Citigroup posts 4Q profit on fewer loan losses

NEW YORK — Citigroup has reported fourth-quarter earnings of $1.31 billion, or 4 cents a share, after losses from its loans declined and the bank was able to dip into the reserves it keeps aside for bad loans.

The New York bank Tuesday said it set aside $4.8 billion for future losses, its lowest level since the second quarter of 2007. Still, its revenue from sales of fixed income securities fell and the bank came short of analysts' expectations of earnings of 8 cents a share in the quarter.

The bank had reported a loss of $7.58 billion, or 33 cents a share, in the same quarter of last year.

For the full year, Citigroup reported net income of $10.6 billion, or 35 cents a share, compared to a net loss of $1.6 billion, or 80 cents a share, in 2009.

Its stock is down 3 percent in pre-market trading.