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Citigroup Q2 Results Top Estimates

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Citigroup Inc. (C) on Monday reported a 7 percent increase in profit for the second quarter, driven by the higher revenues, the reduction in expenses and the lower effective tax rate, partially offset by the higher cost of credit. Revenues increased 2 percent from the prior-year period, reflecting the higher revenues across Global Consumer Banking, while Institutional Clients Group revenues were largely unchanged.

Both quarterly earnings per share and revenues topped analysts' expectations.

Net income for the second quarter 2019 grew 7 percent to $4.80 billion from last year's $4.49 billion, with earnings per share increasing 20 percent to $1.95 from $1.63 in the previous year.

Excluding the Tradeweb gain earnings per share of $1.83 increased 12% primarily driven by a 10% reduction in average diluted shares outstanding and the lower effective tax rate. Analysts polled by Thomson Reuters expected the company to report earnings of $1.81 per share for the second-quarter. Analysts' estimates typically exclude special items.

Revenues increased 2% to $18.76 billion from $18.47 billion in the prior-year period, reflecting an about $350 million pre-tax gain on Citi's investment in Tradeweb within Fixed Income Markets and higher revenues across Global Consumer Banking, partially offset by declines in Investment Banking and Fixed Income and Equity Markets revenues, as well as mark-to-market losses on loan hedges. Analysts expected revenue of $18.49 billion for the quarter.

Global Consumer Banking revenues increased 3% to $8.5 billion on a reported basis and 4% in constant dollars, driven by growth in all three regions.

Institutional Clients Group revenues of $9.7 billion were largely unchanged, as the Tradeweb gain and growth in Treasury and Trade Solutions revenues offset declines in Investment Banking and Fixed Income and Equity Markets revenues, as well as mark-to-market losses on loan hedges.

In the pre-Market trade, C is trading at $72.36, up $0.59 or 0.82 percent.

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