Citigroup's Q3 Profit Tops Forecasts on Wealth and Services Strength
Citigroup earned $2.85 per share in the third quarter, beating estimates, while net income climbed to $5.25 billion. Revenue rose 8% to $23.8 billion, with services and wealth management each growing 15%, though credit-card profits fell. The stock gave up early gains as investors weighed high rates and their effect on trading and dealmaking.
Citigroup reported third-quarter earnings of $2.85 a share, exceeding the $2.65 consensus and last year's $1.86. Net income reached $5.25 billion, up from $3.8 billion, while revenue increased 8% to $23.8 billion. CEO Jane Fraser described it as the bank's strongest third-quarter revenue in ten years, with return on tangible common equity at 11.5%.
Services and wealth management each posted 15% revenue growth. Wealth attracted $38 billion in net new investment assets, more than double the prior-year figure. Investment banking revenue rose 9% to $1.35 billion, though it declined 13% sequentially. Trading revenue increased 6% to $6.11 billion. Credit-card profits fell 8%, with $1.9 billion set aside for card losses.
Citigroup's results could affect households and businesses tied to credit and capital markets. Consumers carrying card balances may see borrowing costs remain elevated, while the bank's reserve build may signal caution about future losses. Companies seeking financing or dealmaking could face uneven access if high rates continue to slow activity. Investors, employees, and savers may also feel indirect effects through share performance, lending capacity, and bank profitability.