Citigroup Q4 profit drops on higher expenses, consumer banking weakness

Profit fell to $3.2 billion, or $1.46 per share, in the quarter ended Dec. 31, from $4.3 billion, or $1.92 per share, a year earlier.

Citigroup Inc reported a 26% slump in fourth-quarter profit on Friday as it took a hit from higher expenses and weakness at its consumer banking unit, sending its shares tumbling 3.5% before the bell.

The Wall Street bank has incurred higher costs for several quarters to fix the issues regulators identified in its controls systems, leading to questions from investors on how much money and time the remedies will require.

The lender is also shedding the last of its consumer businesses outside of the United States as part of a "strategy refresh" started by Chief Executive Officer Jane Fraser, who