Citigroup, Inc. (NYSE:C) shares rose Tuesday after the bank reported stronger-than-expected first-quarter results, driven by broad-based growth across its businesses.
Strong First-Quarter Financial Performance
The bank posted revenue, net of interest expense, of $24.63 billion, up 14% from a year earlier and above analyst estimates of $23.53 billion. Excluding foreign exchange impacts, revenue increased 11%.
Net income climbed 42% to $5.79 billion, while earnings per share of $3.06 topped expectations of $2.63. Net interest income rose 12%, and non-interest revenue increased 17%, reflecting gains across all five core divisions and legacy franchises.
Expenses, Profitability and Capital Position
Operating expenses rose 7% to $14.3 billion, while the efficiency ratio improved by about 410 basis points to 58.1%, down from 62.2% a year earlier. Return on average tangible common equity increased to 13.1%.
The bank’s Common Equity Tier 1 capital ratio stood at 12.7%, about 110 basis points above regulatory requirements. Cost of credit rose 3% to $2.81 billion, mainly due to higher net credit losses in …