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Citigroup earnings jump on lower expenses
[NEW YORK] US banking giant Citigroup reported a big jump in quarterly earnings on Thursday, as lower expenses more than compensated for weakness in bond trading and some other businesses.
Earnings for the third quarter were up 51 per cent at US$4.3 billion. Revenues fell 5.1 per cent to US$18.7 billion.
A big factor in the earnings jump was a huge decline in expenses compared with the year-ago period, when heavy litigation and restructuring costs weighed on results.
Like other large banks, Citigroup suffered from lower revenues in bond trading, partially offset by higher revenues from equity trading. Investment banking revenues also fell, further denting operating earnings in the institutional clients group.
In global consumer banking, Citigroup's other large division, lower revenues were partially offset by a drop in operating expenses.
"The quarter had more than its fair share of volatility and our results speak to the resilience of our franchise globally," said Citigroup chief executive Michael Corbat.
"And despite revenue headwinds, we once again proved our ability to manage our risk, our expenses and our capital." Citigroup earnings translated into US$1.35 per share, seven cents above analyst expectations.
Citigroup shares rose 3.1 per cent to US$52.29 in pre-market trade.