Despite Earnings Beat, Citigroup Is Just Par for the Course

Banking, finance, and taxes

Published: October 12, 2017 9:05 am

Last Updated: January 12, 2020 7:15 am

Citigroup Inc. (NYSE: C) reported its third-quarter financial results before the markets opened on Thursday. The company said that it had $1.42 in earnings per share (EPS) and $18.2 billion in revenue, compared with consensus estimates from Thomson Reuters that called for $1.32 in EPS and revenue of $17.9 billion. The same period of last year reportedly had EPS of $1.24 and $17.76 billion in revenue.

At the end of the quarter, loans totaled $653 billion, an increase of 2% from last year. Deposits were up 3% to $964 billion in the same time.

In terms of its segments, the megabank reported:

Global Consumer Banking revenues grew 3% year over year to $8.43 billion.
Institutional Clients Group revenues grew 9% to $9.23 billion.
Corporate/Other shrank 55% to $509 million.

Book value per share was $78.81, and tangible book value per share was $68.55, both representing a 6% increase.

Citigroup’s Common Equity Tier 1 Capital ratio was 13.0%, up from 12.6% in the prior year period, driven primarily by earnings partially offset by the return of capital to common shareholders.

Michael Corbat, Citi CEO, commented:

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. We had revenue increases in many of the products we have been investing in, tightly managed our expenses, and again saw loan growth in both our consumer and institutional businesses.

Corbat added:

As part of our $19 billion capital plan, we returned $6.4 billion of capital to our shareholders this quarter, enabling us to begin to reduce the amount of capital we hold. We continue to be focused on increasing both the return on capital and the return of capital for the benefit of our shareholders.

Shares of Citigroup closed Wednesday at $74.94, with a consensus analyst price target of $75.38 and a 52-week range of $47.54 to $76.02. Following the release, the stock was up 0.7% at $75.47 in early trading indications Thursday.

Are You Still Paying With a Debit Card?

The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.

Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!

Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!

Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.