Despite Earnings Beat, Citigroup Is Just Par for the Course

Citigroup Inc (C) Q3 Earnings Beat, Despite Very Weak Fixed Income Performance

Citigroup Inc (C) Q3 Earnings Beat, Despite Very Weak Fixed Income Performance

Citigroup Inc. said its third-quarter revenue rose 2%, as it suffered a drop in trading revenue but was boosted by the performance of its evolving consumer bank.

Quarterly revenue at the New York-based bank was $18.17 billion, up from $17.76 billion a year earlier and topping analysts' consensus forecast of $17.896 billion.

The New York City-based banking giant reported Q3 earnings per share (EPS) of $1.42, which was $0.10 better than the consensus of $1.33.

We delivered a very strong quarter, showing the balance of our franchise by both product and geography and highlighting our multiple engines of client-led growth.

Wall Street estimated earnings of $1.32 per share. "We had revenue increases in numerous products we have been investing in, tightly managed our expenses, and again saw loan growth in both our consumer and institutional businesses". Deposits were up 3% to $964 billion in the same time.

Institutional Clients Group - Citi's bread and butter thanks to its global network of trading floors and multinational clients - saw revenues increase 9% year-over-year to $9.2 billion while net income increased 15% to $3 billion. However, Investment Banking revenues jumped 14% to $1.2 billion, while Advisory revenues edged down 1% to $237 million. North American banking revenue also was up, though by just 1% from a year ago.

The shares rose 0.2% to $75.11 in premarket trading. Fixed Income Markets revenues plunged 16% $2.9 billion, hurt by lower G10 rates and currencies revenues.

At the end of the quarter, loans totaled $653 billion, an increase of 2% from past year.