Citigroup Inc C reported a third-quarter fiscal 2024 revenue growth of 1% year-over-year to $20.32 billion, beating the analyst consensus estimate of $19.84 billion. Excluding divestiture-related impacts, revenues were up 3%.
GAAP EPS of $1.51 beat the analyst consensus estimate of $1.31.
The stock climbed after the quarterly print in the premarket session but gave up gains.
Net credit losses were $2.17 billion, up 33% Y/Y. Services revenue grew 8% year over year to $5.03 billion, primarily reflecting continued momentum in Securities Services, Treasury and Trade Solutions.
Markets revenue increased by 1% year over year to $4.82 billion, driven by growth in Equity markets revenues, partially offset by lower Fixed-Income markets revenues.
Banking revenue increased 16% Y/Y to $1.6 billion, primarily driven by growth in Investment Banking. U.S. Personal Banking revenue grew 3% Y/Y to $5.05 billion, driven by higher net interest income.
Wealth revenue grew 9% to $2.0 billion, driven by a 15% increase in non-interest revenue. All other revenue declined 18% Y/Y to $1.83 billion, primarily due to closed exits and winddowns.
Net income of $3.24 billion decreased by 9% year over year, primarily reflecting a decline in net income in U.S. Personal Banking (USPB) and All Other. Operating expenses stood at $13.3 billion, a decrease of 2% year over year.
The total allowance for credit losses on loans was $18.4 billion, with a reserve-to-funded loans ratio of 2.70%, compared to $17.6 billion, or 2.68% of funded loans, at the end of the prior-year period.
Citigroup’s end-of-period loans were $689 billion at the quarter’s end, up 3% Y/Y, mainly reflecting growth in U.S. Personal Banking and higher loans in Markets and Services.
At quarter end, deposits were ~$1.3 trillion, up 3% from the prior year, primarily due to an increase in Services.
At the end of the quarter, Citigroup’s book value per share was $101.91 (+3% Y/Y), and its tangible book value was $89.67 (+3% Y/Y).
Citi CEO Jane Fraser flagged its new cross-border payments capability with Mastercard Inc MA and a $25 billion private credit partnership with Apollo Global Management, Inc APO.
Outlook: Citigroup reiterated its fiscal 2024 adjusted revenue outlook of $80.00 billion—$81.00 billion, compared to the consensus of $80.36 billion.
Citigroup stock gained over 61% in the last 12 months. In September, the U.S. Fed slashed the lending rate by 50 bps, lowering the central bank’s benchmark rate to 4.75%-5% to promote borrowing and lending activities.
Price Action: C stock is down 1.88% at $64.78 at the last check on Tuesday.
Also Read:
Image via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
