Profits up 51%. Citigroup in the third quarter, thanks mainly to the reduction in operating expenses, which fell by 18% to 10,7 billion dollars (-13% with constant dollar), mainly thanks to the decrease in legal costs, down from 1,6 billion to 376 million. Repositioning costs instead slipped from 382 to 81 million.
The third largest US bank by assets achieved a Useful of $4,291 billion ($1,35 per share) versus $2,841 billion in the same period last year (88 cents per share). Excluding special items, earnings were $1,31 a share, versus 95 cents last year and better than the $1,28 expected by analysts.
Il turnover it dropped 5 percent to $18,692 billion from $19,698 billion in the same period last year. Excluding accounting adjustments, turnover was 18,5 billion, in line with forecasts.
“There was a good deal of volatility in the quarter and the results demonstrate the resilience of our business globally. Despite the headwinds on revenues, we have demonstrated that we are able to manage risk, expenses and capital,” said the bank's chief executive, Michael Corbat.
It should be noted that the profits of Citi Holdings, Citigroup's bad bank where the assets to be disposed of converge, closed in profit for the fifth quarter in a row and the institute expects at least break-even for 2015. citicorp, the division into which the corporate banking and consumer businesses are bundled, posted profits of $4,26 billion, up 62% from $2,7 billion in the same period last year.
