Citigroup: profit soars despite higher costs
(CercleFinance.com) - Citigroup reported a 15% rise in quarterly profit on Tuesday as higher revenue more than offset rising costs.
Citigroup said that operating expenses increased by 6% in the fourth quarter to 10.5 billion dollars, reflecting higher compensation and volume-related expenses, along with investments in the franchise.
Citi CEO Michael Corbat is known for his disciplined cost management. On an annual basis, expenses reached 42 billion dollars in 2019, compared to 41.8 billion dollars in 2018.
Net income rose to 5 billion dollars in the fourth quarter, from 4.3 billion dollars a year earlier. Meanwhile, EPS rose by 31% to 2.15 dollars, largely beating analysts' estimates.
The US bank's total revenue rose by 7% to 18.4 billion dollars.
The Citigroup stock was up 1.5% in Tuesday's premarket trading after these results.
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