Financial Services company, Citigroup Inc. (C) on Monday posted a sharp downturn in third quarter earnings, hurt by a massive write down in a brokerage unit.
The New York based company reported Q3 net income of $468 million, or 15 cents a share, compared with $3.77 billion, or $1.23 per share last year. Citigroup noted its latest results were hampered by a $4.7 billion write down on a brokerage firm which they had sold to Morgan Stanley in September. Excluding special items, adjusted profit was $1.06 per share.
Revenue rose 3% from last year to $19.4 billion.
On average, analysts expected a smaller profit on 96 cents per share, on lower revenue of $18.35 billion.
The company noted that their profits from the Securities and Banking unit increased 67% due to increased profit from fixed income and equity markets and lower expenses. In total, the North American Consumer Banking industry had a 18% increase on mortgage revenues. On an international level, banks outside the US experienced a 3% drop in revenue.
Citigroup share’s were mostly flat during premarket trading on Friday.
The Bottom Line
Shares of Citigroup (C) have a .12% dividend yield, based on Friday’s closing stock price of $34.75. The stock has technical support in the $30-$32 price area. If the shares can firm up, we see overhead resistance around the $36-$38 price levels.
Citigroup Inc. (C) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.