Citigroup Inc., Goldman Sachs Group Inc. Beat Earnings Estimates For Q4

Citigroup (C) and Goldman Sachs (GS) released their latest earnings reports before opening bell this morning. Citigroup posted $1.14 per share in earnings and $17 billion in revenue, compared to the consensus estimates of $1.12 per share and $17.3 billion in revenue. In the year-ago quarter, the bank reported $18.5 billion in revenue and $1.02 per share in earnings.

Citigroup

Goldman Sachs reported $5.08 per share in earnings on $8.17 billion in revenue for the fourth quarter. Analysts had been expecting $4.76 per share in earnings and $7.76 billion in revenue. In the previous year’s fourth quarter, the firm posted $1.27 per share in earnings and $7.27 billion in revenue.

Citigroup records solid growth across segments

Citigroup’s loans grew 1% to $624 billion, while its net interest margin was 2.79%. Fixed income trading revenue rose to $3.01 billion from $2.22 billion in the year-ago quarter. Equity trading revenue moved higher to $694 million from $603 million in the previous year’s fourth quarter. Total markets and securities services revenue rose to $533 million from $517 million in the year-ago quarter.

“We had a strong finish to 2016, bringing momentum into this year,” Citi Chief Executive Michael Corbat said in a statement. “We drove revenue growth in our businesses and demonstrated strong expense discipline across the firm. We achieved a full year Citicorp efficiency ratio of 58% as we had targeted, while again increasing our loans and deposits.”

Shares of Citigroup edged lower by as much as 0.05% to $58.35 in premarket trading this morning.

Several of Goldman Sachs’ segments miss estimates

Goldman Sachs

Goldman Sachs posted $336 million in net interest income, compared to $700 million in the year-ago quarter and the consensus of $783 million. Investment banking revenue fell to $1.49 billion from $1.55 billion last year. It also missed the consensus of $1.52 billion. FICC revenue surged 78% to $2 billion, however, beating the consensus of $1.49 billion. Equities revenue declined 9% to $1.59 billion, missing the consensus of $1.79 billion.

“After a challenging first half, the firm performed well for the remainder of the year as the operating environment improved,” Goldman Sachs Chairman and CEO Lloyd Blankfein said in a statement. “We continued to manage our expenses carefully and we enter the new year with industry leading positions across our businesses, as well as strong capital and liquidity.”

Shares of Goldman Sachs edged upward by as much as 0.31% to $236.48 during premarket trading hours this morning.

Disclosure: This article is NOT an investment recommendation, more

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Chee Hin Teh 7 years ago Member's comment

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Chee Hin Teh 7 years ago Member's comment

Thanks for sharing.