Citigroup Q3 Profit Up 8%, Results Beat View

JPMorgan and Citigroup, which had already talked down third-quarter expectations, reported earnings that were better than Wall Street estimates even as trading revenues fell.

"After a long stretch of consecutive highs in the market, with earnings, even if they are slightly disappointing, or an even an aspect of earnings like bond trading at JPM, is more an excuse to selloff", said Scott Clemons, chief investment strategist for Brown Brothers Harriman in NY. Analysts expected revenue of $17.9 billion for the quarter.

Citigroup's investment bank was the driver of the bank's profit growth in the quarter, despite a notable drop in bond trading revenue. Earnings per share rose about 15 percent to $1.42, bolstered by the bank's move to reduce its shares outstanding by 7 percent.

AT&T tumbled more than 4 percent after the No. 2 USA wireless carrier said it lost 90,000 US video subscribers in the third quarter due to intense competition and the impact of recent hurricanes.

Citigroup has been the best-performing stock among the biggest US banks so far in 2017, thanks in large part to its commitment earlier this year to a plan to return some $60 billion to shareholders by 2020.

In July, Citigroup held its first investor day in nine years.

Performance for Citigroup was particularly strong in equities, where revenue increased 16% from a year ago.

The bank added $500m to reserves in the cards business, based on its expectations for soured loans and the impact of recent hurricanes.

Offsetting the trading performance was another sharp rise in investment banking at Citigroup.

NAB team likely to visit London to collect evidence against Sharif family
Due to the ruckus, Judge Bashir left the courtroom and later announced the postponement of the hearing till October 19. She said she actually does not know where the incident occurred and who manhandled lawyers and what its objective was.

Chief Executive Michael Corbat has pledged to grow profits from consumer lending to stock trading, and return tens of billions of dollars to shareholders after finally putting the United States' fourth-largest bank on a stable path following the 2007-09 financial crisis.

Last month, Gersprach warned that overall trading revenue would fall by 15 percent, worse than the 11 percent drop that materialized.

Bank of America and Wells Fargo, scheduled to report on Friday, were also lower, dragging the financials index down 0.39 percent.

Global consumer banking net income fell 6% year-over-year to $1.17 billion as credit costs rose. Citi's institutional client group, which contains its trading desks and investment bank, had net income of $3.04 billion compared with $2.64 billion in the same period a year earlier.

However, the bank's consumer-banking profit fell 6% from a year ago.

Like its Wall Street rival JP Morgan Chase & Co (NYSE:JPM) - which reported its results earlier today - Citi recorded a 16% year-on-year decline in fixed income trading revenue which totalled US$2.88bn.

Citi-branded cards in the USA provide about 10 percent of Citigroup revenue and profits and are seen by Corbat as one of the company's best shots at growing profits.

Citigroup made progress on promises of greater cost control. That helped the bank achieve a 56 per cent efficiency ratio, beating its own forecast.

Related News:

15 October 2017

James Van Der Beek Says He Was Harassed As Younger Actor
He chose to let it go because he didn't want to be ostracized by someone with power and influence. Crews said he was at a Hollywood function past year with his wife when the incident happened.

15 October 2017

Seven killed in Kenya's Turkana county
Reports indicate Lojore had been recalled before he hatched the attack against students he claimed were behind his woes. Turkana County Governor Josphat Nanok has condemned the incident saying the attack was meted on innocent students.

15 October 2017

2 anti India rebels, civilian killed during Kashmir fighting
A man named Gulzar Ahmad Mir received serious injuries and was shifted to the SMHS Hospital where he succumbed to his wounds. The officials added that this was the first encounter in Littar area, considered to be a hotbed of militancy, in four years.
15 October 2017

Christian Eriksen earns Tottenham Hotspur first home win of Premier League season
Lloris is one of the best goalkeepers in the Premier League and in the world, and the performance of the France worldwide goalkeeper was very good.

15 October 2017

MNS members defect to Shiv Sena in BMC; Uddhav calls it 'gharwapsi'
Ahead of the municipal corporation polls, the BJP started inducting leaders from other parties like it did during assembly poll. The Sena further has the support of four independents and the BJP has the support of two independents.

15 October 2017

Everton boss Koeman confirms plans to recall Rooney for Brighton
Corriere dello Sport put some strong arguments forward, Mazzarri is a safe pair of hands, clubs see him as a steady option. The likes of Ross Barkley, James McCarthy, Seamus Coleman and Yannick Bolasie are long-term absentees for the visitors.
15 October 2017

Pakistan again violates ceasefire in J&K's Poonch, three children injured
The Army had also destroyed two Indian posts after a civilian was martyred by Indian firing in an earlier incident. Pakistani troops have opened fire over 600 times till September 30, a Home Ministry official had said.

15 October 2017

Netanyahu says Israel to leave UNESCO, following US
US State Department spokeswoman Heather Nauert said the agency need a 'reform, ' while announcing America's withdrawal. Hours later, Prime Minister Benjamin Netanyahu said Israel would quit too, calling the US decision "brave and moral".

15 October 2017

Gauri Lankesh murder case: two suspects identified
The SIT had taken the help of artists from Chitrakala Parishat and also the technical team in drawing up these sketches. Two of the three sketches are based on different descriptions of the same suspect.
15 October 2017

Jio posts Rs 271cr loss in Q2 in aggressive pricing war
Mukesh Ambani, chairman of the company, highlighted the fact that the digital business had reported a profit during the quarter. Outstanding debt as on 30 September 2017 was Rs2,14,145 crore compared with Rs196,601 crore as on 31 March 2017.

Sri Lankan Cricketers Not Ready to Play in Lahore
Sri Lankan all-rounder Thisara Perera was part of the squad as well and it is reported that he has not signed the letter. The chances of a full strength Sri Lanka side visiting Lahore have reduced following the letter.

15 October 2017

Man Finds Winning Lottery Ticket In Pocket Two Days Before Deadline
Smith plans to have an "all-family" meeting to discuss how the money will be split up, according to the gaming commission. Smith came forward as the victor on May 23, though lottery officials did not announce he had won until Wednesday.