Citigroup (C) third-quarter earnings report

  • Revenue and net income increased by 9% and 2%, respectively, year-on-year.
  • Citigroup’s institutional clients unit reported revenue of $10.6 billion, up 12% year over year and 2% from the second quarter.
  • Citigroup stock is down 8% during the year that began Friday.

Citigroup reported this Third quarter results Friday morning, with strong growth in both institutional and personal banking customers resulting in higher-than-expected revenue increases.

Here’s what the company announced compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG, formerly known as Refinitiv:

  • Earnings per share: $1.63. It cannot be compared to the expected $1.21 due to liquidations. Excluding liquidations, earnings per share were $1.52.
  • Revenues: $20.14 billion, compared to the expected $19.31 billion

Revenue and net income increased by 9% and 2%, respectively, year-on-year.

Citigroup’s institutional clients unit reported revenue of $10.6 billion, up 12% year over year and 2% from the second quarter. The Personal Banking and Wealth Management division generated revenue of $6.8 billion, up approximately 10% year over year and 6% from the second quarter.

“Despite headwinds, each of our five interconnected core businesses recorded revenue growth resulting in overall growth of 9%,” Jane Fraser, the company’s CEO, said in a press release.

Jane Fraser, CEO of Citi, speaks at the 2023 Milken Institute Global Conference in Beverly Hills, California, May 1, 2023.

Mike Blake | Reuters

The bank’s shares rose more than 2% in early trading. Citigroup stock is down 8% during the year that began Friday.

Among other banks reporting quarterly results on Friday morning, JPMorgan and Wells Fargo both showed stronger-than-expected revenue numbers in their third-quarter reports.

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Citigroup reported $1.84 billion in total credit costs at the end of the quarter, up slightly from $1.82 billion at the end of the second quarter and $1.37 billion a year ago. This measure includes a net increase of $125 million in the allowance for credit losses during the third quarter.

Citigroup will discuss the results in a conference call later Friday morning. Investors will be looking for more details about the bank’s reorganization under Fraser’s leadership.

Friday’s earnings report includes the period during which Fraser announced the bank would be split into five main business lines, the latest CEO change since he took over in March 2021. The new structure, Announced on September 13It is expected to include job cuts.

Another initiative under Fraser is for Citi to sell its retail banking business in some international markets. The latest step on this front came on October 9, when the bank… Announce It has concluded a deal to sell its domestic consumer wealth portfolio in China.

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