Kicking off the U.S. banking sector’s earnings cycle, Citigroup Inc. (C, Financial) posted its results for the third quarter before the opening bell on Oct. 12.
The New York-based bank posted earnings per share of $1.42, handily beating estimates of $1.32. Quarterly revenue of $18.2 billion beat expectations of $17.8 billion and increased 2% from the prior-year quarter.
Despite the beat, shares traded relatively flat in premarket trading before falling after the market opened.
The trend in Citibank’s revenue growth over the past decade is illustrated in the graph below.
CEO Michael Corbat commented on the company’s strong performance for the quarter.
“We had revenue increases in many of the products we have been investing in, tightly managed our expenses, and again saw loan growth in both our consumer and institutional businesses,” he said.
The bank reported a 3% year-over-year increase in global consumer banking revenue. Retail banking revenue in North America climbed 12%, fueled by growth in loans and assets under management as well as higher interest rates. Due to higher loans and deposit volumes, Citigroup’s international consumer business revenue increased 8%.
In addition, end-of-period loans grew 2% to $653 billion, and deposits swelled 3% to $964 billion.
Although the company’s fixed-income trading for the quarter declined 16% year over year to $2.87 billion, it was offset by a 16% increase in equity trading revenue.
Among the 31 gurus with positions in Citigroup, Barrow, Hanley, Mewhinney & Strauss has the largest holding with 0.6% of outstanding shares.
Disclosure: I do not own any stocks mentioned.
