Citigroup's Stock Drops After Earnings Revised Lower

Citigroup's stock dropped 1.7% in after-hours trade Thursday, after the bank revised its previously-reported third-quarter earnings downward to reflect a $600 million increase in legal expenses. Citigroup said the revision lowers its net income to $2.84 billion, or 88 cents a share, from the $3.44 billion, $1.07 a share, in earnings it reported on Oct. 14. "The increase [in legal expenses] resulted from rapidly-evolving regulatory inquiries and investigations, including very recent communications with certain regulatory agencies related to previously-disclosed matters," Citigroup said in a statement. The stock had gained 2% so far this year through Thursday, compared with a 7.9% rise in the S&P 500.