Citigroup revealed its third-quarter results, impressing with robust growth in institutional clients and personal banking, leading to higher-than-anticipated revenue and earnings per share. The reported figures were compared with the expectations of analysts surveyed by LSEG (formerly Refinitiv). The results showcased a year-over-year increase of 9% in revenue and net income. The institutional clients unit of Citigroup reported revenue of $10.6 billion, marking a 12% increase from the previous year and 2% from the second quarter. The bank mentioned this to be their best third quarter in the last decade for rates and currencies revenue. Concurrently, the personal banking and wealth management division generated $6.8 billion in revenue, showcasing a year-over-year growth of approximately 10% and a 6% increase from the second quarter.

CEO Jane Fraser expressed contentment with the results, emphasising the overall 9% revenue growth across their interconnected core businesses despite the existing challenges. However, the bank’s stock experienced a 0.2% decline for the day, contributing to an over 8% downturn for the year. Regarding credit costs, Citigroup reported a total cost of credit of $1.84 billion at the end of the quarter, slightly up from $1.82 billion in the preceding quarter and significantly higher than the $1.37 billion reported a year ago. This figure included a net build of $125 million in the allowance for credit losses during the third quarter, contrary to analysts’ expectations. The CEO also discussed the global macroeconomic landscape, highlighting a desynchronised narrative. She emphasised that while the US is experiencing a soft landing, historical data suggests otherwise, and there are concerns about the lower credit score consumer. The euro area and the UK have faced a more negative outlook. The quarter included Fraser’s announcement of restructuring the bank into five main business lines to create financial benefits. Citigroup’s net interest margin for the quarter exceeded expectations at 2.49%, higher than the anticipated 2.41%.