Citigroup (C.US) reforms have paid off! Most of the five major businesses were strong, and the trading business achieved the best performance in ten years

The Zhitong Finance App learned that before the US stock market on Tuesday, Citigroup (C.US) announced the third quarter results. According to the data, Citi's Q3 revenue was US$20.32 billion, up 0.9% year on year, exceeding market expectations; net profit was US$3.2 billion, down 9% year on year; and earnings per share were 1.51 US dollars, which greatly exceeded market expectations.

Citigroup's trading business benefited from a sharp rise in the volatility of various assets in recent months and achieved the best results in at least a decade in the third quarter.

The bank's marketing division's third-quarter revenue rose 1% to $4.82 billion, an unexpected increase. Just a few weeks ago, the company also warned investors that it expected market revenue to decline. Among them, stock trading revenue surged 32%, which boosted the development of the business.

Citibank's net interest revenue for the third quarter was $13.4 billion, down from $13.5 billion in the second quarter and $13.8 billion in the third quarter of last year.

Citi also recorded $2.7 billion in reserves this quarter due to increased losses in the company's credit card business. Although a surge in credit card non-performing loans dragged down profits during the quarter, Citigroup's revenue from four other major business services, banking, wealth, and US personal banking businesses also increased compared to the same period last year.

In the banking sector, Citigroup's revenue increased 16% to $1.6 billion, with investment banking expenses increasing 44%. Revenue from the bank's huge service business increased 8% to $5 billion, while revenue from the US personal banking sector increased 3% to $5 billion. The bank's wealth business revenue soared 9% to reach 2 billion US dollars.

These results are key wins for CEO Jane Fraser (Jane Fraser) and her bank transformation. She overhauled the bank's structure, abolished 20,000 positions, and brought in new senior management from competitors.

“In a critical year, this quarter contains multiple evidences that we are moving in the right direction and our strategy is gaining momentum,” Fraser said in a statement.

Performance Guidelines

Thanks to lower spending, Citi is expected to meet its full-year revenue and expenditure targets.

Net interest income for the full year (excluding the market) is expected to be “slightly lower” compared to the previous forecast. Net interest revenue for the fourth quarter (excluding the market) is expected to be roughly the same as the third quarter's $13.4 billion, the company said.

The bank reiterated that its full-year revenue was approximately $80 billion to $81 billion, compared to the general estimate of $80.4 billion.