Cash equities, underwriting help Citi to Q3 earnings beat

Citigroup Inc. said Thursday that its third-quarter revenue rose 2%, boosted by another jump in investment banking and progress in its evolving consumer bank.

Earnings per Share came in for the quarter at $1.42, as opposed to $1.32 expected by experts.

JPMorgan's markets revenue is likely to drop again in the fourth quarter because the year-ago period was strong, Chief Financial Officer Marianne Lake said on a conference call with analysts.

JPMorgan on October 12 reported third-quarter net income available to common shareholders of $6.3 billion.

JPMorgan, the largest USA bank by assets, also topped expectations as loan growth and higher interest rates more than offset a 27 percent slide in bond trading. While bond trading was down 16 percent, stock trading was up 16 percent and security services were up 12 percent. He said, in the end, September was better than anticipated. (NYSE:C.) edged lower in early deals on Thursday despite the U.S. investment bank reporting better-than-expected third quarter results.

Shares of Citigroup have risen 26 percent this year, easily outperforming the broader market.

"We had revenue increases in numerous products we have been investing in, tightly managed our expenses, and again saw loan growth in both our consumer and institutional businesses", Citigroup CEO Michael Corbat said in a release.

Provisions for credit losses across JPMorgan rose 14 percent, with the bank attributing much of that to its credit card business, and 15 percent at Citi in the quarter compared to a year ago.

FILE PHOTO - Citigroup CEO Michael Corbat (C) chats with Thomson Reuters CEO Jim Smith and his wife Pam Kushmerick at the Thomson Reuters reception prior to the White House Correspondents' Association Gala in Washington, DC, U.S. on April 27, 2013.

Both banks said that the increases were a normal part of the credit cycle and did not point to evidence of consumers under stress, but that explanation did not reassure analysts. The bank had to set aside more money to cover bad loans like in the bank's credit card division.

Citi reported a 3% year-over-year increase in global consumer banking revenue.

Citi cited "continued growth in loans and assets under management" for the rise, as well as higher interest rates.

Citi-branded cards in the US provide about 10 percent of Citigroup revenue and profits and are seen by Corbat as one of the company's best shots at growing profits.

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