Citigroup profit falls 3 percent, hurt by credit costs

Citi hits seven-year high in banking while trading stumbles

Citigroup Inc (C) Q2 Earnings Beat, Despite Higher Costs

Net income fell 3% $3.9bn as the slightly higher revenues were outweighed by higher cost of credit and operating expenses, as well as a higher effective tax rate.

Earnings per share was $1.28, topping analysts' average estimate of $1.21, according to Thomson Reuters I/B/E/S.

Fixed-income trading was off by 6% from a year ago, while equities trading fell by 11%. "During the quarter, we saw continued momentum in our businesses, with loan and revenue growth across both sides of the house", Chief Executive Michael Corbat said in a statement.

The trading falls limited second-quarter revenues at Citi's institutional clients group as a whole to $9.2bn, roughly matching the first three months of 2017 and 6% higher than a year ago.

Citigroup's total revenue rose 2 percent to $17.90 billion and beat estimates of $17.37 billion.

The bank received permission from the Federal Reserve, following its successful passage of the stress tests, to pay back $19 billion to shareholders over the next year. The global bank reported diluted earnings per share (EPS) of $1.28 on revenue of $17.9 billion.

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The active investment managers in our partner's database now own: 35,860 shares, down from 119.19 million shares in 2016Q3. Moody National Bank Trust Division's holdings in J P Morgan Chase & Co were valued $3,695,000 during the latest period.

Net income totaled $3.87 billion, down 3% compared with second-quarter 2016 net income of $4 billion.

Shares traded down less than 0.1% at $67.00 in the premarket this morning, having closed on Thursday at $67.02.

The bank did see an uptick in its investment bank, as it gained share in businesses such as mergers and acquisitions advisory.

Adjusted earnings per share $1.28 for the quarter were up 3% on the same period previous year, well ahead of the consensus estimate of $1.21. Visit MarketWatch.com for more information on this news.

Citi's institutional clients group houses the United States bank's advisory, underwriting and sales and trading businesses, as well as treasury and trade solutions, corporate lending, private banking and securities services.

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