(Reuters) - Citigroup Inc (C.N) reported a higher-than-expected quarterly profit on Friday, driven by strength in its consumer banking business and a surge in equities trading.
Global consumer banking revenue increased 7 percent on gains in North America, Mexico and Asia. Equity markets revenue jumped 38 percent, gaining from increased volatility in the quarter.
Shares of the fourth-biggest U.S. bank by assets rose 1.28 percent in premarket trading.
Trading desks at big U.S. banks, including Citi, had a busy first quarter as volatility rocked global markets in February, in contrast to a calm 2017 that weighed on trading revenue.
Larger rival JPMorgan Chase & Co (JPM.N) also reported a 26 percent increase in equities trading revenue.
Citi’s net income rose 13 percent to $4.62 billion in the first quarter ended March 31.
Earnings per share was $1.68, topping analysts’ average estimate of $1.61, according to Thomson Reuters I/B/E/S.
“Our first quarter results demonstrate strength and balance across our franchise and position us well for the rest of the year,” Chief Executive Officer Mike Corbat said in a statement.
Total revenue rose about 3 percent to $18.87 billion, while operating expenses rose 2 percent to $10.92 billion.
The rise in equity markets revenue offset a 7 percent drop in Citi’s bigger fixed income trading business. Combined, the two were up 1 percent.
Return on tangible common equity, a measure of profitability, reached 11.4 percent in part to the company having had to mark down its equity value in the fourth quarter because of the tax law change.
Reporting by Sweta Singh in
