Citigroup (NYSE:C) reported its third-quarter results on Friday morning, with solid growth in both institutional clients and personal banking fueling higher-than-expected revenue.
Earnings per share were reported at $1.63, not comparable to the expected $1.21 due to divestitures. Excluding divestitures, earnings per share were $1.52.
Revenue proved $20.14 billion, vs. expected $19.31 billion. Revenue rose 9% year over year. Net income moved upward 2%.
Citigroup’s institutional clients’ unit reported $10.6 billion in revenue, up 12% year over year and 2% from the second quarter. The personal banking and wealth management division generated $6.8 billion in revenue, up roughly 10% year over year and 6% from the second quarter.
“Despite the headwinds, our five core, interconnected businesses each posted revenue growth resulting in overall growth of 9%,” CEO Jane Fraser said in a press release.
Friday’s earnings report includes the period during which Fraser announced that the bank would be divided into five main business lines, the latest change for the CEO since taking over in March 2021. The new structure, announced on Sept. 13, is expected to include job cuts.
Citigroup reported $1.84 billion in total cost of credit at the end of the quarter, up slightly from $1.82 billion at the end of the second quarter and $1.37 billion a year ago. That metric includes a net build of $125 million in the allowance for credit losses in Q3.
Citigroup’s stock was down 8% for the year entering Friday. The shares began Friday with a charge, picking up $1.68, or 4%, to $43.21.
