Citigroup stock rises even though revenue falls short
Jan 14, 2019 (Agencia EFE via COMTEX) —
New York, Jan 14, (efe-epa).- Investors got their first indication of how Wall Street’s big trading businesses fared during the volatile end to the year, and it didn’t look good, according to a Dow Jones report supplied on Monday to Efe
Citigroup reported lower revenue than expected when it disclosed its fourth-quarter earnings Monday before the market opened. Fixed-income trading was particularly weak.
Investors shrugged off the bad news, which was tempered by positive results in and the core banking business. The stock was up 2.5 percent in morning trading, while the Dow Jones Industrial Average was 0.4 percent lower.
The bank’s fixed-income trading unit reported $1.94 billion in revenue, a 21 percent year-over-year drop. Overall, the company, which was the first big US bank to report its year-end results, reported $17.1 billion in revenue, well below the $17.6 billion analysts expected.
Citigroup’s earnings were higher than expected. The bank delivered $1.61 a share in profit, excluding the impact of tax-law changes, above the consensus of $1.55 a share, the Dow Jones story added
CEO Michael Corbat said in a news release that a volatile fourth quarter affected some market-sensitive businesses, particularly fixed income, but that other parts of the bank’s institutional business continued to perform well. “And in Global Consumer Banking, we had good underlying growth in US Branded Cards and solid performance from our franchise in Mexico where we have been investing,” he said.
James Mitchell of Buckingham Research Group, who has a Buy rating on the stock, said in a note to clients Monday that he expected weak fixed-income results, emphasizing that “core banking trends were solid, with core loan growth of 5 percent and deposit growth of 7