WASHINGTON (dpa-AFX) - Citigroup Inc. (C) reported that its net income for the second quarter 2018 increased 16% from last year, driven by the higher revenues and a lower effective tax rate, partially offset by higher cost of credit. Quarterly earnings per share topped analysts' expectations.
In Friday's pre-market trading, the company's shares are down $0.40 or 0.59 percent to $68.15.
Citi CEO Michael Corbat said, 'These results demonstrate good momentum across our franchise and that we are firmly on track to achieve the financial targets we introduced last year at Investor Day.'
'Finally, we were pleased to receive a non-objection from the Federal Reserve to our capital plan submitted as part of the 2018 CCAR cycle which will allow us to return $22 billion in capital to common shareholders over the next year, marking another significant step towards delivering on our commitment to return at least $60 billion in capital over a three-year period,' Corbat concluded.
Net income for the second quarter 2018 was $4.5 billion compared to net income of $3.9 billion for the second quarter 2017. Earnings per share of $1.63 increased 27% from $1.28 per share in the prior-year period, driven by the growth in net income and an 8% reduction in average shares outstanding. Analysts polled by Thomson Reuters expected the company to report earnings of $1.56 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter increased 2% to $18.47 billion from last year's $18.16 billion, driven by growth in both the Institutional Clients Group or ICG and Global Consumer Banking or GCB, partially offset by lower revenues in Corporate / Other due to the continued wind-down of legacy assets. Wall Street expected revenues of $18.51 billion for the quarter.
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