Citigroup profit boosted by tax benefit as revenue rises 1%

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Citigroup Inc. said Tuesday it had net income of $4.9 billion, or $2.07 a share, in the third quarter, up from $4.6 billion, or $1.73 a share, in the year-earlier period. The results include a net benefit of about 10 cents a share related to tax items. The FactSet consensus was for EPS of $1.95. Revenue rose 1% to $18.6 billion from $18.4 billion, compared with a FactSet consensus of $18.5 billion. The 2018 revenue number included a roughly $250 million gain on the sale of an asset management business in Mexico. Excluding that gain, revenue rose 2%. Chief Executive Michael Corbat said the bank was operating in “an unpredictable environment” but that its global consumer banking franchise performed well on an underlying revenue growth basis. Global consumer banking revenue was flat at $8.658 billion, institutional client group revenue rose 3% to $9.514 billion and corporate/other revenue fell 18% to $402 million. Markets and securities services revenue rose 1% to $4.5 billion. Fixed income markets revenues were unchanged at $3.2 billion, while equity markets revenues fell 4% to $760 million. Securities services revenues fell 1% to $664 million. Shares fell 0.7% in premarket trade, but have gained 35% in 2019, while the Dow Jones Industrial Average has gained 14% and the S&P 500 has gained 18%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.