NEW YORK -- On Tuesday, Citigroup reported a third-quarter profit of $3.2 billion, or $1 a share, as the nation's third-largest bank continued its drive to push down expenses and shake off the after-effects of the 2008 financial crisis.
The results, which worked out to $1.02 a share excluding certain accounting adjustments, missed analysts' forecasts for profit of $1.04 a share. Revenue climbed 31% to $17.9 billion, missing estimates of $18.73 billion.
Citi CEO Michael Corbat has said he wants to get the bank back to industry-average levels of profitability by about 2015, after years of underperformance. Driven by expense cuts and lower losses at Citi Holdings, a unit set up to manage underwater mortgage securities and other troubled assets, Citi posted a return on assets of 0.69%, up nearly sevenfold from the same quarter last year.
The bank said its total overhead expenses were $11.7 billion, moving toward Corbat's goal to push spending below $11 billion per quarter by the end of the year. The 11,000 layoffs announced shortly after Corbat took over last year are the centerpiece of Citi's cost-cutting plan.
Citi shares dropped 62 cents to $48.98 in pre-market trading Tuesday.
Tim Mullaney, USA TODAY