Citigroup Inc (C) delivered a mixed bag of results in its third-quarter fiscal 2024 earnings report, exceeding revenue estimates but seeing a decline in net income. The financial giant posted a 1% year-over-year increase in revenue, reaching $20.32 billion, surpassing analyst predictions of $19.84 billion. Excluding divestiture-related impacts, revenue growth jumped to 3%. This positive performance was driven by strong growth in key segments like investment banking, securities services, and US Personal Banking.
However, Citigroup’s net income took a hit, declining 9% year-over-year to $3.24 billion. This dip was primarily attributed to a decrease in net income from US Personal Banking and other operations. Despite the decline in net income, Citigroup’s GAAP earnings per share (EPS) came in at $1.51, outperforming analyst estimates of $1.31.
Citigroup’s performance was further highlighted by several key areas of growth:
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Services Revenue:
This segment saw an 8% year-over-year increase to $5.03 billion, driven by continued momentum in Securities Services, Treasury, and Trade Solutions.*
Markets Revenue:
This sector experienced a 1% year-over-year increase to $4.82 billion, fueled by growth in Equity markets revenues, partially offset by lower Fixed-Income markets revenues.*
Banking Revenue:
This area saw a significant 16% year-over-year rise to $1.6 billion, primarily driven by growth in Investment Banking.*
U.S. Personal Banking Revenue:
This segment grew 3% year-over-year to $5.05 billion, propelled by higher net interest income.*
Wealth Revenue:
This area saw a 9% increase to $2.0 billion, driven by a 15% increase in non-interest revenue.While Citigroup experienced positive growth in several areas, its “All other revenue” category declined 18% year-over-year to $1.83 billion, primarily due to closed exits and winddowns.
Citigroup’s CEO, Jane Fraser, highlighted two key initiatives that demonstrate the company’s commitment to innovation and growth. These include a new cross-border payments capability with Mastercard Inc (MA) and a $25 billion private credit partnership with Apollo Global Management, Inc (APO).
Looking forward, Citigroup remains confident in its future, reiterating its fiscal 2024 adjusted revenue outlook of $80.00 billion—$81.00 billion, aligning with the consensus estimate of $80.36 billion. The company’s stock has gained over 61% in the last 12 months, demonstrating investor confidence in its long-term prospects.
While Citigroup’s third-quarter results showcased a mixed performance, its commitment to growth, strategic partnerships, and optimistic outlook suggest a bright future for the financial giant. The company’s continued focus on innovation and adapting to the evolving financial landscape positions it for sustainable success in the years to come.