Citigroup reports lower-than-expected Q3 profit

Citigroup Inc Tuesday reported a profit of 3.23 billion U.S. dollars for the third quarter of 2013, missing analysts's estimates as bond trading slumped and U.S. mortgage revenue declined. Its third-quarter net income increased from 468 million dollars a year earlier, when it posted a 2.9-billion-dollar loss on its brokerage joint venture. Earnings per share for the third quarter were 1 dollar, sharply up from 0.15 dollars in the same time period of last year. Excluding one-time items, profit was 1.02 dollars a share, two cents below the market consensus. The banking group' s revenue for the quarter was 17.9 billion dollars, compared with 13.7 billion dollars in the prior year. Michael Corbat, Chief Executive Officer of Citi, said in the statement, "We performed relatively well in this challenging, uneven macro environment. While many of the factors which influence our revenues are not within our full control, we certainly can control our costs, and I am pleased with our expense discipline and improved efficiency year-to-date. " Corbat aded, Citi generated additional capital, primarily through retained earnings and its Tier 1 Common ratio increased to an estimated 10.4 percent on a Basel III basis. Other key capital metrics also strengthened, including its supplementary Leverage Ratio, which increased to an estimated 5.1 percent. With the environment remaining challenging, Citi will continue to focus on all aspects of business to improve client satisfaction and shareholder results consistent with our strategy, Corbat concluded. Citigroup share traded in New York opened at 49.69 dollars and was around 49.5 dollars about an hour after the opening bell.