Citigroup 2Q earnings rise 16 pct; revenue growth is tepid

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(AP Photo/Mark Lennihan, File). FILE- In this April 24, 2018, file photo, a Citibank sign is shown outside one of the bank's branch offices in New York. Citigroup reports earnings Friday, July 13, 2018. (AP Photo/Mark Lennihan, File). FILE- In this April 24, 2018, file photo, a Citibank sign is shown outside one of the bank's branch offices in New York. Citigroup reports earnings Friday, July 13, 2018.

By KEN SWEET
AP Business Writer

NEW YORK (AP) - Citigroup's second-quarter profits jumped 16 percent from a year earlier, the bank said Friday, helped by a much lower tax bill and higher revenue earned on loans and interest.

Citigroup said it earned $4.49 billion, up from $3.87 billion a year ago. On a per-share basis, Citi earned $1.63 a share, compared with $1.28 a share a year earlier. Analysts had expected Citi to earn $1.56 a share.

Like JPMorgan Chase, which reported its results on Friday as well, Citi grew its loans and assets in the quarter. The bank benefited from higher interest rates, which allowed it to charge borrowers more for loans. But revenue growth was tepid, rising only 2 percent from a year earlier to $18.47 billion

So most of Citi's profit growth this quarter came because its tax bill dropped, as it did in the first quarter. The amount of money Citi paid in taxes last quarter dropped 20 percent from a year earlier to $1.44 billion from $1.76 billion a year earlier.

Citi shares fell 1.4 percent in early trading to $67.60. They are down roughly 8 percent this year.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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