Eric Risberg/ AP
Thursday, Oct. 15, 2015|8:11 a.m.
New York City– Citigroup said Thursday its profits jumped 36 percent in the third quarter as the bank remained to cut costs and clean up its books in the wake of the monetary crisis.
The New York-based bank earned $3.99 billion, or $1.31 per share, excluding payments to favored investors and an accounting modification, for the three-month period ending in September. That compares with incomes of $2.94 billion, or 95 cents a share, in the exact same duration a year earlier.
Citi’s most current profits beat experts’ estimates of $1.27 a share, according to FactSet.
Citi has been on a multi-year mission to recover from its near collapse throughout the monetary crisis, and 2015 has actually been a year of considerable progress.
Citi Holdings, the company’s so-called “bad bank” where it saves all its distressed possessions, earned a profit for the fifth straight quarter. The firm passed the Federal Reserve’s “anxiety tests” earlier this year and legal expenditures this quarter were $376 billion, down from $1.6 billion a year earlier.
“I feel good about the quality and consistency of our revenues throughout this year, as we have actually continued to make solid development against our core top priorities,” Michael Corbat, CEO of Citigroup, said in a statement.
Most of Citi’s significant companies saw earnings decreases this quarter, but those were mainly countered by lower expenses. General costs fell 18 percent to $10.67 billion from $12.96 billion a year previously, mainly since legal costs fell sharply.
Citicorp, the bank’s consumer and corporate banking department, had net income of $4.26 billion in the period omitting an accounting change, up from $2.82 billion a year earlier.
In general, Citi’s revenue was $18.5 billion after the accounting adjustment, compared with $20.06 billion the year prior to. That remained in line with experts’ price quotes.
Citigroup’s stock rose $1.38, or 2.7 percent, to $52.10 in late-morning trading.