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Citigroup delivers mixed third quarter performance

Fri 12 October 2018 12:56 | A A A

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(Sharecast News) - US financial giant Citigroup delivered a mixed performance over the latest three-month stretch, although the bottom line got a boost from lower taxes and share repurchases.

Citigroup saw third quarter profits after tax rise by 12.2% to $4.6bn, for earnings per share of $1.73 (consensus: $1.69), on the back of $18.4bn in revenues (consensus: $18.45bn), which were unchanged from the year ago period.

Excluding one-off charges affecting comparability and foreign exchange headwinds, revenues were up by 4%, led by its Institutional Clients Group, which includes its Markets and Securities Services and Banking units, the lender said in a statement.

Nevertheless, the lender attributed the improvement in its bottom line to a lower effective tax rate, lower expenses and cost of credit.

The lender's effective tax rate declined from 31% one year ago to 24%, while operating expenses and the cost of credit were both down by 1% at $10.3bn and $2.0bn, respectively.

Loan loss allowances meanwhile dipped from $12.4bn or 1.91% of total loans to $12.3bn or 1.84%.

Earnings per share were 22% higher than a year ago, boosted by an 8% drop in the number of shares outstanding.

By divisions, revenues at its Global Consumer Banking arm increased by 2% to $8.7bn, but declined by 2% to $9.2bn at ICG and 5% to $494m at its Corporate arm.

As of 1350 BST, shares of Citigroup were adding 2.72% to $70.24.

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