Citigroup Beats Expectations on Wall Street on Strong Revenue and Earnings

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On Friday, Citigroup announced revenue and earnings for the third quarter that topped expectations on Wall Street. The bank announced that its adjusted per share earnings were $1.24 on revenue of $17.76 billion during the three-month period.

Wall Street was expecting Citi to post earnings per share of $1.16 on $17.36 billion in revenue.

The results represent a drop for both the top line and bottom line compared to adjusted per share earnings of $1.31 and $18.5 billion in revenue for the same three-month period one year ago.

Michael Corbat the CEO at Citi said he was very encouraged by underlying momentum that he saw across the entire franchise and mostly notably in a number of areas where the bank has been taking time to invest in.

For the quarter, Corbat added, the Institutional Clients Group and Global Consumer Bank saw solid increases in revenue year over year in close to all their business lines and geography.

Corbat said the bank continued growing its core deposits and loans while lowering its assets that were non-core to only 3% of its entire balance sheet.

Fixed income markets at Citi saw a particularly notable performance during the three-month period, increasing by 35% in its year over year numbers.

Stock at Citi has increased over 9% the past six months. However, it remains off by close to 6% compared to the same period one year ago after its start to 2016 was poor.

In general, Citi investors looked at the Friday list of announcement of bank earnings in hopes of findings some indication of how strong the economy in the U.S. is.

One big important area that is being carefully monitored is growth in loans. Loan growth could indicate the health of both businesses as well as consumers.

Over the past three months, the banking sector has been a top sector in performance, but the banks have struggled the entire year with the moderate growth in the economy, lower expectations for an interest rate increase by the Federal Reserve and one of the worst beginnings to a year for the stock market in the U.S.

As more earnings reports are announced over the coming weeks, analysts and consumers will get an even bigger overall view of how the economy is performing.

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