Citi Q1 2019 net income rises by 2% from the year ago quarter to $4.7bn, topping analyst forecasts.
Revenues at the retail banking focused Global Consumer Banking (GCB) unit is flat at $8.5bn.
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North America GCB revenue of $5.2bn rises by 1% y-o-y.
Among Citi Q1 2019 highlights, cards revenues of $2.2bn rises by 5% y-o-y.
First quarter group wide successes include a 3% reduction in operating expenses, ahead of forecasts. This is driven by efficiency savings and the wind-down of legacy assets.
As a result, Citi’s cost-income ratio improves by 80 basis points from the prior quarter to 57%.
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By GlobalDataOn the other hand, Citi is setting aside almost $2bn for souring GCB loans, up 4% y-o-y.
Citi CEO Michael Corbat says: “Earnings reflect progress we are making to improve our return on and return of capital. Both our consumer and institutional businesses performed well.
“We saw good momentum in those areas where we have been investing. Importantly, our strategy in North America consumer banking is showing good early results as we introduce new products. And engage with a broader range of customers, through digital channels.
Citi Q1 2019: branch rightsizing continues
Citi ends the first quarter with 2,404 branches, a net reduction of 29 from a year ago. The US branch network has inched down by five from 694 to 689 outlets. In Asia, the Citi branch network has reduced by 26 from 277 to 251 units. The remaining 1,464 branches are located in Latin America.
Corbat adds: “We increased Return on Tangible Common Equity to 11.9%. In addition, we had positive operating leverage for the tenth consecutive quarter with strong growth in both loans and deposits.”
He concludes: ““We remain committed to executing our strategy and continuing to make steady progress towards our financial targets.”
Since the start of the year, Citi’s share price is ahead by 26.5%.
