Citigroup Inc (NYSE:C) reported third-quarter 2024 revenue growth of 1% year over year to $20.32 billion, surpassing analyst consensus estimates of $19.84 billion. Excluding the consequences of divestments, revenues increased by 3%.
GAAP earnings per share of $1.51 beat analysts’ consensus estimate of $1.31.
The stock climbed after quarterly earnings during the premarket session, but gave up gains.
Also read: Bank of America Q3 earnings: profit drops 12% due to loan loss provisions, investment banking costs rise 18%
Net credit losses were $2.17 billion, up 33% year over year. Services revenue grew 8% year over year to $5.03 billion, primarily due to continued momentum in Securities Services, Treasury and Trade Solutions.
Markets revenue increased 1% year-over-year to $4.82 billion, driven by equity market revenue growth, partially offset by lower fixed income revenue.
Banking revenues rose 16% year over year to $1.6 billion, mainly driven by growth in Investment Banking. US Personal Banking revenues increased 3% year over year to $5.05 billion, driven by higher net interest income.
Asset income rose 9% to $2.0 billion, driven by a 15% increase in non-interest income. All other revenues fell 18% year over year to $1.83 billion, mainly due to closed exits and bankruptcies.
Net income of $3.24 billion fell 9% year over year, mainly due to declines in net income at US Personal Banking (USPB) and All Other. Operating expenses were $13.3 billion, down 2% year over year.
Total provision for credit losses on loans was $18.4 billion, with a ratio of reserves to funded loans of 2.70%, compared to $17.6 billion, or 2.68% of funded loans, at the end of the period last year.
Citigroup’s period-end loans were $689 billion at the end of the quarter, up 3% year over year, primarily due to growth in U.S. Personal Banking and higher loans in Markets and Services.
At the end of the quarter, deposits stood at ~$1.3 trillion, up 3% year-over-year, mainly due to an increase in the services sector.
At the end of the quarter, Citigroup’s book value per share was $101.91 (+3% annualized) and tangible book value was $89.67 (+3% annualized).
Citi CEO Jane Fraser highlighted its new cross-border payment options with Mastercard Inc (NYSE:MA) and a $25 billion private lending partnership with Apollo Global Management, Inc (NYSE: APO).
OutlookCitigroup reiterated its fiscal 2024 adjusted revenue guidance of $80.00 billion – $81.00 billion, compared to the consensus of $80.36 billion.
Citigroup shares are up more than 61% in the past twelve months. In September, the US Fed cut lending rates by 50 basis points, lowering the central bank’s benchmark interest rate to 4.75%-5% to stimulate lending.
Price promotion: C shares are down 1.88% to $64.78 at last check on Tuesday.
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This article Citigroup Q3 earnings: Profit falls 9%, investment banking revenue rises, Mastercard and Apollo Partnerships originally appeared on Benzinga.com
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