Citigroup profit rises 12% on lower expenses, LatAm growth

REUTERS: Citigroup Inc reported a 12 per cent increase in quarterly profit on Friday (Oct 12), as the bank benefited from lower expenses and consumer banking business in Latin America.

Net income for the third-largest US bank by assets rose to US$4.62 billion in the third quarter ended Sep 30, from US$4.13 billion a year earlier.

Workers are seen in at Citibank offices in the Canary Wharf financial district in London

Earnings per share rose to US$1.73 from US$1.42, helped by buybacks that reduced shares outstanding by 8 per cent from a year earlier.

Analysts on average had expected earnings per share of US$1.69, according to I/B/E/S data from Refinitiv.

Total revenue was slightly lower at US$18.39 billion, compared with US$18.42 billion a year earlier.

Operating expenses fell 1 per cent to US$10.31 billion and the company’s widely watched efficiency ratio improved to 56.1 per cent from 56.6 per cent a year earlier.

The bank’s provision for income taxes decreased by US$395 million due to the cut in US corporate tax rates at the beginning of 2018.

Bond trading revenue at Citi rose 9 per cent, in sharp contrast to bigger rival JPMorgan Chase & Co , which reported a 10 per cent drop in bond trading revenue.

(Reporting by Siddharth Cavale in Bengaluru; Editing by Sriraj Kalluvila)

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