NEW YORK -- Citigroup Inc.'s profit jumped in the fourth quarter but fell short of Wall Street hopes for a stronger turnaround for the New York-based financial giant.
Citi said it earned $2.7 billion, or 85 cents a share, in the last quarter, up from $1.2 billion, or 38 cents, from the same period the prior year.
Wall Street analysts had expected Citi to earn 95 cents a share in the fourth quarter, according to Thomson Reuters.
Citi's stock slumped in early trading on Thursday. The bank's shares fell $1.79, or 3.3%, to $53.20.
Under Michael Corbat, the bank's chief executive for little over a year, Citi has slashed expenses and taken aim at toxic investments that continue to drag down its earnings five years after the financial crisis.
Revenue for the last quarter fell 1% to $17.8 billion, while expenses dropped 13% to $11.9 billion.
Legal costs for the quarter were $809 million, down sharply from $1.3 billion in the fourth quarter of 2012.
The bank reported modest gains in investment banking, but its bond trading business continued to slump amid a "challenging" environment.
Corbat expressed some disappointment but was otherwise upbeat about the bank's efforts to turn itself around. He noted the bank was able to halve the annual loss of Citi Holdings, its repository for troubled mortgage investments.