billion decreased 17%, as a decline in Markets revenues was partially offset by higher revenues in Securities Services. Fixed Income Markets revenues of $2.4 billion in the fourth quarter 2017 decreased 18%, reflecting continued low volatility, as well as the comparison to a more robust trading environment in the prior year period as a result of the U.S. elections. Equity Markets revenues of $530 million decreased 23%, primarily driven by an episodic loss in derivatives of approximately $130 million, related to a single client event. Securities Services revenues of $603 million increased 14%, driven by growth in client volumes along with higher interest revenue. ICG net income of $2.2 billion decreased 7%, driven by higher cost of credit, the lower revenues and higher expenses. ICG operating expenses increased 2% to $4.7 billion, primarily reflecting the impact of foreign exchange translation. ICG cost of credit of $267 million in the fourth quarter 2017 was predominantly driven by the previously-mentioned single client event. ICG average loans grew 8% to $328 billion. In constant dollars, average loans increased 6%. ICG end of period deposits increased 5% to $640 billion. In constant dollars, end of period deposits grew 2%.