Citigroup reported its third-quarter results on Friday morning, with solid growth in each institutional clients and private banking fueling higher-than-expected revenue.
Here’s what the corporate announced compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly often known as Refinitiv:
- Earnings per share: $1.63. Not comparable to the expected $1.21 because of divestitures. Excluding divestitures, earnings per share were $1.52.
- Revenue: $20.14 billion, vs. expected $19.31 billion
Revenue and net income rose by 9% and a couple of%, respectively, yr over yr.
Citigroup’s institutional clients unit reported $10.6 billion in revenue, up 12% yr over yr and a couple of% from the second quarter. The private banking and wealth management division generated $6.8 billion in revenue, up roughly 10% yr over yr and 6% from the second quarter.
“Despite the headwinds, our five core, interconnected businesses each posted revenue growth leading to overall growth of 9%,” CEO Jane Fraser said in a press release.
Jane Fraser CEO, Citi, speaks on the 2023 Milken Institute Global Conference in Beverly Hills, California, May 1, 2023.
Mike Blake | Reuters
Shares of the bank were up greater than 2% in early trading. Citigroup’s stock was down 8% for the yr entering Friday.
Amongst other banks that reported quarterly results on Friday morning, JPMorgan and Wells Fargo each showed stronger-than-expected revenue numbers of their third-quarter reports.
Citigroup reported $1.84 billion in total cost of credit at the top of the quarter, up barely from $1.82 billion at the top of the second quarter and $1.37 billion a yr ago. That metric features a net construct of $125 million within the allowance for credit losses in the course of the third quarter.
Citigroup will discuss the leads to a conference call later Friday morning. Investors shall be searching for more detail in regards to the reorganization of the bank under Fraser.
Friday’s earnings report includes the period during which Fraser announced the bank can be divided into five foremost business lines, the most recent change for the CEO since taking on in March 2021. The brand new structure, announced Sept. 13, is predicted to incorporate job cuts.
One other initiative under Fraser has been Citi selling off its retail banking business in some international markets. The newest move on that front got here on Oct. 9, when the bank announced that it had struck a deal to sell its onshore consumer wealth portfolio in China.