Citigroup (NYSE:C) reported third-quarter results Tuesday that topped analyst expectations as stronger-than-expected trading results made up for weaker lending margins.
Data released Tuesday indicated that earnings climbed to $1.97 per share vs. $1.95 per share expected by analysts, on revenues of $18.6 billion vs. the $18.545 billion forecast.
Fixed-income, currency and commodities trading revenue hit the Street at $3.211 billion vs $3.09 billion expected by experts.
Net interest income was $11.64 billion vs. the expected $12.15 billion.
Citigroup’s earnings of $1.97 per share excluded a tax benefit of 10 cents per share.
The release went onto say the bank’s revenues from its fixed-income, currency and commodities trading division got a boost from higher rates during the quarter as well as "improved activity" with corporate and investor clients
However, the company’s lending business posted weaker-than-forecast results, with net interest income coming in at $11.64 billion. Analysts polled expected net interest income of $12.15 billion. Net interest margin, meanwhile, came in at 2.56% for the quarter. That’s below a 2.66% forecast.
Bank shares have been taken for a ride in the third quarter amid wild swings in Treasury yields. The 10-year yield fell to around 1.46% from 2% between late July and early September.
This move briefly pushed financials, including the major banks, into correction territory. The yield later recovered, lifting the sector out of its correction.
Shares in C faded 67 cents, or nearly 1%, to $69.60
