Citigroup Q3 Earnings Beat, But Stock Drops 4%

Citigroup (NYSE:C) reported stronger-than-expected third-quarter earnings and revenue on Friday, but its shares dropped more than 4% intra-day today. The bank posted adjusted earnings per share of $1.51, surpassing Street predictions of $1.30. Revenue for the quarter reached $20.32 billion, exceeding the expected $19.84 billion and reflecting a 1% year-over-year increase. When excluding impacts from divestitures, Citigroup’s revenue showed a 3% growth compared to the same period last year.

Growth was evident across all major segments, with Services delivering record results backed by gains in loans, deposits, and assets. Markets revenue grew, marked by a 32% increase in Equities, while Investment Banking revenue jumped 31% due to a rise in investment-grade debt issuance.

Net income for Q3 stood at $3.2 billion, down from $3.5 billion a year ago, mainly attributed to higher credit costs. This was partially balanced by increased revenue and a 2% year-over-year decrease in expenses. The bank maintained a robust capital position, with its CET1 capital ratio inching up to 13.7% from the previous quarter’s 13.6%, and returned $2.1 billion to shareholders via dividends and share buybacks.