Citigroup's 1Q profits rise 2%, beating forecasts

FILE- This March 23, 2018, file photo shows the entrance to Citibank at the Citigroup Center in downtown Los Angeles. Citigroup reports earnings Monday, April 15, 2019. (AP Photo/Richard Vogel, File)

NEW YORK — Banking conglomerate Citigroup said its first quarter profits rose by a relatively quiet 2% from a year earlier, as higher interest and investment banking revenues helped offset a decline in trading.

Citi's results were similar to those of its Wall Street competitors, JPMorgan Chase and Goldman Sachs, who both reported similar declines in trading revenue in the quarter.

Citi said Monday that it earned $4.71 billion, or a profit of $1.87 per share, compared with a profit of $4.62 billion, or $1.68 per share, in the same period a year ago. Analysts were looking for Citigroup to report a profit of $1.78 a share, according to Zacks Investment Research.

Citi reported a 24% decline in stock trading revenue, while bond and currency trading revenue fared better, up 1% from a year earlier. Citi's trading operations focus more on currencies and foreign exchange, which was less volatile last quarter than the stock and bond markets. That allowed Citi's trading revenue in that division to do better than its peers.

The bank did well in investment banking, posting significantly higher fees for advisory services and debt underwriting.

Citi's consumer banking business reported a modest 4% increase in profits from a year earlier, as the bank was able to grow interest revenue while keeping expenses in check. Like other banks with a consumer banking franchise, Citi has benefited from last year's rise in interest rates, which has allowed banks to charge more for loans and credit cards.

Citi's return on common equity, a measurement of how well a bank performs with the assets that it holds, was 11.9% in the quarter. Banks like Citi typically aim for that figure to be above 10%.

Total revenue across Citi was $18.58 billion, down 2% from a year earlier. That is mostly in line with analysts' expectations.

Other News

UK manufacturers see costs jump in wake of Brexit vote

Aug 16, 2016

Official figures show consumer prices in Britain rose more than expected in July, while the cost of raw materials for manufacturers are mounting as a result of the pound's drop in the wake of the vote to leave the European Union

Body donations on the rise at US medical schools

Aug 17, 2016

Many U.S. medical schools are seeing a surge in the number people leaving their bodies to science

Nestle sales grow in North America, slow in China

Aug 18, 2016

Swiss food and beverage giant Nestle says profits dipped slightly due to a one-time tax expense even as revenues edged up behind growth in its key North American food business and despite a slowdown in the Chinese market

The Budget Report seeks to provide comprehensive coverage and analysis on the current economic, financial issues around the world. First hand finance and economic news all day, every day.

Contact us: sales@thebudgetreport.com