Citi lifts quarterly profit as loans and deposits expand
Citi reported third-quarter net income of 5.2 billion dollars on revenue of 23.8 billion dollars. Loans and deposits expanded, while services, markets and banking revenue increased. An impairment involving Banamex in the previous year makes the headline earnings-per-share rise larger than the adjusted comparison. The bank returned 4.1 billion dollars to shareholders through dividends and share repurchases.
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Net income and revenue rise in the third quarter
Citigroup, the US banking group known as Citi, reported higher net income and revenue for the third quarter on 13 October. Net income reached 5.2 billion dollars, compared with 3.8 billion dollars a year earlier. Revenue was 23.8 billion dollars, an annual increase of 8 per cent.[1], [2]
Reported diluted earnings per share rose 53 per cent, from 1.86 dollars to 2.85 dollars. The previous year included a 726 million dollar pretax impairment, or 714 million dollars after tax, associated with selling a 25 per cent stake in Banamex, the Mexican banking business. Excluding that item, the earlier earnings figure was 2.24 dollars per share and the increase was 27 per cent.[1]
Services lead growth across the banking businesses
Services revenue increased 15 per cent. Markets revenue grew 6 per cent, including a 14 per cent increase in equities revenue, while Banking revenue also rose 6 per cent. Total expenses were 14 billion dollars and fell 2 per cent on a reported basis. Excluding specified notable items, expenses increased 3 per cent.[1]
The credit provision was 2.6 billion dollars, including 2.2 billion dollars in net credit losses and a 369 million dollar net addition to reserves. At the end of the period, loans had increased 12 per cent to 820 billion dollars and deposits were approximately 1.5 trillion dollars, up 9 per cent annually. These are period-end balances, separate from the quarterly income figures.[1]
Shareholders receive 4.1 billion dollars
Citi returned 4.1 billion dollars to shareholders through share repurchases and dividends, with a stated quarterly payout ratio of 85 per cent. Return on common equity was 10.1 per cent, while return on tangible common equity was 11.5 per cent. The common equity Tier one capital ratio stood at 12.8 per cent. Book value per share was 115.61 dollars and tangible book value per share was 101.59 dollars.[1]
