Despite Earnings Beat, Citigroup Is Just Par for the Course

Postado Outubro 12, 2017

Citigroup Inc. (NYSE: C) reported its third-quarter financial results before the markets opened on Thursday. The company said that it had $1.42 in earnings per share (EPS) and $18.2 billion in revenue, compared with consensus estimates from Thomson Reuters that called for $1.32 in EPS and revenue of $17.9 billion. The same period of a year ago reportedly had EPS of $1.24 and $17.76 billion in revenue.

Wall Street estimated earnings of $1.32 per share.

The bank's profit was $4.13 billion, up 8% from $3.84 billion a year ago.

As expected, fixed-income trading took a 16% hit year-over-year, dropping to $2.9 billion from $3.4 billion.

We delivered a very strong quarter, showing the balance of our franchise by both product and geography and highlighting our multiple engines of client-led growth. "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". Following the release, the stock was up 0.7% at $75.47 in early trading indications Thursday.

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.

Institutional Clients Group - Citi's bread and butter thanks to its global network of trading floors and multinational clients - saw revenues increase 9% year-over-year to $9.2 billion while net income increased 15% to $3 billion.

At the end of the quarter, loans totaled $653 billion, an increase of 2% from past year. North American banking revenue also was up, though by just 1% from a year ago.