- Thomson Reuters
Citigroup announced earnings of $1.31, topping expectations of $1.28 a share.
The stock rose about 1.5% at the open on Thursday October 15.
The bank also posted revenue for the quarter of $18.5 billion, after accounting adjustments, which falls slightly short of analyst expectations.
Analysts were looking for revenue of about $18.6 billion, according to analysts polled by Bloomberg, which would represent a decline from this quarter last year.
Net income rose 51% to $4.3 billion, driven by lower operating expenses and a lower effective tax rate. Excluding accounting adjustments net income was $4.2 billion, Citi reported.
“”The quarter had more than its fair share of volatility and our results speak to the resilience of our franchise globally,” CEO Michael Corbat said in a statement. “And despite revenue headwinds, we once again proved our ability to manage our risk, our expenses and our capital.”
The bank also fell short on investment banking revenues, at $937 million, representing a 25% decline. Analysts Bloomberg polled said they were expecting investment banking revenue of $986 million.
So far, investment banks have been disappointing with third quarter earnings. Earlier this morning, Goldman Sachs posted a miss, sending shares down before the open. And, JPMorgan’s results on Tuesday also fell short of analyst expectations.
Earlier this week, Bank of America topped expectations. Morgan Stanley results are on the way next week.