UPDATE: Citigroup Shares Gain On Upbeat Q3 Profit

Shares of Citigroup

gained more than 2% in pre-market trading after the company reported upbeat earnings for the third quarter. The New York-based company reported quarterly net income of $3.44 billion, or $1.07 per share, up from $3.23 billion, or $1 per share, in the year-ago period. Excluding accounting adjustments, the bank earned $1.15 per share. Its revenue gained 9.5% to $19.6 billion, while adjusted revenue surged to $19.98 billion. However, analysts were estimating earnings of $1.14 per share on revenue of $18.99 billion. Citigroup's trading revenue rose 6.7%. Fixed income trading revenue climbed 5% to $2.98 billion, while equities trading revenue jumped 14% to $763 million. Citicorp revenue rose 8% to $18.0 billion in the quarter, while Global Consumer Banking revenue gained 4% to $9.6 billion. Institutional Clients Group revenue jumped 14% to $8.4 billion, while Citi Holdings revenue climbed 26% to $1.6 billion. Citigroup's operating expenses increased 5.8% to $12.36 billion, while legal expenses rose 40% to $951 million. Citigroup's loans declined 1% to $654 billion, while deposits also fell 1% to $943 billion as of quarter end. Citi also announced its intention to exit consumer businesses in 11 markets. Michael Corbat, Chief Executive Officer of Citi, said, “Our consumer bank and institutional business each had solid performance during the quarter and generated stronger revenues both sequentially and year-on-year. The revenue improvement was evident across regions and products. With Citi Holdings again turning a profit and the utilization of additional deferred tax assets, we again demonstrated progress against two execution priorities and increased our capital base. We also continued our work to strengthen our capital planning process to meet the critical goal of returning capital to our shareholders.” Citigroup's shares gained 2.40% to $51.10 in pre-market trading.