Citigroup C earnings Q3 2024 beat estimates

Citigroup reported third-quarter outcomes Tuesday that topped Wall Road expectations, with progress in funding banking and wealth administration. Nevertheless, the financial institution put aside extra money to offset potential mortgage losses.

Shares of the financial institution, which had traded greater earlier than the market’s open, had been just lately down 1.6%.

Here is what the corporate reported in contrast with what Wall Road analysts surveyed by LSEG had been anticipating:

• Earnings per share: $1.51 vs. $1.31 anticipated
• Income: $20.32 billion vs. $19.84 billion anticipated

Citigroup’s banking division reported 18% acquire in income yr over yr, led by a 31% acquire in its funding banking arm. Wealth income rose 9%.

Internet earnings fell to $3.2 billion, or $1.51 per share, from $3.5 billion, or $1.63 per share, a yr earlier. Earnings had been harm by the next price of credit score, together with a internet construct of $315 million in Citi’s allowance for credit score losses.

Income rose 1% to $20.32 billion from $20.14 billion a yr in the past.

On the markets aspect, fairness markets income rose 32% yr over yr, however fastened earnings income dipped 6%.

Citigroup CEO Jane Fraser took over in March 2021 and has targeted on slimming down the financial institution throughout her tenure. That features decreasing Citigroup’s world presence and shedding staff. Traders might be in search of updates on Fraser’s turnaround plan through the analyst name later Tuesday morning.

“This quarter incorporates a number of proof factors that we’re transferring in the proper path and that our technique is gaining traction, together with constructive working leverage for every of our companies, share good points and price progress,” Fraser stated within the earnings launch.

Citi’s internet curiosity earnings fell 3% yr over yr to $13.4 billion because the margin shrank. Internet curiosity earnings was $11.96 billion excluding the markets enterprise, which was additionally a decline from a yr in the past. Citi stated it anticipated the non-markets metric to be roughly the identical within the fourth quarter as on this interval.

Citigroup did drive down bills by 2% yr over yr and stated it anticipated full-year bills to match steerage of $53.5 billion to $53.8 billion, excluding some regulatory prices.

Shares of Citigroup had been up greater than 28% yr thus far via Monday, outperforming each the S&P 500 and the monetary sector.

The opposite main banks which have reported third-quarter outcomes to this point have additionally crushed earnings expectations, together with Goldman Sachs and JPMorgan Chase.