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The Citibank building in Canada Square, in the heart of London’s Canary Wharf financial district, on May 7, 2024.
Mike Kemp | In pictures | Getty Images
Citi Group reported third quarter results On Tuesday, that beat Wall Street expectations, with growth in investment banking and wealth management. However, the bank has set aside more money to offset potential losses on the loans.
Shares of the bank rose 2% premarket Tuesday.
Here’s what the company reported compared to what Wall Street analysts surveyed by LSEG expected:
- Earnings per share: $1.51 versus $1.31 expected
- Revenue: $20.32 billion versus $19.84 billion expected
Citigroup’s banking division reported an 18% year-over-year rise in revenue, led by a 31% rise in its investment banking arm. Income from assets increased by 9%.
Net income fell to $3.2 billion, or $1.51 per share, from $3.5 billion, or $1.63 per share, a year earlier. Profits were hurt by rising credit costs, including a net $315 million increase in Citi’s allowance for credit losses.
Revenue rose 1% to $20.32 billion from $20.14 billion a year ago.
On the market side, revenues from equity markets increased by 32% year-on-year, but those from fixed income securities fell by 6%.
Citigroup CEO Jane Fraser took over in March 2021 and focused on downsizing the bank during her tenure. This includes reducing Citigroup’s global presence and laying off workers. Investors will look for updates on Fraser’s turnaround plan during the analyst conference call Tuesday morning.
“This quarter contains multiple evidence demonstrating that we are moving in the right direction and our strategy is gaining traction, including positive operating leverage in each of our businesses, stock gains and fee growth,” said Fraser in the results release.
The CEO also said the bank was on track to meet its annual spending and revenue targets.
Citigroup shares are up more than 28% year to date through Monday, outperforming both the S&P 500 and the financial sector.
Other big banks that have reported third-quarter results so far have also beaten profit expectations, including Goldman Sachs and JPMorgan Chase.