Citigroup (NYSE: C) reported a profit of 4 cents a share for the fourth quarter of 2010, compared with a loss of 33 cents a year ago. But the results lagged analysts' consensus forecast of 7 or 8 cents a share. The stock sold off on the news and fell back below $5.

The quarterly results were not without bright spots. Revenue for the quarter more than tripled to $18.4 billion, though it was down significantly on a sequential basis. Net income from the bank's main consumer and investment banking units was $2.45 billion, up from $1.8 billion a year ago. And losses at Citi Holdings, the bad bank, moderated significantly.

The real weakness was in debt trading. While some failing was expected, many were hoping for a relatively strong performance, along the lines of JPMorgan. But that didn't happen. In addition, Citigroup took a $1.1 billion accounting charge related to its own debt prices.

In what may be the most disappointing news, the bank's investment banking unit, especially in terms of deal advisory, did not offset the drop-off in trading revenue, as some expected. Investment banking is supposed to be a bright spot for the premiere banks this year. If that doesn't materialize, banks will surely suffer.

On the more positive side, Citigroup was able to post a profit for four straight quarters, giving it its first full-year profit under Vikram Pandit. It's been quite a ride. But it is hardly over.

For more:
- here's a Reuters article

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