Citigroup Reports $3.9 Billion in Net Income

Citigroup Inc. has reported net income for the second quarter 2017 of $3.9 billion, down 3%, on revenues of $17.9 billion. This compared to net income of $4.0 billion on revenues of $17.5 billion for the second quarter 2016.

Citi CEO Michael Corbat said, “During the quarter, we saw continued momentum in our businesses, with loan and revenue growth across both sides of the house. Our Global Consumer Bank posted revenue growth in all three regions. Our Institutional Clients Group had a very strong quarter all-around, including its best Investment Banking performance in seven years.

“The $3.9 billion of net income helped generate additional regulatory capital. Our Common Equity Tier 1 capital ratio grew to 13.0%, well above the 11.5% we believe we need to prudently operate the firm. Our recently announced 2017 capital plan includes a return of $18.9 billion enabling us to reduce the amount of capital we hold. We are clearly on course to increase both the return on capital and return of capital for our shareholders,” Mr. Corbat concluded.

Revenues increased 2% from the prior year period, driven by growth in Institutional Clients Group (ICG) and Global Consumer Banking (GCB), partially offset by lower revenues in Corporate / Other. Net income of $3.9 billion decreased 3%, as the higher revenues were more than offset by higher cost of credit and operating expenses, as well as a higher effective tax rate. Earnings per share of $1.28 increased 3% from $1.24 per diluted share in the prior year period, driven by a 6% reduction in average diluted shares outstanding, partially offset by the lower net income.

Citigroup reported $8.5 billion in revenues from North America.

Citigroup’s end of period loans were $645 billion as of quarter end, up 2% from the prior year period. Total deposits were $959 billion as of quarter end, up 2%.