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Citigroup earnings higher than expectations

NEW DELHI: Citigroup Inc reported higher-than-expected earnings on Monday despite declining revenue as the New York-based lender cut costs, grew its investment banking business and expanded net-interest margin.

Still, Citi improved its results in ways, including the expense cutting, that may be tough to replicate in future quarters. A lower tax rate also played a big role in Citi’s improvement from a year ago.

The bank’s income from continuing operations declined slightly. On a call with reporters, chief financial officer Mark Mason said the decline was due in part to a divestiture last year. But net income rose because the bank’s effective tax rate declined to 21% from 24% a year earlier.

Citi has been investing in digital capability to try to win deposits domestically despite its light U.S. branch network. Chief executive Mike Corbat said in a statement its efforts are showing positive early results.

But the bank is still growing deposits faster abroad than in the United States: International consumer deposits rose 3% during the quarter, while retail North American deposits edged up 1%.

News credit : Indiatimes