Citigroup is scheduled to report fourth-quarter earnings before the opening bell Monday.
Here’s what Wall Street expects:
- Earnings: $1.55 a share, a 21 percent increase from a year earlier, according to Refinitiv
- Revenue: $17.6 billion, a 2.2 percent increase from a year earlier
- Trading Revenue: Fixed income: $2.3 billion, Equities: $664.5 million, according to FactSet
- Efficiency ratio: 57.6
Citigroup is the first of the big U.S. banks to report fourth-quarter results, so investors and analysts will be keen to see how its banking and trading operations performed during a tumultuous period.
The bank said in early December that trading revenue would likely decline from a year earlier amid choppy markets. In particular, fixed-income trading desks struggled amid gyrations in currencies and interest rates. Citigroup may also face losses of as much as $180 million on loans made to an Asian hedge fund that made soured currency bets, Bloomberg reported last month.
Another focus at Citigroup, the third-biggest U.S. lender by assets, will be on any guidance CEO Michael Corbat or CFO John Gerspach will give on performance expectations for 2019 and beyond. Thanks to the trading shortfall, Gerspach said last month at a conference that he expected to miss the firm’s goal of improving the firm’s efficiency ratio by 100 basis points.
Gerspach is retiring in March, to be replaced by Mark Mason, who is CFO of the firm’s institutional clients group. The bank shuffled other leaders across its sprawling operations last year amid the bank’s disappointing share performance. That includes the departure of global credit-card chief Judson Linville.
Shares of the New York-bank declined 30 percent last year, worse than the 20 percent decline of the KBW Bank Index, on concerns the bank’s international operations could expose it to struggling emerging markets and the U.S.-China trade war.