Q3 Earning: Strong trading revenue drives CitiGroup’s profit up by 48%

citigroup q3 earnings

CitiGroup announced its Q3 earnings on Thursday. The results came before the market opened.

  • Revenue: $17.2 billion  
  • EPS:  $2.15
  • Net Income : $4.6 billion
Other Significant Detail
  • The company repurchased 43 million common shares  
  • It returned $4.0 billion capital to common shareholders 
  • Payout ratio of 92% 
  • Book Value per share of $92.16 
  • Tangible Book Value Per Share of $79.04 
CEO’s Statement

Jane Fraser, Citi CEO, said, “The recovery from the pandemic continues to drive corporate and consumer confidence and is creating very active client engagement as you can see through our strong results in Investment Banking and Equity Markets, both up approximately 40% year-over-year, in addition to double-digit fee growth in Treasury and Trade Solutions as we help our clients reposition their supply chains.”

“And while strong consumer balance sheets have impacted lending, we are seeing higher consumer spending across our cards products. We also continue to show momentum in deposits and wealth management AUM as well as growing engagement across our digital channels. Overall, our revenues were 3% higher than last year excluding the impact of the sale of our consumer business in Australia.”

Analysts Estimate

This U.S. bank is expected to post quarterly earnings of $1.73 per share in its upcoming report, representing a year-over-year change of +23.6%. Revenues are expected to be $17.19 billion, down 0.6% from the year-ago quarter.

Earning History

Citigroup performed much better than the predicted and estimated numbers. The company’s net income came in at $4.6 billion, compared with $3.1 billion a year ago. This is a 48% increase year over year. The equity trading revenue was up 40% year over year.

Plans For Future

Jane Fraser, the CEO of Citigroup, disclosed the plans of the company. The group is urgently moving forward on its top priorities to narrow the returns gap with their peers responsibly. So far this year, the company has returned close to $11 billion to shareholders through a healthy dividend and stock repurchases. The company promises to remain committed to returning excess capital over and above the amount necessary to invest in their franchise and to maintain its safety and soundness.

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