North American branded cards, which account for a majority of the bank’s consumer banking revenue, clocked double-digit revenue growth for the second straight quarter, rising 10% from a year earlier.
The third-largest US bank by assets has been leveraging its robust card business to help grow deposits by pitching checking and savings accounts to cardholders.
Trading revenue rose nearly 31% as markets steadied during the last three months of 2019, with the gains driven by a 49% surge in fixed-income trading. Equities trading fell 23% due to weak performance in derivatives.
Rival Wall Street bank JP Morgan Chase & Co also reported an increase in trading revenue on Monday.
The largest US bank by assets said revenue from bond trading surged 86% from a year earlier, when financial markets were roiled by a selloff triggered by concerns over trade and global growth. Revenue from its equities business rose 15% to US$1.5 billion.
Citi also reached a key profitability target. The bank hit a return on tangible common equity (ROTCE) of 12.1% for 2019, above the goal of 12% it promised investors for the year.
ROTCE is a widely watched measure of how well a bank uses shareholder money to generate profits.
The lender’s shares rose 1.5% in early trading.
Citi added loans and deposits in the most recent quarter. Total end-of-period loans grew 2%, while deposits jumped 6%, excluding foreign-exchange fluctuations. Credit costs jumped 15%.
Total loans, excluding home lending, rose 3% at JPMorgan.
Net interest income, or the difference between what a bank pays for deposits and earns from loans, was up 1% at Citi, compared with declines at JPMorgan and Wells Fargo & Co.
The US Federal Reserve cut interest rates three times last year, crimping banks’ lending margins and their ability to raise revenue.
Net income applicable to common shareholders rose to US$4.98 billion, or US$2.15 per share, in the three months ended Dec 31, from US$4.31 billion, or US$1.64 per share, a year earlier.
Excluding the impact of a tax benefit, Citi earned US$1.90 per share.
Revenue, net of interest expense, rose about 7% to US$18.38 billion.
Analysts had expected a profit of US$1.84 per share and revenue of US$17.86 billion, according to IBES data from Refinitiv.