Revenues at Citi Bank increased 3 percent in Q1 2018, compared to the same quarter last year, according to the bank’s Q1 2018 report.
In its report, Citi revealed revenues of $18.9 billion in Q1 2018, compared to the revenues of $18.4 billion in Q1 2017.
According to Citi, revenue increase has been driven by growth in both the Institutional Clients Group (ICG) and global consumer banking (GCB).
Net income increased by 13 percent to $4.6 billion, driven by the higher revenues and a lower effective tax rate, partially offset by higher expenses and cost of credit.
The report showed that earnings per share increased 24 percent in Q1 2018, compared to Q1 2017, driven by growth in net income and a 7 percent reduction in average diluted shares outstanding.
Elsewhere, Citi’s operating expenses increased 2 percent to $10.9 billion in Q1 2018, as higher volume-related expenses and investments were partially offset by efficiency savings and wind-down of legacy assets.
Cost of credit in Q1 2018 was $1.9 billion, a 12 percent increase, driven by ICG as well as volume growth and seasoning GCB.
Allowance for loan losses was $12.4 billion at quarter end. Total non-accrual assets declined 20 percent from the prior year to $4.4 billion. Consumer non-accrual loans declined 13 percent to $2.6 billion and corporate non-accrual loans decreased 29 percent to $1.7 billion.
Michael Corbat, CEO of Citi, said: “Our first quarter results demonstrate strength and balance across our franchise and position us well for the rest of the year.”
“We grew revenue across both our institutional and consumer businesses and delivered solid, client-led revenue gains in areas we have been investing in such as Citibanamex, TTS, Equities and the Private Bank.”
Corbat added: “We recently submitted our capital plan and believe we remain on track to meet the commitment we outlined at investor day of returning at least $60 billion over the 2017, 2018 and 2019 cycles, subject to regulatory approval.”
“While market conditions have been uneven so far this year, our first quarter results show our ability to deliver for both clients and shareholders and we look forward to sustaining this momentum for the balance of the year,” he concluded.
