Investments

Citigroup reports net loss in Q4 due to tax reform

Citi mortgage improvements push net credit losses down $30 million

Citigroup reported a net loss during the fourth quarter of 2017 after taking a hit from the Tax Cuts and Jobs Act.

The bank reported a net loss for the fourth quarter of a full $18.3 billion, or $7.15 per diluted share. This is down from last year’s net income of $3.6 billion or $1.14 per common share.

This loss, the bank explained, is due to the enactment of tax reform. Tax reform caused the bank to pay $19 billion related to the re-measurement of its deferred tax assets arising from a lower U.S. corporate tax rate.

The loss is offset in improvements in its legacy mortgage portfolio. Net credit losses declined 75% to $15 million, reflecting the impact of ongoing divestitures and improvements in the legacy mortgage portfolio. The net loan loss release was $52 million, mostly related to the legacy mortgage portfolio, as compared to a release of $82 million in the prior year period. (To read Citi's full earnings report, click here.)

And Citi wasn’t the only bank which reported losses due to tax reform. JPMorgan Chase reported its net income plummeted 37% due to tax reform.

Excluding this payout due to tax reform, net income came in at $3.7 billion, an increase of 4% from the year before.

Citi reported a slight increase in revenue from $17 billion in the fourth quarter 2016 to $17.3 billion in the fourth quarter 2017.

Photo credit: TungCheung / Shutterstock.com

Most Popular Articles

FHA loan limits increasing for almost all of U.S. in 2020

Thanks to increases in home prices in 2019, the Federal Housing Administration loan limit will increase for nearly all of the country in 2020.

Dec 05, 2019 By

Latest Articles

HousingWire is growing. Come join us

2019 has been a year of tremendous audience and product growth for HousingWire and we couldn’t be prouder. But we’re not ready to rest on our laurels. Far from it. In fact, 2020 promises to be an even bigger year for HousingWire.

Dec 06, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please