Citigroup reported a diluted EPS figure for Q3 of 2015 of $1.31 per share, translating to an approximate increase of 37% from the prior year’s number ($0.95 per share). Despite revenues declining ~8% year over year to $18.50 billion, the decline was significantly offset by an 18% Y/Y decline in non-operating expenses, converging on a reported figure of $10.66 billion. Analysts reacted positively to the earnings and the stock traded approximately 2% higher in early market hours.
To provide greater detail, adjusted revenues for Citicorp came in at $17.05 billion, a decline of 5% Y/Y. Breaking this down, revenues from the Institutional Clients Group and Global Banking segment decreased 3% and 8%, respectively, Y/Y while revenues from the Corporate/Other segment increased significantly. At Citiholdings, adjusted revenues came in at $1.44 billion, a decline of 32% Y/Y due to reduced net gains on asset sales and a decline in client’s assets. The significant decrease in non-operating expenses reflect drastic declines in legal and repositioning costs.
With respect to the balance sheet, Citigroup reported a decline in both deposits as well as loans. Deposits declined 4% Y/Y to $904 billion while loans declined 5% Y/Y to $622 billion. At the end of the period, total assets were $1.81 trillion, a decline of 4% Y/Y. Provisions for loan losses also decreased to 2.21% of total loans ($13.6 billion) from 2.60% of total loans ($16.9 billion) in the prior year quarter.