Reports Q4 (Dec) earnings of $1.06 per share, in-line with the Capital IQ Consensus of $1.06; revenues rose 3.1% year/year to $18.46 bln vs the $17.93 bln Capital IQ Consensus.

Citigroup revenues of $18.6 billion in the fourth quarter 2015 increased 4%, driven by a 61% increase in Citi Holdings, partially offset by a 2% decrease in Citicorp revenues.

Citigroup's net income increased to $3.4 billion in the fourth quarter 2015, primarily driven by the higher revenues and lower operating expenses, partially offset by a higher cost of credit. Citigroup's operating expenses decreased 23% to $11.1 billion in the fourth quarter 2015.

Operating expenses in the fourth quarter 2015 included legal and related expenses of $411 million, compared to $2.9 billion in the prior year period, and $313 million of repositioning charges, compared to $655 million in the prior year period.

Citigroup's cost of credit in the fourth quarter 2015 was $2.5 billion, a 25% increase, with a net loan loss reserve build of $588 million, primarily in Institutional Clients Group (:ICG), compared to a net loan loss reserve release of $441 million in the prior year period, and partially offset by a 22% decrease in net credit losses.

ICG cost of credit was primarily driven by a net loan loss reserve build of $549 million, including approximately $250 million related to the energy portfolio, with the remainder reflecting volume growth and macroeconomic conditions.

Citigroup's allowance for loan losses was $12.6 billion at quarter end, or 2.06% of total loans, compared to $16.0 billion, or 2.50% of total loans, at the end of the prior year period.

Citigroup's loans were $618 billion as of quarter end, down 4% from the prior year period, and down 1% in constant dollars.

Citigroup's book value per share was $69.46 and tangible book value per share was $60.61, each as of quarter end, representing 5% and 7% increases, respectively.

Institutional Clients Group

ICG revenues of $7.4 billion increased 4%, driven by a 9% increase in Markets and Securities Services revenues. Banking revenues of $4.2 billion increased 3% .

Investment Banking revenues of $1.1 billion increased 6%.

Advisory revenues increased 15% to $303 million, debt underwriting revenues increased 12% to $616 million, and equity underwriting fell 18% to $206 million, reflecting lower industry-wide underwriting activity during the current quarter.

Markets and Securities Services revenues of $3.2 billion increased 9%.

Fixed Income Markets revenues of $2.2 billion in the fourth quarter 2015 increased 7%, reflecting improved trading conditions in spread products as well as continued strength in rates and currencies.

Equity Markets revenues of $606 million increased 29%, driven by growth across products and improved performance in EMEA.