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Citigroup profit beats estimates on consumer banking strength

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Reuters
Last Updated : Apr 13 2018 | 6:05 PM IST

(Reuters) - Citigroup Inc reported a higher-than-expected quarterly profit on Friday, driven by lower taxes and higher consumer banking revenue.

The fourth-biggest U.S. 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 percent as the company bought back stock.

Analysts on average had expected earnings per share of $1.61, according to Thomson Reuters I/B/E/S.

JPMorgan Chase & Co, the biggest bank by assets earlier on Friday reported a 35 percent jump in profit on lower taxes and higher interest rates.

The bank's provision for income taxes declined by 23 percent from a year earlier, reflecting the U.S. government's cut in the corporate tax rate.

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Global consumer banking revenue increased 7 percent on gains in North America, Mexico and Asia.

Citigroup's shares were up 1.28 percent 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 percent to $18.87 billion, while operating expenses rose 2 percent to $10.92 billion.

(Reporting by Sweta Singh in Bengaluru and David Henry in New York; Editing by Saumyadeb Chakrabarty)

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First Published: Apr 13 2018 | 5:53 PM IST

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