Citigroup shares rise on Q4 Beat

The big bank also reported a charge of roughly $19 billion following a revamp to the US tax code.

Last month Barclays said it would take a £1bn charge to profit after tax for the year, while Shell put the damage at up to £1.8bn.

But for Citigroup, the fourth-largest US bank by assets, the loss is just a temporary hiccup.

Citi blamed the loss on a $22bn one-off hit incurred by the US Tax Cuts and Jobs Act, passed into law by President Trump just before Christmas. But some are reporting significant one-time charges as they adjust to the new standards. Fellow Wall Street bank JP Morgan Chase said earlier this month it would take a $2.4bn hit from the reform.

However, banks and other large USA corporations expect to benefit greatly from lower taxes and other provisions in the new law over the long term.

Citigroup wrote off $19 billion of those assets in the fourth quarter.

The remaining $3 billion came from the cost of moving cash that the bank held overseas back into the United States, as required under the new law.

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But Citigroup and its shareholders appear focused on the long-term potential windfall from the Republican tax bill.

Furthermore, analysts predicted that Citigroup, which said it was expecting to benefit in future quarters from the new law as its tax rate falls from 30% to around 25%, would be unlikely to reap quite as much of a benefit as the other major USA banks given the firm earned nearly 50% of its profits from overseas. "Tax reform does not change our capital return goals", said Michael Corbat, CEO of Citi.

"Tax reform is a clear net positive for Citi and its shareholders", Corbat said on a conference call with analysts.

Without the one-time charge, Citigroup's quarterly results would have beat analysts' estimates.

Net losses for the final quarter of 2017 were $18.3 billion, or $7.15 per share, due to a $22 billion charge stemming from re-measurement of tax-deferred assets under the new tax law and repatriation of foreign earnings, the company said in a statement.

Citi's global consumer banking reported revenue of $8.41 billion, up 6 percent year over year. Loans that the bank considers to have doubtful repayment potential, also known as non-accrual loans, declined 17% to $4.8 billion, with consumer non-accrual loans declining 15% and corporate non-accrual loans declining 20%.

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