Citigroup profit rises 16 percent on lower taxes, higher fee income

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© Reuters. The Citigroup Inc logo is seen at the SIBOS banking and financial conference in Toronto© Reuters. The Citigroup Inc logo is seen at the SIBOS banking and financial conference in Toronto

(Reuters) – Citigroup Inc (N:) reported a 16 percent increase in quarterly profit on Friday, as the Wall Street bank benefited from lower taxes, higher fee income and strength in its consumer banking business in Mexico.

The third-largest U.S. bank by assets said net income rose to $4.49 billion in the second quarter ended June 30, from $3.87 billion a year earlier. Pretax profit from continuing operations increased 5 percent.

Earnings per share rose to $1.63 from $1.28.

Analysts on average had expected earnings per share of $1.56, according to Thomson Reuters I/B/E/S. It was not immediately clear if the numbers were comparable.

The bank’s provision for income tax fell by $351 million, following President Donald Trump’s corporate tax rate cuts.

Buybacks reduced shares outstanding by 8 percent from a year earlier, further boosting earnings per share.

Revenue rose about 2 percent to $18.47 billion. Analysts had estimated revenue of $18.51 billion.

Through Thursday, Citigroup shares are down 7.9 percent for the year, compared with the 1 percent drop in the broader KBW Bank Index ().

JPMorgan Chase & Co’s (N:) quarterly profit topped Wall Street’s expectations on Friday, as trading revenue came in much higher than expected and demand for loans increased on the back of a strengthening U.S. economy.

Wells Fargo & Co, (N:) the fourth-largest bank by assets, was also to report on Friday morning.

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