Citigroup Reports Weak Third-Quarter Results

@AFP

New York City (AFP) – U.S. banking giant Citigroup reported Tuesday third-quarter results that missed expectations, citing a “challenging” environment.

Citigroup posted net income of $3.2 billion in the July-September quarter, up from $468 million in the same quarter in 2012.

Earnings per share came in at $1.00, up from 15 cents a year earlier.

Excluding a tax benefit and CVA/DVA adjustment –the risk-based adjustment of derivative asset valuation — earnings were $1.02 per share, below the $1.04 analysts estimated.

Revenues jumped 30 percent from a year ago, to $17.9 billion, but also came in weaker than the $18.7 billion estimates. Compared with the second quarter, revenues fell 13 percent.

Excluding CVA/DVA, the revenues of Citicorp, the bank’s main division, fell 7 percent from a year ago to $17 billion, and were down 10 percent from the prior quarter. The decline was mainly linked to trading and investment bank activities.

Fixed-income revenues slumped 26 percent from a year ago, to $2.8 billion, reflecting lower volumes and uncertain economic conditions, the bank said.

“We performed relatively well in this challenging, uneven macro environment,” Michael Corbat, Citi’s chief executive, said in a statement.

“While many of the factors which influence our revenues are not within our full control, we certainly can control our costs, and I am pleased with our expense discipline and improved efficiency year-to-date.”

Citigroup shares were down 1.2 percent at $48.99 in pre-market trading.

Advertising

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

Trump Pundits Line Up Against 'Poisonous' Nikki Haley And Koch Network

Nikki Haley

On Tuesday, Americans for Prosperity, a 501(c)(4) nonprofit founded by billionaire industrialists Charles and the late David Koch, endorsed former U.N. Ambassador Nikki Haley for president. The endorsement, AFP’s first in a Republican primary, comes amid consistent media chatter that Haley has surpassed Florida Gov. Ron DeSantis as the preeminent GOP challenger to former President Donald Trump.

Keep reading...Show less
Trump Club Waitress: 'I Was Forced To Engage In Sex' To Keep Job

Alina Habba, left, and former president Donald Trump

Photo by quapan licensed under CC BY 2.0

Alice Bianco, who worked as a server at former President Donald Trump's golf club in Bedminster, New Jersey, is accusing her former boss of sexual assault, and the ex-president's attorney of making her sign an illegal non-disclosure agreement in an attempt to silence her.

Keep reading...Show less
{{ post.roar_specific_data.api_data.analytics }}