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$C 2Q15 Call - John, CFO: 1H15 Results: Total efficiency ratio for Citigroup, including Citi Holdings, was 56%. Net income grew by 17% YoverY. Generated ROA of 103 basis points and return on Tangible Common Equity was 10.5%. In constant dollars, Citigroup end of period loans declined 1% YoverY to $632Bil. Deposits down 1%, driven by Citi Holdings.
$C CEO Michael Corbat said, "Tax reform does not change our capital return goals as we remain committed to returning at least $60Bil of capital in the current and next two CCAR cycles. Tax reform not only leads to higher net income and increased returns, but also serves to strengthen our capital generation capabilities going forward."
For the first time since 2009, $C posted a loss of $18.3Bil in 4Q17, weighed down by a charge of approx $22Bil related to Republican tax reforms. On a per share basis, the loss was $7.15. However, the banking giant managed to please investors by reporting double-digit growth in adjusted EPS to $1.28. Revenue for the quarter edged up 1% to $17.3Bil.
In an undisclosed deal, $BLK is set to acquire asset management business of Mexico-based Citibanamex, a subsidiary of $C. This deal involves about $31Bil in assets under management of Citibanamex. This transaction, which is expected to close in 2H18, will not have any material impact on the financials of BlackRock or Citigroup.
$BAC, the second largest US bank by assets, said sales and trading revenue fell 13% to $3.1Bil in 3Q17 due to unfavorable market conditions and lower volatility in rates products. Fixed-income trading revenue fell 22% to $2.15Bil. Earlier, rivals $C and $JPM had also reported 16% and 27% declines respectively in their fixed-income trading revenues.
$C's revenue from bond trading declined 16% in 3Q17, but this was offset by an equal growth in equity trading revenue. Overall, trading revenue fell 11% due to subdued volatility in the market, but this was lower than the 15% decline the company had predicted during the Investors' Day event held in July, 2017.
A day after IMF listed in its latest report, $C as the sole US bank that it expects to struggle to remain profitable, the banking giant pleased investors with higher revenue and net income for 3Q17. While revenue rose 2% to $18.2Bil, net income increased 8% to $4.1Bil. On a per share basis, net income rose to $1.42 from $1.24 a year ago.
Payment services provider $PYPL and $C have expanded their strategic agreement for broadening consumer payment choices. The partnership will allow Citi card-members to use their ThankYou Points to pay for all or part of purchases when shopping online through the PayPal gateway in US. The facility will be launched next year.