(Reuters) - Citigroup Inc’s (C.N) quarterly profit topped Wall Street estimates on strength in its consumer banking business, but revenue missed expectations, weighed down by lower debt underwriting.
The third-largest U.S. bank by assets, like its peers, has benefited from a cut in income tax rates and an expanding U.S. economy that has fueled demand for loans.
The bank’s total loans rose 5 percent in the second quarter. Bigger rival JPMorgan Chase & Co (JPM.N) reported a 7 percent rise in average core loans earlier on Friday.
Citigroup’s shares were down 1.5 percent in premarket trading.
Overall, revenue rose about 2 percent to $18.47 billion but came in slightly below the average expectation of $18.51 billion.
Debt underwriting revenue fell 20 percent in the wake of rising interest rates.
The bank’s fixed income trading revenue fell 6 percent, while equity trading revenue rose 19 percent. Total markets and securities services revenue fell 1 percent.
Last month, Chief Financial Officer John Gerspach said he expected trading revenue to be “flattish” compared with a year earlier.
Net income rose 16 percent to $4.49 billion in the second quarter ended June 30, driven by a 14 percent jump in net income for its global consumer banking.
Earnings per share rose to $1.63 from $1.28 and topped analysts’ average estimate of $1.56, according to Thomson Reuters I/B/E/S.
Chief Executive Michael Corbat said in a statement on Friday that given the results he remained confident of achieving the financial targets set last year.
Corbat had last year outlined an ambitious plan to grow profit and
