The Citibank logo is pictured at its Nicaragua headquarters in Managua October 16, 2014.(Reuters)
Citigroup Inc said it was setting aside an extra $600 million to cover legal expenses in the third quarter due to "rapidly evolving regulatory inquiries."
The bank's shares fell in extended trading after it revised down its third-quarter net income to $2.84 billion from the $3.44 billion it had reported on Oct. 14.
On a per-share basis, Citigroup adjusted its profit to 88 cents for the quarter. It had earlier reported a profit of $1.07 per share.
Like most banks, Citigroup does not disclose the size of its reserves for legal costs. Bernstein Research analysts estimated before Thursday's announcement that Citigroup's remaining reserves were about $2.5 billion at the end of September.
After announcing the additional legal expense, Citigroup said in a quarterly filing with the Securities and Exchange Commission that its estimate of possible legal costs in excess of its litigation reserves was about $5 billion, the same as it estimated for the end of the previous quarter and for year-end.
Citigroup said in the filing that it was cooperating fully with investigations into its foreign exchange business in the United States and elsewhere, including Britain.
Citigroup is one of six major banks that have been in talks with Britain's Financial Conduct Authority over settlements of allegations of manipulation of foreign exchange markets.
Barclays Plc, another of the six banks that have been in talks with regulators, said earlier on Thursday that it had set aside 500 million pounds ($800 million) in the third quarter to cover potential fines from government investigations of its conduct in foreign exchange markets.
Citi's shares were down 1.5 percent after the bell on Thursday. The stock closed at $53.15 on the New York Stock Exchange.
The bank's shares fell in extended trading after it revised down its third-quarter net income to $2.84 billion from the $3.44 billion it had reported on Oct. 14.
On a per-share basis, Citigroup adjusted its profit to 88 cents for the quarter. It had earlier reported a profit of $1.07 per share.
Like most banks, Citigroup does not disclose the size of its reserves for legal costs. Bernstein Research analysts estimated before Thursday's announcement that Citigroup's remaining reserves were about $2.5 billion at the end of September.
After announcing the additional legal expense, Citigroup said in a quarterly filing with the Securities and Exchange Commission that its estimate of possible legal costs in excess of its litigation reserves was about $5 billion, the same as it estimated for the end of the previous quarter and for year-end.
Citigroup said in the filing that it was cooperating fully with investigations into its foreign exchange business in the United States and elsewhere, including Britain.
Citigroup is one of six major banks that have been in talks with Britain's Financial Conduct Authority over settlements of allegations of manipulation of foreign exchange markets.
Barclays Plc, another of the six banks that have been in talks with regulators, said earlier on Thursday that it had set aside 500 million pounds ($800 million) in the third quarter to cover potential fines from government investigations of its conduct in foreign exchange markets.
Citi's shares were down 1.5 percent after the bell on Thursday. The stock closed at $53.15 on the New York Stock Exchange.
© Thomson Reuters 2014
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