Citigroup and Wells Fargo released their third quarter earnings reports before opening bell this morning. Citigroup posted $1.24 per share in earnings on $17.76 billion in revenue, against the consensus estimates of $1.15 per share and $17.29 billion in revenue. In last year’s third quarter, the bank reported $18.69 billion in revenue and $1.35 per share in earnings.
Wells Fargo reported $1.03 per share in earnings on $22.33 billion in revenue, compared to the consensus estimates of $1.01 per share in earnings and $22.24 billion in revenue. In last year’s third quarter, the bank reported $1.05 per share in earnings on $22.26 billion in revenue.
Citigroup records growth in most areas
Citigroup’s consumer banking revenue grew to $8.23 billion from $8.13 billion last year, while its institutional clients revenue edged lower to $8.63 billion from $8.66 billion. Markets and securities revenue grew to $4.53 billion from $4.06 billion, while equity markets revenue declined to $663 million from $1 billion last year. The bank’s loans grew 2% to $638 billion, while its deposits increased 4% to $940 billion.
Citigroup’s book value per share and tangible book value per share increased 8% each year over year to $74.51 and $64.71, respectively. The bank had a Common Equity Tier 1 Capital ratio of 12.6% at the end of the quarter, an increase from 11.7% in the year-ago quarter. The Supplementary Leverage Ratio increased from 6.9% last year to 7.4% this year.
Shares of Citigroup jumped by as much as 1.71% to $49.30 in premarket trading this morning.
Wells Fargo stock little moved by earnings, settlement
Wells Fargo’s net income edged downward to $5.6 billion from $5.8 billion in the year-ago quarter. Total average loans grew 7% to $957.5 billion. Net charge-offs grew $102 million to $805 million, while total average deposits grew 2% quarter over quarter to $1.3 trillion. Investment securities amounted to $390.8 billion at the end of September.
Wells Fargo had a Common Equity Tier 1 ratio of 10.7%, compared to 10.6% in the year-ago quarter.
The bank also announced it had reached agreements with the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency and the Office of the Los Angeles City Attorney relating to allegations that it charged customers for products or services they didn’t ask for. The settlements amounted to $185 million plus $5 million in customer remediation. Wells Fargo also adjusted its practices for its retail division.
Wells Fargo shares edged upward by as much as 0.2% to $44.75 in premarket trading this morning.
