Citigroup has reported net income of $3.87bn for the second quarter of 2017, down 3% compared to $3.99bn in the corresponding year ago quarter.
Total revenues for the quarter were $17.9bn, down 1% from $17.55bn in the second quarter of 2017. The group’s operating expenses rose 1% to $10.5bn from $10.37bn a year ago.
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The bank’s Global Consumer Banking (GCB) unit posted net income of $1.12bn for the second quarter of 2017, a decline of 12% compared to $1.28bn in the corresponding quarter of 2016.
The division’s total revenues dipped 5% to $8.03bn from $7.67bn a year earlier, while operating expenses rose 5% year-on-year to $4.49bn.
Compared to the second quarter of 2016, North America GCB net income dipped 18% to $670m, due to higher cost of credit and higher operating expenses. The unit’s revenues increased 5% year-on-year to $4.9bn, as higher revenues in Citi-branded cards and retail services were partially offset by lower revenues in retail banking.
Citigroup’s Private Bank revenues soared 17% to $788m from $674m a year earlier. The bank attributed the rise to loan and deposit growth, improved spreads as well as increased investment activity.
Citi CEO Michael Corbat said: “The $3.9 billion of net income helped generate additional regulatory capital. Our Common Equity Tier 1 capital ratio grew to 13.0%, well above the 11.5% we believe we need to prudently operate the firm.
“Our recently announced 2017 capital plan includes a return of $18.9 billion enabling us to reduce the amount of capital we hold. We are clearly on course to increase both the return on capital and return of capital for our shareholders.”
