Citigroup reports better than expected results

 Citigroup posted an earnings loss of 27 cents a share that appeared to beat analyst estimates but didn't satisfy Wall Street.

Citi shares fell after the banking titan reported total net income for the third quarter of $101 million.

Citigroup, which has posted more than $100 billion of writedowns and consumer credit losses since the credit crisis began, posted a third-quarter net loss to shareholders of $3.2 billion, compared with a loss of $2.9 billion, or 61 cents a share, in the third quarter last year.

Third quarter revenues were $20.4 billion. Results included $8.0 billion in net credit losses and an $802 million net loan loss reserve build.

"We continue to execute steadily against our plan, and sustainable profitability remains our primary goal in the near term," Citi CEO Vikram Pandit said in a statement. "While consumer credit trends are improving in international markets, the U.S. consumer credit environment remains challenging." 

Citi's losses came as the company completed previously announced exchange offers that generated an $851 million after-tax gain, but also in a $3.1 billion reduction in income available to common shareholders The result was an incremental net $0.18 loss per share. 

The reported loss per share also reflected preferred stock dividends, which cost shareholders 2 cents a share.

The bank said revenue in its securities and banking unit dropped by about a third, to $4.89 billion. Excluding the impact of an accounting loss from improved credit spreads, the unit's revenue was $6.6 billion. 

Major competitors including JPMorgan Chase and Goldman Sachs posted big increases in investment banking revenue.

Citigroup's net revenue rose 25 percent from a year earlier to $20.39 billion.

Total assets rose 2 percent from the second quarter, to $1.89 trillion.

 

Source: cnbc.com