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Citigroup Inc., experienced a substantially profitable third quarter and U.S. Bancorp's earnings marginally increased, while Goldman Sachs fell short of expectations.
Citigroup reported $4.3 billion in net income for the third quarter, or $1.35 per diluted share, up from 53 percent or $2.8 billion, or $0.88 per share, in the same quarter a year ago. The bank also has revenues that reached $18.7 billion, down from $19.7 billion last year.
Loans totaled $622 billion in the third quarter, down 5 percent from last year during the same period and down 1 percent in constant dollars. The net interest margin was 2.94 percent.
The company also returned $2.1 billion of capital to common shareholders and repurchased 36 million common shares.
"The quarter had more than its fair share of volatility and our results speak to the resilience of our franchise globally," said Michael Corbat, CEO of Citigroup. "And despite revenue headwinds, we once again proved our ability to manage our risk, our expenses and our capital. We remain on track to deliver our full-year efficiency and ROA targets. I feel good about the quality and consistency of our earnings over the course of this year, as we have continued to make solid progress against our core priorities.
U.S. Bancorp was also slightly profitable in the third quarter, with a net income of $1.489 billion, or $0.81 per share, up from$1.483 billion in the previous quarter and up from $1.471 billion in the same quarter last year.
The company attributes the rise in year-over-year net income to higher net interest income and noninterest income, along with reduced credit losses provisions. On the other hand, the increase in net income from the previous quarter was mostly due to increases in net interest income and noninterest income.
Average total loans were $6.7 billion, up 2.7 percent year-over-year, the statement noted.
U.S. Bancorp Chairman, President, and Chief Executive Officer Richard K. Davis expressed that he was "proud of the financial performance our 67,000 employees delivered in the third quarter."
“Overall, our actions to generate growth in our balance sheet and revenues, combined with our deliberate efforts to optimize our expense management initiatives, resulted in a solid quarter and put us on a positive forward-looking trajectory," he said. "As U.S. Bancorp pursues its vision for the future, we are focused on sustainable growth. We continue to make prudent long-term investments to protect our industry leading competitive positions and help our customers build financially secure futures.”
Goldman Sachs reported net earnings of $1.43 billion for the third quarter, or $2.90 per share. Net revenues at the company totaled $6.86 billion.
Investment banking net revenues totaled $5.48 billion year-to date, its highest performance for the first nine months of the year since 2007, the company reported.
Net revenues in investing & lending were $670 million for the third quarter of 2015, down 60 percent from
the third quarter of 2014 and 63 percent lower than the second quarter of 2015 due to a significant decrease in net
revenues from investments in equities, as net revenues in public equities were negatively impacted by
a significant decrease in global equity prices during the third quarter of 2015.
“We experienced lower levels of activity and declining asset prices during the quarter, reflecting renewed concerns about global economic growth,” said Lloyd C. Blankfein, chairman and CEO of Goldman Sachs. “We continue to see strong levels of activity in Investment Banking and growth in Investment Management, and looking ahead, are encouraged by the competitive positioning of our global client franchise. Our focus on serving our clients and improving operating leverage puts us in a strong position to generate superior returns for our shareholders.”
