Revenue and net income grew by 9% and 2% in comparison to the previous year's figures. The institutional clients unit of Citigroup earned $10.6 billion in revenue, a rise of 12% on a year-on-year basis and an increase of 2% in comparison to the second quarter. Citigroup's stock was lower by 8% from the beginning of the year on Friday.
On Friday morning, Citigroup reported its third-quarter results, with revenue and net income up 9% and 2% year over year, respectively. Compared to Wall Street's expectations, the company posted earnings per share of $1.63, or $1.52 when taking into account divestitures. Revenue totaled $20.14 billion--higher than the expected $19.31 billion. The institutional clients unit saw $10.6 billion in revenue, a 12% increase year over year and a 2% jump compared to the previous quarter. Meanwhile, the personal banking and wealth management division reported $6.8 billion in revenue, up 10% year over year and 6% from the prior quarter. CEO Jane Fraser noted in a press release, “Despite the headwinds, our five core, interconnected businesses each posted revenue growth resulting in overall growth of 9%.” It is not clear if the divestitures item was included in analysts' estimates.
Shares of Citigroup rose more than 3% in midday trading on Friday, despite being down 8% for the year. Other banks that reported quarterly results this morning, such as JPMorgan and Wells Fargo, posted higher-than-expected revenue numbers.In its third-quarter report, Citigroup reported $1.84 billion in total cost of credit, which was slightly higher than the $1.82 billion at the end of the second quarter and $1.37 billion a year ago, along with a net build of $125 million in the allowance for credit losses. Later on Friday, the bank will host a call to discuss the results, and investors are eager to hear more about the latest restructuring effort under CEO Fraser.This is the latest in a series of moves that Fraser has made since March 2021, when he announced plans to divide the bank into five main business lines. This reorganization is expected to result in job losses.Additionally, Citigroup has also been selling off its retail banking business in some international markets, with the most recent example being the sale of its Chinese onshore consumer wealth portfolio announced on October 9.
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