Promises, promises

17 January 2012 By Antony Currie Follow @AntonyMCurrie

CEO Vikram Pandit has built a solid balance sheet and will have a surfeit of cash to return to shareholders in time. But he’ll need consistently decent earnings. Even allowing for last year’s slowdown, though, Citi’s Q4 performance remains anemic. Investors will have to wait.

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Citigroup reported fourth-quarter net income of $1.2 billion, or 38 cents a share, missing the sell-side consensus estimate of 49 cents a share. The bank took a $400 million charge in the quarter against the cost of laying off 5000 employees.

Citigroup’s Securities and Banking unit lost $163 million in the quarter in part due to slower business, in part due to the cost of hedging exposure and in part due to expenses rising 4 percent from the third quarter, mostly for severance charges.

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