Citigroup profit hit by more than $2 billion in charges

NEW YORK (Reuters) - Citigroup Inc posted $2.32 billion of charges for layoffs and lawsuits in its first financial report under its new chief executive, Michael Corbat, who cautioned that the bank needs more time to deal with the problems it faces.

Even with the charges, though, Citi reported higher fourth-quarter profit on Thursday as trading revenue rebounded from a year earlier.

Corbat, who took the reins in mid-October after predecessor Vikram Pandit was ousted, said in a statement that Citi's various businesses were combating problems including regulatory changes, as well as issues dating to the financial crisis that continue to plague the bank and its peers.

"It will take some time to work through the challenges of the current environment," he said, adding that the bank's "critical goals" included improving its return on assets.

Fourth-quarter net income was $1.2 billion, or 38 cents a share, compared with $956 million, or 31 cents a share, in same quarter of 2011.

Results were reduced by new legal costs of $1.29 billion, or 27 cents a share, and a previously announced corporate restructuring charge of $1.03 billion, or 21 cents a share.

Expenses recorded for changes in the value of some of the bank's debt and obligations of derivatives counterparties were 10 cents a share, compared with 1 cent a year earlier.

Excluding the many one-time items, Citi said it earned 69 cents per share in the quarter.

Citi shares fell 1.6 percent in premarket trading following the results.

(Reporting by David Henry in New York; Writing by Ben Berkowitz; Editing by John Wallace)