Citigroup Inc.’s


C 2.11%

third-quarter profit slumped 34% and the bank set aside billions of dollars to cover potential losses in the coronavirus recession.

Citigroup posted a profit of $3.23 billion, or $1.40 a share, down from $4.91 billion, or $2.07 a share, one year ago. Analysts had expected 91 cents a share, according to FactSet. In the second quarter, profit had fallen to 50 cents a share.

Revenue in the consumer bank fell as people continued to struggle through the recession. The Wall Street operations turned in higher revenue as trading surged in the uncertain market and bankers helped nervous companies raise cash and sell stocks and bonds to ride out the downturn. JPMorgan Chase & Co., which also reported results Tuesday, followed a similar pattern, though its overall profit rose 4%.

Still, the results were better than the second quarter’s and topped analyst expectations. The bank slowed the pace of bulwarking for its loan portfolio, socking away another $2.26 billion of loan-loss provisions in the quarter. It had put more than $7 billion aside in each of the past two quarters.

Citigroup has had its own upheaval as well. Chief Executive Michael Corbat surprised analysts when he announced last month he would retire in February, handing the reins to bank President Jane Fraser. Last week, regulators hit Citigroup with a $400 million fine and orders to take expensive, time-consuming steps to improve its risk management infrastructure. Citigroup’s shares are down 43% this year, underperforming the KBW Nasdaq Bank Index’s 30% drop.

Total revenue fell 7% to $17.3 billion from $18.57 billion. Analysts had expected $17.21 billion.

In the consumer bank, revenue dropped 13% and profit declined 30%.

The investment and corporate banking operations held up better than the consumer bank. Companies continued to raise new money from stocks

Big bank profits will highlight the unofficial start of the third quarter earnings season this week, with investors looking for sequentially improving performance, as well as a guide on economic trends heading into the final months of the year. 

With the Federal Reserve keeping its cap on dividend and buybacks in place until at least 2021 in order to ensure that lenders have enough capital to absorb a protracted downturn triggered by the coronavirus pandemic, investors will be looking to see how each of the largest U.S. banks will manage both their credit provisions and near-term economic forecasts as they publish third quarter earnings throughout the week.

Under the Fed’s restrictions, banks will be limited to paying dividends that are either in line with payouts from last year or equal to an average of earnings for the previous four quarters. 

The six biggest U.S. banks — JPMorgan Chase, Citigroup, Bank of America, Goldman Sachs Morgan Stanley and Wells Fargo — have booked around $60 billion in loan loss provisions so far this year, including $34.6 billion over the three months ending in June, as they took advantage of accounting changes that allowed them to front-load the economic costs of the pandemic.

Below is a brief snap shot of analysts’ expectations for Big Six earnings this week, starting with JPMorgan’s third quarter update, which is slated for around 6:45 am Eastern time on Tuesday.

JPMorgan Chase & Co.  (JPM) – Get Report: The country’s biggest bank is expected to report a 17.2% decline in core earnings, to $2.22 per share, on revenues of around $20.13 billion. 

JPMorgan isn’t expected to add to its loan loss provisions in the third quarter, following a front-loaded $10.5 billion increase in the three months ending in June, and investors are likely instead

Recasts throughout with shares, estimates

Oct 8 (Reuters)Domino’s Pizza Inc DPZ.N reported a smaller-than-expected profit on Thursday, as high COVID-19-related costs and staff bonuses offset a jump in demand for pizzas during the coronavirus crisis.

Shares of the Ann Arbor, Michigan-based company, which have risen about 47% this year, were down about 5% before the bell.

The world’s largest pizza chain has thrived during the health crisis as diners staying at home craved more comfort food, but that came at a cost for the company, which spent millions on hiring more staff, bonuses, sick-pay policies and sanitary supplies.

Still, sales at Domino’s U.S. stores open for more than a year rose 17.5% in the third quarter ended Sept. 6, exceeding Wall Street estimates of 13.14%, according to IBES data from Refinitiv.

The resumption of sports leagues such as the National Basketball Association and the National Hockey League has also boosted demand for pies and chicken wings.

