Citigroup 4Q Profits Hit Record
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Citigroup Incorporated, the nation’s largest financial institution, yesterday reported record fourth-quarter profits of $5.32 billion, or $1.02 a share, up 12% from the fourth quarter of 2003.
The New York-based institution also warned that its earnings in 2005 may be at the low end of Wall Street’s expectations as a result in part of higher interest rates. Citigroup said its fourth quarter results included a $244 million after-tax charge related to the closing of Japan Private Bank and a $131 million after-tax reserve related to the resolution of a Securities and Exchange Commission investigation in matters relating to transfer agents.
The company reported a $17 billion or $3.26-a-share profit for 2004, which included a $4.95 billion charge resulting from a class-action settlement and litigation reserves. “Although the legal and regulatory charges we recorded in 2004 were significant disappointments, resolving open legal and regulatory issues is a key management priority,” said Citigroup’s chief executive Charles Prince.
Citigroup in May agreed to pay $2.65 billion to settle a class action suit brought by investors who bought WorldCom Incorporated securities before the telecommunications company went bankrupt in 2002.
