Citigroup Inc. posted a 25% jump in fourth-quarter profit as its new management struggles to restructure the bank and overcome lingering woes from the mortgage meltdown.
Citi said Thursday that it earned $1.2 billion, or 38 cents a share, in the fourth quarter, up from $956 million, or 31 cents, in the same period in 2011.
Excluding restructuring and other one-time accounting charges, Citi earned 69 cents a share in the fourth quarter.
But the bank's profit fell short of Wall Street expectations, according to analysts polled by Bloomberg News who estimated per-share earnings of 96 cents.
Citi's fourth-quarter results were dragged down in part by $1.3 billion in legal costs and related expenses.
"Our bottom-line earnings reflect an environment that remains challenging," Chief Executive Michael Corbat said in a statement.
He added: "It will take some time to work through the challenges of the current environment but realizing our core earnings potential, as well as improving our returns on assets and tangible equity, are critical goals going forward."