Domino’s has been focusing on tech innovations and has also broadened its menu with additions such as chicken tacos and cheeseburger pizzas in order to keep its customers from switching to rivals McDonald’s MCD.N, Papa John’s PZZA.O and Pizza Hut YUM.N, among others.

The company reported net income of $99.1 million, or $2.49 per share, compared with $86.4 million, or $2.05 per share, a year earlier.

Wall Street analysts had forecast earnings of $2.79 per share.

General and administrative costs rose 9.5% to $91.7 million. The pizza chain spent $108.1 million, a 20.8% rise, on advertising in the United States in the quarter.

Total revenue rose 17.9% to $967.7 million, beating expectations of about $953 million.

(Reporting by Nivedita Balu in Bengaluru; Editing by Aditya Soni and Krishna Chandra Eluri)

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SEOUL (Reuters) – Samsung Electronics Co Ltd’s third-quarter profit likely jumped 58% to its highest in two years, beating analyst estimates as U.S. restrictions on China’s Huawei boosted the South Korean tech giant’s phone and chip sales.

U.S. action against Huawei Technologies Co Ltd has dampened demand for its phones outside of China, giving a leg up to Samsung, analysts said, while the Chinese firm also hurried to order more chips from Samsung after Washington moved to choke its access to commercially available chips from mid-September.

Samsung said on Thursday operating profit was likely 12.3 trillion won ($10.6 billion) for the three months ended September, well above a Refinitiv SmartEstimate of 10.5 trillion won. It would be the strongest result since 17.57 trillion won in the third quarter of 2018.

Revenue likely rose 6% from the same period a year earlier to 66 trillion won, the company said.

Samsung released only limited data in Thursday’s regulatory filing ahead of the release of detailed earnings figures later this month.

“It seems Huawei’s impact on Samsung’s chip business was bigger than the market expected, and there was a big surprise in the smartphone and home appliance businesses,” said CW Chung, head of research at Nomura in Korea.

MOBILE PROFIT BOOST

Samsung was expected to post its biggest smartphone profit in at least four years, analysts said, as it gained market share from Chinese rivals and the coronavirus pandemic helped cut marketing costs.

Washington, which says Huawei is a vehicle for Chinese state espionage, has tightened restrictions on the firm, hurting demand for Huawei phones in Europe and other countries and boosting Samsung’s sales at a time when markets outside China are recovering from COVID-19 lockdowns, analysts said.

FILE PHOTO: The logo of Samsung Electronics is seen on

Adds details

LONDON, Oct 7 (Reuters)Tesco TSCO.L, Britain’s biggest retailer by sales, on Wednesday reported a 15.6% fall in core profit, with a jump in sales due to the COVID-19 pandemic more than outweighed by higher costs and losses at Tesco Bank.

The group, led since the start of the month by new chief executive Ken Murphy, made operating profit before one-off items of 1.037 billion pounds ($1.34 billion) in the 26 weeks to August 29, down from 1.229 billion pounds in the same period last year.

However, the group forecast that retail operating profit in the full 2020-21 year would be at least the same level as 2019-20 on a continuing operations basis.

UK like-for-like sales rose 7.6% in the first half, having been up 8.7% in the first quarter, while the response to the pandemic led to 533 million pounds of costs.

Tesco Bank made a loss of 155 million pounds and a loss of 175-200 million pounds is still expected for the full year.

Murphy, formerly at healthcare group Walgreens Boots Alliance WBA.O, succeeded Dave Lewis, who in his six years at the helm put Tesco back on track after an accounting scandal and refocused the group on its home market.

But Tesco still faces major challenges, most notably the long-term impact of the pandemic, a recession and disruption when Britain’s Brexit transition period finishes at the end of 2020.

Shares in Tesco, which has a 27% share of Britain’s grocery market, went sideways during Lewis’ tenure and last week the group briefly lost its position as Britain’s most valuable food retailer to online specialist Ocado OCDO.L.

The group also named Tate & Lyle’s TATE.L Imran Nawaz as its new finance chief. He will succeed Alan Stewart who is retiring in