Citigroup (C) posted net income for the third quarter 2014 of $3.4 billion, or $1.07 per diluted share, on revenues of $19.6 billion, compared to net income of $3.2 billion, or $1.00 per diluted share, on revenues of $17.9 billion for the third quarter 2013.
While this missed analyst expectations of $1.13 per diluted share, it beat revenue estimations of $19.14 billion for the quarter.
The lender’s earnings are also up from the second quarter, which reported net revenue of $20.5 and earnings per share of $1.34.
"Our consumer bank and institutional business each had solid performance during the quarter and generated stronger revenues both sequentially and year-on-year. The revenue improvement was evident across regions and products,” Michael Corbat, CEO of Citi, said.
Citigroup's allowance for loan losses dropped to $16.9 billion at quarter end, or 2.60% of total loans, compared to $20.6 billion, or 3.16% of total loans, at the end of the prior year period.
In addition, Citigroup's loans were $654 billion and deposits were $943 billion as of quarter end, each down 1% from the prior year period. However, on a constant dollar basis, Citigroup's loans grew by 1%, as growth was partially offset by continued declines in Citi Holdings driven primarily by the North America mortgage portfolio.
“With Citi Holdings again turning a profit and the utilization of additional deferred tax assets, we again demonstrated progress against two execution priorities and increased our capital base. We also continued our work to strengthen our capital planning process to meet the critical goal of returning capital to our shareholders," Corbat added.