trending Market Intelligence /marketintelligence/en/news-insights/trending/Ct1oFalDPlCN6kX3ukoKXg2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Citi trims costs 2% during Q3, drives positive operating leverage

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Street Talk Episode 65 - Deferral practices trap US bank portfolios in purgatory

Citi trims costs 2% during Q3, drives positive operating leverage

Citigroup Inc. cut its operating expenses by 2% during the third quarter to $10.2 billion, the lowest level so far in 2017, helping the New York-based banking giant lower its efficiency ratio and boost its operating leverage.

The company's executives in recent months had vowed to improve efficiency and bolster operating leverage in the second half of this year. It delivered with the third-quarter results on Oct. 12 — as costs dipped, revenue climbed 1.5% during the period. And Citi reported an efficiency ratio of 56%, down from 59% the previous quarter and better than the 58% that the company has targeted for all of 2017.

Executives, speaking on a call with analysts, credited a long-running culture of cost control that dates to the aftermath of the financial crisis.

Citi was badly bruised at the time, but it moved aggressively to cordon off and either sell or wind down troubled and noncore assets to minimize the drag on expenses and the company's profits. Executives said that, while the worst of the crisis' aftershocks are well behind Citi, the company continues to wind down unwanted legacy assets as well as focus on ongoing efficiency efforts such as containing real estate and staffing expenses.

"That discipline is not something that we let slip away, and that's a discipline I expect we'll continue to keep as we go into the future," CFO John Gerspach said on the call.

The cost control helped lift Citi's bottom line.

Third-quarter net income applicable to common shareholders rose to $3.86 billion, or $1.42 per share, from $3.62 billion, or $1.24 per share, a year earlier. The third-quarter result bested the S&P Capital IQ consensus EPS estimate of $1.30.