Citigroup sees earning rise in Q2 by 16% on reduced income tax

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Citigroup, the third-largest US bank by assets has reported a 16 per cent profit in second quarter on Friday, as a result of lower taxes and higher revenue and in its consumer banking business in Mexico.

The bank said it earned $4.49 billion, up from $3.87 billion a year ago. On a per-share basis, Citi earned $1.63 a share, compared with $1.28 a share a year earlier. Analysts had expected Citi to earn $1.56 a share.

Like JPMorgan Chase, which reported its results on Friday as well, Citi grew its loans and assets in the quarter. The bank benefited from higher interest rates, which allowed it to charge borrowers more for loans. But revenue growth was tepid, rising only 2 percent from a year earlier to $18.47 billion

So most of Citi’s profit growth this quarter came because its tax bill dropped, as it did in the first quarter. The amount of money Citi paid in taxes last quarter dropped 20 percent from a year earlier to $1.44 billion from $1.76 billion a year earlier.

Citi shares fell 1.4 percent in early trading to $67.60. They are down roughly 8 percent this year.

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Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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