Citigroup (NYSE:C) reported stronger-than-expected revenue for the third quarter on Friday, but net income declined year over year as the bank bulked up its credit loss provisions and investment banking slumped.
The bank reported $18.51 billion in revenue versus the $18.25 billion expected by analysts. This was up 6% year over year.
Net income fell 25% year over year to $3.48 billion. Citi reported $1.63 in earnings per share, but it is unclear if that is comparable to estimates.
The decline in profit came in part from an increase in loan loss reserves. Citigroup grew its allowance for credit losses by a net of $370 million during the quarter, compared with a release of more than $1 billion in the same period last year.
The total credit loss provision for the quarter came in at $1.37 billion.
Personal banking was a bright spot for Citi, as revenue rose 10% year over year to $4.33 billion.
On the trading front, Citigroup reported $3.06 billion in fixed income revenue and $1.01 billion in equities revenue. Analysts were expecting revenue of $3.19 billion and $965 million, respectively.
Bank stocks have been hammered this year over concerns that the U.S. is facing a recession, which would lead to a surge in loan losses. Citigroup shares have slumped 29% this year, leaving it by far the lowest-valued among its U.S. peers.
Shares of the bank rose 77 cents, or 1.8%, in early Friday trading to $43.72.
