(Reuters] -Citigroup Inc posted a 26% decrease in fourth-quarter profits on Friday, surpassing market expectations. However, strong gains made in its investment banking division helped cushion the loss from increased expenses.

For the quarter ending Dec. 31, profit dropped to $3.2Billion, $1.46 per share. This is compared with $4.3Billion, which was $1.92/share a year ago. The bank’s profit was $1.99 per share, excluding the costs resulting from Asia divestitures.

According to Refinitiv IBES data, analysts had on average expected a profit $1.38 per share.

Citigroup The quarter ended strong for the investment banking division of (NYSE:), fueled by a surge in merger-and-acquisition activity. The Institutional Clients Group saw a 4% increase in revenue, driven by an 43% rise in investment banking fees.

This offset expenses and helped the bank to reduce losses as it continues to shut down all its US consumer businesses as part Chief Executive Officer Jane Fraser’s strategy refresh.

Although the shares of the bank were 2.3% lower in premarket trades, they are up more than 12% thus far this year.

Citigroup stated earlier that on Friday, it agreed to sell its consumer business in Indonesia, Malaysia and Thailand to United Overseas Bank (OTC):

This deal means that the bank will dispose off seven of the 13 mostly Asian consumers businesses Fraser announced in April.

Fraser stated in a statement that “we have made the final decisions regarding the refresh of strategy as it pertains markets we intend exiting,”

For several quarters, the bank has had to incur higher costs to correct the problems regulators found in its control systems. This led to investors asking questions about how much time and money it will take to find the right solution.

The bank’s fourth quarter operating expenses increased by 8%, not including the Asia divestitures.

Although overall net income was flat at $10.82billion year-over-year, NII of the bank’s basic lending businesses outside markets rose 0.6%.

The net interest margin is the difference in what Citigroup spends on money and how much it earns through loans and securities. It fell to 1.98 percent from 2.06 a year ago and 1.99% from the third quarter. Low interest rates caused a 1% drop in revenue from Treasury and Trade Solutions. These are generally Citigroup’s most important corporate businesses.

The total revenue rose 1% to $17Billion from the previous year.

Wall Street peers JPMorgan Chase & Co (NYSE:) and Wells Fargo (NYSE:) & Co also reported results on Friday, with their profits comfortably beating consensus estimates.