Citi profit tops estimates on higher investment banking, services and wealth revenue
C•Citigroup reported third-quarter profit of $5.25 billion, or $2.85 per share, topping analysts’ $2.66 estimate. Revenue rose in investment banking, services and wealth management, while net income fell 10% from the prior quarter.
1. Profit beats estimates
Citigroup’s third-quarter profit rose to $5.25 billion, or $2.85 per share, from $3.8 billion, or $1.86 per share, a year earlier. Analysts had expected $2.66 per share. Net income was 10% lower than in the second quarter.
2. Business revenue grows
Investment banking revenue increased 9% year over year to $1.35 billion, while banking revenue rose 6% to $1.74 billion. Trading revenue gained 6% from a year earlier to $6.11 billion but was 13% lower than in the previous quarter. Services and wealth management revenue each grew 15%.
3. Returns and credit costs
Citigroup’s return on tangible common equity was 11.5% in the quarter and 12.6% year to date, above its 11% target. The bank returned $4.1 billion to shareholders through buybacks and dividends in the quarter. Profit from credit cards fell 8% year over year, and US consumer card loss provisions reached $1.9 billion.
