Citigroup third quarter results beat forecasts slightly
Financial giant Citigroup’s second quarter profits were boosted by a sharp drop in legal and related expenses and repositioning costs.
The lender said third quarter net profits jumped 54% to reach $4.3bn despite a 5% fall in the top line to $18.7bn.
Expenses fell 18% to $10.67bn and by 13% in constant dollars terms.
Earnings per share hit $1.35 versus the 88 cents seen in the same period of a year ago. In adjusted terms, EPS came in at $1.31, slightly ahead of the $1.27 penciled in by analysts.
Net credit losses declined sharply, by about 21% to reach $1.66bn.
However, measured in constant dollars the number of loans decreased by 1% from the year ago period as the North America mortgage portfolio continued to be run-off.
The lender’s capital cushion, in terms of Tier 1 common equity, improved to 11.6% from 10.6% one year before.
The return on average common equity rose to 8% from 5.3%.