Citigroup posts earnings of $1.31 a share vs $1.28 expected

Citigroup shares rally after good earnings report
Citigroup shares rally after good earnings report

Citigroup delivered quarterly earnings that topped analysts' expectations on Thursday, as a fall in operating, legal and repositioning costs more than made up for lower revenue.

Shares of Citigroup moved higher in premarket trading immediately following the report. (Get the latest quote here.)

Net income rose to $4.29 billion, or $1.35 per share, in the third quarter from $2.84 billion, or 88 cents per share, a year earlier, when the bank had taken a near $2 billion charge for litigation and restructuring costs.

Adjusting for certain accounting items, Citigroup's net profit rose 35.7 percent to $4.16 billion, or $1.31 per share.

Revenue fell to $18.49 billion from $19.98 billion a year ago.

Analysts expected the company to post earnings per share of $1.28 on revenue of $18.54 billion, according to a Thomson Reuters consensus estimate.

Citigroup's stock has fallen 6.27 percent in 2015, lagging fellow banking giants Wells Fargo and JPMorgan Chase, both of which have already posted quarterly results.

The largest U.S. bank posted revenues that missed Wall Street expectations, while Wells reported better-than-expected revenues.

Reuters contributed to this report.