Citigroup Q1 Profit Beats Estimates

reported stronger-than-expected earnings for its first quarter on Thursday. The New York-based bank posted a quarterly profit of $4.77 billion, or $1.51 per share, versus a year-ago profit of $3.94 billion, or $1.23 per share. Excluding one-time items, the company's earnings climbed 17 percent to $1.52 per share. Its revenue declined 2 percent to $19.74 billion in the quarter, while revenue on an adjusted basis shrank 2 percent to $19.81 billion. However, analysts were expecting a profit of $1.39 per share on revenue of $19.82 billion. Citigroup's operating expenses slipped 10 percent to $10.9 billion in the first quarter. As of quarter end, Citigroup's loans declined 7 percent y/y to $621 billion, while deposits shrank 7 percent to $900 billion. Citicorp revenue fell 2 percent to $17.9 billion in the first quarter, while net income climbed 9 percent to $4.6 billion. Global Consumer Banking revenue fell 2 percent to $8.7 billion in the quarter, Institutional Clients Group revenue slipped 1 percent to $9.0 billion. Citi Holdings revenue came in at $1.8 billion in the first quarter. The average estimate among 36 Estimize users was for earnings of $1.39 per share and revenue of $19.92 billion. Michael Corbat, Chief Executive Officer of Citigroup, said, "We had a strong quarter overall, particularly in executing against our top strategic priorities. While some businesses faced revenue headwinds, we grew loans and deposits in our core businesses and gained wallet share among our target clients. We tightly managed our expenses, helping to achieve positive operating leverage in Citicorp and we are on track to hit our financial targets for the year." Citigroup shares rose 1.50 percent to $54.01 in pre-market trading.