Citigroup (NYSE: C) stock price received much-needed support from third-quarter results. The bank has topped Q3 revenue expectations by $30 million while the earnings per share beats estimate by $0.02. Citi shares bounced slightly after third-quarter results.
Citigroup stock price is currently trading slightly below the 52-weeks high of $73. Citi shares are up 33% since the start of this year; the stock rallied from $55 at the beginning of the year to $71 a share at present.
Consumer Banking and Branded Cards Enhanced Results
It generated strong growth in consumer banking and branded cards. This also helped in offsetting negative growth from the institutional client’s segment.
Citi’s global consumer banking revenue grew 2% year over year in the third quarter. Institutional client’s group revenue declined 2% Y/Y to $9.5 billion.
Its US branded cards revenue jumped by 11% from past year period. The company also experienced momentum in deposits through both traditional and digital channels.
Citi CEO Michael Corbat said, “Despite an unpredictable environment throughout the quarter, we continue to deliver on our strategy of improving shareholder returns through consistent, client-led growth while also executing against our capital plan.”
On the positive side, it generated robust growth in earnings despite sluggish revenue growth. The company’s earnings before tax grew 17% from the previous year period. Its strategy of aggressively reducing the outstanding shares count helped in enhancing the earnings potential.
Cash Returns are Safe
Citigroup returned $6.3 billion to shareholders during the third quarter. The company is actively working on the commitment of returning $60 billion to investors in three years – which ends next year. Its dividend payments accounted for $1.1 billion in Q3 and share buybacks stood around $5.1 billion.
It had repurchased almost 11% of outstanding shares in the last year alone. Share buybacks are also helping in enhancing the Tangible Book Value per share. Overall, Citigroup stock price is likely to receive support from its financial numbers and business strategies.
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