EPS of $1.63 on revenue of $18.5 billion. Ahead of forecast EPS of $1.54 and beating expected revenueof $18.43 billion.
Citigroup Inc NYSE: $C
Reaction July 13, 2018 Pre-market $67.68 ▼ 0.83 (-1.21%)
- Fixed-income revenue fell 6% to $3.08 billion,
- Equity markets revenue rose19% to $864 million.
- Global consumer banking revenue rose 2% to $8.25 billion
- Retail banking average loans grew 2% EPS of $1.54, a 21% gain.
Tax Reform Affect Last Quarter
Citigroup booked a $22 billion charge to account for the tax reform changes in Q1.
Last quarter the bank said the effect on capital that regulators scrutinize was “much less significant,” through CEO Michael Corbat in a statement. $C noted the annual bank “stress tests,” or Comprehensive Capital Analysis and Review (CCAR),
“Tax reform does not change our capital return goals as we remain committed to returning at least $60 billion of capital in the current and next two CCAR cycles, subject to regulatory approval,. Tax reform not only leads to higher net income and increased returns, but also serves to strengthen our capital generation capabilities going forward.”
Caution hangs over the sector as auto and student loans also overhang the banking and finance sectors. Citigroup Price trajectory over the past year has been upward, breaking out in September. The bank rally has been fueled by expectations for easier regulations including a possible repeal of DoddFrank and infrastructure spending. The Federal Reserve decision to raise rates has also helped banks. The new surge in home prices has also buoyed optimism for the mortgage business and banks profits thereto.
Source: Citigroup, Alphastreet
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