Citigroup Inc (C) Stock Dips Despite Q3 Earnings Beat

Citigroup Inc (C) Stock Dips Despite Q3 Earnings Beat

Citigroup Inc (C) Stock Dips Despite Q3 Earnings Beat

Wall Street stocks retreated from records early Thursday following solid earnings reports from JPMorgan Chase and Citigroup and data showing higher United States inflation in September.

JPMorgan on October 12 reported third-quarter net income available to common shareholders of $6.3 billion. This is down 16% from its fixed income markets revenue of $3.41 billion reported during the same time past year.

Like its Wall Street rival JP Morgan Chase & Co (NYSE:JPM) - which reported its results earlier today - Citi recorded a 16% year-on-year decline in fixed income trading revenue which totalled US$2.88bn.

On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $1.32 per share.

Paris wants all gas-powered cars out of the city by 2030
And Paris City Hall called its third car-free day, banning automobiles in more than 40 square miles for most of October 3. As a result, the city temporarily alternated between banning cars with even- and odd-numbered license plates.

Citigroup's investment bank was the driver of the bank's profit growth in the quarter, despite a notable drop in bond trading revenue.

Firm-wide, Citi had revenues of $18.17 billion in the quarter up from $17.76 billion in the period a year earlier, beating analysts' expectations. He said, in the end, September was better than anticipated.

Bank of America Corp and Wells Fargo & Co, the second- and third-biggest US banks by assets, are due to report results on Friday. Citigroup's shares have had a strong run-up this year, climbing 26 percent partly due to its share buyback plan.

Excluding the gain, net income declined 2 percent, reflecting higher cost of credit.

Tesla recalling 11000 Model X SUVs for seat issue
Tesla has promised to make all changes with the help of mobile vans, which will be home of the owner of the Model X. Tesla has sent letters to its customers who buy a brand auto Model X, putting fault that must be corrected.

Citi's global consumer banking business had a mixed quarter as growth in Asia and Latin America was overshadowed by a drop in the United States.

Corbat told analysts the uptick in provisions were a normal part of the credit cycle and did not point to evidence of consumers under stress. JPMorgan also had to set aside more money in the quarter to cover souring credit card loans.

The store cards business has been grappling with less successful collection efforts after accounts become delinquent.

Citigroup's cost of credit rose 15 percent from previous year to $1.99 billion, driven by an increase in net credit losses of $252 million and higher loan loss reserve build of $16 million that included about $100 million of hurricane and earthquake-related loan loss reserve builds.

Multiple people injured in shooting at Swedish market
The town is known for past gang violence and that the incident is not being investigated as terrorism, according to AP. Aron Tydén told local newspaper Expressen : 'I was at home at my computer when I heard a loud bang.

Citi-branded cards in the US provide about 10 percent of Citigroup revenue and profits and are seen by Corbat as one of the company's best shots at growing profits.

Related news