Citigroup Inc (NYSE:C) early Thursday posted market-beating third quarter earnings results despite higher credit losses and weak performance in its fixed income segment.
The New York City-based banking giant reported Q3 earnings per share (EPS) of $1.42, which was $0.10 better than the consensus of $1.33.
Revenues rose 2.3% from last year to $18.17 billion, also beating analysts’ view for $17.87 billion.
On a sour note, Citi said net credit losses surged 17% year-over-year to $1.77 billion, due to integration of COST credit card portfolio. However, Investment Banking revenues jumped 14% to $1.2 billion, while Advisory revenues edged down 1% to $237 million. Fixed Income Markets revenues plunged 16% $2.9 billion, hurt by lower G10 rates and currencies revenues.
The company commented via press release:
“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 many of the products we have been investing in, tightly managed our expenses, and again saw loan growth in both our consumer and institutional businesses.”
Citigroup Inc shares fell $0.34 (-0.45%) in premarket trading Thursday. Year-to-date, C has gained 27.38%, versus a 15.71% rise in the benchmark S&P 500 index during the same period.
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