Citigroup reported Friday a slight increase in its earnings from last year, but this was not thanks to its mortgage banking revenues, which actually pulled earnings down slightly.
Citi reported a total net income of $4.6 billion for the first quarter of 2018, up 13% from its net income in the first quarter last year of $4.1 billion. This is also up from the net loss of $18.9 billion in the fourth quarter. However, this loss was due to a temporary adjustment stemming from the newly signed tax law. If this adjustment is omitted, net income for Citi increased 25% from $3.7 billion in the fourth quarter.
This is a total of 1.68 per diluted share, up 24% from $1.35 per diluted share in the first quarter of 2017.
Total revenues increased 3% from last year’s $18.4 billion to $18.9 billion in the first quarter.
In North America, banking revenues increased 4% to $5.2 billion in the first quarter, driven by higher revenues across all businesses, the bank explained. Retail banking also increased 4%, reaching $1.3 billion.
However, while the bank doesn’t say much on its mortgage activity, Citi did report that if it excludes mortgage revenues, its retail banking revenues increased by 8%.
“In addition to improving Citi’s return on capital, we maintained our focus on also improving Citi’s return of capital,” Citi CEO Michael Corbat said. “During the quarter, we returned more than $3 billion in capital to common shareholders which helped drive a significant improvement in earnings per share.”
“And we recently submitted our capital plan and believe we remain on track to meet the commitment we outlined at investor day of returning at least $60 billion over the 2017, 2018 and 2019 cycles, subject to regulatory approval,” Corbat said. “While market conditions have been uneven so far this year, our first quarter results show our ability to deliver for both clients and shareholders and we look forward to sustaining this momentum for the balance of the year.”
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