- Citigroup reported third-quarter earnings of $1.73 per share, beating analyst expectations.
Citigroup announced third-quarter earnings results Friday, reporting adjusted earnings of $1.73 per share, a 22% increase from last year. Analysts had expected $1.68 a share.
The beat was driven by the lower corporate tax rate, lower expenses, and a lower cost of credit, the bank said.
Revenues, however, declined slightly as branded cards and retail banking continued to struggle and a lull in underwriting sapped investment banking fees.
Here are the rest of the key numbers:
- Revenue: $18.4 billion, less than the $18.5 billion analysts projected.
- Net income: $4.6 billion, a 12% increase from last year.
- Global Consumer Banking: Revenues up 2% to $8.7 billion.
- Institutional Clients Group: Revenues down 2% to $9.2 billion.
- Retail banking: Revenues down 3% to $1.3 billion.
- Citi branded cards: Revenues down 3% to $2.1 billion.
- Investment banking: Fees down 8% to $1.2 billion as underwriting dried up.
- Trading: Fixed income trading jumped 9% to $3.2 billion, while equities trading increased 1% to $792 million.
“Our results this quarter showed solid year-over-year revenue growth across many of our businesses, including Fixed Income, Treasury (TSRMF) and Trade Solutions, Securities Services, the Private Bank and our consumer franchise in Mexico,” CEO Michael Corbat said in a statement. “We also grew loans and deposits while continuing to prudently manage risk as demonstrated by the stability of our credit portfolio. We returned $6.4 billion of capital to common shareholders through buybacks and dividends during the quarter. And over the past twelve months, we’ve reduced our common shares outstanding by over 200 million or 8%. Through a combination of earnings growth and capital return, our earnings per share were 22% higher than one year ago.”
JPMorgan Chase reported earnings earlier Friday, beating expectations with a 24% jump in profits.