Shares in Citigroup Inc. (NYSE:C.) edged lower in early deals on Thursday despite the US investment bank reporting better-than-expected third quarter results.
Citi delivered earnings per share for the three months ended September 30 of US$1.42 – US$0.10 higher than analysts polled by Thomson Reuters had expected.
Revenues also topped Street forecasts, coming in at US$18.17bn versus the US$17.90bn which had initially been pencilled in.
The main growth driver in the quarter was the global consumer business. Citi reported a 3% year-on-year rise in global consumer banking revenue, while in North America retail banking jumped by 12%, excluding mortgages.
Citi cited “continued growth in loans and assets under management” for the rise, as well as higher interest rates.
The bank’s international consumer business saw an 8% rise in revenue, driven by higher loans and deposit volumes growth, Citi said.
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. However, that decline was offset by a 16% increase in equity trading revenue.
"We had revenue increases in many of the products we have been investing in, tightly managed our expenses, and again saw loan growth in both our consumer and institutional businesses," Citigroup chief executive Michael Corbat said.
After opening higher, Citi shares dipped 0.8% shortly after to US$74.33.
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