Banking giant Citigroup Inc (NYSE:C) this morning posted better-than-expected third quarter earnings results, despite a big downturn in revenue.
The New York-based company reported Q3 EPS of $1.24, easily topping Wall Street analysts’ view of $1.16. Revenue fell 4.8% from last year to $17.8 billion, but still beat estimates of $17.32 billion.
Other interesting notes from the report included:
From the press release:
Citi CEO Michael Corbat said, “I am very encouraged by the underlying momentum across our franchise, notably in several areas where we have been investing. In the quarter, both our Global Consumer Bank and Institutional Clients Group had solid year-over-year revenue increases in nearly every business line and geography. We also continued to grow core loans and deposits while reducing non-core assets to just 3% of our balance sheet.
We remain intensely focused on shareholder returns. The acquisition of the Costco portfolio and the recently announced sales of our retail operations in Argentina and Brazil are the latest examples of how we are shifting resources to the areas we believe will generate the best returns for our shareholders.”
Citigroup has been the biggest laggard of all major U.S. banks since the financial crisis of 2008-2009. Following a 1-for-10 reverse split in 2011, the stock has remained essentially flat. In contrast, the iShares Dow Jones US Financial Sector Index Fund (NYSE:IYF), which tracks a large swath of the U.S. banking sector, has gained 52% since then.
Citigroup shares rose $0.88 (+1.82%) to $49.35 in premarket trading Friday. Prior to today’s report, C had fallen 6.34% year-to-date, versus a 4.48% gain in the benchmark S&P 500 index during the same period.