Summary
Citigroup Inc. reported solid operating results for the second quarter of 2018, with net income increasing by 16% to $4.5 billion, or $1.63 per share, compared to the prior-year period. This growth was driven by higher revenues across both the Global Consumer Banking (GCB) and Institutional Clients Group (ICG) segments, coupled with a lower effective tax rate resulting from the Tax Cuts and Jobs Act. Total revenues increased by 2% to $18.5 billion. The company demonstrated continued capital return to shareholders, repurchasing approximately $3.1 billion of common stock and paying dividends. Citigroup's regulatory capital ratios remained strong, with its Common Equity Tier 1 (CET1) Capital ratio at 12.1% on a fully implemented basis. The Federal Reserve's non-objection to Citigroup's capital plan for 2018 signals an intention to return $22.0 billion in capital to common shareholders over the next four quarters, beginning in Q3 2018. Regionally, ICG saw a 17% increase in net income, driven by strong performance in Banking, particularly Treasury and Trade Solutions and the Private Bank, despite a slight decrease in Markets and Securities Services revenues. GCB's net income rose 14%, with notable strength in international GCB, while North America GCB revenues saw a modest increase, impacted by a decline in Citi-branded cards. Overall, Citigroup exhibited positive operating leverage and expense discipline, with operating expenses largely unchanged year-over-year.
Financial Highlights
40 data points| Revenue | $18.47B |
| Cost of Revenue | $1.81B |
| Gross Profit | $16.66B |
| Operating Income | $9.10B |
| Interest Expense | $5.88B |
| Net Income | $4.49B |
| EPS (Basic) | $1.63 |
| EPS (Diluted) | $1.63 |
| Shares Outstanding (Basic) | 2.53B |
| Shares Outstanding (Diluted) | 2.53B |
Key Highlights
- 1Net income increased 16% year-over-year to $4.5 billion ($1.63 per share).
- 2Total revenues grew 2% to $18.5 billion, driven by increases in both GCB and ICG.
- 3Citigroup returned $3.1 billion to shareholders through common stock repurchases and dividends in the quarter.
- 4CET1 Capital ratio remained strong at 12.1% on a fully implemented basis.
- 5Institutional Clients Group (ICG) net income increased 17% to $3.2 billion, driven by Banking segment strength.
- 6Global Consumer Banking (GCB) net income increased 14% to $1.3 billion, with international GCB showing particular strength.
- 7Operating expenses were largely flat year-over-year due to efficiency savings offsetting investments and volume-related expenses.