Citigroup tops earnings estimates on strong trading performance
Citigroup
n/a
11:00 08/07/16
US banking giant Citigroup turned in third-quarter earnings on Tuesday that came in ahead of expectations, as stronger-than-expected trading results offset weaker lending margins.
Citigroup's earnings of $2.07 per share, or $4.91bn, was a 6% year-on-year improvement and slightly above the $1.95 expected on the Street. The figure also included a tax benefit of $0.10.
Group revenues topped analysts' expectations of $18.54bn, coming in at $18.57bn, with income from its fixed-income, currency and commodities trading unit boosted by higher interest rates during the quarter as well as some "improved activity" among corporate and investor clients.
However, Citigroup's lending business saw weaker-than-expected results - with net interest income coming in at $11.64bn rather than the $12.15bn projected by analysts on the street.
Net interest margins came in at 2.56% for the quarter, which were also below the 2.66% forecast.
Chief executive Michael Corbat credited the resilience of the US consumer as branded-card revenues grew 11% during the third quarter.
"Despite an unpredictable environment throughout the quarter, we continue to deliver on our strategy of improving shareholder returns through consistent, client-led growth while also executing against our capital plan," he said.
As of 1345 BST, Citigroup shares had dipped 0.56% in pre-market trading to $70.24 each.