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Thursday's Bank Stocks: Citigroup down more than 3% after earnings report

Citigroup Inc. shares dropped 3.43% to $72.37 on Thursday, Oct. 12, hours after the company announced its third-quarter earnings results.

The company reported net income applicable to common shareholders of $3.86 billion, or $1.42 per share, up from $3.62 billion, or $1.24 per share, a year earlier, and better than the S&P Capital IQ consensus estimate for normalized EPS of $1.30. But net credit losses increased 4% during the quarter.

In a research note, Sandler O'Neill & Partners' Jeffery Harte wrote that credit remains strong but was "modestly worse" than expected. However, he said, "capital markets related revenues were stronger than we expected virtually across the board and may prove tough for peers to match."

Overall, banks finished the day lower, with the SNL U.S. Bank Index declining 1.15% to 574.63, and the SNL U.S. Thrift Index losing 0.33% to 945.70. Broader markets were also down, with the Dow Jones Industrial Average falling 0.14% to 22,841.01, the Nasdaq Composite Index dipping 0.18% to 6,591.51 and the S&P 500 decreasing 0.17% to 2,550.93.

JPMorgan Chase & Co. fell 0.88% to $95.99 after it reported that net income applicable to common stockholders climbed to $6.23 billion, or $1.76 per share, from $5.81 billion, or $1.58 per share, in the third quarter of the prior year. The S&P Capital IQ consensus estimate for normalized EPS in the third quarter was $1.66.

Meanwhile, Wells Fargo & Co. declined 0.81% to $55.21, and Bank of America Corp. lost 1.47% to $25.45. Both companies report third-quarter earnings Oct. 13.

Among other notable movers, Commerce Bancshares Inc. dipped 2.43% to $56.68, Popular Inc. lost 1.88% to $32.92, First BanCorp. shrank 3.43% to $4.78 and Sterling Bancorp fell 1.81% to $24.40.

In thrifts, Flagstar Bancorp Inc. fell 1.13% to $35.78.

In economic news, initial jobless claims decreased by 15,000 to a seasonally adjusted 243,000 for the week ended Oct. 7, down from the previous week's revised level of 258,000, according to the U.S. Department of Labor. The previous week's figure was revised down by 2,000.

S&P Dow Jones Indices and S&P Global Market Intelligence are owned by S&P Global Inc.

Market prices and index values are current as of the time of publication and are subject to change.