Citigroup traders have achieved their best performance in at least a decade, benefiting from the surge in volatility across various asset classes in recent months. The company's markets division reported a 1% revenue increase to $4.82 billion in the third quarter, defying earlier expectations of a decline. A notable 32% rise in equities trading revenue significantly contributed to this unexpected result.
Despite pressure on profits from rising credit card loan defaults, Citigroup's other major business segments—services, banking, wealth management, and U.S. personal banking—also experienced year-over-year revenue growth. The overall positive outcome marks a significant win for CEO Jane Fraser and her efforts to transform the company's operations.
Fraser, alongside CFO Mark Mason, has undertaken structural reforms, including cutting 20,000 positions and bringing in senior executives from competitors. However, Citigroup's net profit fell 9% to $3.2 billion, with earnings per share at $1.51. The company set aside $2.7 billion, primarily due to its credit card business impacts.
The banking division saw a 16% revenue increase to $1.6 billion, driven by a 44% rise in investment banking fees. Its extensive services business reported an 8% revenue growth to $5 billion, while U.S. personal banking revenue rose 3% to $5 billion. Wealth management revenue surged 9% to $2 billion, a promising result for Andy Sieg, the division's new head and former Bank of America executive, who has been implementing significant changes since joining Citigroup last year.
