Citigroup profits up 3%, sets $15bn buyback

Citigroup today reported a 3 per cent rise in first-quarter profit on growth in retail banking and credit cards.

Citigroup today reported a 3 per cent rise in first-quarter profit on growth in retail banking and credit cards.

It also authorised the buyback of up to an additional $15 billion of common stock.

Citigroup, the world's largest financial services company, said net income from investment banking and wealth management fell during the quarter.

The stock buyback programme authorises repurchases over the next 18 months. It had $1.3 billion left under a prior programme.

READ MORE

Net income rose to $5.44 billion, or $1.04 per share, from $5.27 billion, or $1.01 per share, a year earlier.

Profit from continuing operations was $5.17 billion, or 99 cents per share. Analysts, on average, forecasted profit of $1.02 per share. Revenue rose 6 per cent to $21.5 billion, compared with analysts' forecast for $22.6 billion.

Consumer profit rose 9 per cent to $2.82 billion on revenue of $12.1 billion. Income from retail banking rose 13 per cent to $1.29 billion, credit cards rose 11 per cent to $1.09 billion, and consumer finance rose 11 per cent to $629 million. Corporate and investment banking profit fell 2 per cent to $1.68 billion.

Profit rose 14 per cent in Asia excluding Japan and 10 per cent in Mexico, and fell 19 per cent in Japan and 36 per cent in Europe, the Middle East and Africa.

Citigroup shares closed Thursday at $45.40 on the New York Stock Exchange. The shares have fallen 6 per cent this year, compared with a 8 per cent drop in the Philadelphia KBW Bank Index.