Citigroup reported its third-quarter results, exceeding Wall Street’s expectations with solid growth in both institutional clients and personal banking. The bank’s revenue reached $20.14 billion, a 9% increase compared to the previous year. Net income also rose by 2% year over year. Citigroup’s institutional clients unit generated $10.6 billion in revenue, up 12% from the previous year and 2% from the second quarter. Similarly, the personal banking and wealth management division recorded $6.8 billion in revenue, a 10% increase year over year and 6% from the second quarter. Despite facing headwinds, all five of Citigroup’s core businesses experienced revenue growth.
Citigroup’s stock price experienced a 2% surge in early trading following the release of its earnings report. However, the bank’s stock has declined by 8% over the course of the year. In addition to Citigroup, JPMorgan and Wells Fargo also reported stronger-than-expected revenue numbers in their third-quarter reports. Citigroup’s total cost of credit at the end of the quarter reached $1.84 billion, slightly higher than the previous quarter and a year ago. The bank’s earnings call will provide investors with more details about CEO Jane Fraser’s ongoing reorganization efforts. Since taking over in March 2021, Fraser has implemented various changes, including dividing the bank into five main business lines and selling off retail banking businesses in certain international markets.
One of Fraser’s recent initiatives was announced on September 13, involving job cuts as part of the reorganization. Additionally, Citigroup has been selling off its retail banking business in select global markets. Most recently, on October 9, the bank announced the sale of its onshore consumer wealth portfolio in China. The earnings report covers the period in which these organizational changes and divestitures took place, providing investors with insights into their impact on Citigroup’s financial performance.
