Page 25 - ATD 16Jan2016
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BUSINESS A25
Saturday 16 January 2016
Citigroup’s 4Q earnings rise sharply, as legal expenses drop
KEN SWEET cents per share. The 2014 toxic assets from that pe- and Asia, saw a 20 percent up 7 percent, and stock
AP Business Writer quarter was where Citi- riod, was profitable in the drop in profits from a year trading had revenues of
NEW YORK (AP) — Citi- group incurred roughly $3.5 quarter once again. Citi ago to $1.34 billion. Most of $606 million, up 29 percent.
group’s said Friday that its billion in legal costs tied to was able to sell $32 billion in the drop was tied to Latin Investment banking fees,
profits jumped sharply in settling several high-profile assets from Citi Holdings last America, where Citi has earned as Citi helps com-
the fourth quarter, helped investigations, including al- quarter. been dealing with issues panies issue debt, go pub-
lower legal and regulatory legations of currency trad- “We have undoubtedly tied to its Mexico subsidiary lic or merge with another
costs that hammered the ing and interest rate ma- become a simpler, smaller, Banamex and has been company, rose 6 percent
bank in the fourth quarter nipulation. safer and stronger institu- closing operations in some to $1.1 billion.
of 2014. Citi has continued its tion,” Citi CEO Michael Latin American countries. Removing an adjustment
The New York-based finan- theme of trying to clean Corbat said in a prepared Citi’s investment banking tied to the value of Citi-
cial conglomerate had a up its balance sheet and statement. division performed well in group’s debt, Citi earned
profit of $3.34 billion in the slim itself down in the eight Citigroup’s global con- the fourth quarter, even $3.45 billion, or $1.06 per
three-month period ending years since the financial sumer banking division, with the choppy U.S. and share. Analysts were look-
in December, or $1.02 per crisis. Citi Holdings, the so- which includes Citibank in overseas markets. Bond ing for Citi to earn $1.05 per
share. That’s compared to called “bad bank” where the U.S. as well as its op- trading had revenues of share, according to Fact-
a profit of $344 million, or 6 Citi warehoused most of its erations in Latin America $2.2 billion in the quarter, Set. q
Chinese buying spree accelerates with takeover of GE unit
JOE McDONALD A sign with the Haier logo stands in front of the company’s headquarters in Qingdao in east- looking for technology
AP Business Writer ern China’s Shandong province. Haier Group, the world’s biggest home appliance maker, an- and brands to improve
BEIJING (AP) — Haier nounced Friday, Jan. 15, 2016, that it is buying General Electric Co.’s appliance business for $5.4 their competitive position
Group, the world’s biggest billion to expand its U.S. and global presence. at home and speed their
home appliance maker, global expansion.
is buying General Elec- (Chinatopix via AP) Chinese buyers have an-
tric Co.’s appliance busi- nounced 23 outbound ac-
ness for $5.4 billion to ex- a string of multibillion-dol- buying Hollywood’s Leg- announced the purchase quisitions so far this year,
pand its U.S. and global lar foreign acquisitions this endary Entertainment for of a German manufacturer totaling $12.3 billion, up
presence. week by Chinese buyers. $3.5 billion. for $1 billion. from $2.9 billion in the same
The acquisition announced On Tuesday, conglomerate The previous day, a state- Chinese companies are period last year, according
Friday comes as Haier tries Wanda Group said it was owned chemical company on a buying spree abroad, to Dealogic, a financial in-
to transform itself into a pre- formation provider.
mium brand. GE is shifting Haier, headquartered in
emphasis from tradition- the eastern Chinese city
al businesses such as appli- of Qingdao, makes a wide
ances, in which it has been range of refrigerators,
a prominent presence for washing machines and
more than a century, to other home appliances.
higher-technology areas Its purchase of GE Appli-
such as medical equip- ances is the biggest global
ment and clean energy. corporate acquisition so far
The two companies also this year and the third-big-
agreed to form a strate- gest in the United States by
gic partnership to coop- a Chinese buyer to date,
erate in areas such as the according to Dealogic.
Internet, healthcare, and Haier said the GE acquisi-
advanced manufacturing. tion would be carried out
They said the sale is subject by its unit Qingdao Haier
to regulatory and anti-trust Co. Ltd., a publicly traded
approvals in relevant coun- entity of which Haier owns
tries. 41 percent.q
The purchase is the third in
Retail banking giant Wells Fargo beats 4Q profit forecasts
KEN SWEET earned $1.03 per share ver- Like other banks, Wells has and now has $114 million in The biggest U.S. mortgage
AP Business Writer sus $1.02 per share a year been feeling stress from lender posted revenue of
Retail banking giant Wells earlier. Like many compa- loans made to energy commercial loans that are $21.59 billion in the period,
Fargo & Co. said its earn- nies, Wells has been buying companies, which have falling short of Street fore-
ings were flat in the fourth back its own shares, which been struggling because 90 days or more past due, casts. Seven analysts sur-
quarter, as loan growth makes its per-share results of a plunge in the price of veyed by Zacks expected
and expense reductions go up even if overall profits oil. That has made extract- compared with $47 million $21.7 billion. Wells Fargo
were not enough to offset are flat. ing oil from the ground sig- shares have fallen almost
struggling oil and gas loans. The company’s results were nificantly less profitable. It a year earlier. 7 percent since the begin-
Wells Fargo earned $5.71 bil- in line with analysts’ fore- has also made it harder for ning of the year, while the
lion in the last three months casts, with the average energy companies to pay Other larger parts of Wells Standard & Poor’s 500 index
of 2015, unchanged from estimate of 14 analysts sur- their debts. has dropped 6 percent. The
the same period a year veyed by Zacks Investment Wells Fargo reported loss- Fargo held steady. Wells stock hasfallen(backslash)
earlier. Research was for earnings es of $118 million on loans 1 percent in the last 12
On a per-share basis, Wells of $1.02 per share. to oil and gas companies, Fargo community bank- months.q
ing business earned $3.3
billion in the quarter, mostly
unchanged from a year
earlier.
Mortgage originations
slowed to $47 billion, mostly
due to seasonality.
