(MENAFN- Baystreet.ca)
Citigroup (NYSE:C) reported Tuesday quarterly results that easily beat analyst expectations, driven by strong fixed-income trading revenues along with growing sales from the bank's consumer business.
Q4 earnings came in at $1.90 per share vs. $1.84 per share expected. Revenue registered at $18.378 billion as opposed to the forecast of $17.855 billion
Fixed-income trading took off, showing a reading of $2.9 billion, compared to estimates of $1.24 billion. Equities trading proved to be $516 million, compared to the forecast $673.7 million.
The bank's consumer business also boosted its results, as its global consumer banking division raked in $8.5 billion in sales. That's a 5% increase from the year-earlier period.
Citigroup's bond-trading revenues represent a 49% surge from the year-earlier period. The bank said the strong results reflect a recovery from the fourth quarter of 2018 along with "strong performance, particularly in rates and spread products."
That strong result, however, was slightly offset by a 23% decline in equity trading as the derivatives environment becomes "more challenging."
The company also posted a full-year profit of $8.04 per share, which represents a 21% rise from 2018.
Citigroup shares are coming off their best year since 1999, surging more than 53% in 2019
Wells Fargo banking analyst Mike Mayo raised last month his price target on the stock to $97 per share from $85 per share, calling C his favorite banking stock.
Shares traveled $1.28 higher, or 1/6%, to open Tuesday at $81.93
MENAFN1401202002120000ID1099551781
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.