Citigroup's margins rise, results beat expectations
(REUTERS) - Citigroup made more money from trading in the third quarter and its lending profitability rose, surprising investors and lifting the bank's shares 5.5 per cent.
Profit dropped after the third-largest United States bank wrote down the value of its retail brokerage business by US$4.7 billion (S$5.75 billion), but mortgage lending profit rose and results overall were better than analysts on average had expected.
A key element of the report was the profitability of the bank's loans, excluding credit losses, which rose as the bank cut its funding costs by taking in more low-cost deposits.
Deposits rose 11 per cent to US$945 billion at the end of September from a year earlier.