Consumer banking helps Citi beat profit estimates
bengaluru/new york — Citigroup reported a higher-than-expected quarterly profit on Friday, driven by lower taxes and higher consumer banking revenue.
The fourth-biggest US bank by assets said net income rose to $4.62 billion in the first quarter ended March 31, compared with $4.09 billion a year earlier.
Earnings per share rose to $1.68 from $1.35. Average shares outstanding declined 7 per cent as the company bought back stock. Analysts on average had expected earnings per share of $1.61, according to Thomson Reuters.
JPMorgan Chase & Co, the biggest bank by assets, earlier on Friday reported a 35 per cent jump in profit on lower taxes and higher interest rates.
The bank’s provision for income taxes declined by 23 per cent from a year earlier, reflecting the US government’s cut in the corporate tax rate.
Global consumer banking revenue increased 7 per cent on gains in North America, Mexico and Asia. Citigroup’s shares were up 1.28 per cent in premarket trading.
“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 $18.87 billion, while operating expenses rose 2 per cent to $10.92 billion.