Citigroup reports growth in loans, deposits
SAN JUAN – Global banking institution Citigroup Inc. reported Friday net income for the third quarter 2018 of $4.6 billion, or $1.73 per diluted share, on revenues of $18.4 billion. This compared with net income of $4.1 billion, or $1.42 per diluted share, on revenues of $18.4 billion for the third quarter 2017.
The financial institution has about 200 million customer accounts and does business in more than 160 countries and jurisdictions. It provides consumers, corporations, governments and institutions with financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
Revenues were largely unchanged from the prior-year period, “primarily reflecting the net impact of a gain on sale (approximately $580 million) of a fixed income analytics business in the prior-year period and a gain on sale (approximately $250 million) of an asset management business in Mexico in Global Consumer Banking (GCB) in the current period, as well as the impact of foreign exchange translation,” the financial institution said in a release.
It added that, excluding the aforementioned items, “revenues grew 4% driven by growth in the Institutional Clients Group (ICG). Net income of $4.6 billion increased 12%, primarily reflecting a lower effective tax rate as well as lower expenses and cost of credit, as the revenues remained largely unchanged. Earnings per share of $1.73 increased 22% from $1.42 per diluted share in the prior-year period, driven by the growth in net income and an 8% reduction in average diluted shares outstanding.”
Citi said its Latin America GCB revenues increased 20% to $1.7 billion, “including the gain on sale. In constant dollars, revenues increased 8% excluding the gain on sale driven by continued volume growth” in commercial, mortgage and card loans, and deposits.
“Our results this quarter showed solid year-over-year revenue growth across many of our businesses, including Fixed Income, Treasury and Trade Solutions, Securities Services, the Private Bank and our consumer franchise in Mexico. We also grew loans and deposits while continuing to prudently manage risk as demonstrated by the stability of our credit portfolio. We returned $6.4 billion of capital to common shareholders through buybacks and dividends during the quarter. And over the past twelve months, we’ve reduced our common shares outstanding by over 200 million or 8%. Through a combination of earnings growth and capital return, our earnings per share were 22% higher than one year ago.
“Through the first nine months of this year, we have grown our underlying Consumer and Institutional revenues by 4%, operated with an efficiency ratio of 57.3% and delivered a Return on Tangible Common Equity of 11.2%. We are firmly on track to deliver on our full year 2018 financial targets. At the same time, we continue to make targeted investments which will fund future growth and enhance our ability to serve clients,” Citi CEO Michael Corbat said in a related statement.
A webcast of Citigroup’s presentation, as well as financial results and presentation materials, is available at https://www.citigroup.com/citi/investor.