Citi takes very large $22bn Trump tax hit but beats underlying earnings expectations
17 January, 2018, 03:02 | Author: Sheri Evans
Worldwide clients group revenue dipped 1% to $8.1 billion, as fixed income trading revenue sank 18% to $2.4 billion while banking revenue climbed 14% to $4.7 billion.
Citigroup, the fourth-largest USA bank by assets, said it expects to benefit in future quarters from the new tax law as its tax rate falls to about 25 percent in 2018 from 30 percent in 2017.
The latest quarter's results include an estimated one-time, non-cash charge of $22 billion, or $8.43 per share, related to the enactment of the Tax Cuts and Jobs Act, or the USA tax reform.
However, the US-lender booked a one-time charge of $22bn relating to the Trump administration's recent tax reforms, dragging the firm to a loss of $18.3bn for the three months to 31 December, versus the $3.6bn of net income it reported at the same time one year prior.
CEO Michael Corbat said the financial impact of the tax overhaul on Citigroup's regulatory capital was "much less significant".
But banks still see long-term benefits from the tax cuts, while long-term yields have risen more than short-term yields recently, allowing banks to capitalize on the spread. The new law might also stimulate economic growth because it incentivizes companies to invest in their businesses and has led to wage hikes that could help consumers, he said.
The lender estimates its tax rate will fall from the low-30 percent range to around 25 percent in 2018, and potentially lower than that in future.
Citigroup's institutional business, which includes investment banking and trading, fell 1 percent due to weakness in trading that has also affected Wall Street peers.
Airbus posts record deliveries in 2017
The A380 drew worldwide attention when launched a decade ago but has always struggled to win enough customers. The company said it had a backlog of orders worth US$1.1 billion.
Other banks including JPMorgan Chase are also taking such hits, although Citi's is particularly big.
"Results could prove "good enough" this quarter", Instinet analyst Steven Chubak wrote in a note to clients. Global consumer banking revenue grew 6% to $8.4 billion.
Big-bank and financial earnings pick up steam this week, with Bank of America (BAC), Goldman Sachs (GS) and Charles Schwab (SCHW) set to release results Wednesday; Morgan Stanley (MS), American Express (AXP) and Keycorp (KEY) Thursday; and Synchrony Financial (SYF) Friday.
It was her eighth successive defeat since her maiden grand slam triumph. "I didn't play so bad, I wasn't missing every shot". Stephens was also forced to withdraw from the Brisbane International because of a right knee injury.
Several of the Arizona Cardinals' head coaching candidates remain busy with their teams in the National Football League playoffs. He later returned to Philadelphia as Chip Kelly's offensive coordinator before landing with the Vikings.
Toronto police are searching for a man who allegedly cut a young girl's hijab with a pair of scissors on her way to school. The courageous girl had a message for her attacker and said: 'What you're doing is very wrong, you should stop doing this.
The last time Peru was struck by a massive quake was in November 2015, when a 7.6 natural disaster struck northwest of Iberia. At least two people have died and 17 others went missing after an quake of 7.3 magnitude hit Peru's coast on Sunday.
Notice 1036 also said that employers could withhold on supplemental wages of up to $1 million at a flat rate of 22 percent. There are also new limits on the mortgage interest deduction, and the child tax credit was expanded.
The program, also known as DACA, provides protections and work permits to individuals who entered the USA illegally as children. The DOJ has appealed a lower court's decision in The Regents of the University of California and Janet Napolitano v.
Authorities did not release the names of the injured police officer and sheriff's deputies, nor their injuries or conditions. Multiple agencies then began "actively looking for the suspect" and issued emergency alerts to area residents, Faris said.
Former England striker Cyrille Regis dies
Ex-West Bromwich Albion striker Cyrille Regis has died suddenly of a heart attack at the age of 59, it has been announced. West Brom are due to unveil a 10-foot statue of Regis, Cunningham and Batson at the Hawthorns this season.
Ford will invest $11bn in electric vehicles by 2022
This will be a huge increase from the $4.5 billion the automaker announced it would invest by 2020 in December 2015. Ford is to bring a high-performance electric utility vehicle to market by 2020. "For us, it's not just compliance".
Honda Accord named vehicle of the Year
The brand sold only 10,523 Navigators a year ago , far behind competitors in the segment such as the Cadillac Escalade. Today the highly coveted North American Car, Utility and Truck of the year awards were announced .
Vikings Playoff Preview: 3 Keys to Beating the Saints
How can I watch the Saints and Vikings? As for the Lions, they have once again reverted to the mediocrity they are famous for. That came a month after the Vikings decided not to pick up an $18 million option on Peterson's contract for 2017.
Freezing rain possible for Timmins and area
Temperatures will drop below 0 C by late afternoon and keep going lower, down to -15 C overnight - with wind chill on top of that. Morning flurries will change to rain showers later this morning, according to the most recent forecast from Environment Canada.