Citigroup profit rises 16 pct on lower taxes, higher fee income

(Reuters) – Citigroup Inc (C.N) reported a 16 percent increase in quarterly profit on Friday, as the Wall Street bank benefited from lower taxes, higher fee income and strength in its consumer banking business in Mexico.
FILE PHOTO: The Citigroup Inc (Citi) logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris HelgrenThe third-largest U.
S. bank by assets said net income rose to $4.
49 billion in the second quarter ended June 30, from $3.87 billion a year earlier.
Pretax profit from continuing operations increased 5 percent. Earnings per share rose to $1.
63 from $1.28.
Analysts on average had expected earnings per share of $1.56, according to Thomson Reuters I/B/E/S.
It was not immediately clear if the numbers were comparable. The bank’s provision for income tax fell by $351 million, following President Donald Trump’s corporate tax rate cuts.
Buybacks reduced shares outstanding by 8 percent from a year earlier, further boosting earnings per share. Revenue rose about 2 percent to $18.
47 billion. Analysts had estimated revenue of $18.
51 billion. Through Thursday, Citigroup shares are down 7.
9 percent for the year, compared with the 1 percent drop in the broader KBW Bank Index .BKX.
JPMorgan Chase & Co’s (JPM.N) quarterly profit topped Wall Street’s expectations on Friday, as trading revenue came in much higher than expected and demand for loans increased on the back of a strengthening U.
S. economy.
Wells Fargo & Co, (WFC.N) the fourth-largest bank by assets, was also to report on Friday morning.
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