Citigroup (C) Q3 profit jumps 40% to $5.2B, best Q3 revenue in a decade, beats estimates (Oct 13)
What happened
Citigroup reported Q3 net income of $5.2 billion, up 40% year over year, or $2.85 per share, beating the $2.65 consensus (some tallies had $2.62). Revenue rose 8% to $23.85 billion, which CEO Jane Fraser called the best third-quarter revenue in a decade, slightly ahead of the $23.72 billion expected. Growth was broad: Services revenue rose 15% to $6.6 billion on deposits, payments and fees; Markets rose 6% to $6.1 billion with equities trading up 14% and fixed income up 4%; Banking rose 6% to $1.7 billion with investment-banking revenue up 9%; Wealth Management climbed 15% to $3.3 billion; U.S. Consumer Cards revenue was roughly flat at $4.7 billion. Net interest income increased 14%, return on tangible common equity was 11.5%, and provisions for credit losses rose 6% to $2.59 billion. Citi returned over $4 billion to common shareholders and said it expects to exceed this year's return target. Shares were down about 0.6-0.7% in premarket trading / at writing despite the beat. The year-over-year profit jump was flattered by a year-ago goodwill charge tied to plans to shed Mexican bank Banamex.
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Start your free 14-day trialWho’s affected
- Citigroup (C) — Q3 beat on EPS and revenue, broad-based growth; shares down ~0.6-0.7% premarket/at writing despite the beat
- Goldman Sachs (GS), JPMorgan (JPM), Wells Fargo (WFC) — Tuesday's earlier reporters; Citi's beat rounds out a mostly resilient big-bank tape
- Bank of America (BAC), Morgan Stanley (MS), BlackRock (BLK), State Street (STT) — report Wednesday; Citi's capital-markets and wealth signals are a read-through
- Financials broadly / S&P 500 — bank results set the tone for the opening of earnings season