Citigroup shares rise as Q3 earnings, revenue top estimates

Investing.com — Citigroup reported third-quarter earnings and revenue that surpassed analyst expectations, sending its shares up 2.2% in early trading on Friday.

The banking giant posted adjusted earnings per share of $1.51, beating the consensus estimate of $1.30. Revenue came in at $20.32 billion, topping expectations of $19.84 billion and rising 1% YoY. Excluding divestiture-related impacts, revenue grew 3% compared to the same quarter last year.

Citigroup’s performance was driven by growth across all business segments. Services delivered a record quarter with increased loans, deposits, and assets. Markets revenue rose, highlighted by a 32% jump in Equities. Investment Banking revenue surged 31%, primarily due to higher investment grade debt issuance.

“In a pivotal year, this quarter contains multiple proof points that we are moving in the right direction and that our strategy is gaining traction,” said Citigroup CEO Jane Fraser.

The bank’s net income for the quarter was $3.2 billion, down from $3.5 billion in the prior-year period, primarily due to higher credit costs. This was partially offset by increased revenue and lower expenses, which fell 2% YoY.

Citigroup maintained its Common Equity Tier 1 (CET1) capital ratio at 13.7%, up slightly from 13.6% in the previous quarter. The bank returned $2.1 billion to shareholders through dividends and share repurchases during the quarter.

Looking ahead, Fraser stated that Citigroup is on track to meet its expense and revenue targets for the year and aims to “close out 2024 with momentum as we prepare for 2025.”