Citi sees fifth consecutive quarter of revenue growth in Asia

Revenues in Asia up 6% year-on-year

CITI has reported global revenues of US$18.2 billion and earnings per share of US$1.42 for Q3 2017, beating market expectations. Asia was a strong contributor to these results, delivering its fifth consecutive quarter of revenue growth.

Revenues in Asia were up by close to US$200 million or 6% year-on-year to US$3.6 billion and up 4% quarter-on-quarter, according to an internal memo seen by The Asset. Net income grew 12% and EBIT 4% to US$1.45 billion, year-on-year. Asia continues to be the largest contributor to revenue and net income outside of North America. For the first nine months of 2017, Citi grew revenues by 3% and EBIT by 6% year-on-year.

Citi’s forecasted annual earnings is in the range of US$20 billion by 2020. The third quarter results show further progress has been made towards key targets Citi has outlined in terms of ROTCE, 9.8%, ex-DTA year-to-date and an efficiency ratio of 57%.

Citi also returned US$6.4 billion of capital to shareholders during the quarter, as a part of the overall US$19 billion capital plan. Citi’s Common Equity Tier 1 Capital ratio remained at 13%.

In the Global Consumer Banking (GCB), revenues were up 5% year-on-year to US$1.87 billion. This was the fifth consecutive quarter of revenue growth in the GCB.

Revenues in the retail business grew 4% year-on-year and cards revenues were up 6% year-on-year, driven by 6% growth in average loans and 7% growth in purchase sales.

Wealth Management saw a 20% growth in investments and 10% growth in deposit revenues. Gross investment sales of US$12 billion during the quarter were the highest since mid-2015.

The Institutional Clients Group (ICG) business saw revenues for the quarter of US$1.7 billion, which were up 6% year-on-year and net income up 11% year-on-year.

Treasury and Trade Solutions (TTS) saw third quarter revenue up 17% year-on-year across all products and key countries. Growth was driven by liquidity revenues which were up 20% from treasury structure growth and balance sheet optimization, fee revenues were up 11%, and trade assets up 17%.

The Private Bank grew revenues 11% year-on-year with strong client acquisition supported by the addition of new talent.

Markets and Securities Services’ revenues grew 3% year-on-year, with Securities Services up 14% and Equities grew revenues 2% for the same period.

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