Citigroup Releases Positive Earnings

Citigroup Inc (NYSE:C) has posted second quarter EPS of $1.24 on $17.76 billion compared to consensus estimates of about $1.16 a share on $17.36 billion in revenue. Citigroup also said it repurchased 30 million common shares, returning $1.5 billion to shareholders.

“I am very encouraged by the underlying momentum across our franchise, notably in several areas where we have been investing,” Citigroup CEO Michael Corbat said in a release. “In the quarter, both our Global Consumer Bank and Institutional Clients Group had solid year-over-year revenue increases in nearly every business line and geography. We also continued to grow core loans and deposits while reducing non-core assets to just 3% of our balance sheet.”

The bank said its operating expenses fell 5 percent quoting lower expenses from Citi Holdings and “a benefit from foreign exchange translation.”

“We also grew loans in both our consumer and institutional businesses, reduced expenses, and utilized additional deferred tax assets, bringing the total utilized to $10 billion over the last four years. This utilization fuels our ability to generate regulatory capital and, with the Fed’s non-objection to our capital plan, I am pleased that we will significantly increase the amount of capital returned to our shareholders over the next year,” he said.

In constant currency, Citigroup’s loans grew 2 percent in the second quarter. However, the bank also said Citicorp’s 6 percent was “largely” offset by Citi Holdings’ declines. 

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