"We all would anticipate greater loan growth if there was a bit more clarity as far as you know when or if tax reform was going to pass", Chief Financial Officer John Gersprach told reporters. The results beat analysts' expectations, who were looking for $1.32 per share, according to FactSet.
Expenses dropped 2 percent.
Quarterly revenue at the New York-based bank was $18.17 billion, up from $17.76 billion a year ago and topping analysts' consensus forecast of $17.896 billion. Citi's drop in bond trading revenue is similar to what JPMorgan Chase reported on Thursday as well.
The Dow fell as declines in shares of Walt Disney and those of Nike, recently down 1.5 percent and 1.1 percent respectively, outweighed gains in shares of Microsoft and those of United Technologies, recently up 0.9 percent and 0.8 percent respectively.
Other major financial companies slated to report this week include Bank of America and Wells Fargo.
Citigroup Inc shares fell $0.34 (-0.45%) in premarket trading Thursday. JPMorgan's net interest income, or the difference between what it pays for funds and collects from lending them out, rose 10 percent.
These are the days of Donald's wives: Melania v Ivana
Date of entry: 11.10.2017 15:56 Melania Trump was anor victor of U.S. election, as well as Donald Trump. The Czech-American businesswoman and former model was married to the President from 1977 until 1992 .
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. JPMorgan also had to set aside more money in the quarter to cover souring credit card loans.
The store cards business has been grappling with less successful collection efforts after accounts become delinquent.
Citi cited "continued growth in loans and assets under management" for the rise, as well as higher interest rates.
Citigroup said it earned $4.13 billion, or $1.42 per share, compared with a profit of $3.84 billion, or $1.24 per share, in the same period a year earlier.
Analysts on Citi's earnings call questioned when the incentives would end and investors would start to see a return.