Citigroup's earnings buoyed by consumer bank

Cornelia Mascio
Ottobre 12, 2017

Citigroup Inc. (NYSE: C) reported its third-quarter financial results before the markets opened on Thursday.

Revenues grew 2% year-over-year to $18.2 billion, beating estimates of $17.86 billion. The same period of previous year reportedly had EPS of $1.24 and $17.76 billion in revenue.

Like its peers on Wall Street, Citigroup was held back by a drop in its trading revenue, which was predicted by numerous banks after another tepid, low volatility quarter in the markets.

Investment banking revenues were up 14% from a year ago to $1.23 billion, but the group lost some momentum from a strong second quarter where it produced $1.5 billion in revenues - a 17% dip from the previous quarter.

Citigroup's decline also was slimmer than that at rival J.P. Morgan Chase & Co., where trading was down 21% this quarter.

But it was also buoyed by a rise in its investment bank.

At the end of the quarter, loans totaled $653 billion, an increase of 2% from previous year. "We had revenue increases in numerous products we have been investing in, tightly managed our expenses, and again saw loan growth in both our consumer and institutional businesses".

Quarterly consumer banking revenue increased 3% globally from a year ago, to $8.43 billion, led by a 10% gain in Mexico. Bank of America, Citi, and JPMorgan have been bracing for 15% and 20% hits to trading revenues.

Citigroup's stock has risen 26% this year, by far the best among the U.S.'s six biggest banks, thanks in part to the announcement of a plan to return $60 billion in capital through 2020.

The shares rose 0.2% to $75.11 in premarket trading.

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