American banking giant Citigroup (NYSE: C) has posted a net income of $3.2 billion for 2021’s fourth quarter, a drop of 25.5% from the $4.3 billion registered during a similar period in 2020.
In a blog post, Citi also stated that the fourth quarter’s revenue of $17 billion was driven by a spike in investment banking led by institutional clients. The bank registered revenues of $71.9 billion for the full year, with the institution also citing higher corporate revenues as a key catalyst.
Citigroup also registered an 18% year-over-year increase in operating expenses to $13.5 billion for the quarter.
Elsewhere, the lender’s global consumer banking business registered a revenue increase of 6% on a year-over-year basis to $6.94 billion.
On a regional basis, Citigroup’s revenue plunged 6% to $4.4 billion in North America, driven by a drop in sales of Citi-branded cards. In Asia, revenue also fell 9%, with Latin America recording a 4% decline in sales.
The banking division’s expenses increased 33% to $6.2 billion from a similar period the previous year.
Furthermore, excluding the impact of Asia’s divestitures, Citi’s operating expenses for last year’s fourth quarter increased 18% to $13.5 billion.
Citi’s focus on new markets
The bank’s CEO, Jane Fraser, stated that the lender would grow its business in Mexico while exiting several markets.
As reported earlier by Finbold, Citigroup had announced plans to exit 13 retail banking markets in Asia, Europe, the Middle East, and Africa. The bank intends to set up a regional office to serve clients in the affected markets.
“We are also aligning our organisation and reporting structure with our strategy, including the creation of the Personal Banking and Wealth Management and Legacy Franchises segments. This will make it easier for our investors to understand the performance of our core businesses and optimise the businesses we have chosen to exit,” said Fraser.
In line with exiting the Asian market, Citi has already reached a deal to sell four regional consumer businesses. In general, Fraser ruled that 2021 was a decent year for the bank.
By press time, the bank’s stock was trading at $66 dropping almost 2% over the last 24 hours. However, on a year-to-date basis, the stock has surged over 6%.