Citigroup Q3 2019 net income rises by 6% year-over-year to $4.9bn, beating forecasts, driven by higher revenues.
Revenues increase by 1% from the y-o-y including a gain on the sale of an asset management business in Mexico.
On an underlying basis, revenues are down by 2%.
Earnings per share of $2.07 increase 20% y-o-y, primarily driven by a 10% reduction in average diluted shares outstanding. Citi also benefits from a lower effective tax rate.
Less positive metrics include a 20 basis points rise y-o-y in the cost income ratio to 56.3%.
Citi Q3 2019: retail banking highlights
Retail banking hits include a 4% rise in North America Global Consumer Banking (GCB) revenues to $5.4bn.
On the other hand, retail banking revenues of $1.3bn decrease by 2% on lower deposit spreads. Citi-Branded Cards revenues of $2.3bn increase by 11%, primarily driven by continued growth in interest-earning balances.
Asia GCB revenues rise by 3% to $1.9bn. Other highlights include a 2% fall in GCB operating expenses.
Citi CEO Michael Corbat says: “Our Global Consumer Banking franchise performed well in the quarter, showing solid underlying revenue growth of 4%.
“In the US, Branded Cards increased revenues by 11% with continued deposit momentum through both digital and traditional channels.”
Corbat says Citi remains on track to return more than $60bn of capital over a three year period that ends next year.
Citi Q3 2019 channel highlights
Citi ends the third quarter with a US branch network of 687 outlets, down from 692 a year ago.
Active digital customers rise by 6% year-over-year to 19 million. Meantime, active mobile banking customers increase by 14% y-o-y to 12 million.
Outside North America, Citi ends the third quarter with 1,707 branches down by 1% y-o-y. Over the same period, digital customers are up 19% to 12 million with active mobile banking customers ahead by 34% to 10 million.
For the year to date Citi’s share price is up by 34%.