Citigroup Adjusted Earnings Down Slightly
Citigroup this morning announced an adjusted net income of $3.26 billion ($1.02 per share) in the third quarter, compared to $3.27 billion in the third quarter of 2012 ($1.06 per share) and $3.89 billion in the second quarter of this year ($1.25 per share), all excluding credit and debt valuation adjustments (CVA/DVA). (Wall Street analysts who follow the stock had predicted earnings of $1.05 for the quarter, according to data provider FactSet.) In the third quarter last year Citi also recognized an after-tax loss of $2.9 billion relating to its Morgan Stanley Smith Barney joint venture.
On a generally accepted accounting principles basis, Citi had a net income of $3.2 billion in the most recent quarter, compared to $468 million over the same period last year.
Of the results Cit CEO Michael Corbat noted in a statement: "We performed relatively well in this challenging, uneven macro environment. While many of the factors which influence our revenues are not within our full control, we certainly can control our costs and I am pleased with our expense discipline and improved efficiency year-to-date."
After excluding for certain items, revenues were down 5% in the third quarter of 2013 compared to the third quarter of 2012, and 9% from the second quarter of this year.
Citigroup's book value per share was up 1% from the prior year, and tangible book value per share grew 3% from the prior year, to $64.49 and $54.42, respectively.
The bank said that "significantly lower" mortgage refinancing business in the U.S. contributed to a 7% decline in Citi's consumer banking revenue. An increase in interest rates this summer has been causing a drop in the mortgage refinance business at U.S. banks.
-- Material from The Associated Press was used in this report.
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