Citigroup 2Q earnings gain on lower taxes

Citigroup reported 2Q profit of $1.63 per share topping the estimate for $1.56 as lower taxes boosted the big bank's revenue, which offset the higher cost of credit.

Revenue came in at $18.47 billion, while the estimate for revenue was for $18.46 billion.

The bank had earnings of $1.28 per share in the year-ago quarter on revenue of $18.2. Earnings, adjusted to account for discontinued operations, came to $1.27 per share. Year-ago adjusted revenue was $17.9 billion.

In the first-quarter, Citigroup earned $1.68 per share, adjusted to exclude certain items, on revenue of $18.87 billion.

"Net income of $4.5 billion increased 16%, driven by the higher revenues and a lower effective tax rate, partially offset by higher cost of credit," the bank said in a statement. "Earnings per share of $1.63 increased 27% from $1.28 per diluted share in the prior-year period, driven by the growth in net income and an 8% reduction in average diluted shares outstanding."