Connect to share and comment

Citigroup shares up after third-quarter earnings beat expectations

Shares in Citigroup rose in early trading after the US investment bank's third-quarter earnings beat expectations.

Citigroup fraud settlement 2011 10 19Enlarge
A cyclist rides his bike past the Citigroup center on April 18, 2011 in San Francisco, California. (Justin Sullivan/AFP/Getty Images)

 

Shares in Citigroup jumped nearly three percent in early trade today after the US investment giant’s quarterly earnings beat analyst expectations.

Citigroup announced third-quarter net profit of $3.3 billion – excluding one-off items – or $1.06 per share, according to a statement on its website.

Experts had predicted 96 cents per share, the Associated Press reported, citing financial data provider FactSet.

Net profit was lower than the $3.77 billion, or $1.23 a share, reported a year earlier, Bloomberg said.

According to Reuters, revenue slipped to $19.4 billion from $20.83 billion a year ago.

One-off charges included a $4.7 billion writedown on Citigroup’s stake in a brokerage operated by Morgan Stanley.

Including that and other one-time items, net profit was a considerably less-impressive $468 million and revenue was $14 billion, the AP noted.

The Wall Street Journal said Citigroup’s revenues from “traditional investment banking activities” were up 26 percent from a year earlier, while equity trading jumped 76 percent from a year ago.

“Our core businesses showed momentum during the quarter as we increased lending and generated higher operating revenues,” Citigroup CEO Vikram Pandit said in the statement.

Shares in the bank were up nearly three percent at $35.76 in New York trading.

More from GlobalPost: Drug war ensnares big banks for letting Mexico cartels stash cash
 

http://www.globalpost.com/dispatch/news/regions/americas/united-states/121015/citigroup-shares-third-quarter-earnings