Citigroup's third-quarter results revealed a mixed performance, with the bank's net income falling 9% year-over-year to $3.24 billion, or $1.51 per share. Despite this decline, the earnings surpassed analysts' expectations, and revenue increased by 1% to $20.32 billion, driven primarily by a strong performance in investment banking, which saw a remarkable 31% rise. However, the bank faced significant challenges as its cost of credit surged to $2.7 billion, largely due to increased credit card losses and a higher allowance for credit losses, which climbed to $22.1 billion. CEO Jane Fraser emphasized the ongoing transformation of the bank, asserting that the results indicate progress in their strategic initiatives, highlighting positive operating leverage, market share gains, and fee growth across various business segments. Although Citigroup shares experienced a 1.4% decline on the day, they have risen over 25% in value throughout 2024, reflecting investor confidence in the bank's future prospects.
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