Citigroup reported net income for the third quarter 2016 of $3.8 billion, or $1.24 per diluted share, on revenues of $17.8 billion.
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This compared to net income of $4.3 billion, or $1.35 per diluted share, on revenues of $18.7 billion for the third quarter 2015.
POST predicted EPS of $1.10 to even $1.20 on $17+ billion in revenue.
Citigroup revenues of $17.8 billion in the third quarter 2016 decreased 4%. Excluding the impact of foreign exchange translation5, Citigroup revenues decreased 3%, driven by a 49% decrease in Citi Holdings, partially offset by a 2% increase in Citicorp revenues versus the prior year period.
Citigroup's net income decreased 8% to $3.8 billion in the third quarter 2016, driven by the lower revenues, partially offset by lower cost of credit and lower operating expenses. Citigroup's effective tax rate was 31% in the current quarter, a slight increase from 30% in the third quarter 2015.
Citigroup's operating expenses decreased 2% to $10.4 billion in the third quarter 2016, as lower expenses in Citi Holdings and a benefit from foreign exchange translation were partially offset by volume growth and ongoing investments in Citicorp.
Citigroup's cost of credit in the third quarter 2016 was $1.7 billion, a 5% decrease as a lower provision for benefits and claims and a decrease in net credit losses were partially offset by a net loan loss reserve build of $176 million, largely driven by North America cards within Citicorp, compared to a net loan loss reserve release of $16 million in the prior year period.
Citigroup's allowance for loan losses was $12.4 billion at quarter end, or 1.97% of total loans, compared to $13.6 billion, or 2.21% of total loans, at the end of the prior year period.
Total non-accrual assets of $6.1 billion fell 8% from the prior year period.
Consumer non-accrual loans declined 26% to $3.6 billion. Corporate non-accrual loans of $2.4 billion increased $837 million from the prior year period, mostly related to energy-related loans in the Institutional Clients Group (ICG), but decreased 2% from the prior quarter.
Citigroup's loans were $638 billion as of quarter end, up 2% from the prior year period, and up 3% in constant dollars. In constant dollars, 7% growth in Citicorp loans was somewhat offset by continued declines in Citi Holdings, driven primarily by continued reductions in the North America mortgage portfolio.
Citigroup's deposits were $940 billion as of quarter end, up 4% both on a reported basis and in constant dollars. In constant dollars, Citicorp deposits increased 5%, driven by a 4% increase in ICG deposits and a 5% increase in Global Consumer Banking (GCB) deposits.
In constant dollars, Citi Holdings deposits declined 37%, driven by divestiture activity.
Citigroup's book value per share was $74.51 and tangible book value per share was $64.71, each as of quarter end, both representing 8% increases. At quarter end, Citigroup's Common Equity Tier 1 Capital ratio was 12.6%, up from 11.7% in the prior year period.
Citigroup's Supplementary Leverage Ratio for the third quarter 2016 was 7.4%, up from 6.9% in the prior year period.
During the third quarter 2016, Citigroup returned a total of approximately $3.0 billion of capital to common shareholders in the form of dividends and repurchases of approximately 56 million common shares. ■