Citigroup earnings beat on lower taxes, 38% surge in stock trading revenue

Citigroup reported quarterly earnings and revenue that beat analyst expectations on Friday, as the company's results got a boost from lower corporate taxes and strong revenue from stock trading.

Here is how the banking giant fared in the first quarter versus Wall Street expectations:

• Earnings: $1.68 per share vs. $1.61 expected by Thomson Reuters
• Revenue: $18.872 billion vs. $18.865 billion expected
• Net interest income: $11.17 billion vs. $11.26 billion forecast by StreetAccount
• Fixed income, currencies and commodities trading revenue: $3.4 billion vs. $3.68 billion expected

Citigroup shares opened 1.4% higher on Friday.

"Our first quarter results demonstrate strength and balance across our franchise and position us well for the rest of the year," CEO Michael Corbat said in a release. "During the quarter, we returned more than $3 billion in capital to common shareholders which helped drive a significant improvement in earnings per share."

Citigroup's results also got a boost from lower taxes. Last quarter, Citigroup's effective tax rate fell to 24% from 31% in the first quarter of 2017.

Revenue from Citigroup's fixed-income trading business fell 7% to $3.4 billion in the first quarter, but that was offset by a 38% hike in equity trading sales. Overall trading revenue grew by 3% in the first quarter to $5 billion.

Citigroup said the sharp rise in stock trading revenue was a byproduct of increased market volatility in equity markets. The S&P 500 has posted 28 moves of at least 1%. The index posted just eight moves of that magnitude all of last year.

The company also said its global consumer banking business saw a revenue increase of 7% to $8.4 billion amid "growth across all regions." Revenue in North America rose 4% to $5.2 billion while Latin America sales gained 15% to $1.3 billion.

However, Citigroup's net interest income and margin both fell just short of expectations. Net interest income totaled $11.17 billion for the first quarter, while net interest margin came in at 2.64%.

Also Friday, J.P. Morgan Chase and Wells Fargo reported earnings that beat on the top and bottom lines.

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