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Citigroup profit rises 16 pct on lower taxes, higher fee income

Citigroup Inc reported a 16 percent increase in quarterly profit on Friday, as the Wall Street bank benefited from lower taxes, higher fee income and strength in its consumer banking business in Mexico.


Reuters 13 Jul 2018, 12:05 PM United States
  • Citigroup Inc reported a 16 percent increase in quarterly profit on Friday. (Image Credit: Reuters)

Citigroup Inc reported a 16 percent increase in quarterly profit on Friday, as the Wall Street bank benefited from lower taxes, higher fee income and strength in its consumer banking business in Mexico.

The third-largest U.S. bank by assets said net income rose to $4.49 billion in the second quarter ended June 30, from $3.87 billion a year earlier. Pretax profit from continuing operations increased 5 percent.

Earnings per share rose to $1.63 from $1.28.

Analysts on average had expected earnings per share of $1.56, according to Thomson Reuters I/B/E/S. It was not immediately clear if the numbers were comparable.

The bank's provision for income tax fell by $351 million, following President Donald Trump's corporate tax rate cuts.

Buybacks reduced shares outstanding by 8 percent from a year earlier, further boosting earnings per share.

Revenue rose about 2 percent to $18.47 billion. Analysts had estimated revenue of $18.51 billion.

Through Thursday, Citigroup shares are down 7.9 percent for the year, compared with the 1 percent drop in the broader KBW Bank Index.

JPMorgan Chase & Co's quarterly profit topped Wall Street's expectations on Friday, as trading revenue came in much higher than expected and demand for loans increased on the back of a strengthening U.S. economy.

Wells Fargo & Co, the fourth-largest bank by assets, was also to report on Friday morning. 

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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