Citigroup profit beats estimates on strong investment banking
Lower tax rate also plays a big role in Citi’s improvement
New York — Citigroup reported higher-than-expected earnings on Monday despite declining revenue as the New York-based lender Citi improved its results in ways, including the expense cutting, that may be tough to replicate in future quarters.
A lower tax rate also played a big role in Citi’s improvement from a year ago. The bank’s income from continuing operations actually declined slightly. But net income rose because its effective tax rate declined to 21% from 24% a year earlier. Citi has been investing in digital capability to try to win deposits domestically despite its light US branch network. CEO Mike Corbat said its efforts are showing positive early results. But the bank is still growing deposits faster abroad than in the US: international consumer deposits rose 3% during the quarter, while retail North American deposits edged up 1%. JPMorgan Chase on Friday reported that its US consumer deposits were up 3% from a year earlier. Corbat also pointed to the bank’...
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