Citigroup Inc. (C) , the U.S. bank with the most sprawling international operations, said third-quarter profit rose 12% from a year earlier thanks to President Donald Trump's steep cuts in corporate tax rates, even as revenue growth stalled.
Net income rose to $4.6 billion, the New York-based bank said Friday, Oct. 12, in a statement. Earnings per share were $1.73, beating the average analyst estimate of $1.68 in a FactSet survey.
Revenue, however, was unchanged from a year earlier at $18.4 billion, largely due to gains recorded in the year-earlier period from a pair of business divestitures. Absent those, revenue rose by 4%, the company said.
"Our results this quarter showed solid year-over-year revenue growth across many of our businesses," Citigroup CEO Michael Corbat said in the statement.
Big U.S. banks have benefited from Trump's $1.5 trillion of tax cuts in December, which have enriched corporations while widening U.S. government budget deficits and ballooning the national debt past $21 trillion.
Earlier Friday, JPMorgan Chase & Co. (JPM) , the biggest U.S. bank, said net income rose 24% to $8.38 billion, also thanks to the cut in U.S. corporate-tax rates, effective this year, to 21% from 35%.
Citigroup's revenue from trading and securities services fell by 5% from a year earlier to $4.5 billion, also due to the gains from a year earlier. Excluding the year-earlier gain, revenue at the unit climbed by 8%, driven by "strong" growth in bonds, foreign exchange and commodities.
Such results came as JPMorgan posted a 2% decline in trading revenue to $4.4 billion, primarily driven by a drop in fees from bonds, foreign exchange and commodities.