Citi said it earned $1.87 per share in the quarter on revenue of $18.58 billion versus expectations of $1.80 per share and $18.65 billion. Net income improved from $4.6 billion in the same quarter last year to $4.7 billion due to a reduction in expenses and a lower tax rate.
Total revenue fell 1 percent (excluding the sale of Hilton portfolio). The bank saw a decline in revenue in the Equity Markets business along with mark-to-market losses on certain loan hedges and the ongoing wind-down of legacy assets in the Corporate/Other business.
EPS growth of 11 percent was mostly due to a 9-percent reduction in average diluted shares and growth in net income.
Book value per share rose 8 percent from last year to $77.09, while tangible book value per share rose 7 percent to $65.55.
Why It’s Important
Citi CEO Michael Corbat said its institutional and consumer businesses performed well with “good momentum” across US Branded Cards, Treasury and Trade Solutions, and Investment Banking.
The company is also seeing “good early results” in its North America consumer banking business as new products are resonating well with customers, Corbat said.
Citi will host a conference call at 10:00 a.m. ET to discuss its results and management is likely to offer commentary on its outlook.
Citigroup Inc. shares were trading at $67.20 per share on Monday afternoon, down $0.22 (-0.33%). Year-to-date, Citigroup, Inc. (C - Get Rating) has gained 29.99%, versus a 16.32% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Benzinga.