Citigroup (NYSE: C) topped
analysts’ expectations on revenue and earnings for the fourth quarter of 2019.
Shares were up 0.62% in premarket hours on Tuesday.
Total revenues rose 7% year-over-year to $18.4 billion, beating estimates of $17.9 billion. Revenue growth was driven by strong results across the Institutional Clients Group and Global Consumer Banking businesses.
Net income rose 15% year-over-year to $5 billion, driven by
higher revenues and a lower effective tax rate. EPS jumped 31% to $2.15,
beating forecasts of $1.85, helped by growth in net income and a reduction in
average diluted shares outstanding.
CEO Michael Corbat said, “Due to good client
engagement, we drove balanced growth across our products and geographies,
closing the year with 16 consecutive quarters of loan and deposit growth. The
U.S. consumer franchise saw continued strong growth in Branded Cards and
sustained its momentum in attracting digital deposits.”
End-of-period loans were $699 billion, up 2% from last year. End-of-period deposits were $1.1 trillion, up 6% from last year. Book value per share was $82.90 and tangible book value per share was $70.39, up 10% from last year.
Allowance for loan losses was $12.8 billion at quarter-end,
or 1.84% of total loans, compared to $12.3 billion, or 1.81% of total loans, at
the end of the prior-year period.
Revenues in the Global Consumer Banking division increased
5% to $8.5 billion, driven by growth across all geographic regions. Revenues in
Institutional Clients Group increased 10%, aided by strength in Fixed Income
Markets, Investment Banking, Treasury and Trade Solutions and the Private Bank.
Citigroup’s peer JPMorgan (NYSE: JPM) also reported its fourth quarter 2019 earnings results today, beating both revenue and earnings estimates.
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