Citigroup reports weak third-quarter results

US banking giant Citigroup reported today third-quarter results that missed expectations, citing a "challenging" environment.
Citigroup posted net income of USD 3.2 billion in the July-September quarter, up from USD 468 million in the same quarter in 2012.
Earnings per share came in at USD 1.00, up from 15 cents a year earlier.
Excluding a tax benefit and CVA/DVA adjustment --the risk-based adjustment of derivative asset valuation -- earnings were USD 1.02 per share, below the USD 1.04 analysts estimated.
Revenues jumped 30 percent from a year ago, to USD 17.9 billion, but also came in weaker than the USD 18.7 billion estimates. Compared with the second quarter, revenues fell 13 per cent.

Excluding CVA/DVA, the revenues of Citicorp, the bank's main division, fell 7 per cent from a year ago to USD 17 billion, and were down 10 per cent from the prior quarter. The decline was mainly linked to trading and investment bank activities.

Fixed-income revenues slumped 26 per cent from a year ago, to USD 2.8 billion, reflecting lower volumes and uncertain economic conditions, the bank said.
"We performed relatively well in this challenging, uneven macro environment," Michael Corbat, Citi's chief executive, said in a statement.
"While many of the factors which influence our revenues are not within our full control, we certainly can control our costs, and I am pleased with our expense discipline and improved efficiency year-to-date."

Citigroup shares were down 1.2 per cent at USD 48.99 in pre-market trading.