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Citigroup Q1 Profit Rises, Tops Estimates


Citigroup Inc. (C) reported a profit for the first quarter 2018 that increased about 13 percent from last year, driven by the higher revenues and a lower effective tax rate, partially offset by higher expenses and cost of credit. Revenues increased 3% from the prior-year period, driven by growth in both the Institutional Clients Group and Global Consumer Banking, partially offset by lower revenues in Corporate / Other primarily due to the continued wind-down of legacy assets. Quarterly earnings per share topped analysts' expectations.

In Friday's pre-market trading, the company's shares are up $0.79 or 1.09 percent to $73.00.

Citi CEO Michael Corbat said, "... During the quarter, we returned more than $3 billion in capital to common shareholders which helped drive a significant improvement in earnings per share. And we recently submitted our capital plan and believe we remain on track to meet the commitment we outlined at investor day of returning at least $60 billion over the 2017, 2018 and 2019 cycles, subject to regulatory approval."

"While market conditions have been uneven so far this year, our first quarter results show our ability to deliver for both clients and shareholders and we look forward to sustaining this momentum for the balance of the year," Mr. Corbat concluded.

Net income for the first quarter 2018 increased about 13 percent to $4.62 billion from the prior year's $4.09 billion. Earnings per share were $1.68 up 24% from $1.35 per share in the prior-year period, driven by the growth in net income and a 7% reduction in average diluted shares outstanding. Analysts polled by Thomson Reuters expected the company to report earnings of $1.61 per share for the firsts-quarter. Analysts' estimates typically exclude special items.

Adjusted net income to common shareholders grew to $4.35 billion from $3.79 billion in the prior year.

Quarterly Citigroup revenues were $18.87 billion, up 3% from the prior year's $18.37 billion, driven by 7% aggregate growth in Global Consumer Banking and Institutional Clients Group, partially offset by a 51% decrease in Corporate/Other, primarily due to the continued wind-down of legacy assets. Wall Street expected revenues of $18.86 billion.

Global Consumer Banking revenues of $8.4 billion increased 7%, driven by growth across all regions and the impact of the Hilton portfolio sale in North America Citi-Branded Cards. In constant dollars, revenues increased 6% and 4% excluding the sale of the Hilton portfolio.

Institutional Clients Group revenues of $9.8 billion increased 6%, as growth in Treasury and Trade Solutions, Private Bank, Corporate Lending,Equity Markets and Securities Services more than offset declines in Investment Banking and Fixed Income Markets.

Corporate / Other revenues of $591 million decreased 51% from the prior-year period, primarily driven by the wind-down of legacy assets.

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