Citigroup beats profit forecasts as revenue rises 8% to $23.8 billion
Citigroup reported third-quarter net income of $5.2 billion, or $2.85 a share, above the $2.66 analysts expected according to LSEG data cited by CNBC, on revenue of $23.8 billion, up 8% from a year earlier.
Citigroup topped Wall Street’s profit expectations on Tuesday, 13 October, according to the bank’s results release and LSEG estimates reported by CNBC.
The numbers
- Net income: $5.2 billion, or $2.85 per diluted share, versus $3.8 billion ($1.86) a year earlier.
- Versus forecasts: analysts surveyed by LSEG expected $2.66 a share and revenue of about $23.72 billion, CNBC reported; Citi posted about $23.85 billion.
- Revenue growth: 8%, which Citi attributed to Services, Wealth, Markets and Banking, partly offset by a decline in its “All Other” unit.
Context
The year-ago quarter included a $726 million goodwill impairment linked to Citi’s agreement to sell a 25% stake in Mexico’s Banamex. Excluding that item, the bank says net income a year earlier was $4.5 billion, or $2.24 a share — so the underlying improvement is smaller than the headline comparison suggests.
Investment banking revenue was $1.35 billion, up 9% from a year earlier but down 13% from the second quarter, according to the release. Citi said higher revenue and lower expenses drove the profit increase, partly offset by a larger provision for credit losses.
All company figures come from Citigroup’s own release; the estimates are LSEG consensus as reported by CNBC.
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