Citigroup reported net income for the fourth quarter 2012 of $1.2 billion, or $0.38 per diluted share, on revenues of $18.2 billion. This compared to net income of $956 million, or $0.31 per diluted share, on revenues of $17.2 billion for the fourth quarter 2011. Analysts polled by Thomson Financial had expected earnings per share of $0.96.

Citi said its fourth quarter results were negatively impacted by a $485 million credit valuation adjustment and previously announced repositioning charges of $1.0 billion. The bank noted excluding the credit valuation adjustment and repositioning charge, earnings were $0.69 per share, up 68% from the prior year period, as higher revenues, lower core operating expenses and lower net credit losses were partially offset by higher legal and related expenses and a lower net loss reserve release.

Citi noted that fourth-quarter net credit losses of $3.1 billion declined 25% versus the prior year period. The bank also noted it recorded a loan loss reserve release of $86 million compared to $1.5 billion in the same quarter in 2011.

Citigroup said full year 2012 net income was $7.5 billion on revenues of $70.2 billion, compared to net income of $11.1 billion on revenues of $78.4 billion for the full year 2011. Full year 2012 results included negative $2.3 billion in CVA/DVA, compared to positive $1.8 billion in the prior year. Citigroup’s full year 2012 results also included a loss of $4.6 billion related to the sale of minority investments, versus a gain of $199 million in the prior year. In addition to the fourth quarter 2012 repositioning charges of $1.0 billion, Citigroup recorded a $582 million tax benefit5 related to the resolution of certain tax audit items in the third quarter 2012.

To read the Citigroup news release click here.