Citigroup Inc. (C) shares rose as the bank said its fourth quarter earnings exceeded analysts’ expectations, not counting a $18.3 billion loss it took to write down the value of tax credits saved up following its massive government bailout in 2008.
It was the New York-based company’s biggest loss in a decade, triggered by U.S. lawmakers’ passage in December of a cut in the U.S. corporate tax rate to 21% from 35%. The lower tax rate means that Citigroup will pay lower taxes going forward but also means a big chunk of the credits are likely to go unused.
