Citigroup reported fourth quarter earnings that missed forecasts on revenues and profits.
NEW YORK (CNNMoney)
The bank's results rose from a year earlier but legal expenses remained a drag.
Citigroup earned $2.2 billion or 69 cents per share, excluding certain accounting charges. Analysts had expected net income of $2.9 billion, or 96 cents per share.
Revenue came in at $18.7 billion, slightly below the $18.8 billion analysts had forecast.
"It will take some time to work through the challenges of the current environment," said Citigroup's CEO Michael Corbat in his first earnings announcement since taking the helm in October.
Related: Hey Wall Street, get ready for more layoffs
It's a bumpy start for Corbat. So far, Citigroup is the first bank to miss analyst forecasts.
The bank has already outlined plans to cut some costs. In December, Citigroup said it planned to cut 11,000 jobs
Still. Citigroup showed growth in its three core business lines. Revenues across the bank rose 8%, with its investment banking and trading division posting a 47% jump. Both its consumer bank and transaction services units increased revenue, though more modestly, at 4% and 1% respectively.
Shares of Citigroup (C, Fortune 500) dropped nearly 4% in premarket trading. The bank's stock is up more than 7% this year, following a jump of more than 60% in 2012.
Related: Bank of America beats estimates on weak revenue
In mid-October, just one day after Citigroup reported better-than-expected quarterly earnings, the bank announced that CEO Vikram Pandit would be stepping down, ending his tumultuous five-year reign atop what's been deemed the world's financial supermarket.
Citigroup is one of five major banks to report earnings this week. Goldman Sachs (GS, Fortune 500), Bank of America (BAC, Fortune 500) and JPMorgan (JPM, Fortune 500) have already reported earnings. Morgan Stanley (MS, Fortune 500) will release fourth quarter results on Friday.
First Published: January 17, 2013: 8:28 AM ET
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