Citigroup quarterly profit falls 7.8 percent

Reuters News
Posted: Oct 14, 2016 8:21 AM

(Reuters) - Citigroup Inc <C.N>, the fourth-biggest U.S. bank by assets, reported a 7.8 percent fall in quarterly profit on Friday, hurt by lower revenue from equity trading.

The bank's net income fell to $3.84 billion, or $1.24 per share, in the third quarter ended Sept. 30 from $4.29 billion, or $1.35 per share, a year earlier.

Total adjusted revenue fell 4 percent to $17.76 billion.

Analysts on average had estimated earnings of $1.16 per share. It was not immediately clear if the results were comparable.

Equity markets revenue fell about 34 percent, driven by lower market activity.

In the year-earlier quarter, the bank recorded a gain of $180 million on the sale of a business in Mexico and a $140 million valuation adjustment in its equity markets division.

Citigroup, the most international of the large U.S. banks, has been exiting less-profitable operations in markets around the world, consolidating back offices and cutting jobs to become leaner.

Adjusted revenue from Citicorp, the bank's core business, rose 0.6 percent to $16.88 billion, while expenses rose 3 percent to $9.58 billion.

Banning Straws
John Stossel

Earlier on Friday, JPMorgan Chase & Co <JPM.N> reported a 7.6 percent drop in quarterly profit after recording a tax expense, compared with a rare tax benefit a year earlier, but both revenue and profit beat analyst estimates.

Wells Fargo & Co <WFC.N> reported a 3.7 percent fall in quarterly profit.

(Reporting by Sweta Singh in Bengaluru and David Henry in New York; Editing by Anil D'Silva)