Citi, registered as Citigroup Inc., has reported net income for the third quarter 2017 of $4.1 billion, or $1.42 per diluted share, on revenues of $18.2 billion.
This compared to net income of $3.8 billion, or $1.24 per diluted share, on revenues of $17.8 billion for the third quarter 2016.
Revenues increased 2% from the prior year period, driven by growth in Institutional Clients Group (ICG) and Global Consumer Banking (GCB), partially offset by lower revenues in Corporate / Other. Net income of $4.1 billion increased 8% from last year including a $580 million pre-tax ($355 million after-tax) gain on the sale of a fixed income analytics business, which contributed $0.13 to earnings per share.
Excluding the gain, net income declined 2%, reflecting higher cost of credit, however earnings per share increased 4% to $1.29 driven by a 7% reduction in average diluted shares outstanding7.
In the discussion throughout the remainder of this press release, percentage comparisons are calculated for the third quarter 2017 versus the third quarter 2016, unless otherwise specified.
Citi CEO Michael Corbat said, “We delivered a very strong quarter, showing the balance of our franchise by both product and geography and highlighting our multiple engines of client-led growth. We had revenue increases in many of the products we have been investing in, tightly managed our expenses, and again saw loan growth in both our consumer and institutional businesses.
He added that “We had positive operating leverage across the Global Consumer Bank and the Institutional Clients Group continued to gain wallet share as a result of our efforts to deepen our relationships with our target clients. We made further progress towards the targets we discussed on investor day in terms of ROTCE, 9.8% ex-DTA year-to-date, and efficiency ratio, 57% year-to-date.
“As part of our $19 billion capital plan, we returned $6.4 billion of capital to our shareholders this quarter, enabling us to begin to reduce the amount of capital we hold. We continue to be focused on increasing both the return on capital and the return of capital for the benefit of our shareholders,” Mr. Corbat concluded.