By Telis Demos
Citigroup Inc. said Friday its third-quarter profit rose 12% from a year ago, as the company cut expenses and paid a lower tax bill amid flat revenue growth.
Quarterly profit at the New York-based bank was $4.62 billion, up from $4.13 billion a year earlier. Per-share earnings were $1.73. Analysts polled by Refintiv had expected $1.69 a share.
Revenue was down slightly to $18.39 billion, from $18.42 billion a year ago. Analysts had expected $18.46 billion.
Third-quarter trading revenue rose 7% to $3.99 billion from $3.72 billion.
Chief Financial Officer John Gerspach said in September that he expected trading revenue overall to be flat or slightly higher in the third quarter.
Quarterly revenue at the global consumer bank rose 2%, with the biggest change in Mexico, which was up 20% from a year ago.
Quarterly expenses were down 1% from a year ago. That resulted in an efficiency ratio of 56.1%, from 56.6% from a year ago. The ratio measures costs as a percentage of revenue.
The company's tax bill was 21% lower than a year ago, the consequence of a major U.S. corporate tax cut in 2017.
The bank's U.S. consumer business will likely be a focus, after a series of management changes in the unit this year, and as analysts and investors aim to understand how rising interest rates will impact the bank's giant credit-card arm and evolving deposit business.
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