Citigroup profit beats estimates on consumer banking strength

Citigroup profit beats estimates on consumer banking strength

The Citigroup Inc (Citi) logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris Helgren/File Photo
REUTERS: Citigroup Inc reported a higher-than-expected quarterly profit on Friday, driven by lower taxes and higher consumer banking revenue.The fourth-biggest U.S. bank by assets said net income rose to US$4.62 billion in the first quarter ended March 31, compared with US$4.09 billion a year earlier.Earnings per share rose to US$1.68 from US$1.35. Average shares outstanding declined 7 percent as the company bought back stock.Analysts on average had expected earnings per share of US$1.61, according to Thomson Reuters I/B/E/S.JPMorgan Chase & Co, the biggest bank by assets earlier on Friday reported a 35 percent jump in profit on lower taxes and higher interest rates.The bank's provision for income taxes declined by 23 percent from a year earlier, reflecting the U.S. government's cut in the corporate tax rate.
Global consumer banking revenue increased 7 percent on gains in North America, Mexico and Asia.Citigroup's shares were up 1.28 percent in premarket trading."Our first quarter results demonstrate strength and balance across our franchise and position us well for the rest of the year," Chief Executive Officer Mike Corbat said in a statement.Total revenue rose about 3 percent to US$18.87 billion, while operating expenses rose 2 percent to US$10.92 billion.
(Reporting by Sweta Singh in Bengaluru and David Henry in New York; Editing by Saumyadeb Chakrabarty)
Source: Reuters
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