One of the three largest US banks Citigroup Inc.
reduced net profit and revenue in the I quarter of 2016. Nevertheless, the bank's financial results were better than analysts' expectations.
After the publication of statements of Citi shares rose 2.5% in the primary auction in New York.
Citigroup's net profit in January-March fell by 27% to $ 3.5 billion, or $ 1.10 per share, compared with $ 4.77 billion, or $ 1.51 per share, for the same period last year.
Proceeds of the bank declined by 10.7% from $ 19.7 billion to $ 17.6 billion. Adjusted revenue was $ 18.637 billion in the I quarter.
Surveyed by Bloomberg analysts on average expected a profit of $ 1.03 per share on revenue of $ 17.5 billion.
The proceeds from the bank's trading operations fell 13% to $ 3.79 billion. In early March, Citi anticipated decrease in this indicator by 15%.
Income from trading bonds were $ 3.09 billion, while analysts had forecast the index at the level of $ 2.97 billion. Revenue from equity trading was $ 706 million and was lower than expected ($ 731 million).
Citigroup Operating expenses decreased by 3% to $ 10.5 billion while expected to decline to $ 10.8 billion.
The volume of overdue corporate loans in January-March, jumped by 97% compared to the same period in 2015 to $ 2.3 billion. Of Citi attributes this to the problems of the energy sector amid falling oil prices.
Citi's capitalization decreased by 13% since the beginning of the year to $ 130.2 billion, while the bank index KBW Nasdaq fell by 8%.