Citigroup (C) reported a net income of $350 million, or $0.06 per diluted share, on revenues of $17.8 billion for the fourth quarter 2014.

This is significantly down from a net income of $2.5 billion, or $0.77 per diluted share, on revenues of $17.8 billion for the fourth quarter 2013.

Legal and related expenses and repositioning charges totaled $3.5 billion in the current quarter, compared to $1.0 billion in the prior year period, which severely dented earnings.

Citigroup revenues barely moved, coming in at $17.8 billion in the fourth quarter 2014, unchanged from the prior year period.

Operating expenses were $14.4 billion in the fourth quarter 2014, 21% higher than the $11.9 billion in the prior year period (excluding the impact of the net fraud loss), driven by higher legal and related expenses and repositioning costs, as well as increased regulatory and compliance costs and higher volume-related expenses, partially offset by continued efficiency savings and the impact of foreign exchange translation.

In addition, Citigroup's loans were $645 billion as of quarter end, down 3% from the prior year period. On a constant dollar basis, Citigroup's loans declined by 1%, as continued declines in Citi Holdings, driven primarily by reductions in the North America mortgage portfolio, offset 3% growth in Citicorp.

"While the overall results for 2014 fell short of our expectations, we did make significant progress on our top priorities. During the year, we increased our market share among our target institutional clients, grew our core loan book, and improved both our net interest revenue and margin from 2013 levels,” said Michael Corbat, CEO of Citigroup.  

“For the first time since its establishment, Citi Holdings was profitable for the full year and we accelerated the utilization of our deferred tax assets. We strengthened our capital planning process and made Citi a safer and stronger institution, as evidenced by the increases to our capital, leverage and liquidity ratios. Although we made some difficult decisions over the course of the year, I believe they allowed us to put our franchise in a position to have a successful 2015," he continued. 

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