The Citibank building in Canada Square at the heart of Canary Wharf financial district in London on May 7, 2024.
Mike Kemp | In Pictures | Getty Images
Citigroup reported third-quarter earnings before the opening bell on Tuesday that topped Wall Street expectations, with growth in investment banking and wealth management.
Here’s what the company reported compared with what Wall Street analysts surveyed by LSEG were expecting:
- Earnings per share: $1.51, vs. $1.31 estimate
- Revenue: $20.32 billion, vs. $19.84 billion estimate
Citigroup’s banking division reported 18% gain in revenue year over year, led by a 31% gain in its investment banking arm. Wealth revenue rose 9%.
Net income fell to $3.2 billion, or $1.51 per share, from $3.5 billion, or $1.63 per share, a year earlier. Earnings were hurt by a higher cost of credit, including a net build of $315 million in Citi’s allowance for credit losses.
Citigroup CEO Jane Fraser took over in March 2021 and has focused on slimming down the bank during her tenure. That includes reducing Citigroup’s global presence and laying off workers. Investors will be looking for updates on Fraser’s turnaround plan during the analyst call later Tuesday morning.
Shares of Citigroup were up more than 28% year to date through Monday, outperforming both the S&P 500 and the financial sector. The stock was up 2% in premarket trading Tuesday.
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