On Friday, Citigroup Inc. reported its largest full-year earnings in almost ten years. That shows that the strategy of the firm to get leaner is working to its advantage.
However, shares of Citigroup dipped 6.4 percent which is a bigger drop compared to other banks or considerable size and also the wider market. Drop in oil prices and slowing economy in China has not worked well for financial institutions in the past year. Compared to its contemporaries, Citigroup has greater exposure in international markets which also includes Asia.
Revenue moved up three percent to $18.46 billion compared to $17.9 billion earned one year back. For It was the first revenue gain for Citigroup after declines were noted for four quarters. In a statement, Michael Corbat, CEO of the consumer bank said, the bank has "made substantial progress" by shrinking and becoming more efficient.
The banks full-year revenue dropped six percent.
A large amount of the bank's earnings came from lesser legal costs following heavy litigation expenses in 2014. The bank based in New York earned $17.2 billion in 2015. That's the biggest profit noted in almost a decade since 2006. At that time its earnings amounted to $21.5 billion.
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