Citigroup Reports Weak Third-Quarter Results
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.