Citigroup has reported a net income of $4.5bn for the second quarter of 2018, an increase of 16% compared to $3.87bn in the previous year.

The bank said that the rise in income was driven by higher revenues and lower taxes.

The banking group’s total revenues for the quarter ended 30 June 2018 were $18.47bn, up 2% from $18.15bn in the same period last year. Operating expenses remained almost unchanged at $10.71bn.

Citigroup’s Private Bank revenues were $848m, an increase of 7% from $793m a year ago. The bank attributed the rise to growth in clients, loans and investments, and improved deposit spreads.

Citi CEO Michael Corbat said: “These results demonstrate good momentum across our franchise and that we are firmly on track to achieve the financial targets we introduced last year at Investor Day.

“During the quarter, we drove strong year-over-year revenue growth in many of our businesses – including our International Consumer franchise, Treasury and Trade Solutions, Equities, and the Private Bank. And we continue to support our clients as evidenced by solid loan growth that was balanced across businesses and geographies.”