Despite summer's unstable trading period, Citigroup Inc. has managed to impress financial analysts as they exceeded their expectations with their increased third-quarter revenues. While Citigroup struggled with some declines, they went back on track after adjusting certain debt valuations.
With Citigroup's impressive Q3 profits, several investors were pleased with the results, which helped raised the company's share price more than four percent. The New York Times noted the decline in legal expenses, which were related to the mortgage crisis, has also boost the profit increase.
"This quarter showed that we're well equipped to handle what the world throws our way, whether it's managing our risk, our expenses or our capital," Citigroup Chief Executive Michael L. Corbat told analysts in a conference call on Thursday. "Challenging environments have become the norm."
Amid increased market volatility and uncertainty about the timing of a U.S. interest rate hike, Citigroup's quarterly profits still managed to have a 51 percent increase. Though it seems that the company is putting the financial crisis behind, its CEO still working out plans to ditch businesses where profits and prospects are not valuable, as per Reuters.
Citi is the most international of U.S. banks, with half of its revenue coming from markets outside North America. However, the company's revenue from Asia downturned due to the slackening economic growth of China.
Due to the Citigroups's impressive third-quarter profit, Drexel Hamilton LLC analyst David Hilder noted the company's efforts, saying they actually performed better than JP Morgan in terms of expense efficiency and capital, Bloomberg Business reported.
Meanwhile, U.S. banks including Citi, JPMorgan Chase & Co and Bank of America Corp are cutting costs in order to bolster earnings as overnight fund rates stay near zero. While the fixed-income trading, which is a source of revenue growth, shows no sign of picking up.
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