by Christopher Freeburn | October 15, 2012 9:44 am
Citigroup (NYSE:C) announced on Monday that it earned $468 million during the third quarter, down sharply from $3.77 billion in the same period last year. The drop in profit was attributed to a $2.9 billion charge taken to write down the value of its stake in a brokerage unit run with Morgan Stanley (NYSE:MS).
The bank also posted a $582 million tax benefit, which helped offset the charge. Analysts had forecast an un-adjusted loss of $777 million, Bloomberg noted.
Adjusted EPS came in at $1.06, up from 84 cents in 2011. That topped estimates of analysts, who were expecting adjusted earnings of 97 cents per share.
Investors liked the results. Citigroup shares rose about 3% in early Monday trading.
The bank recorded quarterly revenue of $19.4 billion, up 3% from last year.
Citigroup officials noted that revenue from fixed income products increased to $3.7 billion, topping analysts who had predicted between $2.96 billion and $3.11 billion. Equities trading revenue jumped 76% to $510 million, while investment banking posted a 26% gain, rising to $926 million.
Last month, Citigroup said it would sell its remaining stake in its Smith Barney joint venture with Morgan Stanley, prompting the write-down of the stake’s value.
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