Citigroup Profits Jump in Q4 2015 after Big Fall in Legal Costs

Citigroup’s Q4 2015 profits jumped compared with a year earlier, helped by a big fall in legal costs.

The bank said its net profit rose to $3.34 billion compared with $344 million in the last quarter of 2014 when it paid $3.5 billion in legal and other charges.

The bank’s legal and repositioning costs fell to $724 million for this quarter.

Citi – which is undergoing a restructuring – is the third largest US bank when ranked by assets.

The picture at Citi echoed that at JP Morgan Chase, which reported results on January 14. Profits there also jumped thanks to lower legal expenses and better cost control.

Citigroup has been restructuring to focus on more profitable businesses and markets, and has closed consumer operations in 11 overseas markets.

Operating expenses fell 23% to $11 billion, partly thanks to the fall in legal-related costs.

Citigroup CEO Michael Corbat said: “We have undoubtedly become a simpler, smaller, safer and stronger institution.

“We have sharpened our focus on target clients, shedding over 20 consumer and institutional businesses in the process.”