Apr 13, 2018
Citigroup profit rises 13% on consumer banking, lower taxes
Reuters
,Citigroup Inc (C.N) reported a higher-than-expected quarterly profit on Friday, driven by strength in its consumer banking business and a surge in equities trading.
Global consumer banking revenue increased 7 per cent on gains in North America, Mexico and Asia. Equity markets revenue jumped 38 per cent, gaining from increased volatility in the quarter.
Shares of the fourth-biggest U.S. bank by assets rose 1.28 per cent in premarket trading.
Trading desks at big U.S. banks, including Citi, had a busy first quarter as volatility rocked global markets in February, in contrast to a calm 2017 that weighed on trading revenue.
Larger rival JPMorgan Chase & Co (JPM.N) also reported a 26 per cent increase in equities trading revenue.
Citi's net income rose 13 per cent to US$4.62 billion in the first quarter ended March 31.
Earnings per share was US$1.68, topping analysts' average estimate of US$1.61, according to Thomson Reuters I/B/E/S.
"Our first quarter results demonstrate strength and balance across our franchise and position us well for the rest of the year," Chief Executive Officer Mike Corbat said in a statement.
Total revenue rose about 3 per cent to US$18.87 billion, while operating expenses rose 2 per cent to US$10.92 billion.
The rise in equity markets revenue offset a 7 per cent drop in Citi's bigger fixed income trading business. Combined, the two were up 1 per cent.
Return on tangible common equity, a measure of profitability, reached 11.4 per cent in part to the company having had to mark down its equity value in the fourth quarter because of the tax law change.