Citigroup's profit sinks 27 per cent, but beats expectations

NEW YORK, N.Y. – Citigroup’s profit fell nearly 27 per cent in the first quarter, hurt by weak results at its consumer bank and trading business. But the company’s earnings still beat Wall Street expectations.

“Weak investor sentiment” hurt its results, Citigroup CEO Michael Corbat said in a statement on Friday.

The New York-based financial conglomerate reported net income of $3.5 billion, or $1.10 per share, in the three months ending in March, compared with $4.77 billion, or $1.51 per share, a year ago.

The results beat the $1.03 per share analysts had expected, according to FactSet.

Revenue in the quarter fell 11 per cent to $17.56 billion, beating the $17.44 billion that analysts expected.

Citigroup said revenue fell 9 per cent at its consumer bank and 12 per cent at its investment banking group.

This week, rival big banks JPMorgan Chase & Co. and Bank of America Corp. also reported a drop in profit for the quarter. Both companies beat expectations, too.

Citigroup Inc. shares rose $1.14, or 2.5 per cent, to $46.12 in morning trading Friday. Its shares are down 13 per cent since a year ago.