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

Great Lakes no help for a struggling Trump on road to 270

Aug 15, 2016

Donald Trump needs a place to reset the electoral map, and he seems to be looking at the industrial heartland states on the Great Lakes.

Miner BHP Billiton suffers $6.4 billion loss for 2015-16

Aug 16, 2016

The world's biggest miner, BHP Billiton, on Tuesday reported a $6.4 billion loss _ the Anglo-Australian company's worst ever full-year result

Insurers continue to abandon ACA exchanges, limiting choice

Aug 16, 2016

Aetna will abandon for next year Affordable Care Act insurance exchanges in more than two-thirds of the counties where it sells coverage, making it the latest major health insurer to cuts choices in many markets

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