Citigroup has today reported a better-than-expected quarterly profit, helped by higher bond trading revenue and strength in its consumer banking business in Mexico.
Bond trading revenue at Citi rose 9%, in sharp contrast to bigger rival JPMorgan Chase & Co, which reported a 10% drop in bond trading revenue earlier today.
Citi had said in September total fixed income and trading revenue was likely to be flat to slightly higher, while investment banking revenue would be slightly lower to reflect volumes and transactions that may close in the fourth quarter.
It said today that its investment banking revenue fell 8% to $1.2 billion.
Consumer banking revenue in Latin America rose 20%, including a gain on the sale of an asset management business in Mexico.
Excluding that gain, revenue rose 8% and boosted total global consumer banking revenue up 3% on a constant currency basis, the bank said.
Net income for the third-largest US bank by assets rose to $4.62 billion in the third quarter ended September 30, from $4.13 billion a year earlier.
Earnings per share rose to $1.73 from $1.42, helped by buybacks that reduced shares outstanding by 8% from a year earlier.
Analysts on average had expected earnings per share of $1.69, according to I/B/E/S data from Refinitiv.
Total revenue was slightly lower at $18.39 billion, compared with $18.42 billion a year earlier.
Operating expenses fell 1% to $10.31 billion and the company's widely watched efficiency ratio improved to 56.1% from 56.6% a year earlier.
Wells Fargo & Co also reported earnings today that fell short of analysts' estimates.