Citigroup rises on the stock market on Tuesday 0.8% in the operations prior to the bell ring after having presented its fourth quarter results of 2019. The US bank has reported profits and revenues that have been much higher than expected by the FactSet consensus, which has encouraged investors. As explained by the entity, the strength in its business of institutional customer groups has offset the lower income of consumer banking.
Specifically, Citi earned $ 4,980 million in the last three months of last year, or $ 2.15 per share, compared to $ 4,310 million, or $ 1.64 per share, which it harvested in the same period of 2018. Analyst consensus expected the earnings per share (BPA) to be $ 1.81, so it has been well above.
On the other hand, revenues have risen 7% to 18.38 billion dollars, above what was expected by the FactSet consensus, which predicted that they would remain at 17.9 billion.
The income of the consumer banking They increased 5% in the period to $ 8,460 million, although they have remained below what was expected by the FactSet consensus, which provided for 8,930 million. However, this poor performance has been offset by the 12% increase in revenues from the institutional client area, which have stood at 9,470 million dollars, exceeding the expectations of analysts, who predicted 8,790 million.
However, the income of stock markets fell 23% to 516 million, while those of fixed rent They grew 49% to 2,900 million. "With the increase in revenues and the disciplined management of expenses we have had a positive operating leverage, even while we continued to make significant investments in the franchise," said Citi CEO Michael Corbat.
DATA OF THE SET OF THE YEAR
Regarding the whole of the year, the bank made a profit of 19,401 million dollars, 8% more compared to the previous year. And also the turnover experienced a 2% growth, standing at 74.286 million dollars. Net interest income grew 2%, up to 47,347 million dollars, 2% more, while the turnover of commissions and intermediation grew at the same rate, reaching 26,939 million dollars.
"We started 2020 in a very competitive position, both in capital and liquidity and in talent and technology. We continue to invest in areas where we see growth opportunities for customers and in our infrastructure," Corbat also explained.
By business segments, the retail banking division advanced 2%, reaching a turnover of 32,971 million, while the area of institutional clients and investment banking rebounded 3%, reaching a turnover of 39,301 million dollars .
In terms of expenses, in 2019 they remained practically stable at 42,000 million dollars, the most bulky item being salaries and extra-salary compensation, which rose 1%, to 21,433 million.
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