Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  JP Morgan Chase & Company    JPM

JP MORGAN CHASE & COMPANY

(JPM)
My previous session
Most popular
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Citigroup profit beats on higher bond trading, lower costs

share with twitter share with LinkedIn share with facebook
share via e-mail
0
10/12/2018 | 11:53am EST
FILE PHOTO: Michael Corbat, CEO Citigroup, speaks at the Milken Institute's 21st Global Conference in Beverly Hills

(Reuters) - Citigroup Inc reported a better-than-expected quarterly profit on Friday, helped by lower expenses, higher bond trading revenue and strength in its consumer banking business in Mexico.

Operating expenses declined 1 percent, surprising analysts and indicating that the company was on the way to meeting financial targets for this year.

The company also showed an improvement in the yield from its North America Citi-branded card business, which analysts were watching closely, adding another argument for its profit outlook.

Citigroup's shares rose 1.6 percent to $69.48.

Investors have been waiting to see how trading revenue fared at the five big Wall Street banks, due to an escalating U.S-China trade war and executives warning that the business's growth would be muted.

Citigroup reported a 9-percent jump in bond trading revenue, outperforming bigger rival JPMorgan Chase & Co, which reported a 10 percent drop in fixed-income trading revenue.

Chief Financial Officer John Gerspach had previously said Citigroup expected total fixed income and equity trading revenue to be "flat to slightly higher" in the third quarter.

In a conference call with reporters, Gerspach said that the expense savings showed that the company is improving its efficiency as executives had projected.

Citigroup is in the midst of a drive to save $2.8 billion in costs by 2020 as it spends $1.5 billion on technology and other productivity improvements.

Citigroup reported a 2-percent rise in global consumer banking revenue. The bank recently restructured its U.S. consumer business to operate more like those in Asia and Mexico, where it has been seeing better results.

Consumer banking revenue in Latin America rose 8 percent, excluding a one-time gain and on a constant-currency basis.

Yields from the North America branded card business turned up as more promotional credit card loans, which charge no interest for as long as 21 months, converted to interest-earning.

Gerspach said the promotional strategy was paying off as interest-earning balances grew 7 percent and net interest revenue as a percent of loans in a core portfolio rose to was 8.51 percent from 8.28 percent in the second quarter.

"That is a good indicator of the future for this business," Gerspach said.

Net income for the third-largest U.S. bank by assets rose to $4.62 billion in the third quarter ended Sept. 30, from $4.13 billion a year earlier.

Earnings per share rose to $1.73 from $1.42, helped by buybacks that reduced shares outstanding by 8 percent from a year earlier.

Analysts on average had expected earnings per share of $1.69, according to I/B/E/S data from Refinitiv. Total revenue was slightly lower at $18.39 billion, from $18.42 billion a year earlier.

Citigroup's provision for income taxes fell by $395 million following changes in the U.S. tax code, which reduced the bank's tax rate to 24 percent in the quarter from 31 percent a year earlier.

The bank's return on tangible common equity was 11.3 percent in the quarter, inching closer to Chief Executive Officer Mike Corbat's goal of 13.5 percent in 2020.

Up to Thursday's close, Citi shares have lost 8 percent of their value for the year, compared with a 5-percent drop in the broader KBW Bank Index <.BKX>.

(Reporting by Siddharth Cavale in Bengaluru and David Henry in New York; Editing by Sriraj Kalluvila and Nick Zieminski)

By Siddharth Cavale and David Henry

Stocks mentioned in the article
ChangeLast1st jan.
CITIGROUP 3.01% 64.27 Delayed Quote.19.90%
JP MORGAN CHASE & COMPANY 3.01% 105.48 Delayed Quote.4.92%
WELLS FARGO 1.58% 49.275 Delayed Quote.5.30%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on JP MORGAN CHASE & COMPANY
10:30aJP MORGAN CHASE MPANY : Opening Bell 2.15.19
AQ
08:16aWSJ TAX GUIDE 2019 : The Banking Industry -- Journal Report
DJ
01:13aJP MORGAN CHASE MPANY : launches its own cryptocurrency despite bitcoin-bashing ..
AQ
02/14JP MORGAN CHASE MPANY : launches bank-backed cryptocurrency
AQ
02/14JP MORGAN CHASE MPANY : Barclays, J.P. Morgan cut U.S. fourth-quarter 2018 GDP v..
RE
02/14JP MORGAN CHASE MPANY : JPMorgan unveils bank-backed cryptocurrency
AQ
02/14HSI opens down 101 pts at 28,396; H-share -45 pts to 11,153
AQ
02/13JP MORGAN CHASE MPANY : AUB receives JP Morgan honour
AQ
02/12JP MORGAN CHASE MPANY : Uzbekistan to place debut Eurobonds in US dollars on Feb..
AQ
02/12JP MORGAN CHASE MPANY : Wacif Joins Community and Financial Leaders to Launch En..
AQ
More news
Financials ($)
Sales 2019 115 B
EBIT 2019 47 308 M
Net income 2019 31 948 M
Debt 2019 -
Yield 2019 3,32%
P/E ratio 2019 10,41
P/E ratio 2020 9,67
Capi. / Sales 2019 2,97x
Capi. / Sales 2020 2,88x
Capitalization 341 B
Chart JP MORGAN CHASE & COMPANY
Duration : Period :
JP Morgan Chase & Company Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends JP MORGAN CHASE & COMPANY
Short TermMid-TermLong Term
TrendsBullishBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 31
Average target price 115 $
Spread / Average Target 12%
EPS Revisions
Managers
NameTitle
James Dimon Chairman & Chief Executive Officer
Gordon A. Smith Co-President & Co-Chief Operating Officer
Daniel E. Pinto Co-President & Co-Chief Operating Officer
Yan Tavrovsky President & Chairman-Management Board
Marianne Lake Chief Financial Officer & Executive Vice President
Sector and Competitors
1st jan.Capitalization (M$)
JP MORGAN CHASE & COMPANY4.92%340 589
INDUSTRIAL AND COMMERCIAL BANK OF CHINA6.81%290 692
BANK OF AMERICA16.48%274 511
CHINA CONSTRUCTION BANK CORPORATION10.36%238 595
WELLS FARGO5.30%228 395
HSBC HOLDINGS PLC1.86%170 080