Citigroup (C, Financial) has announced its third-quarter financial results, revealing a revenue of $20.32 billion, which marks a 0.9% increase from the previous year and surpasses market expectations. The bank reported a net profit of $3.2 billion, a 9% decrease year-on-year, while earnings per share reached $1.51, significantly exceeding forecasts.
The surge in asset volatility over recent months has led to Citigroup's trading business achieving its best performance in at least a decade. The bank's markets unit saw a 1% increase in third-quarter revenue to $4.82 billion, an unexpected rise after the company had warned of a potential decline in market revenue weeks earlier. A notable highlight was the 32% surge in equity trading revenue, driving growth in this segment.
Net interest income for the quarter was $13.4 billion, slightly down from $13.5 billion in the second quarter and $13.8 billion in the same period last year. Citigroup recorded $2.7 billion in provisions, primarily due to increased losses in its credit card division. Despite the drag from rising credit card delinquencies, the bank's other major units—services, banking, wealth management, and U.S. personal banking—reported year-over-year revenue growth.
The banking division's revenue grew 16% to $1.6 billion, with investment banking fees rising 44%. The extensive services segment saw an 8% increase to $5 billion, while U.S. personal banking posted a 3% revenue growth, also reaching $5 billion. The wealth management business enjoyed a 9% rise, achieving $2 billion in revenue.
These results mark significant progress under CEO Jane Fraser, who has implemented broad structural reforms, including cutting 20,000 jobs and acquiring new senior management from competitors. Fraser stated that the quarter provided evidence of the company moving in the right direction and gaining momentum with its strategy.
For full-year guidance, Citigroup aims to hit its revenue and expense targets due to lower expenditures. It anticipates net interest income, excluding market impacts, to decline slightly year-over-year, a revision from the previous slightly lower outlook. The company expects fourth-quarter net interest income, excluding market impacts, to remain around the third quarter's level of $13.4 billion. Full-year revenues are projected to be between $80 billion and $81 billion, aligning with the consensus forecast of $80.4 billion.
