Citigroup Inc posted a $1.3 billion quarterly profit on Tuesday, as the third-largest U.S. bank rounded off a year of recovery from the financial crisis, but the results fell short of estimates and the bank's shares fell.

The company reported a net profit of 4 cents per share for the fourth quarter, compared with a year-earlier loss of $7.6 billion, or 33 cents per share.

Analysts had forecast earnings of 8 cents a share.

The following is reaction from industry analysts and investors:

RICHARD SICHEL, WHO OVERSEES $1.5 BILLION AS CHIEF INVESTMENT OFFICER AT PHILADELPHIA TRUST CO

Expectations for the financial group are high thanks to an improving economy and a generally better atmosphere. These numbers will be taken with some degree of skepticism as we look through to see how they got here, but obviously since they missed, that won't be rewarded in the market.

MATT MCCORMICK, PORTFOLIO MANAGER, BAHL & GAYNOR INVESTMENT COUNSEL, INC IN CINCINNATI:

My guess is, Citi wishes they had more loan loss reserves that they could have released to get earnings. Eventually, you need real revenue growth if you're going to get profit growth, you can't just keep releasing reserves. JPMorgan is viewed by many investors being one of the better managed banks, and Citigroup is still improving. JPMorgan will hopefully raise their dividend sometime soon. Citi is not in that same category, and these results show why.

(Reporting by Dan Wilchins and Ryan Vlastelica)

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