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BUSINESS A25
Friday 16 October 2015
Citigroup’s earnings surge 36 percent, beating estimates
KEN SWEET counting adjustment, for 2015 has been a year of of our earnings over the ly because legal costs fell
AP Business Writer the three-month period significant progress. course of this year, as we sharply.
NEW YORK (AP) — Citigroup ending in September. That Citi Holdings, the firm’s so- have continued to make Citicorp, the bank’s con-
said Thursday its earnings compares with earnings of called “bad bank” where solid progress against our sumer and corporate
jumped 36 percent in the $2.94 billion, or 95 cents a it stores all its troubled as- core priorities,” Michael banking division, had net
third quarter as the bank share, in the same period a sets, made a profit for the Corbat, CEO of Citigroup, income of $4.26 billion in
continued to cut expenses year earlier. fifth straight quarter. The said in a statement. the period excluding an
and clean up its books in Citi’s latest earnings beat firm passed the Federal Re- Most of Citi’s major busi- accounting adjustment,
the wake of the financial analysts’ estimates of $1.27 serve’s “stress tests” earlier nesses saw revenue de- up from $2.82 billion a year
crisis. a share, according to Fact- this year and legal expens- clines this quarter, but earlier.
The New York-based bank Set. es this quarter were $376 those were mostly offset Overall, Citi’s revenue was
earned $3.99 billion, or Citi has been on a multi- billion, down from $1.6 bil- by lower expenses. Overall $18.5 billion after the ac-
$1.31 per share, exclud- year mission to recover lion a year earlier. expenses fell 18 percent to counting adjustment, com-
ing payments to preferred from its near collapse dur- “I feel good about the $10.67 billion from $12.96 pared with $20.06 billion
shareholders and an ac- ing the financial crisis, and quality and consistency billion a year earlier, most- the year before. q
Goldman Sachs earnings fall 38 percent, missing forecasts
KEN SWEET market turbulence and sell- A screen at a trading post on the floor of the New York Stock Exchange is juxtaposed with the
AP Business Writer off in commodity prices. Goldman Sachs booth. The Goldman Sachs Group Inc. reported quarterly financial results Thurs-
NEW YORK (AP) — Gold- Goldman does not have day, Oct. 15, 2015.
man Sachs posted as a 38 a consumer banking busi-
percent drop in earnings in ness, and makes its money (AP Photo/Richard Drew)
the third quarter on Thurs- providing financial advice
day, missing analysts esti- to companies and high net of money Goldman made levels shrank, a reflection The results did not meet
mates, as the Wall Street worth individuals, as well as in advising companies that Goldman employees Wall Street expectations.
bank was hurt by recent a significant stock, bonds, through mergers and ac- are largely paid in bonuses The average estimate of
market turbulence and and commodities trading quisitions, one of the firm’s and for performance. The eight analysts surveyed by
lower commodity prices. operation. highest profile businesses, amount of money Gold- Zacks Investment Research
Goldman said it had net Net revenue in Goldman’s was $809 million in the man set aside for compen- was for earnings of $2.94
income of $1.33 billion af- fixed income, currency quarter, up 36 percent. sation was $2.35 billion in per share. Revenue also did
ter payments to preferred and commodities busi- Not surprisingly, the firm’s the quarter, down 16 per- not meet analysts’ expec-
shareholders, or $2.90 a ness was $1.46 billion this employee compensation cent from a year ago. tations of $7.29 billion.q
share, down from $2.14 bil- quarter, down a third from
lion, or $4.57 a share, in the a year earlier.
same period a year ago. Goldman’s lending and in-
Net revenue at the invest- vesting business, the firm’s
ment bank dropped by 18 own investments, also took
percent to $6.86 billion from a hit this quarter, posting
$8.39 billion a year earlier. revenue of $670 million,
“We experienced lower down 60 percent from a
levels of activity and de- year ago. The firm said its
clining asset prices during investments “were nega-
the quarter, reflecting re- tively impacted by a sig-
newed concerns about nificant decrease in global
global economic growth,” equity prices.”
CEO Lloyd Blankfein said in One positive note in Gold-
a prepared statement. man’s results was its in-
It was widely expected that vestment banking division,
Goldman would report a which saw a 6 percent in-
drop in profit for the third crease in net revenue from
quarter given the recent a year ago. The amount
Philip Morris 3Q results top Wall Street as prices climb
NEW YORK (AP) — Philip thanks to unfavorable for- CEO Andre Calantzopoulos Marlboro cigarette ship- lysts’ expectations. The av-
Morris’ third-quarter ad- eign currency translation. said in a written statement ment volume rose 2.1 per- erage estimate of six ana-
justed profit and revenue The results still beat Wall that higher prices helped cent on growth in the Euro- lysts surveyed by Zacks In-
topped analysts’ estimates, Street’s view. the quarter’s performance, pean Union, Asia, Eastern vestment Research was for
bolstered in part by in- Four analysts surveyed by while economic conditions Europe, the Middle East earnings of $1.11 per share.
creased cigarette prices. Zacks expected revenue of improved, particularly in and Africa. The company now fore-
The seller of Marlboro and $6.75 billion. the European Union and For the period ended Sept. sees full-year earnings in a
other cigarette brands out- Since Philip Morris does all Eastern Europe, the Middle 30, Philip Morris Interna- range of $4.35 to $4.40 per
side the United States also of its business overseas, the East and Africa. tional Inc. earned $1.94 share. Its prior outlook was
narrowed its full-year earn- New York company has to Cigarette shipment volume billion, or $1.25 per share. for $4.32 to $4.42 per share.
ings forecast on Thursday. navigate changes in cur- fell 1.5 percent to 218.9 bil- That compares with $2.16 Analysts polled by FactSet
Its shares rose in morning rency values. A stronger lion units, excluding acqui- billion, or $1.38 per share, a predict earnings of $4.38
trading. dollar cuts into revenue sitions. Philip Morris said that year ago. Excluding pretax per share.
Quarterly revenue, exclud- generated overseas when this was primarily due to gains, earnings were $1.24 Its shares rose $1.07, or 1.3
ing excise taxes, dropped it’s translated back into Asia, mainly Indonesia, Ja- per share. percent, to $85.55 in morn-
12 percent to $6.93 billion dollars. pan and Pakistan. The results surpassed ana- ing trading Thursday. q
