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

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

Wall Street slipped, after touching record highs earlier in the day, as shares of JPMorgan Chase and those of Citigroup fell after the United States banks posted quarterly earnings.

"We all would anticipate greater loan growth if there was a bit more clarity as far as you know when or if tax reform was going to pass", Chief Financial Officer John Gersprach told reporters. Citi reported a 3% year-on-year rise in global consumer banking revenue, while in North America retail banking jumped by 12%, excluding mortgages.

Both JP Morgan Chase and Citigroup reported higher third quarter profits, despite being hit by a drop in bond trading revenues. Earnings per share rose about 15 percent to $1.42, bolstered by the bank's move to reduce its shares outstanding by 7 percent.

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

Disney shares fell 1.1% while Viacom dropped more than 6%. The trends bode poorly for Goldman Sachs Group Inc GS.N , which has struggled more in bond trading recently than other Wall Street banks. He said, in the end, September was better than anticipated.


Commenting on the lender's latest set of results, chief Michael Corbat said: "We had revenues in numerous products we have been investing in, tightly managed our expenses, and again saw loan growth in both our consumer and institutional businesses".

Executives at the largest USA bank touted the diverse mix of businesses that allow JPMorgan to weather a dip in one area or another, and downplayed a 27 percent drop in bond trading revenue even though weakness has continued into the fourth quarter. JPMorgan's net interest income, or the difference between what it pays for funds and collects from lending them out, rose 10 percent. JPMorgan also had to set aside more money in the quarter to cover souring credit card loans.

Citi cited "continued growth in loans and assets under management" for the rise, as well as higher interest rates.

Citigroup Inc's earnings for the third quarter of the year were also up when compared to the same period last year.

Citi-branded cards in the USA provide about 10 percent of Citigroup revenue and profits and are seen by Corbat as one of the company's best shots at growing profits.

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