Citigroup Q3 Results Beat Estimates

Citigroup Inc. (C) on Tuesday reported a 6 percent increase in net income for the third-quarter from the prior-year period, driven by a lower effective tax rate and the higher revenues, partially offset by higher expenses and cost of credit.

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

Net income for the third quarter 2019 rose to $4.91 billion or $2.07 per share, from $4.62 billion or $1.73 per share in the third quarter 2018. The results included a net benefit of about $0.10 per share in the latest-quarter related to discrete tax items. Analysts polled by Thomson Reuters expected the company to report earnings of $1.95 per share for the third-quarter. Analysts' estimates typically exclude special items.

Total revenues for the third-quarter grew 1% to $18.57 billion from $18.39 billion in the prior year. Analysts expected revenue of $18.55 billion for the quarter.

Excluding gain on sale, revenues increased 2%, reflecting solid performance across both Global Consumer Banking and Institutional Clients Group, partially offset by Corporate / Other.

Global Consumer Banking revenues of $8.7 billion remained largely unchanged on a reported basis and increased 4% in constant dollars, excluding the gain on sale in the prior-year period, driven by growth in all regions.

Institutional Clients Group revenues of $9.5 billion increased 3%, reflecting continued momentum in Treasury and Trade Solutions and the Private Bank, along with growth in Investment Banking and stability in Fixed Income Markets, partially offset by softness in Equity Markets and Corporate Lending.

In the pre-market trade, C is trading at $69.25, down $1.03 or 1.47 percent.

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