Citigroup’s 3Q profit rises on gains from its investment banking business and lower taxes.
NEW YORK — Citigroup Inc. said Tuesday that its third-quarter profit rose 6% on gains from its investment banking business and lower taxes.
The New York-based bank said it made key gains from its institutional clients. Trading revenue rose 6% while investment banking revenue rose 4%. That helped drive revenue during the quarter as its consumer banking unit remained flat in comparison with last year, when it sold an asset management business in Mexico.
The bank earned $4.91 billion, or $2.07 per share, as revenue edged 1% higher to $18.57 billion. Excluding a tax benefit, the company earned $1.97 per share. Those results topped Wall Street forecasts for profit of $1.95 per share and revenue of $18.54 billion.
The company reported a 6% increase in borrowing costs during the quarter.
In morning trading, Citi shares slipped $1.14 to $69.10.