Investing.com – Shares in Citigroup (NYSE:C) extended gains in pre-market trade on Tuesday after reporting fourth quarter earnings.
The fourth largest U.S. bank by assets reported adjusted earnings per share (EPS) of $1.28 in the three months ended December 31.
Analysts’ forecast pointed to earnings of $1.19 a share.
The adjusted earnings per share factored out the estimated impact of recent tax reform which contributed to the bank noting a a net loss for the fourth quarter of $18.3 billion, or $7.15 per share.
"The net loss of $18.3 billion, or $7.15 per share, included an estimated one-time, non-cash charge of $22 billion, or $8.43 per share, recorded in the tax line within Corporate / Other, related to the enactment of the Tax Cuts and Jobs Act (Tax Reform)," Citi said in the press release.
Meanwhile, the company’s revenue increased 1.5% from the same quarter a year earlier to $17.26 billion, beating the forecast for $17.22 billion.
"While our fourth quarter results reflected the impact of a significant non-cash charge due to tax reform, the impact on our regulatory capital was much less significant," Citi chief executive Michael Corbat said.
"Tax reform does not change our capital return goals as we remain committed to returning at least $60 billion of capital in the current and next two CCAR cycles, subject to regulatory approval," he added.
Traders will now turn their attention to the firm’s conference call due to start at 10:00AM ET (15:00GMT).
Following the release of the report, shares (NYSE:C) jumped 2.07% in pre-market trade to $78.45, from the previous closing price of $76.84. Citi had been trading up nearly 1% at around $77.60 prior to the publication.