Citigroup (NYSE:C) reported on Tuesday better-than-expected results for the third quarter, sending the stock up as the company’s credit costs from the pandemic stabilized.
"We continue to navigate the effects of the COVID-19 pandemic extremely well. Credit costs have stabilized; deposits continued to increase," CEO Michael Corbat said.
Citigroup reported that net credit losses declined to $1.9 billion in the third quarter from $2.2 billion in previous three-month period.
Citigroup, the third-biggest U.S. bank by assets, is in the midst of a major management change.
Last month, the bank announced that longtime CEO Michael Corbat would be replaced by his deputy Jane Fraser in February, marking the first big Wall Street bank to have a female CEO.
Corbat’s departure was hastened by a sagging share price and pressure from regulators. Last week, the bank agreed to pay a $400 million penalty for failing to address "several longstanding deficiencies" in its risk controls.
Besides forcing it to improve its risk management, regulators can now reject acquisitions sought by the bank and push for changes to management or the board if necessary.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions.
To quote Tuesday’s news release, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
C shed 15 cents to $45.73.
