Citigroup earnings updated with more management commentary, information throughout.
- Citigroup reported a profit of $3.8 billion or $1.23 per share.
- Revenues rose to $20.8 billion
- Analysts expected an EPS of 81 cents per share on revenues of $19.25 billion
NEW YORK (TheStreet) -- Citigroup (C) beat third quarter analyst expectations, reporting a net income jump of 72%, driven by an accounting gain, strong international consumer banking operations and continuing improvements in credit quality.
The bank said net income rose to $3.8 billion or $1.23 per share in the third quarter compared to $2.2 billion or 72 cents per share in the year-ago period. An accounting quirk that enables banks to report a gain from the falling value of their own debt added $1.9 billion to Citi's pre-tax revenues and 39 cents to the earnings per share.
JPMorgan Chase (JPM) which reported last week, also said that debt valuation adjustments or DVA added an accounting gain of $1.9 billion, or 29 cents per share, from the decline in the value of its own debt, which helped offset a $542 million pre-tax loss from its private equity business and an additional $1 billion in pre-tax litigation expenses.
|Citigroup CEO Vikram Pandit|
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